Experience Zone Best Practices

18
Bob Bangham Seth Rabinowitz Best Practices White Paper USING EXPERIENCE ZONES TO IMPROVE OLDER SPORTS AND ENTERTAINMENT VENUES

description

A white paper that lays out the case for Experience Zones in Sports Venues

Transcript of Experience Zone Best Practices

Page 1: Experience Zone Best Practices

Bob BanghamSeth Rabinowitz

Best Practices White Paper

USING EXPERIENCE ZONESTO IMPROVE OLDER SPORTSAND ENTERTAINMENT VENUES

Page 2: Experience Zone Best Practices

Authors

2

Bob Bangham

Seth Rabinowitz

Creative Director, RipBang Studios

Bob is a pioneer in the development of experiential marketing environments and branded attractions. He founded RipBang Studios to provide sports and entertainment venues with innovative solutions that build brand loyalty, maximize sponsorship integration, and increase per-cap revenue. With an eye toward operational efficiency, he creates brand and fan driven environments and experiential graphics designed to enhance events. For over 20 years Bob has employed a combination of marketing savvy, development strategy, thematic art, graphics, and architecture to create memorable commercial destinations. During his career as an executive with, Rockwellgroup, NBBJ Sports and Entertainment, Gensler, and the founder of Olio Inc, Bob has contributed to entertainment landmarks such as Universal City Walk Hollywood, Treasure Island Resort Casino, Paris Resort Casino, New York New York, Tokyo Disney Sea, The Seattle Space Needle, Staples Center, The Water Color Inn, Heinz Field, Meadowlands Xanadu, US Airways Center, Amway Center, and many others. The RipBang team has created successful temporary and permanent brand environments for PBS, The Food Network, Scion, Verizon Wireless, T-Mobile, Red Bull, Bright House, Amway, Air Tran, US Airways, The US Olympics Committee, The FIFA World Cup, The Cricket World Cup, The PGA, The Breeders Cup, The Phoenix Suns, The Orlando Magic, The Minnesota Twins, and many more.

Seth Rabinowitz is a veteran sports and entertainment industry executive and consultant. He current-ly runs Rabinowitz Consulting, an advisory firm specializing in developing fan engagement strategies for sports organizations, media companies, and consumer electronics manufacturers.

Page 3: Experience Zone Best Practices

1. IntroductionThe past few years have been a thrilling period for stadium and arena development. New venues such as the O2 Arena (London, 2007), Bird’s Nest (Beijing, 2008), and Dallas Cowboys Stadium (2009) have advanced the state-of-the-art in architecture, sightlines, fan amenities, and sponsorable inventory. They have also become icons beyond the sporting world.

That these buildings have captured the imagination of the sports and facilities industries is no surprise – they are spec-tacular testament to the power of vision and money. Yet, as an industry we cannot allow this admiration to obscure an important truth: these venues are exceptions rather than the rule. Indeed, in this time of tight budgets and scarce credit, in most circumstances a new venue – or even a major renovation – is unlikely at best. Rather, for those with a professional interest in stadiums and arenas – sports teams, facility managers, real estate developers, bankers, and public officials – the most important challenge today is not how to build something new, but rather how to make the most of what already exists. This White Paper explores a solution to this challenge that we call “Experience

Zones.” These environments are specifically planned, designed, built, and operated to enhance the gameday experience and comple-ment the sporting action.More than just another venue “amenity,” they are inventory that is highly sellable and ideal for sponsor activation and fan engagement. Experience Zones have of course been around for decades under different labels, but only in the past few years has the art and science of their success-ful development and commercial exploitation been fully studied. Using examples from stadiums and arena projects around the country, we will illustrate how Experience Zones have helped solve a variety of common venue challenges. We will then distill these examples into a set of actionable best practices and identify a process of next steps.

This White Paper explores a solution to this challenge that we call “Experience Zones.”

