(and no this article is not written by Chat-GPT)
AI was certainly the buzz word of 2023. Like with many tech buzz words people tend to associate it with one specific application - in this case Chat GPT. Whilst Chat GPT (and other such large language models) have captured the imagination and are truly revolutionary, it is probably not the application that really matters when it comes to the business of sports.
Away from the headlines AI is quietly revolutionising the way that data heavy businesses are working – and the business of sports is data heavy.
In general, AI systems work by ingesting large amounts of labelled training data, analyzing the data for correlations and patterns, and using these patterns to make predictions about future states. This process can be used to generate lifelike exchanges with people or learn to identify and describe objects in images (terms generate AI).
But for the business of sports the most exciting application is in revenue maximisation, and this is where it aligns with Fortress.
Sports fans interact with their team across a multitude of data touchpoints – digital (ticketing, broadcast, OTT, social, e-comm, App and .Com) and physical (ticket scanning, suite access, car park, sports book, concession and retail purchases). Each is a point of presence (i.e. the fan is there engaged) and a point of data (i.e. the fan is doing something transactional – viewing, spending, accessing).
What AI systems do is ingest this data, analyse for correlations and patterns, and use the patterns to make predications and recommendations about how best to activate this fan further. The promise of AI is that sports teams will be able to automatically leverage data to personalise and optimise the transactional engagement with each fan in real time.
How can this supercharge the business of sports? Here are just a few examples:
Targeted ticket incentives based on customer profiles – increase ‘propensity to buy’.
Automated / real time promotions and incentives personalised to each fan – and delivered just in time at point of purchase.
Sponsor activations actively targeted to fans most likely to engage.
Generative campaign communications designed to make each fan feel recognised.
This is the world of AI powered customer engagement. Set a business objective and watch the AI system generate the best experience for each fan based on future state predications. It’s a bit like fine tuning the engine of your business to optimize the experience of each fan and the value generated from each - increased ticket sales, utilisation, in-game per caps, sponsor activations = CLV = brand value.
Want to see it in operation? – just ask Fortress for a demo.
Comments