This would have been more timely yesterday but with the NC State/UNC game on Monday and the Hurricanes back in action on Tuesday, I took the smart route and decided against doing ‘off the cuff’ because the topic has some sensitivity to it.
The background
Those who track the team closely and are in the Raleigh area are probably aware of the chain of events, but since they are an important starting point, I will quickly detail them before proceeding. Since taking over as the majority owner, Tom Dundon has harped most loudly about two things — the fan experience and the need to put more people in the building. The two go hand in hand.
The fan experience is changing gradually, and initiatives have been added to boost attendance. In mid-January, the team rolled out a “Fanuary” promotion that offers a limited number of early bird parking spots for $10, a set of food concession items for $3 and domestic draft beers for $5.
More recently, the team announced a “Canes Pass” that offered tickets to the first 9 home games in February for a total cost of $97 with at least two of those games being lower level seats.
Finally, a two-pronged attack this week aimed to fill the lower bowl of PNC Arena for the Ottawa Senators game on Tuesday. First, during Monday’s NC State vs. UNC hockey game at PNC Arena, the team offered a promotion that included a lower level ticket to both Tuesday and Thursday’s games for a total cost of $10. That promotion had a line more than 100 deep and a single cashier busy from midway through the first period until about 30 minutes after the game concluded.
Then midday Tuesday, the Hurricanes announced that all upper level tickets for Tuesday’s game would be upgraded to lower level seats. It not clear whether the Fanuary and Canes pass promotions were already teed up prior to Dundon taking the reins, but the push to fill the lower bowl for Tuesday’s game seemed to more clearly have his stamp on it.
The result
The series of promotions achieved the short-term goal of filling the lower bowl for Tuesday’s game. The lower sections were not 100 percent filled to capacity, but it was close enough that the game had the feel of a lower level sellout and the atmosphere in total in the building was different (in my opinion as an attendee).
Mixed reactions
Tuesday’s announcement that all tickets would be upgraded to lower level seats was met with mixed reactions on social media. My non-statistical impression is that most were either in favor of the promotion or at least neutral and willing to give something new a try in attempt to begin the process of boosting attendance and revitalizing the Hurricanes game experience that had gone stagnant. There were, however, lower level season ticket holders who voiced displeasure about everyone receiving the same lower level seats that they had paid at least $40 for.
A burst of publicity
One significant effect from Tuesday’s promotion was the volume of attention that the team received locally. On a random Tuesday afternoon in the middle of ACC basketball season, the Carolina Hurricanes were a headline news item not just across the sports spectrum but also in the broader media and also across social media. For one day at least, it was hard to live locally, be plugged into anything digital and not have the Hurricanes cross your mind. That in itself is significant for a team that has gradually lost mind share in the local community.
An assessment of the situation
Next I will try to offer a reasonably balanced assessment of the situation that does not simply just use the fact that I manage a Carolina Hurricanes website to put my opinion on the situation forward to the audience that spends part of their Hurricanes hockey time here.
Not one right answer
On Twitter on Tuesday afternoon, I said:
At the most basic level, I do not think there is only 1 valid opinion on today's #Canes program, and I do not think it is right for anyone to tell someone else that how they feel about it is wrong.
— Canes and Coffee (@CanesandCoffee) January 30, 2018
There is not just one right perspective on this situation. It is more complex than that, and people legitimately have different viewpoints based on where they sit in terms of financially supporting the team. To be clear, that is NOT to say that people who do not buy tickets at all do not also have a legitimate viewpoint and it is not to say that those who spend more rather than less money get a bigger vote. It is simply to say that there are different angles to the situation, and the single worst thing about Tuesday in my opinion was the volume of people who were telling other people that they were wrong for what they felt.
Need for at least a few jolts to the system
Tom Dundon has a fairly sizable task in front of him to significantly change a product and its marketing that had frankly become stagnant over time. I think part of what is going on right now is Dundon trying to quickly put a few jolts of energy into the system to see if he can change the mentality and attitude and in the process revamp the product and the marketing of it. The best time to make certain types of changes will be the off-season, but before then he needs two kinds of information. First is that he and his team will benefit from having some indication of how big of an effect pricing can have on ticket sales. Second is that he very simply needs to get a read on whether he thinks he can chart the course forward with his current staff or if the off-season will also be a time to make personnel changes.
