Snag Business Presents: Sponsorship Hat Tricks: Best Practices for Developing Mutually Beneficial Partnerships
Introduction - Score Sponsorship Hat Tricks
In my years as a sports sponsorship marketing consultant and owner of Snag Business, one fundamental principle has guided my approach to sponsorship: it's not a zero-sum game.
To establish a partnership that benefits all parties, it's crucial to prioritize the fan's experience when developing a sponsorship. The goal is to score what I call "Sponsorship Hat Tricks," sponsorships that benefit the fans, the property, and the sponsor.
Sponsorship Hat Tricks are structured to be win-win-win, and require the following criteria:
The fans are fans because of their passion for the team/players. The most powerful sponsorships contain assets and activations that add value to the fan experience vs. interrupting their experiences, such as traditional commercials or other advertising.
The property maximizes revenue and resource allocation with proper asset packaging. They go through the best practice sales process (outlined below) to ensure their offer has the highest chance to close, and that they can properly fulfill the contract once it's signed. Making promises you can't keep is a great way to lose a sponsor for next year.
The sponsor has a clear marketing plan with messaging, objectives, and performance tracking in place to leverage all of the assets provided by their sponsorship investment. Assuming the sponsor is happy with the ROI & ROO established up front, renewing the sponsorship becomes more defensible for marketers explaining the investment to leadership, thus making the renewal sale for the property much easier.
In the old-school sales process referred to as "wine, dine, and sign," sponsorship sellers would schmooze with executives and sign clients to large sponsorship deals on the spot. This was largely ego-driven before businesses were budget conscious with their marketing spend, with sales pitches along the lines of "...picture your logo on that Jumbotron..."
I worked at the iconic Joe Louis Arena for the last six seasons that it was open (2012-2017). JLA was the BEST atmosphere to watch a hockey game, but anyone that walked into that overcrowded concourse knows we made our money by slapping as many sponsor logos in as many spots as we could.
The need to increase revenue each season meant MORE SIGNAGE! However, this resulted in the concourse being so cluttered with sponsor logos that not only was it unaesthetic, it devalued ALL of our sponsorships and interrupted the fan experience.
With fans expecting engaging activations and potential sponsors becoming more sophisticated to justify marketing investments, closing (and retaining) sponsors now takes a more advanced process.
Remember that sponsorships are subscription-based sales - the property must deliver increased ROI/ROO or else the sponsor is not going to renew the following season. Sponsorship sales are already hard enough and have long sales cycles; it's exponentially easier to renew an existing sponsor than to close a new sale.
Here are the best practices to turn a sponsorship sale into a mutually beneficial partnership.
1. Understand Each Other's Objectives
The first step in creating a mutually beneficial sponsorship is understanding what each other wants. Properties are looking for financial or in-kind support and the chance to align with a respected brand. Sponsors will have multiple marketing objectives they are trying to achieve, such as increasing brand awareness, enhancing brand image, or generating new sales leads.
2. Look for Alignment
For a sponsorship to be mutually beneficial, there needs to be alignment between the sponsor and the property. This could be alignment regarding values, audience demographics, or marketing objectives.
Properties and sponsors must work together during Discovery Sessions during the offseason to discuss what they are trying to do and who they are trying to reach. You can create a sponsorship that benefits both parties by seeking partnerships with a high degree of alignment.
3. Foster Open Communication
Open communication is essential in any partnership. By maintaining regular contact, you can ensure that both parties are satisfied with the sponsorship, address any issues that arise, and explore opportunities for further collaboration.
4. Maximize Activations to Add Value to Fans
Sponsorship activation is leveraging the sponsorship to engage with your audience and achieve your objectives. By putting the fan first and developing ways to add value to their experience, the sponsor and the property maximize the power of their partnership. This could involve hosting events, running co-branded marketing campaigns, or offering exclusive benefits to fans.
5. Measure and Evaluate
Measuring and evaluating the results is essential to ensure that the sponsorship benefits both parties. This could involve tracking metrics like brand awareness, customer engagement, and return on investment. Regular evaluation can help both parties understand the value they're getting from the sponsorship and make any necessary adjustments.
6. Build Long-Term Relationships
Finally, remember that sponsorship is about more than a one-off transaction; sponsorships are subscription-based sales. Developing a great working relationship with your clients, delivering increased ROI/ROO, and adding well-received value to fans provides lasting value to all parties. Treating the sponsorship as a partnership rather than a transaction can create a more sustainable and mutually beneficial relationship for years to come.
Conclusion
In conclusion, sponsorship is not a zero-sum game. Everyone selling sponsorships needs to structure deals as "Sponsorship Hat Tricks" to score wins for the property, sponsor, and fans.
By understanding each other's objectives, looking for alignment, fostering open communication, maximizing activations to add value to fans, measuring results, and building long-term relationships, you can create a sponsorship that benefits everyone and makes securing the renewal sale exponentially easier.