Introducing Begoña Larzabal:
ESSMA: To kick off our discussion, can you please introduce yourself to the ESMA community and outline your role at Real Sociedad along with your responsibilities?
Ms. Larzabal: Hello, I’m Begoña Larzabal, and I’m “Director of Commercial and Marketing” at Real Sociedad. My responsibilities encompass various aspects within the club, ensuring smooth operations and coordinating different departments to contribute to the overall success of the team.
ESSMA: Thank you, Ms. Larzabal. It’s great to have you here. Could you share a bit about your journey leading up to your role at Real Sociedad?
Ms. Larzabal: Certainly. Before joining Real Sociedad, I worked in banking at La Caixa. The pivotal moment came during our centenary celebration when I had the opportunity to meet the club’s president. He conveyed the importance of individuals transitioning from different fields to contribute to Real Sociedad’s development. This resonated with me and became a significant motivator for joining the club. I didn’t have prior experience in football. My background includes experience in sports, specifically field hockey. I represented my country in two Olympic Games – Atlanta and Sydney – as part of the national team. Although football was new to me, my sport expertise from hockey, coupled with the president’s call to contribute, made my transition to Real Sociedad both meaningful and exciting.
Crafting a Vision for Fan Experience:
ESSMA: Let’s delve into the realm of fan experience. To begin, could you provide your definition of fan experience and elaborate on what this concept means to you?
Ms. Larzabal: Certainly. When we talk about fans, it’s essential to consider the diversity among local, national, and international supporters. Each group is unique. When I joined the club, there was a focus on aligning with brands, and growing an international fan base we addressed the challenge of avoiding repetitive comments. We swiftly developed a strategy to diversify our fan base, recognizing the importance of not limiting ourselves to local supporters. More than a decade later, we’ve successfully expanded our fan base to over 14 million. This shift has transformed our goals, now encompassing local, national, and international perspectives. Accurately identifying and understanding our fan base has been pivotal in our approach. Initially, we had a strong and established presence with local fans. As we expanded our focus to national and, more recently, international fans, our strategy underwent distinct phases. With local fans, the emphasis was on physical presence – attending the stadium regularly. For national fans, the approach involved a combination of stadium attendance and a robust digital strategy. However, when targeting international fans, the most critical aspect became the digital strategy. Recognizing that international fans may not have the same physical proximity, our focus shifted predominantly towards online engagement. This progression reflects the different needs and behaviours of fans at the local, national, and international levels. In our pursuit of engaging international fans through digital means, we implemented several successful initiatives. Our online platforms became vital in delivering exclusive content, live streaming matches, and facilitating virtual interactions with players and the club. Virtual memberships, global merchandise availability, and interactive digital campaigns were also key elements. These initiatives allowed us to bridge the geographical gap and create a meaningful connection with our international fan base, providing them with a unique and immersive experience.
ESSMA: It’s interesting to note the balance between international outreach and maintaining a strong local connection. Could you elaborate on how Real Sociedad manages to uphold its strong bond with the local community, local fans, and even local players while expanding its international presence?
Ms. Larzabal: Absolutely. Here in Spain, we are widely known as La Real, distinguishing us from other clubs like Real Madrid. It’s a significant part of our identity. We’ve embraced this local recognition, and it’s reflected in our slogan – “We are Real.” The term “Real” holds a dual meaning for us, aligning with the English significance of being “the real thing” being authentic, but more importantly, signifying La Real in Spain. Internationally, particularly in England, we are recognized as Sociedad. However, it’s crucial to note that within Spain, the term “Sociedad” alone doesn’t immediately convey that we are Real Sociedad. This linguistic nuance is something we’ve navigated and worked on to effectively communicate our identity both locally and internationally. It’s just a small example of things we take into account when, dealing with local or international fan bases.
Technology and Ticketing Transformation: A Seamless Fan Journey:
ESSMA: Acknowledging the impact of technology, have you observed changes in the preferences and needs of modern fans over the past decade? And if so, how has Real Sociedad adapted its strategies to meet these evolving demands?
Ms. Larzabal: Absolutely. The influence of technology has been transformative, shaping the dynamics of fan engagement. Recognizing that young fans represent the future, we’ve focused on attracting and retaining their support. Digital transformation became a cornerstone of our strategy, touching every facet of the club. Whether local, national, or international, technology serves as the linchpin in connecting with our fan base. This emphasis on technology aligns with our goal of not just addressing immediate needs but laying the foundation for sustained development internationally. Our first strategic move was the comprehensive digital transformation across all areas of the club. Additionally, the modernization of the stadium has played a crucial role. Fortuitously, our location in a supportive city further enhances the overall experience, making technology and infrastructure pivotal components of our strategy.
