Industry Insider: sales panel.

Kadlecek, Jim

When it comes to sales, the following four panelists are all highly regarded in the sport industry because of their wealth of expertise and insight. Following are their comments on a variety of topics that pertain to sport sales. The interviews were conducted by Jim Kadlecek, associate professor and chair of the Department of Human Performance and Sport Business at the University of Mount Union and Vice President for Industry Relations of the Sport Marketing Association.

Mike Tomon, Vice President of Sales & Service, Cleveland Cavaliers

Brent Stehlik, Senior Vice President of Ballpark Operations, San Diego Padres

Chad Estis, Vice President of Sales & Marketing, Dallas Cowboys

Leigh Castergine *, former Vice President of Ticket Sales & Fan Relations, Boston Bruins

* recently named Vice President of Ticket Sales & Service, NY Mets

Recruiting New Talent--How, Desired Characteristics, Background, Education

Tomon: We believe people are our best asset. Based on this being a pillar of our overall business, we recruit for new talent 365 days a year (regardless of type of position/or if it is open or currently filled). Phil Jackson is undeniably a special coach and leader, but at the same time, having the talents of Michael Jordan, Kobe Bryant, Scottie Pippen, and Shaquille O'Neal (list goes on) certainly didn't hurt his place in history.

To clarify, we not only believe people are our best asset but equally as important, we run our business in accordance to that "pillar." We are committed to recruiting the best talent and committed to helping them grow once they arrive. Because of the value we place on talent, we drill down into the recruiting process. We take a detailed, systematic approach to how we engage our prospective new team members and what characteristics we look for to ensure our process puts us in the best position to recognize and recruit talent. Below are some basic bullets (cliff notes) to our approach:

* We make a deliberate distinction between "interviewing" and "recruiting." "Interviewing" puts people on the defensive (or interview mode) and doesn't give you a true feel for who the candidate will be when they arrive. "Recruiting" sets an easier stage for true dialogue.

* Hiring managers have recruiting metrics they are held accountable for, just like sales reps (how many phone interviews they conduct a week/month, how many face to face interviews they conduct each week/month, etc.).

* Regardless of specific discipline of the position there is a uniform process (everything from what characteristics we look for and how to ask questions, to the physical flow of an in-arena interview and the defined next steps in the follow-up).

* We rate the performance of our team members in two main categories: Objectives and Characteristics:

--51% Objectives: depending on the type and level of the position we interview for certain skill sets that are needed to be successful in their position (these could be revenue-based goals, project management points of progress, administrative efficiencies, etc.).

--49% Five Characteristics: these are the characteristics of successful team members that we champion regardless of your level or type of your position. Our Five Characteristics are 1) Positive Attitude, 2) Openness to Learning, 3) Strong Work Ethic, 4) Passion for your Craft, 5) Leadership.

Stehlik: To me the most important aspect of recruiting is creating an environment where the sales-people are going to learn, grow, and have the resources to make an impact. If we can create that and continue it over time, you do a lot less recruiting and can be more selective with the applicants. We prefer a "Job Fair" type system where candidates are pre-screened and come to town for 1-2 days for group/individual interviews. Hiring people is the most important thing we do, so we want to make sure we get several opinions on the candidates we like (similar to baseball scouting with cross-checkers). I look for candidates with a strong work ethic, good personality, and continual learners. In my experience those that work the hardest can overcome a lack of talent, and the hardest workers who continually strive to learn and get better every day will ultimately be at or near the top of the sales board. Having internships and sales experience on their resume is also a positive, and we look for candidates from diverse areas of the country. Having a staff filled with people from all over the country has proven to be successful for us.