Page 4: Experience Zone Best Practices

4

2. Common ChallengesMaking the best of what you have first requires understanding what you have – and what you lack. Our analysis has identified five common conditions found in many older venues.

New venues are built for sponsorship, with landmark entrances, large plazas, and other physical signatures. Older venues may (or may not) have the same functional assets, but they generally lack the distinction that makes them attractive to sponsors.

Recent venue designs have generally optimized the physical space to create a cohesive guest experience. After years of accumulating design modifications, temporary facilities, and operating practices, older venues often have “dead zones” and other inefficiencies that hinder the guest’s enjoyment.

New venue designs and business plans have focused on creating a rich fan experience at all price points. Older venues typically still reflect a time when just providing a seat was enough, especially in the “cheap seats.”

Many recent venues, particularly those with a single primary occupant, have been designed to reflect the brand identity of their tenants. Older venues from an era of multi-purpose planning are more generic.

New venues in general have solved the challenge of patron wayfinding through a combination of better design, larger spaces, and effective signage. In older venues, with cramped concourses, limited sight lines, and multiple signage systems, wayfinding is a constant challenge.

Unused / Underused Physical Space

Lack of Sponsorable Inventory

Amenities in the Upper Deck

A House, but not a Home

Difficult Navigation

Page 5: Experience Zone Best Practices

Experience Zones can be an effective solution to each of these common challenges. In fact, in many cases, this approach can be one of the most cost effective and timely improvement strategies. We will explore each situation in turn.

What makes something sponsorable is its ability to command the engagement of patrons. Physical landmarks, which serve as icons and gathering points, naturally play this role and therefore command most of the sponsorship attention.The four Cor-nerstone Partners at the new Meadowlands Stadium (Bud Light, Met Life, Pepsi Max, and Verizon) each have naming rights for one of the stadium’s entrances, for example. Similarly, the main entrance pavilion at the recently-renovated US Airways Center in Phoenix is sponsored by Casino Arizona. But, if striking physical landmarks are unavailable, there are ways to drive fan engagement using assets that are available. Seats, for example, are obviously abundant in every venue. In Orlando, the Amway Center (opening in October, 2010) takes seating to the next level in a special section featuring sponsor Airtran’s Business Class airplane seats. Game-related equipment is also plentiful. At the Xcel Energy Center in Minneapolis (opened in 2000), home of the NHL’s Minnesota Wild, dozens of High School hockey jerseys are displayed in an exhibit sponsored by Wells Fargo Bank. At a very different scale, Dover International Speedway, a NASCAR track in Delaware (opened in 1969), also employed a variant on this theme, by turning an otherwise -

utilitarian bridge between the grandstand and the infield into DuPont Monster Bridge, a unique VIP area with 56 seats and a bar. The common denominator among these diverse examples is that ordinary assets can be made into valuable sponsorable inventory when creativity and imagination combine to create a memorable guest experience.

As most venues evolve, they accu-mulate physical spaces that are not well utilized. These spaces can be as benign as “dead zones” that just lack energy and ap-peal, or as bad as “dead ends” that confuse and frustrate patrons. The main entrance to New York’s Madison Square Garden is one such example, where event patrons mix with subway and train riders in a chaotic and uninspiring entrance plaza. Recognizing that this is hardly a fitting in-troduction to “The World’s Most Famous Arena,” a new entry is a signature element of the planned $500 million renovation that will begin this year.

