2011

TheWashingtonNationals

AdamGerber,DrewHaines,Andrea Nowack,VivekSupnekar TheGeorgeWashingtonUniversity 10/17/2011

TableofContents
Introduction..2 LeagueOverviewandTrends..................................................................................2 WashingtonNationalsOverview...3 DataSources.4 InformationManagementInfrastructure....6 AnalyticalAssessmentToday...6 DataAnalysis.8 WeAnalyticsandSocialMediaMarketing10 Recommendations.12 AnalyticalRoadmap..16 EvaluationandMaintenanceofPlan...17 TimelineforImplementation....18 Conclusion..19 Appendix..20

Introduction
WereallfamiliarwiththeconceptofMoneyball,especiallynowthatitistypicallythoughtof inassociationwithBradPitt,whoplaysBillyBeanoftheOaklandAthleticsinthenew,majorHollywood studioproduction.MinorLeagueBaseballteamshavebeencompetingonanalyticsforyears, developingadvancedstatisticalmodelstorecruitandattracttoptalentwhilekeepingoperatingcosts minimal.Infact,somanyteamshavecaughtontotheconceptthatitisnolongerasourceofstrategic competitiveadvantageformostteams. Humanresourcesisoneoftheonlybusinessfunctionswhereteamshavehistoricallyprioritized andcompetedonanalytics.Butasbusinessesinallindustriesarebecomingincreasinglyanalytical, teamsarebeginningtorecognizeotherfunctionsthatanalyticscanhelpsupport.Oneoftheseareasis inconsumermarketing. OnMonday,October3rd,ourgroupmetwithScottLewis,theDirectorofConsumerMarketing fortheWashingtonNationals,tolearnhowD.C.sownlocalbaseballteamemploysanalyticalmodels, nottorecruittoptalent,buttofillseats. BeforeScottcametothecompanythreeyearsago,datawasntjustunderutilized,itwasrarely requested.However,throughourconversationswithScott,wehavelearnedthattheNationalshave comealongwaytowardmakingconsumeranalyticsasourceofcompetitiveadvantage,andwehave identifiedseveralopportunitiesforfuturegrowth.Inthefollowingpaper,wewilldiscussafewofthese opportunitiesandprovidearoadmapthatTheNationalscanimplementtobecomeatrulyanalytical competitor.

LeagueOverviewandTrends
MajorLeagueBaseballisthenationspastimeaswellasasignificantbusinessintheUnited States.Theleaguehasseensubstantialgrowthasithasdevelopedfroma16teamorganization(eight teamsintwoseparateleagues)in1903toaleaguewith30teamstoday.Whileeachofthe30teams, locatedin28differentU.S.citiesand1inCanada,operatesasitsownseparatebusiness,MajorLeague Baseballistheregulatorandgovernoroftheentireleague.Thus,theMLBisresponsiblefortheofficial rules,regulatingteamownershipandcollectinglicensingfeesformerchandise(suchasjerseys,hats, etc.).MajorLeagueBaseballisalsoresponsibleforsellingnationalbroadcastingrights(franchisesare abletonegotiateregionalbroadcastingrights)anddistributingfeestoeachoftheteams. SomeoftodaysmostsuccessfulfranchisesaretheNewYorkYankees,BostonRedSoxand PhiladelphiaPhillies.Eachoftheseteamsboastedincreasedrevenuesandattendancefor2011,withthe Philliesleadingtheleaguewith104%attendance(standingroomonly)andpushedtheirconsecutive selloutstreakto204games;whichissecondonlytoBostons712consecutivesellouts.1However,within thissuccessfulleague,aremanyopportunitiesforimprovement.Teams,bothwithwinningandlosing records,haveseensignificantdropsintheirattendancerecordsoverthepastfewyears.Evenwiththe
1

MLBAttendanceReport2011.ESPN.http://espn.go.com/mlb/attendance

reductioninticketprices,salesfiguresaredeclining.Outofthetenteamsthatcutpricesin2011,seven ofthemhaveworsesalesthanlastseasonsomesignificantlyworse.2Whilepartofthedropisdueto therecentrecession,thereareothersignificantfactorsthatplayaroleindeterminingateams attendancerecords. In2011MajorLeagueBaseballsawa0.53%increaseinoverallattendance.3 o Overallattendanceof73,425,568in2011(Phillies3,680,718). The30teamscombinedtohaveanaverageattendanceof30,229in2011upfrom30,067last year.Thisstatisticis8%belowthe2007recordof32,785. Clevelandsawthebiggestincreaseinoverallattendanceandwasup31%to22,726fans. Pittsburghsawa22%increaseandTexasan18%increase. Evenwithagreatseason,andmakingtheplayoffs,TampaBayexperiencedbaseballsbiggest decreaseinattendance,19%. o 18,846fans,45,000seatingcapacityabout42%ofcapacity. Houston,theteamwiththeworstrecordin2011,sawitsattendancedrop11%to25,546.

WashingtonNationalsOverview

In2005,theMontrealExposfranchisemovedtoWashington,D.C.andbecametheWashington Nationals.Theyplayedtheirfirst3seasons,2005through2007,inRFKstadiumlocatednearthe StadiumArmorymetrostation.Sincethen,theNationalshavemovedintotheirnew,stateoftheart facilityadjacenttotheNavyYardmetrostationNationalsPark. TheNationalsmostsuccessfulyearintermsofattendancewas2005,theyeartheteam relocatedtoWashington,whentheyranked11thoverallintheleaguewith33,728fans.Additionally, whentheirnewstadiumopenedin2008,theNatsattractedmorethan29,000fanspergame,whichis muchhigherthanthe23,998theyachievedtheprioryear(thisfigureisalso16%higherthanthe2011 attendanceof24,526).4In2011,theNationalsdidachieve60%oftheirseatingcapacity,upfrom55%in 2010,withtheirfansbasedonthestadiumscapacitytohold41,000.Therecenttrendhowever,until thisyear,hasbeennegative.TheWashingtonNationalsarelookingnotonlyformorewins,butawayto putmoreoftheirfansintheseatsonaconsistentbasis. WashingtonNationalsObjectives: TheshorttermgoalsoftheWashingtonNationalsareto1)increasethenumberofcustomers purchasingfullseasonticketplansand2)tofillseatsbasedonsinglegametickets.Inordertoachieve thesegoals,theteamhastakenauniqueapproachtoreachitsfansandisoneofthefewteamsthat haveaconsumermarketingdepartmenttoanalyzethecustomerdata.Whileseveralmajorleague teamsfillseatssimplybywinninggamesorbyhavingastrong,historicfollowing,theNationalsarenot
2

