In a landscape where online brands and retailers are dedicating substantial resources to building customer loyalty and brand advocacy, sports clubs and organisations enjoy a unique advantage. Their global fanbase is already deeply committed to the club, driven by an intangible sense of loyalty and belonging.
The key challenge for these clubs is to enrich the fan experience beyond the limited hours during which matches take place each week. Traditionally, season tickets, accompanied by various perks, have been the standard incentives offered to reward the most dedicated supporters.
Loyalty programmes elevate fans’ connections with their clubs to new heights. Today’s consumers demand more from their interactions with the organisations they support. Given the extra level of commitment that sports fans naturally demonstrate, the potential that advanced loyalty schemes present to sports clubs is vast and exciting.
Why Is Innovation Essential?
Thanks to developments in financial regulations and technology, organisations can now take control of a loyalty scheme’s financial ecosystem through Embedded Finance. This capability allows them to boost their revenues, offer tangible rewards to fans, and gain valuable data insights into their followers.
Embedded Finance enables organisations to issue physical or digital payment cards as part of a loyalty programme. Within a self-managed global financial ecosystem, they can avoid many traditional financial costs, such as transaction fees, card processing charges, and foreign exchange costs.
Fans who receive a club-issued card can use it just like any other payment method, whether through card transactions, Apple Pay, Google Pay, or similar services. By incorporating specific International Bank Account Numbers (IBANs) into their Embedded Finance structure, clubs can also cater to international fans.
The reach of Embedded Finance extends well beyond a club’s own retail outlets, covering offers from selected partners globally. Our Director of Cards, Kevin McAdam, refers to these connections as “supply chain partnerships that operate peer-to-peer”. Since both the club and its global partners operate using accounts (IBANs and debit cards) managed by the club, no transaction fees apply.
Additionally, clubs can set up services such as direct debits, standing orders, and refunds without incurring the usual fees or transaction charges. Embedded Finance opens up fresh revenue streams and fosters a worldwide community of fans, all connected through the club’s unique offerings.
What Is the Value of Data?
Modern loyalty schemes also provide clubs with what Kevin McAdam considers their most valuable asset: data.
“Clubs get access to granular data on every interaction in the programme. By acquiring detailed information about fans’ spending in a [club’s] extended financial ecosystem, it gains a data set detailing the demographics and interests of every individual in the fan base,”
In 2024, this level of data is invaluable. With detailed insights into loyalty scheme participants, clubs can unlock a range of new opportunities, such as:
- Developing region-specific rewards based on local fan preferences,
- Creating highly customised promotions tailored to individual fans,
- Classifying loyalty programme members according to shared interests,
- Crafting targeted marketing campaigns aligned with fans’ activities,
- Forming new partnerships with a higher probability of success.
“This really goes well beyond offering a 10% discount in the food outlets and bars of the home ground. Clubs can extend their scheme further – to local businesses, international chains – and every interaction creates opportunity for the club and gives fans literally what they want,”
Kevin added.
