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Posts Tagged ‘StubHub’

StubHub’s Goal is to Score with Fans, Says CMO Ray Elias

Whether you’re a “social fan” actively networking, a “fanatic” attending every game, or a “premium fan” perched in front-row seats, StubHub serves the preferences of all three segments, said CMO Ray Elias. He spoke at The Incite Summit in New York on Wednesday about the brand’s customer service, social media and mobile efforts.

“Tickets are scarce, perishable goods, and StubHub manages the secondary ticket marketplace. We focus on the buyer and seller experience and the intersection of supply and demand”, Elias said. The market has evolved, and he identified key elements behind StubHub’s success.

Customer Service: Fans of entertainment and sports events didn’t used to receive the red carpet treatment. “We recognized the frustrations consumers were experiencing with ticket purchases”, Elias explained. “Traditionally the process wasn’t fan-friendly, so we applied the customer service models you’d find with Nordstrom and Zappos.”

A core issue StubHub regularly deals with relates to the authenticity of tickets. Elias said they need to deliver on the proposition that “our tickets are real and the fans will be able to get in”. He acknowledged that’s not so easy to convey from a marketing perspective. (Although he didn’t discuss their “Ticket Oakad campaign, it offers a reassuring presence, and according to a Forbes article, the ads have improved key brand perceptions).

Customer service plays a critical role in delivering on the brand’s promise, and Elias described StubHub’s service as ‘heroic’. “We have local reps on the ground, and ‘Make it Right’ customer service” to resolve on-site issues. “We’ve empowered fans, and that has fueled our growth.”

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StubHub and Major League Baseball Fight the Free Market

Though most of Major League Baseball (MLB) will retain its relationship with online ticket site StubHub, the New York Yankees, the Chicago Cubs and the Los Angeles Angles of Anaheim are pursuing alternative platforms for fans to resell extra tickets.

On the surface, the StubHub arrangement sounds like a great deal for all involved. After all, if everyone profits from the sale of a single ticket, what could be better than selling that same ticket a second time?

Every time a ticketholder sells a ticket on StubHub, the company takes 23 percent of the transaction and gives MLB more than half of the windfall. That adds up to the tune of $60 million a year for MLB–and StubHub can promote its services on the hallowed real estate of MLB teams’ official websites. The arrangement appears bulletproof.

Except for one thing: The fans, especially season ticket holders who are dedicated, passionate and loyal to their teams—both emotionally and financially. They’re getting screwed.

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