Transforming the Live Event Experience
Better connected venues are opening up new revenue streams
Sweat, Blood and Broken Bones
The idea of a venue in which to hold sporting events in front of a large audience has certainly changed a lot since it was first conceived. Originally formulated by the Ancient Greeks, and then further popularized by the Romans, they’ve come to be a mainstay in society.
Gladiators battled each other, through sweat, blood and broken bones in order to be claimed the victor. Some may even claim this was the peak time for stadiums, and that football matches are a little tame. Despite there being a lot less blood now — but still the occasional broken bone — the core concept has not changed: entertainment for the masses.
The Evolution of the Fan Experience
What the masses want frequently changes. The core concept may not be changing, but the model for delivering it is changing rapidly. Previously, the talent and the spectators were kept clearly separated. But that relationship is changing, the line is blurring, and fans are taking control of the experience as it becomes more symbiotic. Fans and players are interacting in new and different ways, on the field and off it.
This trend is only going to grow as fans demand a more immersive experience. The model for operating a venue is being flipped on its head, fans are no longer happy with coughing up vast amount of cash for a season ticket, they want more. To do this though, the stadium must champion itself as not just a place for competitive sports, but as a new technological platform, with hyper connectivity that can facilitate new business and open the door to new revenue streams. That’s not to mention the creep of growing costs, staying profitable is truly a challenge.
The Rising Cost Creep
To meet rising costs, upping ticket prices without improving the experience is an outdated, increasingly hard to justify solution. Rather, event space and stadium owners should consider strategic, long-term methods for driving further business value from guests and the venue.
Greater connectivity in venues is demonstrating itself as an indispensable facilitator and foundation in driving the guest experience. A powerful underlying technology infrastructure should be considered as something that’s not nice to have, but an utmost necessity. Only then can the dollars earned per customer increase.
Two key methods present themselves as separating your guests from more of their hard-earned money: Technology to improve the experience of fans, and secondly, the value created from data collected.
Improving the experience
The first method is utilizing technology to smooth out those dreaded customer pain points. Those little nuisances that make your guests roll their eyes just thinking about them. A hyper-connected stadium has those pesky pain points in its sights., There can never be an end to how much the experience can be improved and business must adapt accordingly. Sitting on your hands just because something works okay now does not mean it always will. A view to continuous improvement of the fan experience is imperative.
From this attitude many innovations have arisen such as:
- Team/stadium apps that, fueled by vast amounts of data and information, allow guests to access venue details, available parking thanks to smart parking solutions, seat locations, insights into the team they support and other amenities.
- Mobile commerce and payment solutions. Food, drinks and merchandise have high profit margins and technology makes the purchase process seamless. The demand is there, and fans have money to spend, but often the sight of a 30 minute plus queue to buy a drink or snack can easily deter. However, in-seat ordering, and delivery however can grasp this previously lost opportunity.
- Loyalty and reward programs are another boon for fans. With better connectivity, rolling out reward programs becomes easy, being able to offer repeat customers special promotions or unique experiences.
Putting a price on data
Onto the second method. Data holds infinite potential, though how to utilize and then put a price tag on it has always been a challenge. To do so often requires collaboration with third parties. A willingness to get in bed with developers can allow for an explosion in creative ways to utilize the data and drive value.
With better connectivity comes integration of more technology. IoT devices and sensors have made for the amount of data available to multiply several-fold. At a basketball game for example, there’s second-by-second statistics, when a basket was scored down to the millisecond, or even ‘player efficiency rating.’ However, monetizing that has always proved an issue. How does one convert raw material into something that can turn a profit?
This extensive and in-depth data has given birth to ‘in-game betting’, or micro betting. Fans can make small, in-the-moment bets or other such micro transactions using either virtual or real money.
In 2018, the National Basketball Association (NBA) of America made history. The league announced a partnership with MGM Resorts International, making the Las Vegas-based casino operator its first-ever sports gambling partner. This deal has proved highly lucrative, with the three year deal worth more than US$ 25 million according to Bloomberg. Clearly data is valuable currency.
With a view to extend the experience outside of the stadium as well, the NBA has once again proven themselves to be at the vanguard when it comes to adopting technology into the stadium. In a collaboration with Intel, they have brought VR into the stadium. Though still in the fledgling stage. Thanks to a system of advanced cameras, fans are no longer confined to a single angle of view. Through a VR headset, they can pan 360 degrees around a basketball match, viewing however they so desire.
Though the demand for digital transformation is urgent, adequate planning is of equal importance.
Key Considerations:
1. Clearly define your goals. Establish from the outset your vision and what you hope to achieve, only then you can you adequately plan and build a connectivity network to function as your staging ground for your future initiatives.
2. Engage your stakeholders. Become familiar with your fans, ask them what they want, rather than guessing. Have frank discussions with your business partners, know what type of connectivity they need to facilitate their operations, and drive value for you.
3. Take leadership of the project. Though the traditional model for managing event space has changed, and that more parties are having a say than ever before (developers, sponsors, advertisers etc.) they must be united. This must be done so under visionary leadership, that is not afraid to take charge and guide the process.
Conclusion
Event spaces are evolving. With it, so must the mentality of owners. Hyper-connected stadiums are to become the new normal, and with it, new business opportunities, and revenue streams will be blown wide open. But these will heavily rely on connectivity and data, and how that is dealt with. Having a network on which to stage these future initiatives is imperative to success.
