The Cleveland Indians may have found their most valuable statistics this season are coming from the ticket office rather than the playing field.
Using statistical analysis of ticket purchases to understand the preferences and price limits of their fans, the Indians learned that fireworks after a game draw an additional 4,000 fans; every one-degree temperature drop below 70 Fahrenheit costs them 300; and when the New York Yankees come to town, attendance jumps 11,000.
The Major League Baseball club is at the forefront of using statistical analysis to design pricing. The team says its plan will increase ticket revenue 5 percent this season as the U.S. skids into its worst economic decline since the Great Depression.
“The goal was to do a better job figuring out what people were willing to pay for their product,” said Vince Gennaro, 57, a Purchase, New York-based consultant who managed the research project. “Where could we add value to convince them to make the purchase or decrease the price where demand is lower?”
Vince Gennaro! SABR represent!