Tickets.com partner Turnkey tackles ticketing with new technology

Sports Business Journal
Eric Fisher

Turnkey Sports & Entertainment this month is introducing Prospector, a ticketing software program it believes will dramatically change how teams seek to fill their buildings.

The program was developed over the past four years at a cost of more than $1 million. It uses inputs such as individual ticket purchases, survey responses and merchandise buys, and blends that data with a variety of demographic, housing and income information on those same fans to create detailed ticket-sales leads that are scored by their likelihood of success.

The software’s custom-built algorithms also allow for customization to rank sales leads for fans’ likelihood to purchase different ticket packages. For example, a high-income fan might score high as a candidate to purchase a luxury-seat package and score lower as a candidate for a smaller, value-oriented ticket package. But if survey data also arrives indicating a propensity by the fan to bring his family to games and participate in youth-oriented promotions, the lead scoring for that person could change, and the sales pitch as a result may then veer away from the more-corporate seating options.

Turnkey successfully beta-tested the effort with the Texas Rangers and Miami Heat earlier this year and will launch the program with at least 18 pro teams over the next several weeks, including the Dallas Stars, Minnesota Timberwolves and Kansas City Royals. The effort seeks to reverse years of declining ticket-sales trends. Pro teams in the early 1990s commonly were able to close sales on 3 percent to 4 percent of their outbound sales calls, but they’ve seen that rate fall below 1 percent in more-recent years as people grow more resistant to any sales call, particularly calls not customized for them.

“The key factor is boosting the close rate back up to where we were 20 years ago,” said Len Perna, Turnkey chief executive. “It’s the only thing that will work. Staying at 1 percent just isn’t going to get it done, so this is about creating tools that will enable more efficiency and improving that close rate.”

To create Prospector, Turnkey needed to strike a series of licensing and commission-based deals with a large group of related parties, including Ticketmaster, Tickets.com, and database marketers Acxiom and InfoUSA. Others, including Veritix and MLB Advanced Media, are also being sought out.

To that end, the Turnkey effort seeks to collate and analyze data that exists at these various outposts or has been voluntarily provided and perform analytical functions that in many instances now occur in a more rudimentary fashion. Many pro and college teams for years have sent lists of names to companies such as Acxiom for additional data enrichment and analysis, but such a process often has been time-consuming and performed in large batches.

Prospector, conversely, performs such analysis daily and on an individual level, more akin to the type of extensive and rapid consumer profiling common in the retail industry.

“This has definitely made us a lot more intelligent and efficient,” said Andy Silverman, Texas Rangers executive vice president of sales. The Rangers posted the highest percentage attendance increase in the American League this season and now are fully deploying the Prospector system in preparation for 2010.

The Heat, similarly, posted during its offseason sales period for the 2009-10 season seven times more ticket-sales revenue from its highest-rated Prospector-generated leads than from those at the bottom end of the scoring.

“This looks like it’s a really slick product,” said Glenn Christian, an Acxiom sales executive who works exclusively with sports teams and properties. Turnkey will act as a reseller of Acxiom data. “There are still some teams that are going to want to have raw data and data enrichment from us, but what they have done to get their secret sauce in there is really interesting.”

Teams will pay a monthly licensing fee to use the service, with an introductory rate of $4,000 a month. The participating teams’ data will be stored on Turnkey’s servers, and the data can be both uploaded to the clients’ computers and woven into teams’ existing CRM systems.

As with any new product, there are some issues continuing to be worked out. The Rangers are among the teams purging buys from ticket brokers from their Prospector analysis, as broker behavior is typically very different from individual and corporate buyers.

The product also promises to create a bit of a management issue, as ticket salespeople at individual teams may start clamoring for only highly rated sales leads as opposed to lower prospects. The Prospector system allows for a variety of view levels, though, depending on organizational seniority and responsibility.

Turnkey is a research partner of SportsBusiness Journal and SportsBusiness Daily.