Passan,Jeff.TeamsSeekSolutionstoDecliningCrowds.Yahoo!Sports. http://sports.yahoo.com/mlb/news?slug=jppassan_10_degrees_attendance_042511(April25,2011). 3 AttendanceUpByUnderOnePercent.AssociatedPress.http://espn.go.com/mlb/story/_/id/7035729/major leaguebaseballattendance1percent(September29,2011). 4 WashingtonNationalsAttendance,Stadium,andParkFactors.Baseballreference.com.http://www.baseball reference.com/teams/WSN/attend.shtml

accustomedtothisluxury.Infact,theNationalsarestillestablishingtheirrootshereinWashington andhavefounditchallengingtoattractdiehardfansgiventheirshortlifespanof7years.Additionally, becauseD.C.isknowntobeatransplantcity,withmanyindividualsbringingtheirballclubsteam loyaltywiththem,itisdifficulttounderstandtheconsumersinthelocalmarket. InourdiscussionwithScottLewis,hepointedoutthatafewofthetrendslistedabovedorelate toattendancenumbers.Inadditiontotheoverallleaguetrendsandtherecession,Scottmentioned significantfactors/variablescontributingtoattendanceperformancesuchasweather,opponent,dayof theweekandtimeofday.ThesearevariablesthattheNationalsdeterminedmustbeaddressedin ordertounderstandthetruenatureoftheD.C.baseballmarketandisonereasonwhytheNationalsare heavilyfocusedonconductingdataanalysis. SowhyexactlydotheNationalscollectsomuchconsumerdatawhenotherteamsdonot?Since theNationalsarenotthemostcompetitiveontheballfield,itisextremelyimportantforthemto competeonconsumeranalyticsinordertofillseats.Whilethereisntalwaysadirectpositive1:1 correlationofwinningandattendancerecords,5itisasignificantfactorindetermininghowmanyfans areattractedtoateamduringagivenseason.Additionally,theydonthavetheluxuryofalonghistory ofbaseballinWashington(notincludingtheSenators).ThismeanstheNationalsfanbasehasnotyet reacheditsfullpotential,andtheyneedtoexploreotherwaystoattractfanstothestadiumongame day. TheWashingtonNationalsproactiveapproachtogatheringconsumerdatahasputthemahead ofotherteamsintermsofunderstandingtheirfansandtheirhabits/trends.Whiletheymightnotbe leadingtheleagueinattendance,theyhavemadesignificantprogressinunderstandingtheiryoung, opportunetargetmarket.

DataSources
Asmentionedearlier,theWashingtonNationalsalreadygatheralotofdataaboutitsfansand targetmarketthroughalargenumberofsources.Whilemanyofthesesourcesareinternal,theyalso dependonexternalsourcesfordataandanalytics.TheNationalsdonothavecompletecontroloverall oftheirdataandsometimesthismakesitdifficulttoaccesstherightinformationattherighttime.
5

Caple,Jim.WhatsNextforTampaBayRays?ESPN.com. http://espn.go.com/mlb/playoffs/2011/story/_/id/7059990/tampabayrays(October5,2011)

Thedatasourcescanbeprimarilydividedintofourcategories.Thesecategories,datasources andtypesofdatacollectedareexplainedbelow: A]PrimaryRevenueDrivers:Ticketsales(Primary&Secondary),ParkingSales,Merchandise, ConcessionsandSponsorshipsareidentifiedasprimarysourcesofrevenue.Internalsourcesprovide informationonparkingsalesandsponsorship.Externalsourcesprovideinformationonotherrevenue streamssuchasmerchandiserevenuepergameorpercapandrevenuefromconcessionsinstands,in seatvending,etc.Primaryticketsalesinformationlikeseasonandsinglegametickets,aswellasgroup ticketsareavailablewithinternalsystembutsecondaryticketsalesinformationcomesfromexternal sourceslikeMLBAMandStubHub.com. B]AdvancedMedia:DatarelatedtotheWashingtonNationalswebsite,socialmediacampaignsis providedbyexternalsources.Omniturecapturesimportantinformationaboutpageviews,numberand timingofvisits.OmnitureserviceisusedbymostoftheMLBteams.Otherimportantinformationlike clickthrurates,optoutratesandinformationrelatedtothesuccessofvariouscampaignsonsocial mediasitescomefromFanalytics. C]CRM/FanData:TheWashingtonNationalscurrentlymaintainaMicrosoftCRMsystem.Fan informationsuchasmailingaddress,comments,buyinghistoryetc.ismaintainedintheCRMsystem. Additionally,theexternalsystem,MLBAMFormTool,providesinformationaboutfans.Thedatafrom varioussurveysthatprovidevaluableinsightintothedemographicinformationoffansisalsogathered throughexternalsources. D]OtherDataSources:TheWashingtonNationalsalsouseonlinetoolssuchasGoogleAdsand DoubleClicktogatherdataonitsonlineadvertising.Informationlikeviewthru,clickthruratesand revenuegeneratedarereceivedviathesetools.TheNationalsalsodependonmarketresearchtoolsto provideinformationonfandemographicsincomparisonwithoverallDCmarket. Adetailedsummaryofalltheinformationaboveisattachedintheappendices. TheWashingtonNationalshavenumerousdatasources,butsimilartomanyothersmall organizations,thearefacingthechallengeofhowtocompilethedatatomakesenseofitall.Many organizationsdoagreatjobofcollectingdataaggressivelybutlaterfailtoutilizeit,resultinginlessthan expectedresultsfromtheinvestmentinCRMsystems. SusanLawler,coordinatorforconsumermarketingfortheNationalstoldusthattheteam receivesdatainmorethanthirtydifferentforms/spreadsheets.Allthisdatacomesfromdifferent sourcesandthereisnostandardformatting,whichmakesitdifficulttoclean,compile,analyzeand interpret. Extractingdataoutofthesesheetsisatedious,timeconsuming,anderrorproneprocess.The resultisaCRMsystemthatisnotutilizedtoitsfullcapacity.Sincedataisnotconsistentlyorganizedand thereisnostandardizationacrossdifferentfunctionsoftheorganization,eachdepartmenthasitsown

definitionsfordifferentattributes.Unlessthereisstandardizationofdataandinformationexchange betweendifferentdepartments,itwillbeverychallengingtoidentifyanalyticalopportunitiesthatexist. TheWashingtonNationalscurrentlyhavealltherequiredinformationaboutseasonticket holdersbutitssystemscannottrackanyinformationaboutbuyersbuyingtheticketsinwalkupform atthegates.Alsothereisnowaytotrackpurchasesmadebyfansoncetheyenterthestadium(forboth seasonticketholdersandsinglegameticketholders).Therefore,theNationalscannottrackinformation suchashowmuchmoneyaseasonorsinglegameticketholderisspending,ifhe/sheisspendingmore onmerchandiseorfood,orwhatistheresultofdiscountsoneachsegmentetc.andthereforethey cannotpersonalizemarketingandpromotionaloffers.