3. Examples of Solutions

Lack of Sponsorable Inventory

Unused / Underused Physical Space

Page 6: Experience Zone Best Practices

New construction is not the only solution, however. A more widely appli-cable, and far less expensive, approach for “dead” space is to create a targeted new use that acknowledges its physical short-comings and devises a work-around. One notable example of this approach comes not from an arena or stadium, but from O’Hare Airport in Chicago. United Air-lines presents “The Sky’s the Limit,” a mul-timedia art installation that leads pedestri-ans through a long subterranean passage. Similarly, at Bank of America Stadium in Charlotte, NC (opened in 1996) the NFL’s Carolina Panthers celebrate football with “Carolinas Connection,” a permanent in-stallation of almost 650 helmets from high school and college teams. This exhibit is situated in an endzone concourse of the uppermost seating area. The NFL’s Mi-ami Dolphins used large installations by a famous South Beach artist to add visual interest to the otherwise-dreary and out-dated concrete entrances and helix ramps at Sun Life Stadium (opened in 1987). The takeaway here is that physical deficiencies can often be addressed just as well by “software” (exhibitryand programming) as by “hardware”(redesign or reconstruction).

Times have clearly changed. Today, in an era of rising prices and shrinking purchasing power, a sufficient supply of relatively inexpensive tickets is critical to many venues’ business plans. But lower prices do not mean lower patron expec-tations. Indeed, today, patrons at every price point demand value. In fact, at the lower prices points, which are now just as likely to be populated by families as they are by avid fans, the demand for a diversity of attractions and amenities is often greatest. In 2005, for example, when the NBA’s Phoenix Suns renovated America West Arena (now US Airways Center), they built the Verizon Wireless Jungle. This 10,000 sq. ft. upper-concourse dining and entertainment zone is a permanent attraction intended to serve for families the same role that more traditional club settings serve for adult guests. A similar approach was utilized by the NBA’s Char-lotte Bobcats in the Time Warner Cable Arena (opened in 2005) but targeted to adults.

6

Amenities in the Upper Deck

At one time, the only thing event patrons expected for their money was a seat, especially in inexpensive Upper Deck sections filled with diehard fans for whom anything else was just a distraction. As a result, older stadiums and arenas have few amenities in their upper reaches.

Page 7: Experience Zone Best Practices

Their 9,000 sq. ft. “Rock the Rooftop” area combines interactive exhibits with a sports bar, and is marketed as a reason for people in lower seating areas to visit the upper level. Similarly, in 2008, as part of their multi-year renovation project, MLB’s Boston Red Sox also enhanced the upper deck seating by con-verting several luxury suites into the “Coca-Cola Corner,” a family-friendly section and standing-room section. Teams like the NFL’s Philadelphia Eagles and New England Patri-ots have taken a different approach. At both Lincoln Financial Field (opened in 2003) and Gillette Stadium (opened in 2002), the upper deck endzones have plazas that, with team consent, have been turned into lively de facto standing sections that for many fans are seemingly preferable to regular seats. The key here is not the specific design or programming solution -- it is the point that, especially today, low price point seating areas merit as much attention as the VIP areas.

Sports teams are the primary tenants in most stadiums and arenas. In newer venues, this level of importance is often reflected in the very design of the facility – resulting, for the team, in a house that is truly a home and an extension of its brand. The new Yankee Stadium (opened in 2009), for instance, faith-fully recreated many of the signature elements from the 85-year history of its predecessor, including the unique roofline frieze, the manually operated outfield scoreboards, and the Monument Park exhibit area. Raymond James Stadium (opened in 1998), home of the NFL’s Tampa Bay Buccaneers, has its iconic

Pirate Ship and Buccaneer Cove, a 20,000 sq. ft. pirate-themed retail and dining concourse. Older venues, on the other hand, tended to be more generic. At best, these non-descript venues do little or nothing to contribute to a team’s brand; at worst, they actually can harm a brand, as in the case of the NFL’s New York Jets, who for 25 years played in a building named Giants Stadium. The Jets’ identity crisis was a motiva-tion for their (unsuccessful) bid for a dedi-cated facility in Manhattan. Here again, however, teams in this situation need not focus only on solutions that involve new venues. The NHL’s Detroit Red Wings, for example, recently named one entrance at Joe Louis Arena (opened in 1979) not after a sponsor, but after team legend Gordie Howe. A team’s brand is also about its cherished fan rituals.

