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SJ Kang _ Data Analytics in Liverpool Football Club
Data Analytics in
Liverpool Football Club
SJ Kang
1
SJ Kang _ Data Analytics in Liverpool Football Club
Table of Contents
1 Introduction ................................................................................................... 3
2 Importance of Fan Data Analytics in Liverpool FC.......................................... 4
2.1 Stadium Expansion Scheme ...................................................................... 4
2.2 Internationalisation of Premier League ..................................................... 5
3 Data Ecosystem in Liverpool FC ...................................................................... 6
3.1 Website – The Hub of Data Ecosystem ...................................................... 7
3.2 Social Media .............................................................................................. 8
4 Customers and Pricing Strategies in Liverpool FC .......................................... 9
4.1 Customer Analytics ................................................................................... 9
4.2 Ticket Price Strategies ............................................................................. 12
5 CRM & Customer Engagement in Liverpool FC ............................................ 15
5.1 Customer Relationship Management ...................................................... 15
5.2 Fan Engagement ..................................................................................... 16
6 Recommendations for Liverpool FC ............................................................. 19
6.1 The Strategies ......................................................................................... 19
7 List of References ......................................................................................... 24
2
SJ Kang _ Data Analytics in Liverpool Football Club
1 Introduction
Liverpool Football Club (will be written as Liverpool FC or LFC) is an English football
club founded in 1892 (LFC 2018a). Although LFC could not win the Premier League (PL)
title after 1990, it is newly acquired by Fenway Sports Group in 2010 and constantly
aims to involve into international football competition, Champions League (Bennet
2012; PL 2018a).
This report aims to find out why LFC needs data analytics and how its data ecosystem
works first. Then, will mention who are LFC followers and how to communicate.
Recommendation to improve fan engagement and revenue will be identified lastly.
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SJ Kang _ Data Analytics in Liverpool Football Club
2 Importance of Fan Data Analytics in Liverpool FC
Data exists in different forms such as numbers, pictures, and footages (Surma 2011).
Data is to identify and store relevant information for organisation’s goal (Harrison &
Bukstein 2017). Analytics refers the process of converting raw data to meaningful
information (Leibowitz 2014). For LFC, collecting and analysing fan data might be useful
to know who their fans are and to build business roadmap (Fried & Mumcu 2017).
Particularly, stadium expansion and growth of international fans require LFC to
conduct fan analytics (Marr 2015).
2.1 Stadium Expansion Scheme
Liverpool FC has started expanding its stadium, Anfield (Financial Times 2018). The first
phase of stadium reconstruction was completed in 2017 which increased capacity from
44,000 to 54,000 (SportsPro 2018). This expansion delivered £12 million more
matchday income to LFC in 2016/17 season than previous season (Telegraph 2018)
Moreover, the second expansion will be completed until 2021 and grow the capacity
to 61,000 (This is Anfield 2018). Therefore, LFC should know which fans desire to come
to Anfield and set up proper strategies to maximise their matchday profit (Brook 2016).
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SJ Kang _ Data Analytics in Liverpool Football Club
2.2 Internationalisation of Premier League
From early 2000, PL started receiving foreign investment and it generated international
stakeholders, owners, sponsors, players, and so on (Hassan & Hamil 2011). PL is
currently broadcasted to 212 different countries and it reaches 3 billion international
audiences (VoiceBox 2018). Therefore, PL could acquire international fans and
generated £1 billion by oversea TV rights during 2016-2019 (Cleland 2017).
Since, LFC is holding international event, already 99,000 foreigners are visiting
Liverpool annually for LFC (BBC 2015). Increasing international fan is a chance for LFC
to increase TV right revenue. To satisfy international fan group and to collect more fans
globally, LFC now needs to analyse about this group (PL 2018b).
5
SJ Kang _ Data Analytics in Liverpool Football Club
3 Data Ecosystem in Liverpool FC
Data ecosystem refers the system can collect, analysis, interpret, and publish data
(Michener & Brunt 2000). In terms of sport, data analytics were mainly used to get a
better match result (Severini 2014). However, Orlando Magic, the American basketball
team, successfully operated smartphone application by cooperating with VenueNext
and proved the importance of data ecosystem in sport business (Harrison & Bukstein
2017).