InformationManagementInfrastructure
TheNationalscurrentlydonotownmostofitsITinfrastructure,includingitsownwebsite.Its websiteisownedbyMLBAM(whichwewilldiscussindeptlater).ItownsandmanagessomeIT infrastructuresuchastheticketingsystemandtheCRMsystem.But,asmentionedearlier,these systemsarehighlyfragmented,andbuildinganenterprisesystemthatwouldencompassdifferent functionsanddepartmentswouldbehighlybeneficialfortheNationals.Itwouldprovidetheright infrastructuretoexpanditsCRMsystemandgrowrevenueswithhighlyefficientpersonalized marketing.

AnalyticalAssessmentToday
AccordingtoJeanneHarris, becomingananalyticalcompetitor callsfirstforaclearheadedrecognition ofwhereyourcompanyispositioned intermsofitscurrentuseofand aptitudeforanalyticalprocesses.6 Thus,inordertoaccuratelydevelopa roadmapforanalyticalcompetition, wemustfirsttakeastepbackand considerwheretheNationalsare today. Basedonthematurityof analyticalcapabilitystagesoutlined byDavenportandHarrisinCompeting onAnalytics,theNationalscanbroadly bedefinedascurrentlycompetingat
Figure1:TheFiveStagesofAnalyticalCompetition,Davenport&Harris

Harris,JeanneG.WinningwithAnalytics.AccentureOutlookMay2007. [http://www.accenture.com/SiteCollectionDocuments/PDF/OutlookPDF_analytics_FINAL.pdf]

Stage3AnalyticalAspirations(seeFigure1).7Theyhaveidentifiedanumberofdifferentconsumer datasources,andtheyhaveestablishedaneedtocoordinateallsourcestogainadeeperunderstanding ofthepurchasinghabitsoftheircustomers.

Currently,theNationalsengageinmanyformsofdescriptivedatacollectionandanalysis.They collectdetailedinformationatavarietyoftouchpoints(describedindetailearlierinthepaper)on customertransactions,whatfactorsinfluencegamedayattendance,websurfingpatterns,andmuch more.Whenacustomerpurchasesaticketonline,theyareaskedforinformationsuchastheirname andemailaddress.Similarly,whentheycalltheTicketSalesoffice,salesrepskeeptrackandmakea recordofuniqueinformation,suchasfavoriteplayersandbirthdays,thatcanbereferencedin subsequentconversations.Additionally,theNationalshavealreadytakenstepstousethedatafor generalpredictivemodelingpurposes.Forexample,theyhavefoundthattheonemostimportant factorindetermininggamedayattendanceisweather.Interestingly,theyalsofoundthatthewin/loss recordisnotsignificantlycorrelatedwithattendance(although,wepredictthatthereisalikely thresholdwhere,atacertainpointabove.500,itwouldbeasignificantvariable).Althoughtheydonot yetusepredictivemodelingtoestimategamedayrevenueormerchandise/concessionpurchasesand upsells,theycanusetheirmodelstomakegeneralassumptionsonattendancesothattheycanstaff gamesaccordingly.Scottmentionedthatbyusingthebasicpredictivemodeltheyhavealready developed,theNationalscanusuallyforecastthegeneralnumberoffanswhowillbeatanyspecific game,withinafewthousandpeople,andthisisalltheyreallyneedtoknowforgeneralgameday staffingpurposes.BasedonourinitialanalysisoftheNationalsanalyticalcapabilities,wefeelthatthey areontherighttracktowardturningcustomerdataintoasourceofcompetitiveadvantage. However,theNationalsarecurrentlyhamperedbyasignificantchallengetheyhavetoomany sourceswheretheycouldpotentiallycollectcustomerdata,andtheydonothaveaclearandconsistent strategytoorganizeandusethedatatheydocollect.Further,theyarenotclearlycertainthattheyare collectingtherightdata.Asaresult,customerdataseemstobeverysiloed,whichprohibitsitfrom beingusedeffectivelyandcrossfunctionally.TheNationalsdonotcurrentlyhaveonesingledatabase,a DataWarehouse,wheretheyhousecustomerdatarather,dataiscollectedspontaneously(evenas .txtfilesfromsomesources),pulled,andorganizedintoseparateexcelsheetswhenneeded.Further, theNationalsareonlyabletocapturedatafromnonseasonticketholderswhopurchaseticketsby Web,phone,andStubHubtheycurrentlyhavenosysteminplacetocapturedatafromtheseveral thousandpeoplewhopurchaseticketsviawalkupcountersales. Intermsofconsumermarketing,despitethewealthofcustomerdatasourcesavailabletothe Nationals,manymarketingandpromotioncampaignsarestillcreatedbasedonintuition.Further,the companyisstillverylimitedastowhatconsumerdataitcancollect.Theycaneasilycollectpurchases madeviaonlinechannels,however,manysportsenthusiastsnowadaysturntothesecondaryticket markettopurchasetickets,orpurchaseticketsattheticketwindowbasedonalastminutedecision. TheNationalsareunabletocollectcustomerinformationusingeitherofthesesources.Inshort,the
7

Davenport,ThomasH.andJeanneG.Harris.CompetingonAnalytics.Boston:HarvardBusinessSchoolPress, 2007.

Nationalsaresomewhatlackinganenterpriselevelapproachtoandmanagementofanalytics,oneof thekeydistinguishersofananalyticalcompetitor.8Additionally,althoughScottandhisteamwidely recognizetheneedtodevelopabroadanalyticalapproachtoconsumermarketing,itseemsthatfullC Suitelevelsupportisstillneeded.BeforeScottcametothecompanythreeyearsago,theNationals werenotadatadrivencompanyintermsbusinessfunctionsoutsideofhumanresources,andthough thatoutlookhasbeenchangingsinceScottsarrival,itseemsthathisteamisstillnotallocatedthe budgetandsupportthatisneededtobecomeananalyticalcompetitor. Insum,basedontheconsumerdatathatScottandhisteamcurrentlyhaveavailable,theyare oftenabletosaywethink,butnevertrulyabletosayweknowwhentargetingcustomerswith offersorlaunchingpromotionalcampaigns.However,theNationalshavemadehugestridesinthearea ofconsumerdataanalyticsinthepastfewyears,andwefeelthattheNationalshaveahugeopportunity tomovefromLevel3toLevel5throughimplementingaclearandpreciseroadmaptoanalytical competition.