A House, but not a Home

Page 8: Experience Zone Best Practices

value of a team that had played for 45 years in “uncool” Shea Stadium. The point here is that many details build a brand, and when done right the details of a venue can help the brand to grow and stand out in a competitive marketplace.

Difficult Navigation The NHL’s Chicago Blackhawks retained the signature sound of their famous pipe organ when they moved from Chicago Stadium to the United Center in 1994. Another ap-proach is to brand a facility in a way that also preserves the equity of the team’s identity, as the NFL’s Denver Broncos did when they opened INVESCO Field at Mile High in 2001. The new venue’s name, while some-thing of a mouthful, did retain the essence of the fact that other teams feared playing in Denver’s thin mile-high air. Finally, in some cases, a team can actually enhance its brand by borrowing some equity from another property within the facility. When the New York Mets developed the concession plan for Citi Field (opened in 2009), they included an outpost of Shake Shack, an iconic New York burger joint, as part of a strategy to add a “cool factor” and expand the entertainment

The point here is that many details build a brand, and when done right the details of a venue can help the brand to grow and stand out in a competitive marketplace.

8

Good navigation can make a bad facility better and poor navigation can make an otherwise good facility worse. Like many details, when navigation is done correctly it is almost invisible; but when done incorrectly, the resulting confusion, bottlenecks, and delays can be glaring. Sports facilities provide additional challenges because they are usually circular and multi-level, factors that tend to cause people lose their bearings. Fortunately, sub-optimal navigation is one of the easiest venue challenges to address.

Page 9: Experience Zone Best Practices

One solution is simply to “edit” what exists, which, especially in older venues, tends to be an inconsistent and confusing accumulation of different signage and graph-ics systems. Starting in 1996, Tropicana Field (opened in 1990), home of MLB’s Tampa Bay Rays, undertook a complete signage over-haul. To enhance the stadium’s branding, the team’s logo was incorporated into new directional signage, for example, and “old fashioned” signage designs and lettering were used to give a more historical feel to a decid-edly non-historic venue. Another approach is to create navigation icons that help people remember where they are and where they are going without using maps. At University of Phoenix Stadium in Arizona (opened in 2006), for example, the entrances feature massive number or letter sculptures to assist guests in remembering their entry/exit point. These are as much works of art as signs. Inspired by shopping malls, yet another approach is to create anchor uses as orienta-tion points. In Philadelphia, for example, Citizens Bank Park (opened in 2004), home of MLB’s Phillies, anchors its entire out-field with the Ashburn Alley entertainment area. To aid navigation of this 50,000 sq. ft, 625-foot-long area, each end has a signature eatery: “Bulls,” a BBQ joint run by a former Phillies player, and “Harry the K’s,” which honors legendary Phillies broadcaster Harry Kalas. The main message here is that simplicity, consistency, and memorability are the most important elements in facility navigation.

The main message here is that simplicity, consistency, and memorability are the most important elements in facility navigation.

Page 10: Experience Zone Best Practices

10

4. The Business Case for Experience Zones

1). What are my specific objectives? Finding the right solution usually starts by really understanding the problem. Objectives could include direct revenue (sponsorships), indirect revenue (ticket sales, retention/renewal), event day revenues (no-show reduction, per-caps), guest satisfaction, and/or brand enhancement.

2). What are my solution alternatives? Once objectives are clearly defined, a range of possible solutions can be identified. For a complete analysis, the “do nothing” option should also be considered, since that is usually the default outcome.

3). For each alternative, what is my cash ROI? The first source of ROI is direct revenue, in this case most likely from incremental sponsorships. But it is important that a full range of indirect revenues also be con- sidered. For example, can the investment support revenue objectives like increased per caps, ticket sales, season ticket holder retention, and no-show reduction? Finally, ROI can also come from cost reduction, so the analysis should consider operational ef- ficiencies and other savings.

