Fan loyalty is the loyalty felt and expressed by a fan towards the object of his/her fanaticism. Allegiances can be strong or weak. The loyalties of sports fans have been studied by psychologists, who have determined several factors that create such loyalties. Fan loyalty can be threatened by team actions.
Given the extensive costs involved in managing and operating a professional team sport, it is beneficial for sports marketers to be conscious of the elements that establish a strong brand and the effect they have on fan loyalty, so they can best cater to their current fans while acquiring new ones. This is because fans and spectators are considered key stakeholders of professional sports organisations. Fans directly and indirectly influence the production of operating revenue through purchasing merchandise, buying game tickets and improving the value that can be obtained from television broadcasting deals and sponsorship. Therefore, fans are a key factor to consider in determining the economic success of a sports club.
Deep psychological connections with new teams can be built with individuals before a team has even played a match revealing insights can develop quickly in the mind of consumers without direct encounters or experiences e.g. watching a team compete. Brand management approaches are helping sport organisations to expand the sport experience, appeal to new fans and enable long term business to consumer relationships through multi faceted connection such as social media. To effect consumers’ loyalty with a team, they must develop a compelling, positive and distinctive brand in order to stand out amongst competitor and vie for fan support.
Loyalty programmes positively shape fan attachment and behaviour as it connects teams and their fans, aside from a club’s season ticketholder database. It not only provides marketers with essential information about consumers and their thinking, but also acts as a channel to promote attendance and an opportunity to add value to their game day experience.
Bauer et al. concludes that non product related attributes such as contextual factors (other fans, the club history and tradition, logo, club colours and the stadium atmosphere) hold a higher place in fan experience than product related attributes such as the team’s winning record. Therefore, to increase fan loyalty (customer retention) Bauer et al. suggests sports marketers focus on targeting non product related benefits and brand attributes. As a result of fostering this loyalty, sports organisations can afford to charge prices at premium. Fan loyalty also leads to dependable ratings in broadcast media which means broadcasters can also charge premiums for advertising time in team broadcasts with loyal followings. A flow on effect from fan loyalty is the ability to create additional revenue streams outside of the core product such as merchandise shops and food venues that are clsoe to the location of the game if the team choose to own and operate ventures or share licensing agreements.