Whether you are aware of it or not, many of the technology tools, apps and programs you use in your everyday life were originally developed by companies to solve internal problems rather than to be a stand alone product. Things like Google Drive, Slack, and even Email, were originally invented to help internal working groups communicate at Google, a defunct gaming company, and DARPA, respectively. It’s when those organizations realized the value of those tools in solving universal problems did they spin them off into publicly available products. Now the Kraft Sports Group (KSG) is trying to repeat the success of those companies by spinning off their internal analytics and marketing platform.
Former KSG VP of Customer Marketing and Strategy, Jessica Gelman, will head up the Kraft Analytics Group, or KAGR. The new group came out of business intelligence technology that Gelman helped build at KSG. KAGR will provide data analytics, data management, and marketing strategy to the sports-entertainment industry. The Kraft Sports Group, which owns the New England Patriots, New England Revolution and Gillette Stadium, has been using Gelman’s marketing analytics platform for the last few years. The requests for advice and guidance from other, similar, organizations had led KSG to turn KAGR into a stand-alone company.
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There is a real need for organizations to utilize the massive amounts of data they collect from their patrons and the sports industry is no different. With the the over saturation of media in the average fan’s life these days, sports organizations can no longer rely on ticket sales and merchandise alone to generate revenue. Early on, KSG learned that season ticket holders who missed multiple games in a row were far less likely to renew. That might seem like a Captain Obvious kind of statement, but Gelman’s team was able to strategically plan for winning back those kinds of fans or replacing their revenue. Now they are making that technology available to a marketplace in desperate need of strategic solutions.
There’s a gap between collecting data and knowing how to use it that groups like KAGR can fill. There seems to be a million different platforms where data can be pulled from, i.e. Facebook, Twitter, Snapchat, etc, knowing how to cull and make strategic decisions on the information can be a daunting task. Their initial focus will be on live events including the college game where Gelman says that market “is very ripe for needing this kind of technology and strategic guidance.”
The Kraft Sports Group has seen how a platform, like the one Gelman built, can be used to lead action from collected data and consumer insights. In a changing media landscape, the sports industry can no longer rely on fandom to generate revenue. We live in an age of fluid loyalties thanks, in part, to the over abundance of available content including streaming services, social media, and fantasy sports.
The plan for KAGR to spin off from the Kraft Sports Group has been in the works for some time. They are following in the footsteps of other organizations like the Boston Red Sox’ owners group who created Fenway Sports Management and a joint venture between the New York Yankees and Dallas Cowboys called Legends which focuses on in-game operations. Now that it is official, the next step is creating a customer facing portal for their cloud-based technology platform.
KAGR is likely the first in a long line of sports organizations looking to branch out and be innovative in a space that seems desperate for it. Professional teams are realizing there are massive opportunities to generate revenue beyond selling out their stadium or selling a few extra authentic jerseys. No longer is it satisfactory to advertise, or even win championships for that matter. The new age of sports will be ushered in by innovative new big-data technology solutions.