Estis: When I hire for sales and service positions, I'm hiring mostly on personality characteristics. Likability, smile, style, appearance, and the way the candidate communicates and interacts. I'm looking for confidence and I'm trying to find out if this person appears to be happy with themselves. I'm also looking for work ethic and desire, and someone who has overcome some adversity at times and has had to work to get to where they are. The first impression is usually strong when I'm interviewing. The first impression they give me is the same one they'll give to customers and prospects. As far as education and background, I do prefer someone who has shown a desire to work in the industry and has displayed that commitment with a degree and/or internships. When hiring a more senior person, I focus on how their recent work experience prepares them for the job under consideration. In general, there are no set parameters for me when it comes to hiring. It's all about making a connection during an interview and having a great feeling the person is best for the job and that they are properly enthused and motivated to do the job.

Castergine: Still the best way is referrals, we strongly recommend that candidates reach out to contacts that they may have in the organization. LinkedIn is a good resource for candidates to find out information about management to see if there are any connections, i.e., alumni of their school or other organizations that they may have in common. Ideal candidates have an internship within sports, minor league, etc., but more importantly, we love to see someone with a proven sales record with numbers to match. A diverse education background ideally with business or sport management. One of the new things we weigh heavily is strong communication, especially writing skills. With much of the pre-interview and post-interview taking place via e-mail, it is important that a candidate can write professionally.

Technology and Sales

Tomon: Historically, we have not been known as a progressive industry in regards to technology and how it's used to drive the business. Therein lies the opportunity. In recent years, there has been an emergence of new customer relationship management tools and companies that focus on the fans and their experience and subsequent behaviors (companies such as Veritix, StratBridge, Thermopylae, Kore, Givex, and Spotlight are just a few of the thought leaders in their respective spaces). Teams and venues have not only adopted these types of technologies, but are also investing in the infrastructure that can best support it. There is a building trend, which I would not expect to slow down in the future, of teams investing in database, web/social media, and analytics teams. I think over the course of the next few years this will be one of the most rapidly maturing parts of our business and one of the most exciting.

Stehlik: The big question to me is how can analytics help aid the sales process in the future? You can only make so many calls in one day, and meet so many people face-to-face, so how can we use technology and analytics to accelerate the sales process? Businesses outside of sports have huge departments for business analytics and research/development, but sports franchises don't spend much time or money in those areas.

Estis: The technology we have at our disposal now makes selling easier. Although we have to be careful not to rely on technology, it also allows us to display our product in ways that we could not have done in the past. It's a great tool. It can paint the picture better than our words can. Technology also allows our customers and prospects to know a lot more about us and our products before we engage them. We better know our stuff ... and be prepared for them to know a lot about it before we interact.

Castergine: We all need to stay on top of the latest technology and look for monetary opportunities, whether it be social media or through our CRMs. As a management staff we are looking for ways to capitalize on current trends (i.e., more personalization and using retail models such as eBay or Groupon to match our fans' wants with our products and offerings). An example of technology in sales right now is StubHub's launch of their new iPhone App. Ticketmaster, as our primary ticketing source, needs to be proactive in producing a product that is better/easier to use for our fans so that they do not go to secondary sources with their smart phones.

Sales Staff Motivation/Incentives

Stehlik: Finding someone that is self-motivated isn't easy to do, but it is better than any sales contest you can create. Motivation and incentives should not just be looked at as cash, time off, or gift cards. People are motivated by different things, and those that are motivated by access to learning/development are the reps that I want on my team. It's very easy to de-motivate people, so clearly defining goals and objectives to the entire staff is a key. We incentivize our teams to achieve/exceed goals and create a competitive, yet team-based, culture among the staff.

Estis: This hasn't changed much for me. A properly motivated staff is one with the appropriate compensation plan that rewards great performance and is properly aligned with the company or departments goals. Money is the ultimate motivator. After that, creating great culture and office environment can go a long way to having a motivated staff. This is accomplished by hiring well, cultivating careers, offering training and support, having managers out in the field selling with the team, and holding everyone accountable. If you allow people to have a voice, communicate to them in depth as to why decisions get made, and reward top performers, then you'll have an entire team of motivated people.