4). Does each alternative build asset value? In addition to cash ROI, the best invest ments also build long-term asset value. In sports, a strong brand is one clear way to

These days, any capital investment plan has a high burden of proof. This is especially true in sports venues, where teams have historically been able to rely on sponsors and other parties to fund their initiatives. In this section, we suggest six questions that can be useful in evaluating and building a business case for an investment in Experience Zones.

enhance an asset. (Consider, for example, the fact that in Forbes Magazine’s 2009 valuations of major pro sports franchises, only about half of the most valuable teams in each league are those with the highest annual operating income. The others are those, like MLB’s Los Angeles Dodgers or the NHL’s Phila-delphia Flyers, with strong national brands.) So, brand value should also be considered among other long-term considerations.

5). Does each alternative help create a point of difference? Stadium- and arena-based offerings com- pete against many other forms of entertainment, so ways to stand out in the marketplace are critical.

6). What is the longevity of each alternative? Any venue improvement initiative consumes not only money but also management time and attention. It is important that these investments have a long useful life, so that the problem that was solved does not re-emerge in a few short years.

Page 11: Experience Zone Best Practices

4. The Business Case for Experience Zones (cont.)

cost and organizational implications of ongoing upkeep need to be considered. This is particularly true when technology is in-volved, since the state-of-the-art changes so rapidly. A second caveat is specificity. Many Experience Zones are built for one specific purpose or sponsor, and may be difficult to adapt to an alternate use. A final concern is distraction. Like anything, Experience Zones can be overdone and become a dis-traction from, rather than a complement to, the game or event that should always be the focal point of the patron experience.

Soft CostsHard Costss

Planning/DesignEngineeringArchitecture Permits & FeesInsurance

ConstructionFixturesEquipment

Simple projects in an existing facility start at roughly $100 per square foot.

A state-of-the-art Family Zone typically costs $250 to $350 per square foot.

Costs can reach as high as $400 per square foot for a luxury environment.

Typically an additional 10%to 20% of the Hard Costs.

Experience Zone Costs:

Costs can vary widely, of course, depending on the project’s setting, nature, and scope – but certain rules of thumb can be useful in reaching a preliminary cost estimate. Experience Zone costs fall into two categories:

When evaluated against these criteria, Experience Zones tend to compare favorably against other alter-natives. Their ROI is usually strong be-cause up-front investment is relatively low, they are highly sponsorable, and they support indirect revenues like per caps and no-show reductions by adding to the overall event experience. Expe-rience Zones also can be good brand builders that increase asset value. Experience Zones also come with a few caveats. The first is commitment. Experience Zones need to be main-tained and periodically updated, so the

Page 12: Experience Zone Best Practices

12

5. Best Practices

Any venue improvements should start with a detailed definition of the objectives and explanation of the business case (see above) and a long-term vision. We call this a Master Plan, and it can serve as an invaluable touchstone as the years pass. It can also help determine the point at which you have done “enough,” and help avoid crossing the line of over-commercialization and distraction. Finally, it can also be very valuable in maintaining the discipline of your sponsor-ship package structuring and ensuring that you protect sponsor exclusivity to the maximum extent.

Even the most solid business case is no guarantee of success. Rather, in our experience the most important success factor is the quality of the implementation of the ideas. As the number of Experience Zones grows and as their documentation and study im-prove, a set of best practices can be distilled. Incorporating these best practices into a project can significantly improve its quality and there-fore the likelihood of success.

Start with a Master Plan

Value is created by fan engage-ment, so plan and design from the fans’ perspective outward. Create something that fans will like and use and the value of the inventory will take care of itself.

Don’t try to be everything to everyone. Identify subsets of your patron base with specific needs and wants, and create specific Experience Zones to serve these. Just make sure that each Zone clearly communicates its target, so that you don’t have disappointed 20-somethings in the family zone.

Think Engagement, not Inventory

Have Specific Target Audiences

Give People Something to Do, Not Just Something to See.