Innovations in Food, Merchandise and More:
ESSMA: Exploring the digital transformation within ticketing, could you provide insights into how Real Sociedad has incorporated technology into this aspect of fan experience? Specifically, do you utilise dynamic pricing, offer 3D views of the stadium, provide mobile tickets, or employ any other tools to enhance the ticketing process?
Ms. Larzabal: Certainly. When we initiated our digital transformation 13 years ago, ticketing was predominantly physical. The goal was to shift towards an online platform, and today, approximately 98-99% of our tickets are sold online. We undertook a comprehensive strategy during the stadium remodeling, addressing all aspects, including different categories, areas, and prices for the seats. This strategy resulted in significant growth, with season ticket holders increasing from 23,000 to 38,000. With a stadium capacity of 40,000, there’s now a waiting list of 3,000 individuals eager to become season ticket holders. Ticketing is crucial for us due to limited availability, and we categorise matches based on La Liga and European competitions, each with different pricing categories. To manage this efficiently, we have a dedicated ticketing professional since 2017, recognising its significance. Regarding technology, we initially explored using a large master ticket platform with Microsoft to personalise the ticketing process. However, the need for quick adaptability led us to work with another platform. Although it may take a bit more time to personalise, it allows us to be agile in making changes based on our capacity and specific needs. Currently, with the increasing volume of ticket sales, including international tickets, we are considering incorporating additional platforms to further enhance our ticketing capabilities.
ESSMA: In managing your ticketing operations, what tools and partners does Real Sociedad currently work with? Are there specific platforms or ticketing providers that support your processes?
Ms. Larzabal: While several ticketing providers have expressed interest in collaborating with us, we are currently not in a hurry to engage with them as our tickets are consistently sold out, with only 2,000 tickets remaining. Our current priority is to optimise our processes, ensuring swift adjustments to pricing and ticket availability. To manage areas with available seats, we’ve introduced a system where season ticket holders can extend their cards to friends or the club for free. If the club sells the ticket, we then share the proceeds with the season ticket holder. We are considering incorporating new services to facilitate these processes, particularly to benefit season ticket holders. This approach not only simplifies the process for them but also allows for incremental income and lower prices when selling tickets. The key criterion in choosing platforms is their ability to facilitate quick and dynamic adjustments, given the varying demands for every game. In essence, the focus is on selecting platforms that allow us to be extremely agile and responsive to the ever-changing dynamics of ticketing for each match.
ESSMA: Shifting our focus to a second category of fan experience – food and beverages at the stadium – could you elaborate on Real Sociedad’s strategy in this regard?
Ms. Larzabal: Managing food and beverage services at the stadium is a challenging task, with the aim of providing excellent service. During the renovation, we doubled the number of bars at the stadium, increasing them from 16 to 34. However, the challenge remains, and I am constantly exploring different methods to enhance efficiency. The difficulty lies in the need for significant investment in technology, systems, pick-and-go solutions, among others. Yet, these bars are only operational every 15 days or so, considering the match frequency. Additionally, software for such bars is not developed with the same licensing model as year-round establishments, leading to higher costs. Queues are a perennial issue, and while we aim to address this with TVs and product displays in queues, striking the right balance in investment remains challenging. Moreover, the regulatory environment, especially concerning alcohol norms, adds complexity to the equation. In the North of Spain, where we have stricter regulations, achieving the necessary profitability while investing in enhanced customer service becomes more challenging. It may seem straightforward on the surface, but, in my view, it is one of the most difficult aspects to manage. We are continually evolving our concepts, exploring new ideas, but there is still much room for improvement in this area. Investments in technology are crucial, ensuring efficient transactions and connectivity. Compliance with specific rules, such as online connectivity with the government for tax purposes, is essential, even though it may impact transaction speed. The North of Spain has specific rules that add complexity, requiring careful navigation. Staff training is another key element. Ensuring that the staff is well-trained contributes to quicker service and a positive fan experience. Additionally, licenses and software tailored to stadium operations are necessary for seamless functioning. One unique project at Real Sociedad involves sustainability and fan culture. The common practice of eating seeds at the stadium led to a special project where we collect the seed shells and use them to create fertiliser for plants, promoting sustainability. This reflects our commitment to incorporating cultural practices into our initiatives.
ESSMA: Transitioning from food and beverage to merchandise, an integral aspect that complements the overall match experience, could you share insights into Real Sociedad’s approach to merchandise and any innovative projects, such as the special scarf with NFC technology? How does merchandise contribute to the overall budget, and what strategies are employed to keep the offerings dynamic and appealing to fans?