Castergine: This was brought up recently at our NHL meetings, the trend in contests and motivation has changed significantly with this new generation. We are noticing that new associates have much shorter attention spans so the days of month-long contests have come and gone. We would see a couple of days of increased production followed by the usual effort and by the time the contest was coming to a close there wasn't much urgency. We tend to keep contests to a couple of days (3 days max). In addition, the biggest motivators seem to be increases in commission percentages for a limited time, cash, or time off. The trips, TVs, iPads, etc., don't seem to have the same results. In addition, team contests still go over well. Mixing experience levels creates a mentorship relationship that the senior staff enjoy (also makes them more accountable in the "practicing what you preach" approach) while also giving the greener team members more insight into the next level of their careers.

What Keeps You up at Night

Stehlik: Trying to figure out the future of season tickets. Tickets have become a commodity like wheat or copper; think about the secondary ticketing market and how many outlets there are to purchase a ticket to the same event. It's changed dramatically in the last 3, 5, and 10 years, as there are dozens of places you can go to purchase a ticket. How we can keep the lifeblood of our business (ticket sales) strong in the future is of the utmost importance.

Estis: Decisions about inventory and price mostly. It's always hard to determine if the mix of price and product is right. Our industry still hasn't developed great tools to tell you if you've hit the target of maximizing both sales and revenue. We still sell a product that taps into discretionary income and is often dictated by popularity of team, players, owners, etc.; all things we can't control. It's not a great feeling at times to do everything right and only move the dial a small percentage. That is the nature of the beast to a degree so the focus is on what we can control and moving that dial as much as we can. It's most rewarding when you are in a situation where you know the tactics, strategy and style that's been deployed has significantly impacted the bottom line. Personnel issues will also always cause some lack of sleep ... that comes with the territory of managing people in any company or industry.

Castergine: Pricing! We have seen a major increase in our season ticket base which means that I have less individual tickets to sell which is good because that product has more risk (more driven by team performance). However, the low prices that we offer our season ticket holders, which has influenced our large increase, means that we need to charge higher prices for individual tickets to generate additional revenues. Unfortunately, then our Season Ticket Holders can sell their tickets for games that they cannot attend at prices far below the box office prices and can even still make a profit. In order to sell out the building I need to find a better pricing strategy that will continue to limit my risk but also allow us to generate the budgeted revenue.

Customer/Client Retention

Tomon: The sports business (from a team perspective) is one of the most volatile business models out there (to a certain level, product value is based on season-to-season team performance AND your customers vote annually with their wallets on how you're doing).

Taking that into account, customer service and retention is one of the most important areas of focus. If executed correctly, a retention effort can grow a customer from a transactional relationship into a truly engaged relationship where the customer's financial support is not based on wins and losses, but rather part of their corporate or personal culture. This concept is most evident when looking at renewal rates based on tenure of the account. Renewal rates of higher tenured accounts (10-plus years, for example) are always drastically higher than those of lesser tenured (accounts who have only owned season tickets or other hospitality options for a year or two).

Couple that with the fact that the economy has tightened the budgets of businesses and families alike, and consumers have become more and more accustomed to personalized treatment everywhere, from in restaurants to on the web, retention groups for sports teams need to not only follow suit, but lead the pack. Our approach to each client is to understand their reasons and expectations in purchasing our product and deliver an experience relevant to their expectations. If a company purchased for networking reasons, invite them to a business-based cocktail pregame party with our President, Len Komoroski, and our GM, Chris Grant; or if a family purchased to spend time with their child, invite them down to the court before the game to be a "Benchwarmer" while the players warm up; or if a customer purchased because they are a pure basketball fan and follower of the team, invite them to an exclusive Chalk Talk with Coach Scott. For us, great customer retention is focused on trying to accelerate the level of engagement a fan has with the product through personalized relationships, exclusive access, and exceeding their expectations.