Too many sponsored elements at stadiums and arenas are just “eye candy” – signs, displays, or exhibits. They are attractive, but ultimately do not really engage the fan. A better approach – for venues and for sponsors – is to include interactive and participatory elements as well, so that fans have something to do and are engaged on multiple levels.

Script the Guest Experience

The ultimate takeaway by every event patron should be fond and lasting memories. Especially in sports, where there is no control of the outcome of the game itself, this should not be left to chance. Rather, venue managers and their tenants should work together to literally “script” the entire guest experi-ence from arrival to departure to ensure that are many opportunities for positive memories.

Page 13: Experience Zone Best Practices

5. Best Practices (cont.)

Be Dynamic

Go Beyond Logo Lock-Ups

Think Like a TV Director

Make it Easy to Find

Especially in sports, with large numbers of season ticket holders, many stadiums and are-nas play host to the same people over and over again. This creates a risk of the “been there, done that” syndrome, where the nov-elty of new attractions wears off quickly. To counteract this, where possible Experience Zones should dynamic, rather than static, attrac-tions that change frequently and always offer something new.

For the benefit of both the property and the sponsor, venue sponsorships should be about much more than just co-presen-tation of logos. Venues offer a unique opportunity for a true merging of brand equities. At a minimum, Experience Zones should highlight how the spon-sor is also fan of the team. Better still, use Experience Zones to bring to life the ways in which the property and the sponsor truly share brand equities. Best of all, enlist sponsors early in the process so that they have full “ownership” of the outcomes.

The best attractions serve little purpose if they are hard to find.

If a guest has to look for a sign, he or she is probably already lost. Don’t let upgrades in navigation and wayfinding become after-thoughts or victims of the budgeting process.

Create icons that will look good on television and become signatures of your facility. Make these icons unique reflections of the venue’s tenants and home city.

Page 14: Experience Zone Best Practices

6. Next Steps

14

Step 1: Initial Analysis and Review Duration:

Estimated Budget Range:

Moving forward with any capital project is usually an interative process, starting with a general concept and then going through stages of refinement before finally arriving at a definitive plan. In the case of Experience Zones, we have identified four steps along this process, discussed below, along with a general estimate of the time and money involved.

The goal of Step 1 is to assess the situation and formulate a plan of ac-tion. If a Master Plan already exists (see above), the initial analysis will build on that work; if not, this step can serve as the basis for a future Master Plan. Either way, the following questions should be addressed.

1).Goals and Objectives. Why proceed? What problems will this solve and/or opportunities will it create?

2).Physical Inventory. What strengths and weaknesses does the physical space have? What spaces could be (or must be) reinvigorated or repurposed?

3). Target Audience(s). Who will be targeted? What demographic and/or sales data exists for these groups? What are their needs and wants?

4). Sponsorship Opportunities. What national, regional, and/or local sponsors could be integrated into the project? What are their key decision points?

Approximately one month; ideally completed before the start of theannual selling cycle.

$15,000 to $30,000 in Soft Costs.

Page 15: Experience Zone Best Practices

6. Next Steps (cont.)

Step 2: Business Case Step 3: Detailed Project Planning

Part One: Signage and Graphics

The goal of Step 2 is to reach a go/no-go decision by presenting a detailed business case.

1). Project Expense Budget. How much will the project cost, and over what time period? What financing sources are available (e.g., operating budget, capital budget, “cost of revenue” offset to sponsorship income)?

2). Revenue Projection. How much can the project’s sponsorship inventory be sold for, and over what deal term? How will the project contribute indirectly to the growth of other revenues?

3). Brand Building. How, specifically, will the project help build the brand and create differentia-tion from the competition?

Approximately two weeks of work; length of approval cycles will vary.

No out-of-pocket costs.