DataAnalysis
DataProfilingandDescriptiveSegmentation Inordertodevelopbetterandmoreeffectivemarketingcampaigns,theNationalsmustfirst gainasolidunderstandingofwhotheircustomersareandattributestheypossess.Theycandothisby enactingcustomerprofiling,wheretheywilluseallavailablecustomerandcampaign response/purchasedatatoidentifykeycustomerattributes.Throughbasiccustomerprofiling techniques,suchaslookingatmeans,averages,frequencydistributions,variances,etc.andplacingthe informationintobasiccharts,suchasboxandwhiskerplots,piechartsandbarcharts,theNationalswill beabletobetterunderstandtheirtargetconsumerandtheirtypicalaudienceoffans,forbothhome andopposingteams. Next,oncetheyhaveamoreaccurateprofileofwhotheircustomersare,theNationalscanuse thedatatheycurrentlyhaveavailabletoconductdescriptivesegmentationoftheircustomerbaseso theycandevelopbettermarketingstrategiesmoretargetedtowardtheircustomersbehavioral patterns.Inthisphase,theycanbegintosegmentcustomersintodifferentcategoriesusing segmentationtechniques.Firstofall,theycanusetheRecency,Frequency,andMonetary(RFM) methodofanalysistogainadeeperunderstandingofwhotheirmoreprofitablecustomersare.RFMis amethodofcategorizingthecustomerrecordsinamarketingdatabasesothatthemostrecentbuyers, themostfrequentbuyers,andthebiggestspenderscanbeidentified.9Thismethodistypicallyusedto markettoexistingcustomers/fans,andtheNationalscanuseittodeepenrelationshipswiththese customerstoincreasesales.TheNationalscanalsouseclusteranalysisfordescriptivemodeling purposes,bywhichtheywillbeabletousedatatoformlikegroupings.Thoughthiswillnothelp
8

Davenport,ThomasH.andJeanneG.Harris.CompetingonAnalytics.Boston:HarvardBusinessSchoolPress, 2007. 9 Yenigun,Demirhan.DNSC6290DatabaseandWebAnalytcs.Lecturenotes,Lecture#2.

themactuallypredictsales,asnodependentvariableisidentified,itwillhelpidentifykeycustomer attributesanddividegamegoersintomorerevealingmicrosegments. AsoneoftheNationalsprimaryobjectivesistosellmoreseasontickets,executingdescriptive analysiswillhelpthembettertargetwhichcustomerswillbemostreceptivetoseasonticketoffers.It mayalso,toalesserextent,helpthemidentifywhichcustomersaremorelikelytopurchaselastminute tickets,orticketsbasedononesuchattribute(suchasweatherorwinningrecord). WerealizethatasignificantchallengetheNationalswillfaceinexecutingthesetypesof consumerdataanalysiswillbeintheirfragmenteddata.Duetothefactthesourcesofinformation comefromseveralresources,itisdifficulttocompile/cleantheinformationinawaythatiseasily decipherable.Laterinthepaper,wewillprovideafewrecommendationsonhowtheNationalscangain betterdataandstreamlinesothatitcanbeusedinmoreeffectiveandpredictiveways. PredictiveSegmentation Predictivemodelingtoolssuchasregressionanalysis,moreadvancedCRMtools,andcross sellingdatawouldclosethegapbetweentheNationalscurrentanalyticalaspirationsandbecominga trueanalyticalcompetitor. Withcompleteandcleandataaboutindividualconsumertrendsandattendance,notonlycould theNationalsbetterpredictstaffingneeds,butalsogainpowerfulinsightsintotheinstadiumbehaviors ofdifferenttypesofticketholderssuchaswhichfansarebuyingthemostconcessionsormerchandise, orwhoofthesinglegameticketholdersaremostlikelytorespondtoaseasonticketpromotion. Thenaturalvariabilityofattendanceprovidedbyweather,seasonality,andincityhistorycan provideforarockyrevenuestream.Thesevariablescanbesmoothedbyfindinghighlytargetedcross sellingpromotionstodrawmorevalueoutofthemostgenerousfansandhelpingtargetemergingfans formorelucrativerelationships.Forexample,afanthatattendsfivetotengamesaseasonbutonly buysticketsatthedoor,isacompleteblindspotintheNationalscurrentmodel.However,wealready knowthatthisfanisdedicatedandaspender.IftheNationalscouldmicrotargettofansinthat demographic,theycouldfindwayofpullingthefanintotheCRMdatabase,offeringtargetedconcession offerings,andhighlytailoredpromotionstojoinaminiseasonticketplan.

MacroeconmicTrendsthatAffectAttendance AlthoughScottcitedonlyfourfactorsthatmostpredictgamedayattendance(weather, opponent,dayofweek,andtimeofday),wefeelthattherearelikelyothermicroandmacroeconomic trendsthatfurtherimpactgamedayattendance,toalesserextent.

AdeeperlookintotheNationalsyearlyattendancedatarevealssomeinterestingtrends.The firstyeartheteamcametogether,theystartedoutincrediblystrongintermsofcomparative attendance(33,728averageattendancetheirwinningrecordwas.500)andimmediatelydropped downto26,581thenextyearwithawinningrecordof.481.Attendanceincreasedagainin2008,after theteammovedfromRFKtothenewNationalsStadium.Infact,theadditionofthenewstadiumwas abletoovercomeanextremelysluggishstartfortheNationals(theystartedtheirfirst15gameswitha winningpercentageof.250)andtheyincreasedtheirattendanceby19.4%...orabout5,000fansa game! Thisyear,theNationalswere9and7tokickofftheseason,whichwasthebeststartintheirfirst 15gamessince2005.Giventherecenttrendsofwin/losspercentageforthefirst15games(seechart below);attendancehasrisenordeclinedeachyeardependingonhowfasttheteamstarts.Theonly yearwherethistrendwasbrokenwaswhenthenewstadiumwasopened,generatingsignificantbuzz aroundtheteam.10

WebAnalyticsandOnlineandSocialMediaMarketing
TwoelementschallengetheNationalsattemptatanalyticcompetitiveness.First,theteamdoes nothavefullownershipoveritsmainwebportal.Second,ithasnotyetfoundaconsistentwayto monetizeitssocialmediaefforts. MLBAM AllMLBteamshavewebsites,yetthesesitesaremanagedbyacentralagencyunderMLB AdvancedMedia(MLBAM).MLBAMretainstheuserdata,webbehaviordata,andcrossteambuying patternsofallteamswebsites.Describedas,partbaseballencyclopedia,partticketline11MLBAMs leaguewebsiteand30teamsitesgarnersbillionsofpageviewsayear.WithanalyticpartnerSAS, MLBAMusesbothdescriptiveandpredictivetoolstomanageitsproperties,crosssellmerchandise,and mircotargetpromotionstofans. 10 Theirhomeopenerin2011wasonly39,000(thisistypicallyadaywhenallteamsselloutandtheNationalshad roomforimprovement,evenagainstadivisionrival).
11

BaseballBuildsCustomerLoyaltyWithSAS.SAS.comNewsandFeatures. http://www.sas.com/news/feature/21apr05/mlb.html.

