23 Jun Sponsorship Renewals
Sponsorship renewals are the ability for your company to retain a current client rather than find a new one. In sports, there are so many elements that go into a renewal including timing, the energy given by both sides, and the frequency of check-ins. Today, one of the easiest ways to retain a client and ensure renewal is through having a good relationship. The more that your clients know you, the more likely they are to go through with the renewal.
When pushing for a renewal, you want to showcase all the success you have had in the partnership. Show the client why renewing makes sense. Recaps are a great way to accomplish this. They involve statistics and evidence of growth in a contract. Technology has added an interesting twist to how recaps are conducted, making them more interactive and engaging.
As Brandon Parks says, “A recap document is just as important as the initial proposal document.”
The reason this is so true is that recaps allow both sides to see what has been working well, and what may need improvement in the renewal. This checkpoint process can include the use of technology by providing video and photo evidence of the positive influence that has been created with the contract. A great example would be a video of a big touchdown with the company’s name on the jumbotron in the background.
Another thing to think about in the sponsorship renewal process is when to go about having the renewal conversation. Timing is very important in the renewal process discussion.
According to Parks, “It’s never too early to talk about a renewal.”
This should always be in the back of one’s mind if they are looking for an extended relationship after the contract ends. It is also important to keep track of if a team is entering a new division, has just won a national championship, or lost a head coach. This will allow for the right timing in the discussion of a renewal.
How often do renewal conversations happen? That depends on how long the deal is good for. Single-year deals are not very common in the sports realm. Most teams and their clients are looking for a potential long-term investment that both sides can benefit from. Consistently renewing a contract every year may become a hassle for a school and could lead to an end in a relationship. That is why it is essential to get into a multi-year situation which almost always can be a runaway for success.
Lastly, in renewals and sports sponsorships, it’s important to be patient. Forcing a relationship between two parties usually never ends well and both sides must put in the work and effort. However, it’s important not to wait too long and to find the happy medium of when to discuss a renewal based on your current contract.
To learn more about sponsorship renewals or to hear the podcast version, click here.
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