Maybe you just got a promotion. Or, the market around you has changed and you need to respond to that. You got a new boss, or you’re starting a brand-new host team, or you got a job at a new property, or something like that. Anyway, you have found yourself sitting in front of the computer trying to assemble Casino Host goals for the Player Development team. And you’re not sure where to start. Please read on.
Start with some basic structure questions.
- Will the amount of the bonus to be paid out be salary-based or will there be a set amount which can be earned?
- Will you add a team bonus or simply pay individual hosts based on their own achievements?
- Will there be bonuses paid for partial achievement?
- Will you pay a super-bonus for far exceeding the goals?
- Will goals be based solely on the revenue the team generates, or will you include some strategic objectives for the team to achieve?
- If you include them, will the metrics-based goals be paid out even if the host doesn’t reach his or her revenue target?
- Upon what will you base the revenue targets?
- What metrics will you choose for the strategic objectives and how will you set those target numbers?
Once you have made some decisions around these questions, you’re ready to do some analysis in order to answer the specifics.
Yes, you’ll need to crunch some numbers in order to set the goals. At a minimum, you need to understand the following:
- How much cumulative revenue the players coded to each host generated in a period that looks like your bonus period. (Whether you use gross theo, net theo, actual or some combination thereof is up to you.) -OR-
- An average revenue amount and number of trips for all the host team’s coded players.
- How much your property expects its revenue numbers to change from the quarter you analysed to the quarter you’re setting the bonus for. For example, in Q1 2014, Sandy Palace Casino expects to see 3.5% growth over Q1 2013. (You should assume the hosted players will be subject to the same anticipated increase in worth, all things being equal.)
- How many new players your hosts will add to their list over the course of the quarter and what they are expected to be worth.
- What sort of player attrition the property has experienced lately (say, quarter over quarter).
- The number of players in your database who deserve but do not currently enjoy host attention and their worth.
- Whether any additional threats to the cream of your database exist in your market and what revenue might be lost if that threat comes to fruition.
Have you got all that? Good. Now, let’s build some goals for a bonus program.