6
SJ Kang _ Data Analytics in Liverpool Football Club
3.1 Website – The Hub of Data Ecosystem
LFC website collects fan data mainly when fans make an account. LFC asks basic
personal information for free registration, but it requires much more data for season
ticket holders and membership card holders like the screenshots below. LFC even saves
fan’s credit or debit card detail in its data ecosystem.
DeLone and McLean (William & Ephraim 2003) said the quality of information, system,
and service are three important values to judge whether data system successfully
operates or not. Since LFC records high quality of fan information, like, payment card
and purchase history, this report can say LFC website has stable data ecosystem.
7
SJ Kang _ Data Analytics in Liverpool Football Club
3.2 Social Media
Additionally, Fans can easily navigate from LFC website to social media. Moreover,
hyperlinks from social media to official online LFC store is also well organised. Since,
LFC organised good data system, fans can easily navigate LFC platforms without
disturbance (Karayanni & Baltas 2003). Furthermore, LFC can also easily collect fan
data, for example, how fan could access to LFC website or what is the process of
purchasing shirts and product in online store (Bota 2009).
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SJ Kang _ Data Analytics in Liverpool Football Club
4 Customers and Pricing Strategies in Liverpool FC
Matchday income is third biggest revenue source in LFC (Millward 2013). To drive
revenue, setting appropriate price is important based on customer data (Bejou &
Palmer 2012). This section analyses LFC’s current and potential match ticket customers.
4.1 Customer Analytics
Based on customer transaction data, this report divided customers into three
segments like figure 13.
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SJ Kang _ Data Analytics in Liverpool Football Club
4.1.1 Season Ticket Holders
TalkSports (2017) researched
that season ticket holders filled
nearly 46% of Anfield seats in
2016/17 season by selling 25,000
season tickets. LFC runs ticket
exchange policy for this group in
case they cannot attend the
match. Season ticket holders
tend to be more loyal than other
fans and geographically live near
Liverpool (Schreyer, Schmidt, &
Torgler 2018).
4.1.2 Membership Card Holders (Members)
In LFC and this report, ‘LFC members’ refers customers who purchased membership
card. Three types of membership cards are existing but only full and light members are
authorised to purchase remained tickets after season ticket holders choose their seats
(LFC 2018b). Full membership is £35.99 while light is £26.99, instead, full members
receive souvenirs. This shows full members are interested in merchandised product
while light members are price sensitive (Adeinat & Ventura 2015).
10SJ Kang _ Data Analytics in Liverpool Football Club
4.1.3 Non-members
Non-members in this report refers LFC supporters but have not purchased neither
season ticket or membership card. International supporter represents this group, and
they officially have no way to purchase LFC’s match ticket
According to VisitBritain (This is Anfield 2015), approximately 99,000 foreigners visited
Anfield in 2014, which was second highest record among PL teams. International fans
geographically cannot attend match regularly, but support LFC through purchasing
merchandised product or engaging in LFC social media (Rookwood & Chan 2011).
11SJ Kang _ Data Analytics in Liverpool Football Club
4.2 Ticket Price Strategies
This section defines which ticket price strategy LFC is using and compare the ticket
price with other PL clubs. Figure 17 shows three types of ticket pricing strategies.
4.2.1 Season Ticket Holders & Members
LFC adapted premium seat pricing for both
season ticket and membership card holders,
although several PL teams start applying
variable pricing. LFC divided the quality of
seats into 12 tiers (LFC 2018c).
12SJ Kang _ Data Analytics in Liverpool Football Club
Still, LFC average
ticket price is
more expensive
than other PL
teams. During
2017/18 season,
LFC’s highest
season ticket
price was £869,
while average
PL’s highest
season ticket was
£843.58 (BBC
2017). Furthermore, single ticket was the most expensive price between PL teams
outside of London (LFC 2018c).
This expensive ticket price caused LFC fans to complain (Liverpool Echo 2014). Some
fans started holding banners during the match or writing posts on social media to
complain expensive tickets (This is Anfield 2016).