Need for willingness to try changes
I also think that as much as possible the core fan base needs to give Dundon some rope and leeway. The path forward will inevitably be imperfect, and there will be some missteps. To make changes and move forward fairly quickly, some amount of trial and error will be part of the process. That is not to say that the entirety of the new plan should be throwing things at the wall and seeing what sticks. But there must be some margin for error granted as changes are made. I also think that there needs to be an open-mindedness. Things are be changing dramatically based on Dundon’s immediate 180 on freebies and deeply-discounted promotions. Whereas Don Waddell dramatically decreased freebies at the expense of attendance but theoretically preserving value for season ticket holders, Tom Dundon has done the exact opposite in increasing the volume of complimentary and deeply-discounted tickets and with it attendance.
But also a balance with diligent consideration and respect for loyal customers
The challenge will be to move quickly but avoid haphazard trial and error that does significant damage to the current core of the business. While some willingness to try things and to shock the system a bit is necessary, this must be balanced with maintaining the core business and the loyal customers who are equally critical to future financial success for the team. While there is an element of figuring out the marketing mix to pull in new customers, professional sports revenue models are heavily reliant on repeat business from customers who are not one-off buyers but rather customers with deep relationships and regular commitment.
And that is something that Tom Dundon must not underestimate or ignore. If new programs add new customers but in the process alienate a sizable portion of the season ticket holder base, the result will be one step forward, two steps back.
And thus far things have been incredibly quiet on that front. Everyone benefits from the concession discounts, so that is a promotion for all. But as a season ticket holder, I am not aware of receiving any kind of information with any kind of details or even vague promises about what, if anything, will be changing for season ticket holders. I think that is an oversight. Potentially, it could be addressed either when playoff down payment information or 2018-19 renewals information come out, but I think the longer things go without something being said and the noisier things are on the promotional front for everyone else, the more loud the silence becomes.
What say you Caniacs?
My hope is to include a few related polls in the Thursday Coffee Shop without hi-jacking the hockey conversation, but I figured I would open the floor here for comments and discussion too.
1) What are your thoughts on the use of deeply-discounted ticket promotions to boost attendance short-term?
2) If you were Tom Dundon, how would you strike a balance between marketing to new (or dormant) fans and rewarding loyalty for current season ticket holders?
3) What are your thoughts on the ‘let’s try things’ approach thus far?
Go Canes!
I am not a STM. I can see why they would be upset at the devaluing of their tickets. At the same time we have to get more fans in the building, potentially buying next year’s season tickets, if we want to be a big spending team. That can be a chicken and egg conversation.
Hopefully the team pulls out a string of wins in February to generate more fan interest. And it trickles down into March. Im sure TD will figure out something for the loyal STMs. I find this to be a necessary evil right now.
1)I’m a lower bowl season ticket holder and I am ok with the promotions for now. If it was to become a more permanent thing I might not be as fine with it. I’m happy TD is trying some new things to get people in the arena. I did see a comment from him telling season ticket holders they will be taken care of- I’m guessing in better pricing for next year or perhaps good deals on playoff tickets this year(yes I still think we have a chance.
2) I would like to see season ticket holders rewarded with bigger discounts to make it more worthwhile to sink that kind of cash into tickets. Maybe a sliding scale based on how long you have had season tickets.
I have had mine since 2002 and the reason I bought them was for playoff ticket priority. If this team could start making the playoffs regularly and fans see how tough playoff tickets can be to get, Canes would likely see more fans buying them.
I started as a STH in 2002 and stayed that even after moving to the midwest (donated my tickets to Hockey Fights Cancer). Gave up my “membership” two years ago, wasn’t easy but it seem to be the same ole same ole with the way the team was run. They need butts in seats and though Waddell’s approach had a positive effect on the balance sheet, it drove the casual fan away. The cost of going to a game whether or not you are a STH or a walkup had gotten out of hand and the organizations only fix was to continue to raise prices.
