Lexington Legends Case Study On Stadium 1 Increased Revenue by 22%
Criteria – The Lexington Legends, a storied franchise with one of the premier ownership and management groups in the sports industry, researched the market for a stadium venue management system, which included the integration of all Point of Sale (POS) revenue and expense centers on ONE PLATFORM. Another important requirement was a strong and flexible POS hardware unit solution which could stand up to the demanding tasks of processing thousands of transactions, at a very fast pace, during extreme weather conditions for a game or event. This solution needed to be integrated to all of their six (6) revenue operational centers. The platform needed to illustrate a drill-down dashboard App to the management and ownership team in real time to improve their decision making process for pre-game, and in game business decisions.
Adding to the criteria; the Legends wanted a system that would incorporate a real time inventory system, a built-in scheduling module and an interactive Loyalty Fan App to connect to their fans while increasing their database.
Based on this; the Lexington Legends chose Stadium 1: here is how, in their words they generated revenue in each of their income channels. The functionality of Stadium 1 generated a 22% increase overall in revenue while consolidating operational expenses.
Concessions – We streamlined the process of tracking inventory from our warehouse to each concession POS unit. Plus, with the Stadium 1 deal engine function we are now able to sell items that would have gone to waste and helped
sell promo items we wanted to get out of inventory. We furthered streamlined our operation by implementing the scheduling system within Stadium 1. Based on this, we are saving substantial time and money by having our staff clock in on the POS units. Adding to that, we implemented the par values function along with the stand sheet program. This controls all in game transfers, sales counts and end of shift totals directly from the POS concession stand back to the administrate program for manager review. This resulted in a 14% increase in revenue and the inventory tracking resulted in a 7% reduction in food waste and 4% reduction in theft.
Merchandise – We implemented the Stadium 1 deal engine and bar coded our entire inventory. We are now tracking our merchandise inventory on an entirely new level. We seamlessly integrated it with our overall inventory platform to give us the true cost and value of our stadium inventory. We are also able to streamline our on-line
sales into the functionality of the system to get a clear picture of total sales and track them by the point of purchase. Now we have a one look analysis of our overall total operation by including the Merchandise store in our daily totals as a sales and expense center. Merchandise sales increased by 17% and we cut down on theft by 4%.
Ticketing – We linked our ticketing system with Stadium 1 to pre-load tickets for groups and season ticket holders; plus our fans added funds during the game on their ticket on Stadium 1’s unique loaded ticket in game function on our POS system. This resulted is a 100% increase for this revenue channel.
Sponsorship – With the ability to advertise on the back screen of the POS – our sponsors now have the ability to put their message in front of our fans in a video format – thus creating a new revenue channel for our sponsorship team. This resulted is a 100% increase for this revenue channel.
Outside Events – This is another example of how the system shines as we are able to easily change menus, alter prices, and change locations of the units based on outside groups and events. The units can work off –line if necessary, and are mobile, remotely connecting to the internet.
We have saved money here by placing the units at more locations and have been able to increase the tracking of food and beverage items at our outside events. Furthermore, we can track our percentage of sales when we allow an outside vendor to come in and sell food items to ensure our correct percentage is captured. This resulted in a 15% increase for this revenue channel.
Fan Engagement App – Offering the Stadium 1 Fan App helped us acquire data on fans we would have never been able to capture. We market the App on the back screens of our POS devices. This enabled us to expand our database and market our promotions to more fans. This resulted in a great opportunity to increase our fan database.
Summary – Based on our decision, we improved our bottom line by 22% after implementing Stadium 1. The revenue generating cost saving tools within Stadium 1 allowed us to recapture our investment in less than one year. Furthermore, our decision allowed us to create a total integration of our stadium venue management operations into ONE platform. This enabled our ownership group to have unparalleled insight into a singular form of data analysis that can be easily understood and make the changes and improvements where needed. We have saved countless hours of payroll expense from keeping the information on spreadsheets or in other report formats which is now incorporated into the Stadium 1 reporting system. Wrapped around all this functionality is sensation support by a team of true professional support people. From our file creation, on-site training, installation, and support; Stadium 1’s complete offering for a stadium venue management system is serving our ownership, employees and fans extremely well. It has greatly improved our overall business operation and bottom line at all of our revenue centers.
For more information contact:
Ed Mullen – Vice President of Stadium1