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Understanding Consumer Loyalty in a Rapidly Evolving Sports Industry

11/25/2024
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With the sports industry in continuous evolution, it is becoming paramount for stakeholders to understand fan behaviour and to stay ahead of the latest loyalty practices, as well as the newest technologies that can disrupt them. While emotional connection remains at the heart of loyalty in sports, the next generation of sports loyalty programmes is characterised by a wider use of tools and an increased scope of rewards to cater to a fanbase that is ever growing and changing.

Loyalty is redefining how well companies reach out to customers

While still playing a significant role for certain types of customers, traditional approaches to consumer loyalty are increasingly becoming archaic across many industries.

21% of customers are looking for personalised and tailored shopping experiences

Source: Euromonitor’s Voice of the Consumer: Lifestyles Survey, fielded January to February 2024

 This trend is just as relevant for the sports industry, where fanbases are increasingly expecting to be engaged with targeted content and promotions that align with their habits and values. Fan loyalty is also constantly redefined by external drivers, such as technology, shifting consumer preferences, and the emergence of next-generation loyalty programmes.

Simultaneously, companies in the FMCG and services landscape are eager to tap into the loyal customer cohorts that sports fans represent. In 2023, the average attendance across 1,300+ major games and events was above 21,500 per event, while within the same scope the cumulative number of digital social media followers went beyond 6.2 billion.

The total sponsorship spend on key categories within the top 10 competitions globally alone surpassed USD8.3 billion in 2024, and is forecast to reach USD9.95 billion in 2030

Source: Euromonitor International

Emotional connection at the core of sports loyalty

Understanding the role of emotional connection in building and sustaining bonds between fans and teams is vital for advertising and sponsorship success. Successful loyalty programmes with sponsors often focus on emotional loyalty, leveraging shared values or memories rather than solely offering transactional rewards. For example, Manchester United’s agreement with Marriott Bonvoy strongly leverages the club’s iconic venue, Old Trafford, as well as the roster of football stars that have worn the team’s jersey. Besides standard matchday and hospitality perks, members have the opportunity to stay at Old Trafford in a Marriott Hotels suite overlooking the pitch as well as taking advantage of the "Seat of Dreams" feature, where fans can access premium seating alongside club legends, and unique experiences like playing on the pitch at Old Trafford​.

Acknowledging the importance of fan communities and aligning with the values that teams represent to their fans is also conducive for brands to tap into the fan-team emotional connection. The ultimate reward for sponsors that do this is access to a pool of highly engaged fans that can be turned into loyal customers. To find where engaged fans are, one can look to digital platforms, in particular social media networks.

Across the top football/soccer leagues in Europe there were over 5.6 million interactions per post, on average, across TikTok alone in March 2024

Source: Euromonitor InternationalChart showing Followers and Average Interactions per Post on TikTok, Selected Leagues, March 2024

Enhanced personalisation and next-gen loyalty in sports

Modern sports fans are increasingly looking for new types of perks and loyalty rewards, valuing programmes that can be personalised to their specific needs and preferences. Notable new rewards include game-used items like match-worn jerseys and goal balls with certificates of authenticity, as well as enhanced matchday and hospitality experiences.

Sports properties today can leverage digital tools and collect large amounts of consumer data through their loyalty programmes, allowing them to segment and target fans better than ever before and ultimately tailoring sports loyalty programmes to very specific consumer preferences.

Chart showing World: I seek curated experiences that are tailored to my tastes, 2019/2024With technology disrupting loyalty capabilities and fan expectations changing rapidly, next-gen loyalty programmes which use gamification, loyalty ecosystems and focused experiential rewards are emerging. These programmes leverage customer profiling and AI-based solutions and offer an increasing range of rewards and perks, allowing for the development and customisation of increasingly refined loyalty strategies. For example, Maple Leaf Sports & Entertainment, owner of the Toronto Maple Leafs (National Hockey League), Toronto Raptors (National Basketball Association), and Toronto FC (Major League Soccer), uses AI-driven analytics to create personalised fan experiences. Through their digital platforms and fan engagement tools, they tailor content, offers, and interactions based on fan preferences and behaviours to enhance loyalty engagement. The National Basketball Association (NBA) partners with Microsoft Azure to gain detailed customer insights and offer fans personalised recommendations for games, events and merchandise, while aligning loyalty rewards with fan interests.

Like the sports industry, fan behaviour is evolving. While emotional connection remains central, sports loyalty has shifted from transactional to experience-based. Sports stakeholders’ ability to be a step ahead of these changes can prove critical in attracting and retaining fans through innovative loyalty programmes.

Learn more about sports loyalty in our report, Consumer Loyalty in Sports, to discover how to foster loyalty, adapt to evolving fan preferences and navigate the impact of technology on loyalty programmes.

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