Stehlik: We're spending a lot more money, time, and energy on this area of our business than ever before. Surveying, analyzing data, getting feedback from STH, and building a model where they want to come back every year regardless of team performance. Being a STH needs to be special, and it starts with a dedicated service team. Most teams have a complaint department, like an airline, and the people on the phone are defensive the second they answer. It's hard not to blame them for it, as all they do is handle complaints all day. In the same way, many teams have a "service" department that speaks to customers when there are complaints or when an invoice is due. That's it. The relationship matters, and it has to be much more than a financial relationship tied to wins/losses if you're going to be successful.

Estis: This to me is rather simple. Hire great people with great people skills and provide them with a platform and resources to properly service the customer and you will do well. Empower the service team and provide them with a budget ... it's always worth it. The people that directly interact with the clients on a regular basis will impact retention. Not all clients want to interact, which is a concern. Those that do can have a much better perception and feeling about the organization based on how they feel about their interactions with their point person. Go the extra mile. Surprise people. Don't just do the status quo here. It doesn't have to be overly complex ... good people doing great work with the client. Hard to measure the results but enough feedback will tell you if you are doing well.

Castergine: Everything is about personalization! What was once unique with dedicated representatives assigned to season ticket accounts is now not enough. We work each year to find ways to further personalize their benefits and their experience. This is a major challenge due to the time and ability to deliver on their individual expectations. We have found it useful to keep our clients informed and use surveys to make them feel like they have a say in their fan experience. On the technology front, we have created a personalized website that each season ticket holder can access through his/her own personal URL (e.g., http://lockerroom.bostonbruins.com/leighcastergine). We can then manipulate those sites based on their selected benefits or ask targeting questions.

Recommendations for Sport Marketing Faculty

Stehlik: I'm going to ramble here a little. There's a big opportunity for students well-trained in CRM and analytics, but who understand the sales process. I'd encourage all of them to get an internship or entry-level job selling on the phone, as that experience is invaluable. But not everyone is cut out for sales, so the CRM aspect to helping the sales team sell more quickly is growing in every league. Preparing students for sales jobs is something most faculty are doing a better job of, but there's still a long way to go. The "entitlement" trait we're seeing in many of the recent graduates we interview is alarming. Being brutally honest and preparing them for the long road ahead is key to their development. It's not one year of selling and the next year you're the VP, and just because you got your masters degree doesn't mean you move right into management. Having the right mentality entering their first job is a big key to their success. Also, preparing students to understand that learning and growth is more important to their long-term success than the logo on the business card.

Estis: Continue to provide real world experience. We are in the people business--textbooks can't teach that part. The business is also becoming more complex, so stay up with current trends. Make sure students truly understand career paths and compensation. Far too many people say they want to be in charge of marketing, and don't know what that means, or say they want to run community relations, but have never considered the head of CR typically makes $80k/year without a lot of career upside.

Castergine: Utilize your local teams; most sales professionals do not mind spending some time talking with your students and would love the opportunity to work on projects that include selling tickets. Only recommend students who want to make this a career. We only want your best and brightest and we don't like to waste time interviewing students who want to be the next GM of the Boston Bruins. Explain the realistic responsibilities, tell students that this is not easy and they are going to have to practice and work hard in a similar way to get an A in your class. Also, encourage your students to be professional. If you could start working on this when they are in college, it would save us a lot of time when they start working for us. Finally, encourage them to ask questions. We find that a lot of new graduates are accustomed to being lectured at, which is not the real world. We will train them, but the ones that really rise to the top are the ones who are always asking for help and looking for ways to improve.

Advice for Sport Management Students

Tomon: Find out what you want to do with your degree by first really understanding why you want to do it (I want to be a VP of Sales, but I'm actually an introvert and don't really like the actual process of selling, which could be a tough run). Said differently, the glamour of the sports industry will wear off at some point, but if you truly have a passion for your actual craft (sales, accounting, marketing, operations, etc.) you will find yourself being more effective and ultimately enjoying your time more.

Don't wait until you're disconnected to try to get connected. The sports industry is competitive and tough to crack into right now. Right now, as a sports management student, you have tons of access to professionals currently in the field you may want to pursue. That is a huge asset. Don't let it go to waste.

