The factors influencing churn rates among season ticket holders : an empirical analysis

McDonald, Heath 2010, The factors influencing churn rates among season ticket holders : an empirical analysis, Journal of sport management, vol. 24, no. 6, pp. 676-701.

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Title The factors influencing churn rates among season ticket holders : an empirical analysis
Author(s) McDonald, Heath
Journal name Journal of sport management
Volume number 24
Issue number 6
Start page 676
End page 701
Publisher Human Kinetics
Place of publication Champaign, Ill.
Publication date 2010-11
ISSN 0888-4773
1543-270X
Summary Season ticket holders (STHs) are vital to professional sport club revenue and are purported to be the most loyal and involved of fans. Nonrenewal (churn) rates among STHs, however, often exceed 20%. Low member satisfaction, poor onfield performance and low game attendance have all been posited as explanations of high churn rates, but rarely empirically examined. The research reported here employed a unique study of over 4,500 STHs, incorporating both survey research and measures of actual behavior, to determine which variables best explain and predict churn within two professional sport teams. A variety of analytical techniques all suggest that the key variables predicting churn are length of relationship and the number of games attended. New, low attending STHs are over five times more likely to churn than long-term, frequent attendees. Typical management practice is to run reward schemes designed to increase attendance and encourage renewal. The results of this study suggest that fundamental differences in the way new, low attending members evaluate the season ticket product may render those schemes ineffective. Shifting the focus of these STHs toward the intangibles of the product, such as stronger feelings of involvement, a sense of community and increased patron worth, could be more effective at reducing churn.
Language eng
Field of Research 150404 Sport and Leisure Management
Socio Economic Objective 970115 Expanding Knowledge in Commerce, Management, Tourism and Services
HERDC Research category C1 Refereed article in a scholarly journal
HERDC collection year 2010
Copyright notice ©2010, Human Kinetics
Persistent URL http://hdl.handle.net/10536/DRO/DU:30031566

Document type: Journal Article
Collections: Faculty of Business and Law
Deakin Graduate School of Business
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