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PANSTADIA & ARENA MANAGEMENT SHOWCASE SPECIAL 2014

THE CUSTOMER IS KINGIn this Q&A, João Gilberto Vaz, CEO of Arena Solutions, describes the various services they are providing to build customer relationships, with the end goal being to implement technological innovations with added value to offer the best possible systems for stadium operators to earn additional revenues.

Arena Solutions’ business model has a very wide-reaching scope. Can you tell us what solutions you offer?

Arena Solutions had very positive interactions with the international partners on the recent stadium projects works for the 2014 FIFA World Cup™ in Brazil. In this way, we had the opportunity to interact with several companies involved in all segments of the stadium business. Our scope is not wide. We just have a simple but very effective way to undertake stadium projects. After all this is not ‘rocket science’. Our wide reaching international network brings us a fantastic platform to work on projects from Brazil all the way in Indonesia.

What would you say is the most important part of the business model to get right before a single fan has the chance to step inside a venue?

The most important part of our business is to have a solid and reputable image on everything that we do. Due to this, we have (most of the time) to be very blunt to our partners and even customers. If we want to do it ‘right’ we must try (always) to get it right from the beginning. We have a very deep knowledge of what the spectator wants from an arena/stadium. These expectations vary from country to country but I cannot believe that venues are still being built without ‘connectivity. Who nowadays would go to a venue

for an event and be happy not to be ‘connected’ to a very fast and reliable network. This is only one example. Another key point is that we are facing a major challenge to operate venues in Brazil because we still need a lot of improvement in our catering and hospitality segment. Again, who likes to go to a concert or sporting event and experience an inadequate or even low quality catering?

Brazilian customers are very demanding for the quality of services that they expect from our new venues. We are constantly looking for new partners and solutions to improve the ‘stadium experience’ for these important customers.

João Gilberto Vaz, CEO of Arena Solutions.

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Technology is changing the delivery of service options available to the venue operator on a daily basis; what would you say is biggest innovation in technology that has directly affected both the venue and also the spectator?

Contractors are sometimes hired on the basis that they have to deliver the venue with the best possible profit scenario and there’s nothing wrong with that. This is their business model and we need to respect that. The problem is when they build a multi-hundred million venue and they put technology as the last priority on their plans. This is not fair for the operator that will be responsible for complying with the tough K.P.I’s and so on. Therefore our company is very active in providing ICT Solutions for venues, with modern payment systems, Wi-Fi networks and even CRM systems part of our packages.

The biggest innovation in technology is yet to come. We believe that, within a few years, we will have a completely different scenario for the interaction of the customer/stadia/CRM network. Upcoming technologies will make it easier for the customer to have a much better understanding of the venue and its services even before they reach the venue. As a good example, we Brazilians are the second largest users

of Facebook in the world and one of the most connected nations on the planet. All venues in Brazil within the next few years will need to improve their systems to accommodate the customers’ needs. We are proud to be actively working with our partners to provide such systems.

The demands of spectators are getting increasingly higher, from the walk up to the venue, physical access and the pathway to their seats. What would you say is critical that a venue understands in the context of technology, and how can those decisions change and enhance the fan experience?

It is important for venue operators to have a much better understanding of the customers/spectators needs, especially in regard to ICT. Nobody goes to a venue thinking ‘what type of fire and alarm system’ are they using. Rather, everyone is interested in having a good time and being able to ‘post’ a favourite photo or video to the world of social media.

I have seen many cases where customers had very good catering, they had VIP access to the venue and they were still complaining simply for the fact that there was no connectivity. This scenario is happening in the majority

of venues and you would be surprised that this even includes some of the top venues. In today’s modern world, people expect and in some cases ‘must’ be connected at all times, even at a venue.

Of course we need to improve the development of user-friendly applications for the fans/customers to locate their seats. This will also save money on staffing costs or allow for those staff members to be diverted to other important functions, maybe to greet people with a smile. A good example of this is Amsterdam ArenA. They have invested a lot in technology and the fan experience at their stadium is fast becoming one of the best in the world. Many other venues are following suit.

