Gods of Mayhem posted an interesting piece on a new company, Revlo, here. The company is billing itself as a loyalty platform for eSports streamers, a space that’s ripe for innovation and growth. The biggest strength of the eSports community is fan engagement. I say that without pause, because it’s true. For one, this global community of millennial aged fans/viewers is the primary reason that outside investment is beginning an upward tick lately. And while some of the market sizing isn’t exact science (heh), numbers don’t lie. So a company like Revlo, which offers a platform for harnessing fan loyalty, is well positioned to capitalize. However, I’d go one step past the concept of fan loyalty at the individual streamer level and extend it to eSports orgs in general.
A look at how traditional sports organizations work, reveals that fan loyalty and engagement are at the top of their agenda. Figuring out how to create more “sticky” experiences for fans is literally a mantra in the 21st century sports business world. Meaning eSports organizations are sitting on a pot of gold! Today, the high degree of engagement for viewers of eSports has occurred naturally. In fact, eSports is defined by high levels of engagement. Still there’s a need to capture this inherent strength and transform the potential energy. Platforms like Revlo is a good start in the right direction, because, in today’s eSports world, fans are capital.
With business models still evolving, sponsorship deals represent the most consistent form of revenue generation for eSports orgs. The math is simple: Sponsors care about getting their product in front of as many people as possible. Ideally, these people are highly engaged and dialed in fans/viewers. Therefore, the more engagement = the better value for sponsors. eSports orgs should invest heavily in platforms and programs that enable that equation. Currently, it’s easy to start small and grow loyalty activities organically. In other words, now is the time to begin.
The repeating mantra of why eSports is a sport, fails to consider how critical the business side is to the mainstream acceptance. As a legitimate and stable industry evolves around it, the argument about whether eSports is a sport will become moot. When more players, teams and orgs are able to sustain healthy careers/histories built atop a healthy layer of income opportunities. There will be NO argument.
And since a strong business is a customer focused business, the eSports orgs that prioritize growing their fan bases through loyalty platforms and programs will be the leaders and winners. Even if they don’t always field the strongest teams and win the most prize money. Only time will tell how this reality plays out, but it will be interesting to watch.
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Alex Fletcher is founder & president at eSports Group, where he helps customers meet their eSports advisory & consulting needs. When Alex isn’t glued to a screen, he spends time with his wife, their two dogs, and pretends to learn Polish. Feel free to stalk him on Twitter – @FletchUnleashed