The goal of Step 3 – which only takes place if a project is approved – is to create a detailed concept plan and, concurrently, a sales kit to market the opportunity to potential partners. This step is divided into two parts, one of which should be contingent on sponsor interest, while the other should proceed with or without a sponsor attached.

1). Signage and Graphics System. Create a system that simplifies wayfinding, reduces clutter, and reinforces the brand of the venue and/or the tenants. 2). Sponsor / Partner Integration. Ensure that venue naming rights holders and other sponsors and partners are integrated into the system in a way that maximizes their visibility. 3). Fabrication. Create the signs and graphical elements. 4). Installation. Finally, install the elements throughout the facility.

Duration:

Estimated Budget Range:

6. Next Steps

Page 16: Experience Zone Best Practices

16

Part Two: Experience Zone Design and Sales

Approximately three months; ideally done in the off-season.

One to three months; ideally completed at the start of the annual selling cycle.

Soft Costs of $100,000 to $500,000, depending on the project scope and venue type. Hard Costs can vary widely, with a signage up-grade costing starting at about $100,000, while and entire signage and graphics system for an arena or sta-dium can cost $1.5 million to $5 million.

$15,000 to $30,000 in “soft costs” per concept; $5,000 to $10,000 per additional sales pitch.

Unlike signage, Experience Zone elements should generally have a sponsor commiment before they are constructed.

1). Concept Development. Prepare specific Experience Zone concepts, with detailed illustrations and photo simulations. 2). Sponsor Pitches. Communicate concepts and specific spon-sorship opportunities to potential partners, using co-branded pitch documents.

3). Sponsor Integration. Once a sponsor has committed, collaborate to maximize sponsor integration, value, and brand messaging.

4). Deal Terms. Negotiate final pricing and other deal terms.

Duration:

Duration:

Estimated Budget Range:

Estimated Budget Range:

Page 17: Experience Zone Best Practices

6. Next Steps (cont.)

Step 4: Construction, Fabrication, and Installation

Three to six month construction period, depending on size and complexity of the project and other uses of the facility; ideally completed during the facility’s off-season.

Construction Hard Costs of $250,000 to $2,500,000, depending on a wide range of facility- and project-specific factors.

Finally, in Step 4 the project turns to the implementation of the Experience Zones themselves.

1). Final Design. Translate concept designs into detailed, construction-ready blueprints.

2).Construction. Build (and/or demolish) as necessary to create the desired physical environment.

3). Fabrication. Create the exhibits, interactive attractions, and other Zone elements.

4). Installation. Finally, install the exhibits and attractions as well as any other fixtures or equipment.

Duration:

Estimated Budget Range:

Page 18: Experience Zone Best Practices

Decision makers grappling with how to enhance aging stadiums and are-nas have more options than they may first think. New construction or substantial renovation will always be tempting – and when the economics and politics allow, probably the best strategy. But in most cases today, this option will simply not be on the table and more creative approach-es will be necessary. Experience Zones are one best practice to maximize the utility and value of what exists through smart and targeted investments. If conceived, built, and operated properly, Experience Zones can generate a measurable ROI and boost the appeal of a venue and its tenants. Like any capital improvement, they are not cheap, per se, but their cost tends to compare favor-ably to other venue-enhancement strate-gies. Nor are they hands-off. Experience Zones require an ongoing commitment to physical maintenance and content updates. the guest experience and the sponsorship proposition.

For venues that embrace this level of commitment, however, they can be a highly effective solution that at once improves the guest experience and the sponsorship proposition. We predict that Experience Zones will continue to gain popularity as venue managers, sports teams, public officials, and other interested parties address the challenge of keeping all stadiums and arenas – not just the aging ones – fresh and relevant to an increasingly distracted public. Doing this with limited financial resources will make the need for creative solutions even more keen. Adopting the growing body of best practices in this area will serve the entire industry well by providing additional success stories. It will also drive further innovation by rais-ing the bar of performance in an industry that has competition at its essence.

18

7. Conclusion