CX transformation accelerated by Direct to Fan (D2F) × Entertainment-Driven Consumption: Fan Types and Consumption Behavior Observed from Sports Fans (Part 1)

In August 2023, ABeam Consulting carried out a six-month trial with the Japan Sports Agency to promote D2F. In other words, we undertook a revenue model transformation at sports clubs. We used an e-commerce platform we built using Shopify to hold four live auctions with three sports clubs. The results are shown as a fan analysis matrix and can be applied across industries. The matrix focuses on the patterns of entertainment-driven consumption seen through fan consumption behavior, as well as fan types and fan behavior types.

The reasons for focusing on the relationships between clubs in the sports industry and their supporters as a fan analysis are: (1) relationships between clubs (companies) and their fans are diverse, and (2) the participating clubs had not yet implemented D2F so they needed to perform test marketing to see its effectiveness.

There are various revenue sources in the sports industry, but the main one is from corporate sponsorships. Due to the unique revenue structure, the relationship between clubs/players (the business side) and fans (the supporter side) is that of “being supported vs. being a supporter.” This dynamic differs a lot from the typical “seller and buyer” relationship seen in conventional customer-facing businesses involving products and services (see Figure 1). The entertainment industry also adopts a similar structure to the sports industry.

Many sports clubs (companies) maintain a relationship where they can connect directly with fans, but sales of tickets and merchandise are outsourced to agencies, resulting in intermediary margins from commission fees. In terms of the movement of goods, there are many cases where D2F is not possible as a revenue structure.

Our live auction e-commerce platform works by embedding live videos from a club’s YouTube account into an auction page, allowing fans to watch video content while participating in an auction. Unlike the regular purchasing of goods, this live auction sales model can instantly boost fans’ buying motivation through its entertainment and event-like experience. Furthermore, even non-buyers who did not actually bid on any auctions participated in the live auction to watch content on their favorite players.

The elements that make up entertainment-driven consumer behavior in live auctions observed from our trial with the Japan Sports Agency are shown below (see Figure 2). 

Emotional: latest information input and cultivation of emotional engagement through live video streaming

• Live: live engagement generated through excitement and interactions with fans, such as with live streams with players and being able to ask questions or make requests to players in the comments section

Simple: an e-commerce store that makes it quick and easy to make a purchase

• One-click: a sales flow with minimal transitions, enabling users to get to products without navigating through the site

Special: one-of-a-kind products that make fans feel special

• Only One: listing of rare items such as one-of-a-kind or signed products, with auctioned items handed directly from players to fans

The results of analyzing the live auctions showed that the “amount of visitor access to the site” and “number of bids in auctions” increased among fans feeling passionate during the live streams. This indicates that it is possible to maximize added value through a live event (see Figure 3).

The result of the trial was that new fan types emerged from the relationship between fans and players, rather than classifications such as new/existing fans, light/core fans, gender, and age.

The relationships between fans and sports clubs/players at said clubs were categorized into the following four types. These four categories were derived from sales and bidding data during the live auctions, post-auction survey results, and YouTube comments during live streams.

1. Family/Friend (for belonging)
   Fans who support a club/players as if they were supporting a relative or their own child.
   These fans prefer family-like events such as send-off events or sports days. They seek opportunities to support the club with a sense of belonging.
2. Community (for interaction)
   Fans who support a club/players as a means to deepen interaction with friends/acquaintances.
   These fans prefer seasonal events like summer festivals or events with ties to the local community. They seek opportunities to deepen their ties within a community with the common interest of supporting the players/club.
3. Star (to idolize)
   Fans who idolize the players as their heroes/heroines.
   At clubs with lots of “star fans,” the right to have a promotional photo taken like the players drew little interest, while the right to photograph players during training attracted many bids. This showed that there is a strong demand for experiences that involve following the players.
4. Business (for commercial purposes)
   People who engage with the club or players through corporate sponsorships or use of VIP rooms for business meetings.
   Not necessarily a fan of the club/players, but make a large financial contribution.

Although we identified these four fan types, a single fan of a club is not necessarily just one type (see Figure 4). Some fans may have numerous relationship types depending on the characteristics of the club.

The trial found that even non-buyers show behavior that makes them valuable potential customers. Such fans support the club over the medium- to long- term through actions like content viewing and sharing via chat, not just through how frequently they make purchases (see Figure 5).

Based on the survey results and sales data trends of the fans of the three clubs, we created the following fan analysis matrix and analyzed the characteristics of each club (see Figure 6).

The horizontal axis represents the type of relationship with players/club from a fan viewpoint, highlighting the distance between fans and players/club. The vertical axis represents “behavior type,” highlighting spending power as a contribution to the players/club.
As club marketing activities, we start by targeting core fan segments that align with the club’s characteristics. Then, we expand initiatives both vertically and horizontally within a matrix based on the club’s branding and desired direction. By doing so, we can increase the number of fans and strengthen fan loyalty.

By using a matrix to map the relationship between the company and its customers and categorizing customer behavior types, this fan analysis matrix can also be applied beyond the sports industry to areas such as consumer goods and retail businesses/brands. Going forward, we would like to use this fan analysis matrix to add new perspectives to the traditional segmentation such as age and gender in order to help build optimal relationships with customers and examine better marketing plans.