Will engagement with your most loyal customer last forever?
How about breaking up after 𝒔𝒆𝒗𝒆𝒏 𝒅𝒆𝒄𝒂𝒅𝒆𝒔 and moving to your fierce competitor?
This is precisely what the German Football Association (DFB) did. In three years, they will
end their long–term sponsorship deal with Adidas and start a new sponsorship agreement
with Nike.
The details below may indicate that the partnership was supposed to be a fairytale story.
🚩 Adidas is a homegrown German brand
🚩 Adidas has been a DFB partner since the 1950s.
🚩 An interesting Trivia fact: Adi Dassler, who founded Adidas in 1949, was part of the
West German men’s side, which won its first World Cup in 1954.
🚩 The German men’s team won 𝐅𝐎𝐔𝐑 world champion titles and 𝐓𝐇𝐑𝐄𝐄 European
champion titles wearing the Adidas outfit.
🚩 Same with the women’s German football team winning 𝐓𝐖𝐎 world championship
tournaments and 𝐄𝐈𝐆𝐇𝐓 European tournaments.
It sounds like a “textbook” example of loyalty and Success.
The longevity of Adidas’ relationship with German football means that the brand’s three stripes are woven into the fabric of German soccer—both literally and figuratively.
On the face of it, the company appears to have lost a contract that it was never supposed to lose. So, 𝐰𝐡𝐚𝐭 𝐰𝐞𝐧𝐭 𝐰𝐫𝐨𝐧𝐠 𝐟𝐨𝐫 𝐀𝐝𝐢𝐝𝐚𝐬?
According to the German Football Association, it was an economic decision as Nike made the best financial offer in the transparent and non-discriminatory tender process.
The non-formal figures leaked to the press suggested that Nike’s new deal, worth €100𝐦 annually, was nearly double the sum Adidas was prepared to pay.
An anonymous person familiar with the bidding process stated that Adidas didn’t anticipate much competition.
Lastly, the German FA was “open for the change” following poor performances at the last three men’s tournaments and a general disappointment with the national team in recent years.
My takeaways while being a massive Adidas fan
💡 The tenacious competitor awaits the right opportunity to take our place in the driving
seat.
💡 A long history of success cannot be considered a “blank cheque” to save the
engagement during challenging times.
💡 We cannot take any relationship for granted, even if it feels like we do business with
family and friends.
💡 We cannot be complacent or assume we can retain a customer for the same reasons
even after seven decades of success.
This case is a MUST-READ for any customer success and account manager professional.
The German football association moved from their home based 70 years old partner to their fierce competitor and there is something for each one of us to learn from their decision.
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