Stehlik: Related to my last line from question #6, students need to take jobs not based on geography, title, money or logo, but on the opportunity to make an impact/deliver results and opportunity to learn/grow. Money/title will come with experience and with compounded success over time. Here are a few others: Always act in the best interest of the organization and not yourself but always maintain your integrity and never compromise your values; build relationships founded in trust and respect; be respectful and professional but don't be an introvert--people need to know who you are and what you can do, and the more people you know, the more you can learn; be yourself but always be professional in your profession (keg stands and off-color jokes are reserved for your long-time friends, not your work friends); work your tail off; make sacrifices. You are not entitled to anything, you have to earn it.

Estis: Get experience and make an impact. Differentiate yourself in some way. Find mentors and people that will help. Try and pick a path and go for it knowing you can change up at any time. Focus at some point on a path that is beneficial. Get sales training and be a student of the game ... never stop learning. Don't ever think you are too good for something ... take it all on when you start.

Castergine: It is amazing what good old hard work will get you! Many of us were in your shoes and we worked extremely hard to get to where we are today. What that means is that we have very high expectations of our teams. The new associates who come in eager to work, willing to learn, asking for help, and then practicing what they are taught are the ones that we want to help and see become successful.

Trends/Changes in the Sales Process

Stehlik: I've seen the sales process adjusting with even more face-to-face, relationship-based selling. The customer has leverage and we need to spend time building these relationships to find out why they buy, what's important to them and why they keep coming back. While people are spending more time online, we need to have a robust platform that enables consumers to do their research there as well. Some leagues are further ahead of others in this area.

Estis: Products become more expensive and complex to sell. The sales processes are longer and require more patience, depth, and relationship ability. Familiarity with finance and legal issues around big sales become a part of the required knowledge base. Technology is a great tool so we all need to be prepared to use it. No silver bullets ... relationships and hustle make it happen.

Castergine: E-mail communication and the click to chat features are becoming more and more common. As much as we still expect our sales staff to make 60-70 calls per day, much of those communications are followed up with e-mails or begin on our website with the click to chat feature. It is important that even though we are using quicker communications that we continue to use our consultative sales approach. Get to know your customers/fans before you recommend a product and ask for referrals. The instant messaging process still needs to be professional and it is even more important to stay positive and simple. A joke that might be understood over the phone or face-to-face will most likely not work well in a chat.

Next Big Thing in Sales

Tomon: This ties into question #2 (technology and sales). The way fans consume our product is rapidly evolving (social media, digital ticketing, etc.). Teams will be forced to speak to them in a relevant and real time manner or lose out on market share. Watch out for Flash Seats (patented digital ticketing technology hosted by ticketing system Veritix). This open digital ticketing platform positions teams to best connect with fans in those ever important areas (real time customer behavioral data and flexibility to act upon that data, and a digital experience that customers have started to expect).

Best analogy I can draw would be the airline industry. Fifteen years ago, people were waiting for their paper airline tickets in the mail. Now the entire industry is digital and consumers haven't looked back. Exciting times ahead.

Stehlik: The next big thing in sales is probably one of your students that you have in class. On the business side, for me it's creating a member-based STH model that works, and increases retention rates; also the use of in-ballpark technology to improve the fan experience and to help sell tickets.

Estis: If I knew I'd be selling it. Premium inventory continues to evolve ... the desire for owners to have new and renovated stadiums and arenas is still strong and the revenue is so significant it creates great opportunities for those of us that are in this industry. Stay relevant and keep hustling.

Castergine: The trend of people sharing their everyday activities and thoughts doesn't seem to be going away. Products like foursquare are very interesting for our business. The ability to send a message to all fans within a couple of blocks of our building, letting them know that tickets were just released and if they are one of the first 50 people to purchase, they will get an autographed hat. How do we track our fans with information that they want while also monetizing those relationships? This will be one of our most significant upcoming opportunities.