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However,inthenameofcentralizedconsistency,MLBAMhascreatedauniquedesertof informationforindividualteamsthatisnotfoundinanyotherprofessionalsport.WhileMLBAMwins awardsforitssavvyuseofanalytics12,teamsliketheNationalshavetodealwithaslowandunwieldy processtouseanyofthatdataatthelocallevel.TheNationalshavelimitedaccesstodataonwhovisits Nationals.com,whobuysmerchandisethroughthewebsite,andhowvisitorstothewebsiteare behaving.Furthermore,theyarediscouragedfrominteractingwiththefansinmanytraditional,but digitalwaysincludingbloggingandtwitter. Comparethistootherprofessionalsportswherevibrant,decentralizedwebtoolsdeepenthe engagementwiththefansandprovidetheteamswithplentifuldata. SocialMedia Thecurrentsocialmedialandscapeisas follows;morethan20,000Twitterfollowers,34,000 Foursquarecheckins,and120,000Facebookfans.This maysoundimpressive,buttheNationalsare,social mediawise,theleastpopularteaminAmerican professionalsports13.Thepotentialforusingsocial mediaattheteamlevelistremendous.Asdescribed above,thetwotopprioritiesfortheteamareselling seasonticketsandsellingindividualgametickets. Socialmediacouldplayanexcellentroleindelivering onthosegoals. AbriefscenariofromUniversityofUtahexplainsthe potential14: Itwaslateinthesummerof2008,andtheUniversityofUtahstillhad500footballseason ticketstosell.ZackLassiter,Utah'sassistantathleticsdirectorforcorporatesalesandticket operations,waspreparedtosendoutatraditionalpressrelease,inthehopesthatlocal newspapersandTVstationswouldtaketheballandrunwithit.Butfirst,theticketdepartment postedanoticeaboutavailabilityontheUtahAthleticsFacebookPage,whichatthetime boastedfewerthan15,000fans.Bythetimethepressreleaseevenreachedtraditionalmedia outletstwohourslaterall500seatshadbeensold.
12

Figure2:TheNationalsFacebookpageexiststopoint fansbacktoMLB.com

BaseballBuildsCustomerLoyalty,EnhancesFanExperiencewithSASMarketingAutomation;MajorLeague BaseballAdvancedMediaWinsSASEnterpriseIntelligenceAward. http://www.businesswire.com/news/home/20050411005205/en/BaseballBuildsCustomerLoyaltyEnhancesFan Experience(April11,2005). 13 Fisher,EricandRyanBaucom.EuropeanTeamsLeadSocialMediaBoom.SportsBusinessJournal. http://www.sportsbusinessdaily.com/Journal/Issues/2011/04/25/Media/SocialMedia.aspx(April25,2011). 14 Steinback,Paul.CollegesUseSocialMediatoSellSportsTickets.AthleticBusiness. http://athleticbusiness.com/articles/article.aspx?articleid=3599&zoneid=40(August2010).

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Additionally,leadingMLBteamssuchasthePhiladelphiaPhilliesusesocialmediatoconnect withfansandescalatetheirrelationship.Byusingtweetsfromplayersandmanagersthemselves,the teamencouragesfanstointeractdirectlywiththeteam.Aparticularcampaignevenhadthemanager andplayersofferingtargetedpromotionsforminiseasonticketplanstohighlyengagedfans15. SocialmediacanalsoplayakeyroleindrivingdatatoandfromtheteamsCRMtools.A sophisticateduseofCRMcouldincludeascenarioinwhichagroupofpeopleattendagameona friendsbirthday.ThebirthdayfanreceivesatextoratweetfromtheNationalsinvitingthemtohave eitheraconcessionorseatupgrade.Inorderforthistypeofhighlevelinteractiontooccur,theCRM toolsbecontainthefollowingelements;whoisintheparkatanytime,wherearetheysitting,whatis theirsocialmediacontact,whatistheirbirthday,andwhoaretheywith.Thistypeofinteractionis withinthegraspoftheNationalsbutwillrequireasophisticatedeffortindatamanagement. TheWashingtonNationalshavetoovercome twodeficitstofulfilltheirseatfillinggoals.First,they mustdrawthemaximumlevelofinformationfrom theironlinetools.Second,theymustcreate consistentandmeaningfulonlineexperiencesfor fansthatwillhelpdrivecasualfansintoticketbuyers, andticketbuyersintoseasonticketholders.
Figure3:TheNationalsonTwitter

AnalyticalRoadmapandRecommendations
Aswevementionedthroughoutthepaper,theNationalsalreadydoanicejobwithcustomer datacollectionandbasicanalysis,especiallyincomparisontootherteams.Mostteamsdonoteven haveconsumermarketingdepartments,whichisatrendwebelievewillshortlycatchononceitstrue valueisrealized.WebelievethistrendwillbesimilartotheMoneyballeffectonceteamsunderstand howtheycaneffectivelycommunicateandtargettheirfanbase;muchlikeBillyBeandidwhenhewas targetingtalentfortheOaklandAthletics.However,sincemanyotherlocalsportsteamscannot identifyconsumeranalyticsasarelativesourceofcompetitiveadvantage,theNationalshaveahuge opportunitytocompeteinthisareaandincreaseattendanceandprofitability,aslongastheycan developaclearandconsistentapproachandgainwidespreadbuyinandsupportfromsenior executives.SincetheNationalsdonotactuallycompetewithotherMLBteamsincapturingmarket shareforitsgeographiclocation,albeitwhenitcomestoplayerrecruitmentandselection,theycanuse consumerdataanalyticstoaddvaluetoMLBasawhole.BecauseteamsinMajorLeagueBaseball openlyshareinformation,bothgoodandbad,thereisanopportunityforWashingtontocomeoutasa leaderintheleague. TohelptheNationalsdevelopacompetitiveapproachtowardconsumeranalytics,wepropose thefollowingroadmapbasedonshorttermsolutionsthatcanbeimplementedbeforethestartofthe 2012seasonandlongtermsolutionsthatmaytakeseveralseasonstoimplement.
15

George,John.Root,Tweet,BlogforthePhillies.PhiladelphiaBusinessJournal. http://www.bizjournals.com/philadelphia/printedition/2011/07/29/roottweetblogforphils.html(July29,2011).

