The San Jose Sharks, a professional ice hockey team in the National Hockey League (NHL), have emerged as a leader in customer experience (CX) innovation within the sports industry. Sharks Sports & Entertainment (SSE) manages other teams and venues and has embraced technology to enhance fan engagement and drive business growth. Find out why they won Great Experience Award for November 2024TM.
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Who are the San Jose Sharks?
The San Jose Sharks are more than just a hockey team; they are a multifaceted sports and entertainment organization. SSE, the parent company, oversees the NHL’s San Jose Sharks, the AHL’s San Jose Barracuda, and operates multiple venues including the SAP Center and TechCU Arena. This diverse portfolio requires a comprehensive approach to customer experience management across various touch points.
Customer Experience Challenges
“My direct competition isn’t other live experiences; it’s figuring out how to get people off their couch and then back home safely,” SSE President Jonathan Becher said during a virtual session for media and analysts hosted by SAP. “Technology has a huge role in making those experiences happen.”
SSE faced several challenges in delivering a seamless customer experience:
- Data Silos: The organization struggled with multiple third-party systems across departments, leading to siloed data that hindered real-time reporting and informed decision-making.
- Diverse Customer Base: With various entertainment offerings, SSE needed to cater to different audience segments, from hockey fans to concert-goers.
- Digital Transformation: The shift to digital ticketing and other modern expectations required careful implementation to avoid fan dissatisfaction
- Competition with At-Home Entertainment: SSE President Jonathan Becher noted that their main competition was not other live experiences, but rather the challenge of enticing people away from their couches.
Enhancing Fan Experiences
SSE leveraged SAP technologies, including SAP Datasphere and SAP Business Technology Platform (BTP), to create a centralized data strategy. This allowed them to integrate 15-20 data sources weekly, providing a comprehensive view of their business operations and customer interactions.
Personalized Fan Engagement
By utilizing SAP CX solutions such as SAP Customer Data Platform, SAP Customer Data Cloud, and SAP Emarsys Customer Engagement, the Sharks could manage fan information, preferences, and communications more effectively. This enabled them to create more personalized and relevant campaigns for individual fans.
Digital Ticketing and Mobile Experience
The Sharks pioneered digital ticketing in their league, demonstrating a commitment to innovation despite initial challenges. This move improved the fan experience by streamlining entry to events and providing a platform for further digital engagement.
Youth Engagement Initiatives
Recognizing the importance of cultivating future fans, SSE invested in youth skating programs. By synchronizing data from these initiatives with their overall fan engagement strategy, they discovered that for every child under 12 who learns to ice skate, they create 2.3 new hockey fans.
Revenue Generation Considerations
The focus on CX has directly impacted San Jose Sharks’s revenue generation:
- Improved Marketing Effectiveness: Email open rates soared from 26% to 80%, indicating more effective and targeted communications.
- Cross-Selling Opportunities: By understanding fan preferences across different events, SSE can better cross-promote their various offerings.
- Youth Engagement: Data-driven insights have shown that for every child under 12 who learns to ice skate, SSE creates 2.3 new hockey fans, potentially leading to long-term revenue growth.
Here’s a comparison of key metrics before and after implementing their CX strategy:
| Metric | Before | After |
|---|---|---|
| Season Membership Renewal Rate | <77% | 87% |
| Email Open Rate | 26% | 80% |
| Data Sources Integrated | Siloed | 15-20 weekly |
| Full-time Employee Onboarding Processing Time | Baseline | 33% decrease |
“Last season (2023), we got our renewals plus upsells just shy of 90%, which was above our target of 85% and more than 10 percentage points higher than the previous season,” Becher explained, citing the organization’s use of SAP solutions as a game-changer for membership renewal.
“We were able to much more easily build a more engaging, relevant campaign for individual people about renewals,” he added. “90% is a phenomenal renewal rate in this industry.”
What’s Next for the San Jose Sharks
Looking ahead, the San Jose Sharks are poised to continue their CX innovation:
- Further AI Integration: As AI technology evolves, SSE plans to explore more ways to leverage it for predictive analytics and enhanced personalization.
- Expanding Digital Offerings: Continuing to improve digital platforms to meet changing fan expectations and preferences.
- Deeper Data Analysis: Utilizing the integrated data platform to uncover new insights and opportunities for fan engagement.
- Sustainability Initiatives: Exploring ways to incorporate sustainability into the fan experience, aligning with growing environmental concerns.
Lessons for Other Sports Brands
Other sports organizations can learn from the San Jose Sharks’ approach:
- Embrace Technology: Invest in integrated technology solutions that provide a holistic view of operations and customer interactions.
- Prioritize Data: Centralize data from various sources to gain actionable insights and drive decision-making.
- Personalize Experiences: Use AI and data analytics to create tailored experiences for different fan segments.
- Focus on Omni-channel: Ensure consistency across all touch points, from digital to in-person experiences.
- Innovate Continuously: Maintain a pioneering spirit, being willing to take risks and learn from mistakes to stay ahead of fan expectations.
- Extend Beyond the Game: Consider the entire customer journey, including pre and post-event experiences, to create lasting fan relationships.
By following these principles and continuously innovating in the realm of customer experience, sports brands can create deeper connections with fans, drive loyalty, and ultimately achieve sustainable business growth in an increasingly competitive entertainment landscape.
Great Experience AwardTM
Transformidy’s Great Experience AwardTM is presented monthly and showcases excellence in experience strategy design or execution. Companies are welcome to submit entrants with support like demos, pictures, videos, press releases, or descriptions (no bigger than 5Mb in size per item), for this monthly award with experience ideas, innovations, or initiatives curated for customers, employees, or stakeholders.
Transformidy will evaluate all entrants and will make the final decision on the winner based on factors including but not limited to how the experience(s) transform or improve the way the company engages, acquires, supports, or maintains its customers, employees, or stakeholders. The experience(s) for consideration can be physical, online, or virtual.
How Can We Help?
Transformidy is available to assist in helping you understand assess how your company’s experience strategy is effective in generating engagement, satisfaction, and business growth.
Contact us or set up a 30-minute complimentary consultation for more information on our services, insights, or showcases. We look forward to hearing from you.