New ownership with an emphasis on the fan experience is long over do and well worth any/all hiccups along the way. Do I think we will ever get to a streak of continuous sellouts, no but if we have the building at 80-90% capacity each and every night that will increase the fan experience as well as help the product on the ice.
1. I liked the fill the bowl idea. It’s not a long term solution, but doing it once or twice (or on snow day games) can make things feel better. And having some dicout tickets is not a bad idea to.build support. At least it beats 9000 fans, and half the food stand closed like under Waddell last year.
2. There’s not a lot they can do now for STMs, apart from vouchers. But they can get some new and improved perks ready for the 2018-19 season. Maybe increase the food/bev credit. The promos are so we can get some quick building fills, and maybe grab some nw STMs.
3. More hits than misses. But at least there is some excitment (from employees as well as fans).
1. I love the idea. Our marketing has been stagnant for far too long and this remaining half a season is a great opportunity to pull out all the stops and try some new things. As an upper-level half STH, I love joining you all down in the lower bowl, though if I’m being totally honest, the overall view is better from up there.
2. There’s only one balance that rewards new fans and STH’s alike and that’s food discounts. You keep giving discounts on food and beer and I will legit not care about the fact that non-STH’s might be getting more than us. Let’s be honest here, I’d be shocked if we saw a drop in STH’s solely because they were offended that they felt overlooked.
3. Do what you gotta do Dundon. You’re making this team fun on multiple levels, which is good considering the roller coaster ride we’ve gone on hockey-wise in the last few years. I’ll be fascinated to see what else they come up with.
I’m in strong agreement with the validity of the various opinions.
Also, this is clearly a case where some action is BETTER than none, IMO!
Because the situation that exists here, ie not making enough money, not winning, NO PLAYOFFS, AND…NO EFFORT TO UPGRADE THIS ROSTER…
Something had to change…MAKE THAT “SOMETHINGS” HAD TO CHANGE!
…the elephant in the room, ie. topic noone has, as yet, addressed, is IMPROVING THE PRODUCT…ON ICE! All the concerns addressed ARE IMPORTANT, but…PALE IN COMPARISON WITH FIXING THIS TEAM…!
WINNING CAN FIX A MULTITUDE OF OTHER SINS…!
I have a limited amount of patience, and i believe doing something, is INFINITELY BETTER THAN…continued inaction.
ZZZZZZZZ…I AM WAITING, TOM…
You certainly are consistent! 🙂 (not meant as a put down!)
I would like to see an agreement with the league that offers free Center Ice TV or AHL TV to STH’s with (early) season ticket purchase. It’s an incentive that promotes more interest in the sport overall, with lots of options in the administration.
And somebody hasn’t been paying attention if they think fans don’t want their Aho bobblehead.
I am a lower bowl STH. I have no problem at all with what TD is doing. It is really smart. It all ties together. You do things to fill the bowl, the team does sense the higher level of energy. They maybe play a little harder because of the higher energy. The energy level was higher in the building against the Sens.
Did I pay a high price for my STH tickets, certainly. (I did not have this particular game, but in general, yes, I paid higher prices). Do I have a problem with a bunch of people coming down into the lower level who paid less, no, because it made it better. Do I feel TD will neglect the STH, no. He is all about filling the bowl and creating a good fan experience. I do not know what they plan yet but I am sure he is aware he could piss off the STH who paid higher prices for the tickets. He will take care of us, this guy is smart.
You get more people coming, and guess what, they realize this is fun and they start buying tickets for a few more games.
What keeps people coming, a team that wins. Do I think he is done just with bringing more people in. Not a chance. He will be making appropriate changes to the team. The big difference is, he has deep pockets. He can afford to not make money. He is spending now to make money later. He is just starting and the first step is get more people to the game. His next step will be what is on the ice. Everybody prior to this had their hands tied. Make the books look good at the expense of loosing fans. Its a new day.
No, as a STH I do not have a problem and respect those who do. There is a method to his madness. A guy who cares about the customer experience is not going to hang the STH out to dry. He is impatient, which was music to my ears. I am sure there are more things being planned.