13SJ Kang _ Data Analytics in Liverpool Football Club
4.2.2 Non-members
As 4.1.3 mentioned, non-members, especially international followers, geographically
cannot attend the match regularly. However, they are willing to travel to Liverpool,
and highly desire to watch LFC match more than anyone (Nishio 2016).
One unofficial way to get ticket is using resale market. For example, Stubhub, well-
known ticket resale market, currently sells LFC tickets from £175 up to nearly £650. It
is at least five times more expensive price than the original one. Unfortunately, resale
market does not guarantee if the seller sells real tickets or not (Griffith 2015).
Nevertheless, some desperate international fans purchase those ticket regardless of
price and uncertainty (Dayer & Martin 2010).
Section 6 will discuss more about how to drive revenue by overcoming these situations.
14SJ Kang _ Data Analytics in Liverpool Football Club
5 CRM & Customer Engagement in Liverpool FC
This section addresses the importance of CRM and customer engagement, then
mentions how LFC is doing well in these fields.
5.1 Customer Relationship Management
CRM is an abbreviation of Customer Relationship Management (Ruivo, Oliveira, &
Mestre 2017). According to Dyche’s (Dyche 2002) CRM definition, LFC will be able to
keep loyal fans, maximise current customers value, and gain potential international
supporters by continuously keep relationship with fans.
5.1.1 Building Current Fan’s Loyalty
As section 3.1 mentioned, LFC automatically renews season ticket and membership
because renewing season ticket is football fans’ one propensity model (Mcdonald, Karg,
& Leckie 2014).
LFC also realises members are willing to attend the match regularly based on member’s
transactional information. For these fans, LFC runs Auto Cup Scheme which LFC will
automatically purchase the cup match tickets for members who registered their
payable cards (LFC 2018d). As fan regularly attend every cup game, their loyalty will
grow.
15SJ Kang _ Data Analytics in Liverpool Football Club
5.1.2 Interaction with International Fans
LFC organises the event, LFC World, in eight different Asian countries to both acquire
new fans and grow loyalty of existing international fans (LFC 2018e).
In 2018, LFC World was held in
Seoul, South Korea for three
days (LFC 2018f). During this
event, LFC prepared tables and
collected Korean fans’ personal
details. After then, LFC
randomly chose one fan to give
a free opportunity to visit
Anfield. This opportunity
motivated Korean fans to
spontaneously complete their
personal detail specifically. LFC,
therefore, form CRM system with South Korean fans.
5.2 Fan Engagement
Fan engagement, in sport, can be watching sport, buying merchandised products, or
having sport conversation with others (Bristow & Sebastian 2001). Since technology
developed, fans now can engage in sport through social media by reading and writing
the posts (Vale & Fernandes 2018).
Higher fan engagement helps sport teams to grow fan loyalty and to acquire new fans
(Loop & Malyshev 2013). This report will analyse LFC’s Facebook and Instagram pages
where fan engagement occurs (Macy & Tompson 2011).
16SJ Kang _ Data Analytics in Liverpool Football Club
5.2.1 Instagram
Instagram is LFC’s biggest social media followed by 10.7 million (Statflux 2018). LFC and
Tottenham Hotspurs are keeping high fan engagement in Instagram which is 2%, while
other PL clubs retain generally between 0.5% to1% of engagement (Statflux 2018).
Fan engagement highly occurs when LFC posts its celebrity, Mohamed Salah (Statflux
2018). Moreover, LFC makes fans to feel nostalgia by posting pictures and videos of
former players and LFC’s greatest moment (Goodman 2012).
17SJ Kang _ Data Analytics in Liverpool Football Club
5.2.2 Facebook
LFC’s main Facebook page has approximately
8,800,000 followers which is lower than
Instagram, but has more than 100 official LFC
supporters club Facebook page all around the
world. Each page offers different languages so
that foreign fans can easily understand the
posts and communicate with LFC.
Furthermore, LFC runs
International Football
Academy in 30 different
countries (International
Academy 2018). Each academy
has their own Facebook page.