Ms. Larzabal: Absolutely, merchandise is a dynamic aspect that requires constant evolution and the introduction of new and innovative products. In our case, we transitioned from Adidas to Macron, as Macron allows for extensive personalization of merchandise. The ability to personalize is crucial for us, and it adds value to the fan experience. For instance, creating special scarves for key players or incorporating technology to provide additional content enhances the overall appeal. We believe in adding value through various means, be it packaging, design, or unique editions. Special editions, such as a shirt for the stadium’s inauguration or a cup final victory, are examples of how we continually strive to offer something extra. Currently, our shirt design involves collaboration with a sculptor, showcasing our commitment to exploring different avenues in design. The strategy is always to seek new collaborations, whether technological or design-oriented, to keep our merchandise offerings fresh and exciting. This approach aligns with our broader strategy across various aspects, including ticketing, hospitality, and bars – always staying in motion and seeking new and engaging initiatives.
Youth Engagement and Digital Strategies:
ESSMA: Acknowledging the evolving landscape and the competition for attention from modern entertainment options like Netflix, Disney, and gaming platforms, how does Real Sociedad approach winning over the younger generation of fans? Are there specific initiatives or strategies in place to engage with young fans, considering the diverse range of entertainment options available?
Ms. Larzabal: Winning over the younger generation of fans is a multifaceted challenge, given the diverse entertainment options available today. One initiative we’ve implemented is creating a gaming area in collaboration with sponsors like LG, providing machines and games for fans. This area is part of our broader fan zone dedicated to our loyal supporters. We are also venturing into the realm of e-sports, recognizing its growing popularity among the younger demographic. While we are in the early stages, it’s an area we intend to develop further in the future. Additionally, we are exploring engagement with young fans through initiatives related to the metaverse, immersive experiences, and broader digital strategies. These efforts are aligned with our belief in continuously seeking small opportunities and pilot experiences that resonate with fans. Partnerships, such as the one with fan tokens, contribute to our efforts, recognizing the importance of being present across various platforms. As a club, we may not be the largest, but our focus on numerous small projects creates an ecosystem that appeals to fans of different ages. Digital strategy and technology are integral to this approach, acknowledging the significance of catering to the preferences of young people who represent the future of our fan base. Ultimately, we strive to provide a range of activities and experiences for fans across all age groups, recognizing the diverse and lifelong nature of fan engagement in a football club.
ESSMA: Real Sociedad has implemented a loyalty program, and I would love to hear more about how this program works, the mechanics behind it, and the benefits it offers to fans.
Ms. Larzabal: Certainly, our loyalty program was initiated around 2017, aligning with our digital transformation efforts. The program operates through a dedicated app, creating an ecosystem that includes various sponsors and offers different discounts. Fans accumulate points through various activities, such as purchases at supermarkets, shopping in our club’s store, engaging with specific sponsors, and more. Additionally, attendance at the stadium plays a significant role in earning points, as we sought to boost match attendance. The accumulated points translate into monetary value, and this accumulated sum is then discounted from the season ticket holder’s price. Essentially, fans who actively participate in the loyalty program and engage with the Real Sociedad ecosystem enjoy reduced prices for season tickets, creating a mutually beneficial relationship. Around 500 individuals currently attend matches for free as a result of their active participation in the loyalty program. The overarching idea was to create an ecosystem where fan engagement extends beyond match attendance, encouraging fans to interact with sponsors and collaborators associated with Real Sociedad. This approach not only results in lower digital holder prices and discounted stadium attendance fees but also enhances the overall matchday experience and fosters a sense of community among our loyal fan base.
Insights into Sponsor Collaborations:
ESSMA: Real Sociedad has established strong partnerships with sponsors, and it’s intriguing to learn more about how these partnerships contribute to building and engaging the fan base. Can you share insights into the ways your sponsors support the club in fan engagement? Are there specific activations or collaborative activities that sponsors are involved in, and how do these efforts contribute to fostering a vibrant and engaged fan community?
Ms. Larzabal: Our relationships with sponsors are crucial, and we value those who actively participate in activating initiatives. We have developed strong ties with sponsors who are eager to engage with our fan base. Activations take various forms, ranging from player engagements to events at the stadium and matchday activities. The nature of the activations depends on factors such as the sponsor’s type (B2B or B2C) and the specific objectives they aim to achieve. We tailor our approach to meet the needs of each sponsor, ensuring a collaborative and mutually beneficial relationship. The activations are designed to be unique and engaging, creating memorable experiences for fans and promoting the sponsors’ brands effectively. Our commitment to innovation and willingness to explore diverse initiatives have been well-received, earning recognition for our effective approach to sponsor collaborations. Ultimately, these partnerships contribute significantly to fan engagement, fostering a sense of community and enthusiasm among our supporters.
