Fans Versus Customers

Why are they there? Why are you there (however tangible or virtual there may be)? And how to bridge that chasm. JL

John Gilfeather comments on LinkedIn:

There is a lot of talk these days about how to measure engagement on social media.  Is liking or following a sign of engagement? Fans root for the team.Customers come to the ballpark.  They buy peanuts and crackerjacks, beers and hot dogs, cotton candy. Engagement should be more than being a fan. It has to lead to being a customer.
There is a lot of talk these days about how to measure engagement on social media.  Is liking or following a sign of engagement?  If so, what are the benefits liking or following provide to the marketer?
 As the baseball season ended (sadly for my NY Mets), I recalled a meeting I attended at Shea Stadium in the mid-1980s.  I was with a group of business people and we met before the game with Frank Cashen, the Mets’ General Manager.
 Mr. Cashen described the economics of baseball in that era.  TV and radio revenues did not cover the team’s costs.  Attendance was the key to profitability.  Attendance meant revenues from tickets, parking and concessions.  As I recall, attendance of 2.2 million was the breakeven point.  That means an average about 27,000 people per home game.
 The key point he made was the difference between a fan and a customer.  Fans root for the team, watch or listen to the games, follow their favorite players and argue passionately about the team’s performance.  Customers come to the ballpark.  They buy peanuts and crackerjacks, beers and hot dogs, cotton candy and knishes (hey, it’s New York.)
 For marketers, the lesson is that engagement should be more than being a fan. It has to lead to being a customer.  How can marketers convert fans into customers in the social media world?  The Mets in the 1980s can offer some guidance.  Let’s call it the Cashen Cashing In Approach.

• Understand very clearly that Likes and Follows are a beginning, not an end. Mets fans sitting at home were not contributing to the team’s bottom line.
• Create an experience that will keep fans engaged. When the Mets started winning in the mid-80s, their attendance went up to 3 million as more fans went to games. (In 1986, the Mets won 108 games in the regular season and the World Series.)
• Provide incentives that will promote trial. Research has shown that a large number of product site visitors are there for the coupons or deals. The Mets offered a Tuesday and Friday season ticket package to get fans to commit to attending games.
• Keep adjusting the offers to find the elements that produce the greatest return. The Mets constantly improved the team from 1983 to 1988. (We will not discuss the 10+ years after that.)

 Baseball is always a great teacher.