(from Sports Business Journal, March 25, 2013) A new concept is being introduced for Arizona State University athletics. They have started selling gift cards at the local Costco’s to use towards a game or any sporting event on the campus. Arizona State University uses Paciolan and Givex as their ticketing service provider. The gift cards will be sold in pairs valued at $100, and sold at a 20 percent discount for $80. Costco will be receiving a percentage of revenue made from all of the 13 stores in that area.
Arizona State University expects this to be a very successful plan. According to statistics most gift card buyers typically spend 13 percent to 18 percent above the gift cards actual value. Costco shoppers and Arizona State University fans will have the convenience of purchasing tickets while they are shopping, in most cases it would be an impulse purchase. Arizona State University also expects revenues to be in the 6 figures every year in return from this new concept.
By integrating the two ticketing services, Paciolan and Givex, this helps the university generate customer data from the gift card buyers. In return, this will help the marketing team. Future plans support the idea of gift cards also being used towards food, merchandise, and concessions. However, Arizona State University will not introduce and apply those features until the Sun Devil Stadium has completed their renovations and upgrades.
Gift cards used at sporting events are not unheard of, often times you will see this being done with professional sports. However, Arizona State University will be the first major college to use gift cards for tickets. Paciolan suspects that many other colleges and universities nationwide will want to start using the gift card idea after they see the success at Arizona State University. Dave Butler, CEO of Paciolan, states that he would not be surprised to see at least 40 new clients by this time next year.