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ShortTermRecommendations EngagingwithFansInsideTheStadium ArecentarticleintheMcKinseyQuarterlystatesthatBigdatapermitsamajorstepbeyond whatuntilrecentlywasconsideredstateoftheart,bymakingrealtimepersonalizationpossible.16At thecurrentmoment,theNationalsdonothaveasysteminplacetotrackfansastheymoveaboutthe stadiumandusethatinformationtooffertimesensitiveorhypertargetedoffers.Ifthisinformation wereavailabletotheteam,theywouldbeabletousethatinformationtooffertimesensitiveorhyper targetedoffers.Thereisahugeopportunitytodevelopsignificantrelationshipswiththefanbaseand capturefanswhocanoffertheNationalsahighcustomerlifetimevalue. OneteamthatdoesthisverywellistheSanFrancisco49ers.Theytrackfansspendinghabits fromthemomenttheyenterthestadiumtothemomenttheyexit.AnarticleinInformationWeek highlightsafewofthebenefits:Providingentrydata,thenewstadiumwillhelptheteamunderstand whichfansarearrivingtwohoursearlyfortailgateactivitiesversuswhicharearrivingfiveminutes beforethegamewithchildrenintow.17 Additionally,anonsportsrelatedbusinessthatiscommonlycitedasagoldstandardbusinessin thisareaisHarrahs.InanInformationWeekarticleprofilingthecompanysbrilliantuseofdata,one companyexecutivestates,What'simportantisnothowmanyterabytesofdataarestoredinourdata warehouseorthekindsofreportssomeanalystcanrunafterthefact.Rather,it'showtheinformationis leveragedinrealtimetoservethecustomerimmediatelyonthecasinofloor.Ifthecustomeris celebratingabirthday,forexample,thatdatawillletemployeesknowinstantlysotheycansurprisethe guestwithaspecialgreetingorgiftinthecasinoorhotelroom.18 Currently,TheNationalsofferloadedticketswhichallowfanstousethebarcodeontheir ticketstubtopurchaseitemsattheconcessionstand.However,theycurrentlyarentabletotrackthe useofthesetickets,whichwouldbeaterrificsourceofdatafortheNationalstogetaholdof.Tohelp gainabetterunderstandingofwhatthesefansarepurchasing,wheretheyarepurchasingtheseitems withinthestadium,andhowmuchtheyarespending,itisimperativetheNationalsinvestinsoftware capableoftrackingtheseconsumerhabits. TheNationalsshouldreengineertheircurrentloadedticketprogramtocollectconsumer spendingdataandusingthefindingstomakethecaseforafullfledgedrewardsprogram.Torevamp thisprogramandencouragemorecustomerbuyin,offerloadedticketsatadiscountforexample, theycanoffera$10loadedticketfor$8andheavilypromotethisoffersothatcustomershaveanextra
16

Brown,Brad,MichaelChuiandJamesManyika.Areyoureadyfortheeraofbigdata?McKinseyQuarterly, October2011. http://www.mckinseyquarterly.com/Strategy/Innovation/Are_you_ready_for_the_era_of_big_data_2864. 17 Henschen,Doug.Football49ersLaunchFanAnalyticsInitiative.InformationWeek,June14,2010. http://www.informationweek.com/news/software/bi/225700039. 18 Stanley,Tim.HighStakesAnalytics.InformationWeek,Feb.1,2006. http://www.informationweek.com/news/177103414?pgno=1.

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incentivetopurchasethisoffering.Additionally,whenofferingGrouponandLivingSocialdeals,the Nationalscanofferextradiscountsonconcessionswrappedintothedeal.Thoughtheywillseeaprofit lossintheshortterm,thevaluetheywillbeabletoachievebygaininggreateraccesstothisdatawillfar outweighthecosts. EngagingWithFansOutsideTheStadium ThebiggestopportunityforTheNationalsthatcancomefromconsumerdataanalysis,inthe shortterm,isintheareaofpromotions.Atthemoment,theNationalsarecreatingpromotionsbased onwhathasworkedinthepastorforotherteams,butnotnecessarilybasedonwhatmightbebest suitedtothelocalenvironment.Giventhedifferencesinthetargetmarketsacrosscities,itisimportant fortheNationalstoadoptapromotionalstrategythatispositionedtocapturetheirfans.TheNationals canusedescriptiveandpredictiveanalyticaltechniquestoevaluatethesuccessofpastcampaignsand predictthesuccessoffuturecampaignstoincreaseattendance.SomeofthequestionstheNationals shouldconsiderwhenseekingpromotionalstrategiesare: 1. Whichneighborhoodsprovidethehighestconcentrationofsinglegameticketholdersvs seasonticketholders? 2. WhichincomegroupsarethemostreliablebaseballfansintheWashingtonarea? 3. WhichoutsideDCteamsaremostrepresentedbyWashingtontransplants(forexample, formerNewYorkresidentsandYankeesfanslivinginWashington)andwherecanwefind themtobettertargetindividualgamepromotions? TheNationalshavefoundthattheyattractmorefansfromoutsideD.C.thananyotherteam,which likelyimpliesthatNationalsParkisseenasanattractivetouristactivityforpeoplevisitingD.C.Whilethis ispartlyduetothefactthatD.C.isatransplantcity,thereisstillalargeopportunityhere.Thus,the Nationalsshouldfurtherexplorethistrendtobettertargetpartnersandpromotionaloffers.Inaddition topartneringwithlocalschools,forexample,theymightseeaddedvaluefrompartneringwithlocal tourismresourcesorcompanieswithmajorofficesinanumberofcities. LongTermRecommendations ImplementaRewardsCardandLoyaltyProgram Inthelongterm,theNationalsshouldconsiderimplementingaRewardsCardLoyaltyand IncentivesProgramsothattheycangeneratebetter,moreaccuratefanspecificdata.Throughthis program,eachcustomerwouldbetiedtoauniqueidentifierthatwouldtracknotonlyticketpurchases, butcrosssellsandupsellsaswell.However,inordertogainwidespreadadoptionofaRewardsCard Program,theywillneedtomaketheincentivesattractiveenoughforpeopletobuyin. TheRedBullsrecentlylaunchedasimilarprogram,however,Scottmentionedthatwhenhe traveleduptothestadiumtoobservethenewprograminaction,customersusingthecardswerefew andfarbetween.Whenwelookedintothedrawbacksofthisprogram,werealizedthatitwaspoorly executedonthepartoftheRedBullsbecausetheincentiveswerenotstrongenoughtoencouragefans tousethecardoverotheroptions,suchaspurchasingticketsonStubHuborbringingtheirownfood,

