Affinity Programs

While affinity marketing has been in the marketing lexicon since the mid-1980s, it remains a relatively new concept in the world of sports marketing. Essentially, affinity marketing goes a step beyond the traditional relationship marketing of a consumer by introducing a third component in the mix. At its core, affinity marketing programs encompass three main components: an endorsement from a third party; shared incentives among the companies, organizations, and consumers involved; and what scholars term an enhancement package.

Primarily used in other areas of business, this form of relationship marketing is beneficial to the sport management process. As sport organizations continue to find better ways to generate revenue and brand value and exposure, utilizing a tactic such as affinity marketing becomes even more important.

For affinity marketing to be successful, three distinct parties must be involved. First, there must be a reference group, or affinity group, that has a certain level of identification or commitment with a larger organization. This larger organization, the second party in the process, unifies the affinity group on a variety of levels, many of which are social, professional, and interest-based. Finally, a third party enters the process, which is the actual spearhead of the affinity program.

To better illustrate this process and how it can be applied in sport, one can imagine the recent trends in the credit card and banking industries and how these companies took advantage of the interest of sports organizations and their respective fan base. For instance, a credit card company could provide a special incentive-based card carrying the logo of the group or organization, such as a professional football team or collegiate athletic department. While the initial offering of the card carrying the logo of the team could be considered strictly licensed-based marketing, the introduction of the third-party endorsement changes the process to affinity marketing. In this same example, the head coach of the football team or the athletic director of the collegiate program would send a letter of endorsement to its respective fan base, providing a call to action to sign up and begin using this credit card.

While this alone encompasses an affinity marketing strategy, one of the major differences in this tactic is the idea of shared benefits and enhancement packages. Shared benefits provide the motivation for the affinity groups and organizations to participate in the program. The affinity group earns benefits such as bonus or reward points for purchases and transactions, while the organization of interest may earn the benefits of increased brand exposure and awareness, as well as more tangible benefits such as revenue sharing or licensing fees. Finally, the third party in the transaction, the actual credit card company providing the product or service, generates revenues and market share by the actual use of the offering.