The analysis of default in a fan membership program: the use of credit scoring as sports management tool
DOI:
https://doi.org/10.5585/podium.v11i1.20124Keywords:
Loyalty Program, Fan membership, Soccer, Default, Credit scoring.Abstract
Research aim: Fan membership programs are examples of how clubs adapted successful tools from corporate world to boost their brands, seeking for a perennial revenue alternative. However, the environment of passionate volatility of the fans becomes a challenge for the sports management. In this way, the aim of the work consists of implementing a Credit Scoring methodology to assess the default behavior in a fan membership program.
Methodological approach: The Credit Scoring is traditionally widespread in bank institutions to study the default behavior of customers, using registration and relationship profiles to assign scores that measure the risk of default.
Originality and relevance: Understanding the fan’s behavior is essential for the manager to implement the promotional measures that aim to enhance the loyalty.
Main results: The results indicate that members with more expensive plans, with older ages, that live in the same city that the games are played and their proximity to the stadium, significantly reduce their probabilities to default. Even if it is a male-majority environment, the female gender presents itself as a profile with a lower probability of default. The fact that the member account holder has dependents linked reduces the probability of default, counterposing the banking Credit Scoring literature, in which the number of dependents increases the probability of default.
Theoretical and methodological contributions: The work uses georeferencing techniques to calculate the distance of each member to the stadium and uses a two-stage Credit Scoring estimation technique, based on active and inactive profiles.
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