An inside look at how we’re keeping the Miami HEAT’s business humming with BBC Click’s Alasdair Keane.
Miami Heat: How basketball technology is making a name for itself off the court | BBC News
Welcome to Miami. A city of golden beaches, glamour, entertainment — and the home of the Miami HEAT basketball team. Tonight I’m joining fans for a match. It’s an experience not to miss when visiting this city as much about the pregame entertainment as it is about the sports. But this isn’t just a sports team — this is a tech startup.
[00:42] Matthew Jafarian: “Most people wouldn’t think of this when thinking of a professional sports team, but we have a very robust technology operation.”
As spectators move around the venue, data is carefully being gathered about everything they do and purchase. Before being analyzed on the team’s own data platform that they call 601 Analytics.
[1:05] Matthew Jafarian: “We knew that we had reached an inflection point. This was roughly 8 to 9 years ago where we have all of this technology in the building. We wanted to know what the technology was telling us. So we went to the Market to see if there was anything out there. We couldn’t find anything so we started building it for ourselves. After a few years we found it really impacted our business.”
[1:24] Matthew Jafarian: “So think about the time you walk into a building. The time you purchase a ticket, you purchase something of food and beverage. I can even see when folks scan into the building, what gates they’re coming in from if we need to redeploy staff and release the bottleneck. We can see what people are doing in the arena, we can see whether they’re transacting with us, what jerseys they’re buying, where they’re buying them — at our fingertips. It’s like having an app for your entire business.”
Historical Data
Not only does the 601 analytics platform create individual fan profiles, it can also be used to analyze historical data and make predictions about future games. This allows the team to bring in the right resources — potentially saving money. It’s perhaps not a surprise that data about all these transactions is being gathered. What strikes me is that this is a sports club taking the tech into their own hands and spinning out a successful startup.
[2:25] Edson Crevecoeur: “It is an interesting model, but I think that’s what contributes to our success. Because if you think of a tech company and the customers that they serve, how many tech companies actually live in the customers world day in and day out? And get their questions, ask, and understand their problems?”
Now, their services are being used by more than 20% of NBA teams. Their market is growing with customers beyond just the main basketball league.
[2:54] Erin Forsyth: “Our clients range from sports teams in the NBA all the way over to venue operators that are hosting concerts, comedy shows, different art events, and things like that. We found something that we needed. We built out something that we could use ourselves and other teams were just kind of knowledge sharing with us. Asking us “Hey, you know, what are you guys doing over there?” We realized this is actually something that other teams can benefit from so why not share the wealth of knowledge.
Now this startup is taking their product outside of the US to their first venue using this tech in the UK, opening in Manchester this year.
Action on the court, and off the court
But back to Miami. The data being gathered at this stadium is helping in some slightly more unusual places. You might think everything here is about the action on the court, but this is Miami, so of course there’s a nightclub underneath the stadium.
[4:02] Jesse Saenz: “It’s a straight up nightclub – the Ultra Lounge nightclub. Loud music, lights going everywhere, cryo effects, confetti, and stuff like that. So that’s kind of what we do here.”
Data is even helping you choose the music for the nightclub.
[4:17] Jesse Saenz: “It helps us put together music platforms that you know are very, very, very broad. So for pregame experience, given the fact of what our demographic breakdown is, I know that we need to play music that is going to cater from all the way from the 60s all the way up to current music.”
Data Everywhere
With the game about to start, the fans are packing into the stadium. But do they realize just how much data is being gathered about them?
[4:47] Matthew Jafarian: “You don’t realize it, but you are aware. Because when you log into your Amazon account and it remembers the kind of paper towel that you last ordered, that’s a piece of data on you. But you find it relevant and you find it helpful. We try to do the same thing. And we’re doing it because the fans expect it.”
With technology now impacting every aspect of running a business, I’m sure it won’t be long before more sports teams are following the startup model of Miami HEAT.