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andthereweremanystipulationsattached.Forexample,onedisgruntledfanbloggedabouthis disappointmentwiththeprogramaftertheRedBullsannouncedthatpointsdonotrolloverintothe nextseason: Forfanslikemewhohaveaccumulated2,500+loyaltypointssinceRedBullArenaopenedlast season,it'sabitdiscouragingtoseethemallflusheddownthedrainwiththelaunchofthe2012 ticketprogram.ChrisHeckblindsidedmanyseasonticketholderswhenheintroduced astronomicalpriceincreasesincertainmidfieldsections.Itappearsthathe'salsodecidedto takeabenefitawayfromtheclub'smostloyalfanswithlittletonowarning.19 Someideasforincentiveswouldbefree/heavilydiscountedticketstogamesthatareinhigh demand(RedSox,Phillies,etc.),firstreleaseticketstocardholdersorhighdemandgames,concession discounts(similartoaGrouponNowideawherecustomerswithRewardsCardscanparticipatein discountsthroughoutthestadiumatanygiveninning),free/discountedNationalsmerchandise,andfor thosewithanextremelyhighlevelofpoints,perhapssometypeofgrouppromotionwheretheyare abletoparticipateinameetandgreetwithcertainNationalsplayers(promotesthefamily atmosphere). CRMDatabase Withoutfanspecificinsight,it'shardertocompileaccuratecustomerprofilesandmeasurethe effectivenessofchurninitiatives,merchandisingprogramsandcrosssellandupsellefforts. DougHenschen,InformationWeek20 ThegoalofCRMistobuilddeeperandmoremeaningfulrelationshipswithfansandasuccessful implementationofCRMisthestepinrightdirection.SteveWebster,SalesDirectoratDQGlobal,a companyprovidingDataandAnalyticsserviceworldwide,statesOurexperienceswithsporting associationsintheUK(especiallyfootballclubs),isthatalynchpinofCRMisDataQualityi.e.validity& completenessofnames&addresses.Thechallengeoftenisthatdataiscapturedinarush(payongate, busyticketingcentresetc),soifthedatacollectedisnotvalidated,cleansed&improvedsubsequently, thenmarketing,analysisandCRMactivitiesareatamajordisadvantage.21 WerecommendtheNationalsestablishaprocesstostandardize,cleanandvalidatedataitgets fromdifferentresources.Alldepartmentsshouldusethesamedefinitionsacrosstheorganization.The timeandresourcesspentonthiswillbecrucialforthesuccessofNationalspersonalizedmarketing campaigns.TheyshouldstrivetobuildarobustCRMsystem.GoingforwardtheCRMsystemshouldbe capableofhandlingallthetransactionsandprocessthedatareceivedthroughRewardCardprogram. CRMSystemshouldbetreatedasjustonecomponentoflongtermstrategyofcompetingonanalytics. AllthedepartmentsshouldcoordinatetheiractivitiesforeffectiveutilizationofCRMsystem.For
19

TheVipersNest.http://www.thevipersnest.com/2011/09/readingfineprintrbnyloyaltypoints.html.(Sept.13, 2011) 20 Henschen,Doug.Football49ersLaunchFanAnalyticsInitiative.InformationWeek,June14,2010. http://www.informationweek.com/news/software/bi/225700039. 21 SteveWebster,http://www.customerthink.com/forum/crm_in_sports

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exampleMarketingandSalesdepartmentsshouldhavegoalsthatcomplementeachother.Justusinga commonCRMsystemwontbringthesuccess. PotentialChallenges Theimplementationofthisplanwillnotcomewithoutitsownsetofchallenges.Firstofall, advanceddataanalysisofexpensive,andwouldrequireadditionalemployeetalentthattheNationals donotcurrentlyhaveaccessto.OneresearcherfoundthatintheUnitedStatesalone,ourresearch shows,thedemandforpeoplewiththedeepanalyticalskillsinbigdata(includingmachinelearningand advancedstatisticalanalysis)couldoutstripcurrentprojectionsofsupplyby50to60percent.22 Additionally,alongwithincreasedconsumerdataanalytictechniquescomesgreaterprivacy concernsfromconsumers.Theabovementionedresearcherpointsoutthatoneofthefundamental tensionsthatarisefromgreateraccesstopersonaldataisbetweenconvenienceandprivacy.Thus,in implementingthisplan,theNationalswillhavetobecarefultocollectdatawhilestillworkingwithin customersprivacyexpectations.23Lastly,theimplementationofthisplanwouldrequirefullexecutive commitment,whichwouldlikelytaketimetoachieve.Thus,thisplanwillworkbestbeingimplemented insmallerincrements,andwillneedacarefulanddetailedmeasurementstrategytoprovetheROI. Roadmap Toaccomplishthesegoals,wevesetoutthefollowingroadmaptoanalyticcompetivenessforthe Nationals. Step1:Gainwidespreadexecutivecommitment Moresignificantthatwinsandlosses,puttingfansintheseatsisthenumberonedriverfor financialsuccessforanyMajorLeagueBaseballclub.Theexecutiveleadershipmustseetheconnection betweenstrongdescriptiveandpredictivemodelingandfinancialreturns.Examplesaboundacross Americanprofessionalsports.Thesemustbeleveragedsotheclubsleadershipiswillingtoinvestthe time,resources,andcuriositynecessarytosustaintheseplans. Step2:DataCleaning Datainaccuracy,inconsistency,andgeneralmessinessarefundamentalsforanyaspiring analyticcompetitor.TheNationalsdataqualityisespeciallycompromisedbythewidevarietyofinputs contributingtotheirdataandthelackoftargetedusesofthedataonceitsreceived.Acleanandsimple supplyofdatapointswillclarifytheusesandopportunitiespresent. Step3:DataIntegration
22

Brown,Brad,MichaelChuiandJamesManyika.Areyoureadyfortheeraofbigdata?McKinseyQuarterly, October2011. http://www.mckinseyquarterly.com/Strategy/Innovation/Are_you_ready_for_the_era_of_big_data_2864. 23 Ibid.

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 ThedatathatcomesinfromStubHub,oronlinemerchandisesales,oranyothersource,mustall serveaunifiedpurposeandbemodeledandintegratedinpreparationforthoseservices.The integrationofdataisusuallymanagedbyoutsidebusinessintelligencecontractorssuchasSAS.The relationshipsbetweenotherteams,MLBAMandSASprovideanexcellentframeworkforbuildingout theNationalsanalyticcompetitiveness. Step4:EstablishnewKPIs Ifwinsandlossesarelessofadriveroffinancialsuccessthanfillingseats,howcanthe Nationalsbettermeasurewhichactivitiesaredrivingmorefanstothestadiumandmorefanstoseason ticketplans?Theconversionbetweencasualattendeeandregularattendeeandtheconversion betweenregularattendeeandseasonticketholdermustbecloselymonitoredasaleadingindicatorof theteamsperformance.

