Applying Customer Lifetime Value to Major League Baseball Season Tickets

Authors

  • John T. Drea Illinois College
  • Lucas Marlow Illinois College
  • Lauren K. Mense Illinois College

DOI:

https://doi.org/10.18666/JASM-2017-V9-I2-8067

Keywords:

Customer lifetime value, major league baseball, metrics, sports marketing, season tickets

Abstract

Customer lifetime value (CLV) is a commonly used metric for assessing marketing performance among businesses; however, there is little evidence of the use of CLV in Major League Baseball (MLB). The authors provide a methodology for calculating CLV for season ticket buyers to properly account for all direct revenue streams for a fan attending an MLB game, including ticket, concession, parking, and auxiliary revenues. Applications for customer lifetime value for MLB teams includes measuring the effectiveness of marketing activities, identifying seating that is over/under priced, and assisting in the management of fan experiences.Subscribe to JASM

Author Biography

John T. Drea, Illinois College

John T. Drea (DBA, Southern Illinois University) is Professor of Management and Organizational Leadership at Illinois College. He is also Emeritus Professor of Marketing at Western Illinois University.

Published

2017-03-28

Issue

Section

Articles