Connecting with International Fans:
ESSMA: For international fans who are unable to physically attend the stadium, what avenues are available for them to engage with Real Sociedad, access content, and stay connected with the team?
Ms. Larzabal: One of the primary channels for international fans is through Fan Tokens. These tokens offer fans various opportunities, including participation in quizzes and digital activities. Fans can answer questions, seek information, and engage with the club digitally. Additionally, we have plans to introduce two new technological and digital initiatives in the coming months, similar to the Fan Tokens, to further enhance the connection between the club and our international fan base. Furthermore, we are exploring digital chats with players as part of our initiatives to bring international fans closer to the club. These efforts are geared towards providing diverse and engaging experiences for fans worldwide, fostering a sense of connection and community regardless of geographical boundaries.
A Glimpse into the Future – Upcoming Projects:
ESSMA: As you look ahead, you’ve mentioned upcoming digital projects, including one related to Fan Tokens. Could you provide a sneak peek or insights into any other significant projects on the horizon that aim to enhance the fan experience? Are there specific areas or aspects you are targeting for improvement in the near future?
Ms. Larzabal: Absolutely, in the next month, we are set to unveil new projects. One of them revolves around providing fans with an opportunity to own a small part of Real Sociedad, the stadium, or even the pitch. This ownership comes with associated benefits and a unique level of engagement, offering fans a distinctive way to participate and be closely connected to the club. These initiatives may be small in scale, but they represent our commitment to exploring different and innovative ways to continually enhance the fan experience.
ESSMA: If you were to join another club with the goal of developing the ultimate customer journey and fan experience, where would you start? What steps would you take to build a strong foundation for long-term success in engaging fans and creating an exceptional customer journey?
Ms. Larzabal: The key is thoughtful planning. Begin by identifying and analysing the club’s strengths and weaknesses. Focus on enhancing and developing the existing strong points, establishing categories, and identifying areas for improvement. It’s crucial to create a roadmap with phased goals, determining the next steps and aligning them with long-term objectives. The decisions made along the way should consistently contribute to the overarching goals. This approach ensures that each step is purposeful and directed towards long-term success. Reflecting on our journey at Real Sociedad, we invested significantly in stadium remodelling, facilities, and innovative concepts. The idea is to start with a robust foundation and gradually evolve, always keeping the long-term goals in mind. Reviewing our development plans over the years, it becomes evident that the decisions made align with our clear goals. Whether you’re a medium-sized or growing club, the principle remains the same – define your goals, plan for the long term, and let each short-term goal contribute to the larger vision. Consider how you engage with different segments of the fan base, approach services, and develop products in alignment with the main goals. The size of the club doesn’t dictate the approach; rather, it’s about adapting your goals to the current size and then evolving those goals as the club grows. Consistently thinking about the long-term goals ensures that every decision made is a strategic step towards success. It’s essential to highlight that amidst our growth and pursuit of (financial) success, we’ve remained committed to preserving our values and unique identity. We’ve strived to maintain our close ties with the community, emphasizing the importance of education and nurturing young talent, particularly through our academy, which is integral to our economic model. An instance that underscores our dedication to principles occurred in the 2018-19 season. Despite a lucrative offer from a betting company to feature prominently on our shirt, our board made a principled decision. Recognizing the rising issue of online betting, especially among children, they chose not to associate the club with a betting sponsor. This decision, though challenging in the short term, demonstrated our commitment to being a positive influence on the community, especially for the younger generation. In the face of limited time and potential financial gains, the board prioritized the long-term well-being and image of the club over immediate financial rewards. It is decisions like these that we take pride in as they align with our commitment to making choices that reflect our values and contribute to the enduring legacy of the club. While we are not against betting, we believe in promoting responsible choices and maintaining our principles even when faced with lucrative opportunities. Apart from that, we also develop different kinds of content for every territory that is a priority for the club. For example, the type of content that we use for Arabic speaking countries is different from the content for Japan or America. It’s not just a matter of translating the audio or the subtitles, but generating specific content for each of those territories, since we have the capacity to geolocalize some of that content, of publish it in specific channels for them. For instance, we are the seventh European club with most followers in its Japanese “X” account, precisely for having worked in that sense” or similar after talking about “: It’s interesting to note the balance between international outreach and maintaining a strong local connection.
ESSMA: Thank you, Ms. Larzabal, for providing us with such insightful and thought-provoking responses. It’s clear that Real Sociedad’s commitment to its values and community extends beyond the pitch, influencing decisions that shape the club’s identity. Your dedication to creating a positive and enduring legacy is truly commendable. We appreciate your time and the valuable insights you’ve shared today. Wishing Real Sociedad continued success both on and off the field.
