What do NBA basketball and minor league baseball teams, Megaplex theatres, a bicycle race, sports apparel stores and a sports arena have in common? Answer: Larry H. Miller Sports & Entertainment, a diverse group of companies that have now integrated their data to support analytics that are producing business outcomes all over! How do they benefit each other? The question is really, how well do they benefit each other?
Starting with customer loyalty and sales data, LHM Sports & Entertainment leveraged Attunity Replicate and Teradata IntelliCloud™, enabling them to expand retail opportunities between businesses, mitigate risk in the supply chain and enhance fan experiences across venues. And that is only the beginning! Results were fast and profitable.
“We started with the retail data model, which if you think about all of the different businesses, they actually do fit in there because it’s a transaction with a transactional line and it’s very similar across the entity. That works really well for us so that we can provide reporting both at a company level and at a corporate level.” – Dustin Spangler, VP of Data & Analytics, Larry H. Miller Sports & Entertainment
One of the challenges for the fan apparel stores is predicting what jersey will be hot and what jersey will not. Whether it’s teams or players, the demand typically depends on the ‘play’ of those teams or players.
“We’re doing a good job on the forecasts, but the reality is, how do you plan for a player getting traded? How do you plan for merchandise to carry year after year and plan for Kevin Durant to go and sign with the Warriors instead of staying with the Thunder? There’s part of that in the free agency and trades that you’re just going to miss. And so, how do you mitigate that risk and how do you minimize the order quantities? In the past, it was really challenging to know how much to buy, and often it meant that you were overstocked on inventory and/or you had a lot of obsolete inventory that you were carrying on the books. That’s where we’ve seen the biggest improvement. It’s on the limited amount of inventory that we’re having to write off for discount.” – Dustin Spangler, VP of Data & Analytics, Larry H. Miller Sports & Entertainment
LHM Sports & Entertainment are running analytics on real-time sales data to determine which player’s athletic gear is selling best before, during and after a game to potentially do dynamic pricing. Wow!
Leveraging the integrated environment is really making a difference for concessions between the different business groups. Using loyalty program data gives LHM Sports and Entertainment the opportunity to know the consumer and what type of offers will entice the consumer to respond.
“If you’re a frequent moviegoer and you only go on a discount day and you only buy concessions when they’re discounted, then….when you come to the arena to go to a Jazz game, I’m going to assume that you bought a discounted ticket there. We know that you’re going to respond better to an offer that we can push to you in the app to buy concessions and to engage with food and to go buy your drink and your dog during the middle of the game. It also enables us to push you to the right products that are in the team store that’s there at the arena so that you can have a more integrated experience and a more personalized one.” – Dustin Spangler, VP of Data & Analytics, Larry H. Miller Sports & Entertainment
And has it paid off, fast! Business units experienced significant additional revenue every week. And more are coming online allowing for more cross-pollination questions between business units, such as:
- Does a customer, living near Megaplex Theatre A, drive to Megaplex Theatre B, 15 miles from his/her home, because they prefer IMAX?
- Did the opening weekend of a major movie drive down a Jazz game attendance?
- Did a player’s performance on Saturday night drive more apparel sales through the Fanzz store?
Why move to the cloud? IntelliCloud™ offered exactly what they needed and allowed LHM Sports and Entertainment to get out of the data management business and securely manage all of their business units. Using Attunity Replicate to move data to IntelliCloud, the team was able to implement the solution in only nine months — time to value was quick and the team learned valuable lessons along the way.
“For me, one lesson learned is to not underestimate the networking component of making sure that as you’re talking cloud to cloud, cloud to on premise, that you’ve done a thorough evaluation of your network topology. The other thing, I would say, is on the small and incremental projects. And last, I would say is focus on business capabilities. Don’t try to deliver the cool technical solution. Try to deliver something that adds value to the business.” – Dustin Spangler, VP of Data & Analytics, Larry H. Miller Sports & Entertainment
Adding value and revenue to the business! Congratulations to Larry H. Miller Sports and Entertainment on all your success in the cloud!
This article was written by Katherine Knowles-Marchione and Mariah Kolpek from Teradata.