Interview with Mathias Menzl,Head of Digital Products at Football Club Basel.
In the current sport ecosystem, the recent model of clubs depending on video rights, player trades, and ticketing has encountered a significant setback. The traditional sources of income have been impacted, compelling clubs to explore alternative avenues. In this context, digital transformation has emerged as a pivotal factor for football clubs. It not only enables rapid growth in specific domains but also introduces fresh revenue streams.
This strategic shift is not confined to prominent industry-leading clubs; it is applicable to every sports organisation, regardless of its stage of development. Through this series of articles, we aim to highlight the proactive initiatives and projects undertaken by various clubs within the sports ecosystem. By shedding light on these endeavours, we intend to offer insights into the diverse ways in which digital transformation is shaping the future of sports organisations.
For this interview, we had the honour of welcoming Mathias Menzl, Head of Digital Products at FC Basel who takes us through his role and the digital initiatives that have been rolled out throughout the club to streamline certain processes.
Digital Transformation at FC Basel.
What is the general perception of digital transformation within FC Basel? How does the club approach it and what was a potential turning point to embark on this journey?
Since 2017, there have been various digitization initiatives, and significant progress has also been made. Most recently, this includes the dismantling of various data silos and a user-centred development of our frontends. We are still in the midst of this process. Both aspects have consistently presented the greatest pain points: inconsistent products for users and a data chaos in the background.
You joined FC Basel as Head of Growth Marketing but are now Head of Digital Products, how has the transition enabled you to drive the digital transformation strategy within the club?
When I started in 2020, my task was to drive growth marketing initiatives on a foundation that made it challenging to work with data. In response, we initiated a project called "FCB neo," which now enables us to actively and, most importantly, automatically work with user data. This has laid the groundwork for us to grow digitally. We transitioned from an integration strategy to a Best-Of-Breed strategy.
Specifically, we moved from an on-premise S/4-Hana database to a cloud-based AWS database and adopted a first-party user data concept. All user data we work with, whether it's marketing data, user profile data, or data left by logged-in users on the website or app that is relevant to us, also flows into our Customer Data Platform (Twilio Segment). From there, we initiate our marketing automations, whether it's through emails, newsletters, search engines, or social media marketing.
Administrative efforts have been significantly reduced, with automation replacing much of the manual work. Additionally, we are more cost-effective now and more flexible when it comes to testing new tools. When I started at FCB as a Growth Marketer, we already had a central user database, but we could only run newsletters. In the old digital ecosystem, there was no way to effectively use the data outside the ecosystem. However, I was only able to initiate this change once I took on the new role.
““ - Mathias Menzl
Image credits - Luca Cavegn/FC Basel
With respect to implementation of digital transformation initiatives, have you encountered (or still encounter) any hindrances/challenges? If yes, what measure did/do you undertake to overcome them?
As a football club that isn't among the very largest, it's challenging to independently establish and operate a digital ecosystem. A football club requires a multitude of digital products, which also necessitate a certain number of individuals capable of maintaining and utilizing them. Acquiring the funds for this endeavor and emphasizing its necessity becomes relatively difficult during times of sporting challenges, as what happens on the field remains the primary focus.
Our approach is to use user-friendly tools and automate as much as possible. However, even this sounds easier than it actually is, as automations are not always stable. Furthermore, we also attempt to reduce efforts by collaborating with other clubs or the Swiss Football League. But even that is more challenging than it sounds.
By now, I'm starting to think that perhaps the most sensible approach would be if the league financed the foundation of a digital ecosystem for each club, allowing the clubs to operate independently only in the marketing domain. This way, the clubs could compete where it makes sense - on the field - and collaborate where they shouldn't compete - in the digital realm.
St. Jakob-Park - FC Basel
Image credits - Luca Cavegn/FC Basel
What according to you sets apart FC Basel from other clubs competing in the swiss leagues in terms of the various initiatives you have undertaken?
In the realm of data harmonisation, we are certainly ahead compared to other clubs in Switzerland. Moreover, we are also one of the few clubs with native applications, even if they are currently somewhat lacking. Furthermore, we make an effort not to jump on every hype train - like NFTs and the Metaverse - but instead focus primarily on offering digital products that benefit our fans and staff.
Looking at the bigger picture, digital transformation extends beyond elite clubs and is viable for any club aspiring to embrace it. However, this endeavor necessitates a specific process and approach. In your view, what essential factors should be taken into account and executed, and what primary obstacles do smaller clubs encounter while adopting this strategy?
In smaller clubs, digital transformation is often assigned to the IT or marketing/communication departments. However, necessary skills might be lacking in these areas. It's about the combination of marketing, communication, and sales, with the assistance of developers, designers, and analytics experts. Digital transformation is not synonymous with IT.
In my opinion, this understanding is crucial. And while it might sound like a no-brainer, in smaller organisations, there is often a lack of know-how on how to digitally align a company. Afterward, priorities can be set. Often, digitalization initiatives are approached from a particular department's viewpoint without considering the broader organizational perspective.
Additionally, football clubs are placed with lets say big egos or personalities, so careful consideration is certainly needed in this respect. It is particularly problematic when digital transformation is addressed as a brief agenda item in leadership bodies such as executive boards and boards of directors. This is not sufficient to achieve effective progress.
St. Jakob-Park - FC Basel
Image credits - Luca Cavegn/FC Basel
Are there any strategic roadmaps or upcoming initiatives to further enhance your organization's digital landscape? With the emergence of various novel technologies such as AI, Machine Learning, Blockchain, and Autonomous Databases, are there specific avenues you're inclined to explore? If so, could you shed light on the intended problem-solving context for these technologies?
Strategically, for us, it has been important in the last two years, firstly, to dismantle data silos and harmonize on AWS to have a comprehensive view of our customers and to work meaningfully with the data. Secondly, we aimed to standardize our frontends to ensure a consistent user experience. The next step is to expand our native applications into a product that can serve as a meaningful daily companion for fans on both matchdays and non-matchdays, enabling us to sell faster and easier.
AI is of particular interest in specific areas. In the coming months, we are focused on developing valuable offerings in customer support in two areas: reducing support efforts for us and optimizing the customer issue resolution time. Additionally, implementing AI-based nudging in the checkout process. For this, we are collaborating with both Google and an ETH St. Gallen spin-off.
Machine Learning is a topic in the realm of marketing automation. We work with Twilio Segment, which provides integrations in the predictive domain. We utilize these integrations for email marketing, social media, as well as search engine advertising. We are already actively engaged in this area. However, our challenge in the Machine Learning domain is that, as a smaller organization, we likely generate insufficient data. We are currently in the process of determining this.
In wrapping up, what advice would you offer to football clubs pursuing digital transformation or to digital managers seeking to enhance their journey of digital transformation?
Digital transformation needs to be tackled by an individual in the club who has the authority to thoroughly examine every aspect, question all processes, and approach them anew. This cannot be done as a part-time-job. This individual should possess the competencies to drive such changes effectively.I view it as essential to take the time for a comprehensive assessment and then proceed with small steps in the areas where it makes the most sense—considering both business interests and user needs equally.
It's important to make these decisions independently of personal interests and past burdens. Moreover, every club should endeavor to enhance their connections through the association or the league and explore opportunities for cooperation to reduce costs, efforts, and complexity. Lastly, it's also crucial to find partners who can implement the digital transformation in a way that aligns with the specific needs of the company. Not every agency is suitable for every organization. There needs to be a match on several levels.