EvaluationandMaintenanceofPlan
Onceanalyticalstrategiesareimplemented,thereareseveralwaystoevaluatetheeffectiveness ofthesestrategies.ThelongtermgoaloftheprogramistoincreaseNationalsfanbaseinD.C.and acrossthenationandcreateastrongfanloyaltyenjoyedbyonlyafewteamsinthemajorleague.Game attendance,marketingcampaigntakerates,increaseinseasonticketsales,profitability,increasein merchandiseandconcessionsales,andfanloyaltyareprimarysuccessfactors. Toevaluatethesuccessofanalyticaltechniques,theNationalscanfindpotentialcustomers population(exampleyoungmalepopulationagedbetween25to35,havinggraduatedegrees)using predictivemodels.Thenoutofthesepotentialcustomers,halfcanbetargetedwithpersonalized advertisingcampaigns,specialdiscountsetc.andotherhalfcouldbetargetedbasedoncurrentmass marketingmethods.Thentheconversionratecouldbemeasuredforboththesesegmentstomeasure thesuccessofthecampaign.Thisisjustoneexample,andmanydifferentcampaignscateringto differentsegmentsoffanscanbemodeledoncethecustomerinformationavailable.Theresultscanbe evaluatedfromothersourceslikemerchandisesalesaswell. Also,asmentionedbefore,justusingdataforsometimewillnotbringresults.Accordingto DavenportandHarris,competingonanalyticsshouldbeapartofstrategyfortheorganization.These effortsshouldbebackedupbyseniormanagement.Thereisculturalchangerequired,employeesatall levelsshouldunderstandtheimportanceofdataandstrivehardtogatherandusedataeffectively.As theNationalsgaininsightsintofandata,managementshouldcomeupwithnewmatricestoevaluate effectivenessofitsanalyticalcompetitiveness.Itisanongoingprocessandresultscouldonlybe obtainedbylongtermcommitmenttoanalytics.

TimelineforImplementation
Thetimelinefortheimplementationofourproposedstrategiesissomethingthatcanchange quicklydependingonthedifferentvariables.TheshorttermgoalsfocusingontheRealTime Personalizationshouldbeimplementedinthefirstyear(thisoccursinsidethestadium).Oncethe

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softwaretotracktheloadedticketprogramisinplace,itshouldbefairlyeasytobegintogatherand trackthedata.Wewouldsuggestimplementingthissoftwareintoallconcessionsandmerchandise locationsatoncesowecangetarepresentativebodyofinformation.Theshorttermrecommendations outsidethestadiumshouldbeimplementedwithin12years.Thecurrentpromotionsarealreadyin place,sonowitissimplyamatterofgeneratingandgatheringthedatasotheNationalscanbegin focusingthepromotionstogenerateresponsesfromthetargetedmarket.Gatheringthedataonthe marketcouldtakeuptoayearsoitwouldbeadvisedtotestasignificantamountofpromotionsand trackthedatatouseforfuturepromotionsinthesecondyear. Thelongtermrecommendationsthatwillbeoccurringinternallyshouldbedevelopedand implementedwithin46years.ThestreamlinedCRMdatabaseshouldbeplannedwithinthefirstyear andshouldbecleanedandorganizedinyears2and3soitwillbeavailabletoreferencenolaterthan 2015.TheRewardsCard/Loyaltyprogramshouldalsotake46yearsandshouldbebrokenoutinphases. Inyear1and2,aplanandstructureofhowthecardwilloperateshouldbeinplace.Furthermore,an incentivesprogramneedstobeestablishedbeforeanyimplementationcanbeperformed(year2and 3).Followingtheplanningphase,wearesuggestingtheNationalstesttherewardscardonasample marketofjusttheseasonticketholders(Year4).Oncethedataiscompiledandanalyzedwiththe seasonticketholders,theprogramshouldbereevaluatedandcorrectedwhereseenfit.Thiswilloccur inyear5.Finally,inyear6,arewardscardshouldbeimplementedforminiplanholders.Infollowing years,ifitisfeasibleandvaluable,theNationalsshoulddevelopaprogramforthoseindividuals/fans purchasingticketsonasinglegamebasis.

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Year1

Year2

ShortTerm:PurchaseandupdateLoaded TicketsSoftwareandDevelopplanto targetpromotions. LongTerm:StreamlinedCRMdatabase plan&developplanandstructurefor Rewards/LoyaltyCard

ShortTerm:CompileLoadedTicketsdatafrom software.Developnew,targetedpromotions basedonanalyzedresults. LongTerm:CleanandorganizeCRMdatabase. Continuethedevelopmentofplan/structureand begindesigningincentivesprogramfor Rewards/LoyaltyCard.

Year3

Year4

LongTerm:Completecleaningand organizingofCRMdatabase.Finalize incentivesProgramfor Rewards/LoyaltyCard.

LongTerm:ContinuetoanalyzeCRM data.TesttheRewards/LoyaltyCard withSeasonticketHolders.

Year5

Year6+

LongTerm:ContinueanalyzingCRM data.Compiledatafrom Rewards/LoyaltyCardProgramand analyze.Reevaluateandmakechanges wheredeemednecessary.

LongTerm:ContinuetoanalyzeCRMdata. ImplementRewards/LoyaltyCardProgram forMiniPlanticketholdersanddevelop strategytoimplementtoallticketholders infollowingyears.

Conclusion
TheWashingtonNationalshavemadeincrediblestridestowardsdevelopingamore analyticalapproachtoreachtheirorganizationsgoals.Thesimplefactthatthefranchise understandstheimportanceofcompiling,organizing,analyzingandASKINGfordatafromthe MLBputsthemaheadofmostteams.BecausetheNationalswillhavesuchahigh understandingoftheirconsumer,theywillbeabletoeffectivelycommunicatewiththem throughtargetedpromotions,crosssellsandupsells.Additionally,notonlywillthisconsumer dataallowtheNationalstofocusitsresourcesonpromotionsandusedifferenttacticstoput fansinthestands,butovertimethisapproachislikelytoshowanextremelyhighROI.Finally, becauseitisunderstoodtheleagueopenlysharesinformation,webelievethisconcept,much likeMoneyball,willcatchonquickly.WearecallingthisoperationDataball!

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Appendix
Appendix1:ConsumerDataSources

Appendix2:NationalsSeasonData(Attendance,Win%,Payroll)

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Appendix3:AnalyticalRoadmap

GainWidespread Executive Commitment

Data Integration

DataCleaning

PredictiveModeling

EstablishNew KPIs

Targetthe Optimal Consumer

OfferHyper targeted promotions

Loyalty Program
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