They also post the picture of
young students learning
football in different language
so that LFC can raise young future avid fan globally. These pages are directly linked to
LFC online store so international fans can easily shop and engage in LFC by purchasing
product (Gao & Koufaris 2006).
18SJ Kang _ Data Analytics in Liverpool Football Club
6 Recommendations for Liverpool FC
Recommendations will be suggested based on TiMMS. It is an acronym of Ticket
Marketing, Sales and Service and the purpose is to design business roadmap for LFC to
increase attendance rate and fan engagement (Farris 2016).
6.1 The Strategies
Match attendance is already very high in LFC. 52,958 people attended match in average,
while stadium’s capacity was 54,000 in 2017/18 season (Statista 2018). However, the
capacity will be 61,000 in 2021, so LFC must think about how to fill 7,000 more
attendances.
19SJ Kang _ Data Analytics in Liverpool Football Club
6.1.1 Retain Avid Fans – Season Ticket Holders
Consulting company, Aspire group, generally suggests sport teams to retain 85% of
season tickets holders (Van Riper 2012). However, LFC is offering auto season ticket
renewal service, so this report asks LFC to keep 95% of renewal. Moreover, LFC should
sell 2,500 more season tickets because some fans already desire to purchase season
ticket.
As 4.1.1 mentioned, season ticket
holders geographically live near
Liverpool. Therefore, community-
based campaign can affect
season ticket holders (Blumrodt,
Bryson, & Flanagan 2012). For
example, Wolverhampton FC
runs quite well organised
foundation which supports the
city, Wolverhampton, to be a healthy place as below.
LFC owns foundation department, but it should be more revitalised. Devoting to make
Liverpool better city will help LFC fans to be more passionate fans.
20SJ Kang _ Data Analytics in Liverpool Football Club
6.1.2 Grow Casual Fans – LFC Members
According to Mullin’s
(2014) fan escalator
theory, clubs should
grow casual fans to be
more passionate.
Releasing 3,000 seats
for members can offer
more match experience
and lift them to the top
place on escalator in the
future.
Full Membership Card Holders
Refer to the section 4.1.2, full membership fans are interested in merchandised
products which means they can be easily conversed to purchase product. So, exposure
them into advertisement will be good tactic (Samat, Hashim, & Yusoff 2015). Using
social media advertisement is a good example (Stander, Van Zyl, & Motaung 2016).
21SJ Kang _ Data Analytics in Liverpool Football Club
Light Membership Card Holders
Light members are price sensitive customer. For them, selling discounted product is
effective selling tactic (Burton et al. 2014). Particularly, in the end of the season, the
old shirts value drops because the new shirts will be released soon (Beech & Chadwick
2007). Therefore, LFC should send email or phone message that ‘LFC is clearing
inventories with huge discount’ based on fan data in CRM system. Such a discount
campaign in the end of season will help LFC to reduce inventories and increase revenue.
6.1.3 Acquire New Fans – International Fans
Existing International Fans
Although, LFC is not selling tickets to international fans now, this report highly
recommends setting up new ticket sale scheme named ‘international ticket scheme.’
This releases 1,500 tickets to international fans to be new ticket customers. However,
with twice more expensive price.
22SJ Kang _ Data Analytics in Liverpool Football Club
Like 4.2.2 said, international fans often use ticket resale market to purchase five times
more expensive tickets with uncertainty. However, with this new scheme, LFC
guarantees that tickets are not fake, and tickets are much cheaper than the resale
market. Once international fans watch LFC match through this scheme, their fan loyalty
will grow. Furthermore, LFC can earn 3,000 seat’s profits by only selling 1,500 tickets.
New International Fans
Additionally, running social media in different languages and holding global events
regularly are important for LFC not only to communicate with existing international
fans, but also, to poach new LFC fans. In sports business, it is hard to take rival team’s
fans, so targeting non-football fans will be a good idea (James 2016). For example,
Sport team image is generally proportional to its sponsor image (Kelly et al. 2016).
Therefore, LFC should consider the image of the company when they choose the global
sponsors.
23SJ Kang _ Data Analytics in Liverpool Football Club
7 List of References
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32SJ Kang _ Data Analytics in Liverpool Football Club
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