There are many different stakeholders within the modern stadia and arena environment. What is it that Arena Solutions offers within your management scheme that is unique from other operators?

Arena Solutions is not a major operator nor do we want to become one. We are specialised consultants to venue owners. Our main objective is always to

PANSTADIA & ARENA MANAGEMENT SHOWCASE SPECIAL 2014

assist the venue owners to have a better understanding about their operational, technical and commercial needs. For example, we have a customer that is primarily interested in having a revised master plan for the legacy of their venue. Have you ever had the feeling that the sandwich from the small corner shop is much tastier than the one from the big chain of fast food restaurants? This is our strategy! To work with venue owners and even operators to create a ‘tailor made’ plan. We will never be involved in more than a half-dozen projects. Quality and reliable delivery is the secret of our growth.

What do you think the industry needs to do in terms of development and enhancement to ensure the future viability of the current business model?

The current business models are in need of change. For example, in Brazil, we currently have 14 new venues (12 used for the 2014 FIFA World Cup) and 2 other venues developed by soccer clubs Grêmio and Palmeiras. In our case in Brazil, we are still in need of improvement of many things. Just imagine that two years ago we did not have any multi-purpose arenas in Brazil and now we have 14! It is a revolution for the catering, hospitality, technology and most important for the training of new stadium managers. We are very short of qualified and ready to work people for this segment.

The future of stadium operators in many places in the world is directly related to how they got involved in the project. If it is a D.B.O.T. project, when the operator

is directly involved from its beginning, then we can see a brighter chance for success. Again, in the case of Brazil the P.P.P. (Public Private Partnership) model for stadiums is showing now that this was a good decision. The Consortia that won the concession was also responsible for bringing in an operator from the start.

The other projects are now facing additional challenges in relation to find the right operator that is also interested to take financial risks to operate a venue that in some cases does not have a resident football team as tenant. In this case, I think that the operators should focus more on getting involved from the very conception of the venue’s design. Otherwise they may simply become ‘venue managers’, as has been the case for a number of Brazilian venues.

If you could step into the future, where do you think the biggest changes will occur in the delivery of products and services to large sport stadia and what do you think venues can do to help them adapt to these exciting changes?

The biggest and most complex changes will happen in the interaction between the customer and technology. Stadium operators must be aligned with technology-related companies to be able to generate new systems, applications and even new concepts for ticketing, access control and payment systems. The world will experience major changes in how humans interact with technology in their daily lives; and this will not be any different for how venue patrons will use technology.

I can see some dramatic changes in e-payment systems, which will totally

eliminate cash purchases in a venue, and therefore reduce the number of staff needed. I can see also a major change coming where the venue operators will be in position to allocate staff to do other tasks in their venues. I am very positive that this will give a more human element to the venue. In other words, there will be more technology to make things easier for the customer and also so the operators can dedicate more time to providing more information to the user, and, most importantly, to have time to provide that friendly smile that could be a very important element for a customer when they visit our venues. .

Arena Solutions prides itself on being a full service solution provider for the sport and live entertainment venues market. If you were designing a new venue today, what would you do differently to that which you may have done several years ago?

We have been assigned to lead an indoor arena project in Brazil on a location and partner that we can not disclose at the moment. We will use all our experience to make this venue an impeccably well designed one. We are looking for the right partners to put together what we are hopeful will be Brazil’s best sports and entertainment venue.

Because of our team and partners previous experiences, we are confident that we will minimize the mistakes and even improve many areas of the project including the ones related to hospitality, catering and connectivity.

Remember, a happy customer will always come back, so the most important area for us to improve on is to make sure that we understand FIRST the customers’ needs rather than our own K.P.I’s. Some say content is king, but in our case, the CUSTOMER IS THE REAL KING! n

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