Tag Archives: Casino Analytics

Effective Player Development Doesn’t HAVE To Be Expensive

Is it necessary for a host to make an offer to a player in order to generate a trip?  It is, after all, standard behavior for hosts to comp players.

The industry’s earliest Player Development efforts started this way, even before anyone used the term “player development.”  Pit bosses traded free and discounted meals for player loyalty long before slot club cards were in wide use.  As the technology grew, methods shifted and what we now recognize as modern PD was born.

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In the current gaming climate, it is becoming more difficult to retain the loyalty of a player; it has become a player’s market in many regions of the US.  When every casino they’ve visited within the last six months is sending them comparable offers, players really can pick and choose where and when to visit a casino and maximize the value of that visit.  So, does that mean a host has to sweeten the deal in order to get the player to visit HIS property instead of going to a competitor?  I say emphatically, “No.”

I propose an experiment.  Do a split test for host-initiated visits in exactly the same manner you would for direct mail.  Determine which two of your hosts have lists which represent the same sort of cross-section of your database and which have similar player frequency and worth.  Give them each the same time frame and number of players to activate.  Have one host make an offer with every call; a free buffet, a night’s stay for free (if you have a hotel), a small free play amount, or something similar.  Then have the other host do nothing more than make contact and chat with the guest without making a specific offer.  (If the guest asks for something, the host should use his or her customary decision-making process to assess and respond to that request.)  Then at the end of the test period, see who was more successful and, more importantly, who was more profitable.

Ultimately, hosts need to keep in mind that their players are accustomed to receiving some pretty comprehensive offers via your direct mail and rewards programs already.  While the players will certainly not (in most cases) turn down an offer of additional freebies, your property is already spending a fair amount on them in overall reinvestment.  This fact is sometimes overlooked as players share with their favorite casino employees the details of offers made to them by competitor casinos.  They do this to gauge their worth to your property in comparison.  It’s subtle, but effective, psychological posturing.

Over the years, savvy players have learned to work the system.  Your host team should not be a point of weakness that players may exploit.  I’m sure everyone who reads this post can come up with a war story or two: the guest who booked a suite and handed it off to her newlywed daughter (who never spent a dollar on your gaming floor), the table games player who came to the invitational golf tournament and ate in your steakhouse with a comp but never played a hand of blackjack, hotel guests who stayed free for a week by combining coupons and discounts and points, you know the ones I mean.  The way to prevent that sort of player behavior is through communication.  Information flows from your hosts and your database team to understand what’s going on with your players, and the PD team leader should communicate what the hosts and database specialists should be doing to get that incremental visit from your guests.

In my experience, an “overdue” guest will make a visit to your property within two weeks of a call from his or her host, whether or not an offer has been made.  The call puts the property top of mind and the guest remembers why he or she enjoys playing there.  If there are no obstacles to the trip (health concerns, travel arrangements, financial woes, etc.) the player might even show up within a day or two of the call.  Most of the time, the host only needs to remind the player of an offer he or she already has: an upcoming show, hotel coupons for a weekend stay, a VIP event or tournament to which he guest has been invited.

What about times when an offer is warranted?  How is the host to know whether or not he should make an offer over and above what the marketing department has already provided?  Consider whether or not you’d make an exception for players like these: new members whose initial mail offers have expired, players with significant loss and low theo, overdue guests who don’t have current offers, players who have a special occasion in the near future, or those who are high-frequency mid-worth guests whose offers don’t last them through the month.  These are the sorts of players who hit up hosts for “extras.”  Consider carefully how you want them handled and maintain clear two-way communication between hosts and team leaders to keep everyone on the same page and keep costs down.

For some event ideas, check out this post.  The best benefit your players can have is the service of a good casino host.  That benefit, like so many of the others your property offers, doesn’t have to be expensive.

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How do I set up and track Casino Host Goals? (Part 5 of 5)

Interestingly, your work here is not yet done.  You have accomplished quite a lot if you have followed all the steps I’ve suggested, but there is still more…refining work, if you will.

As suggested in the last post, you may have noted some patterns emerging from your analysis of the team’s work.  Some hosts may have a knack for spotting and responding to changes in player behavior and others may need a gentle nudge.  Some segments in your player base may generate a stronger showing for certain kinds of promotions or events, or you may even see declines in some groups of your guests, requiring you to assess the effectiveness of parts of the program.

The next step, logically, is the constant review and course corrections that enable you to continue posting positive results from the team.  Clearly, there will be things that work against you, but if you are paying attention to the way your best players react to the best efforts of your Player Development team you will have the information you need to decide how to proceed.

Do you have a new competitor opening its doors soon?  Focus your team on Preemptive Reactivation efforts.  Do you see a normal downturn in visits and spend during the winter months?  Look at the best players from your inner market to determine whether there are opportunities to drive an extra visit from those who live close enough to safely travel to you.  Or, team up with the motorcoach staff to bring better players in by the busload. (Book fancy buses, of course!)

Begin looking at goals and objectives for the next 3 or 4 goal periods instead of one period at a time, and imagine the adjustments you may need to employ to ensure that they are in alignment with the property’s plans.  Put together a Player Development plan with input from hosts, property operations leaders, and guests.  Think about ways you can quickly turn the tide when the team’s (or the property’s) numbers don’t look so great, then come up with some concrete plans to do so when needed.

Use both successes and failures to learn how to do it better as you move forward.  After all, the gaming business is evolving at a faster rate these days than ever before, and with tighter margins and less room for error.  Understanding why your team is successful or not and having the information you need and the plans in place to maximize the results is key.

Ma Market Planning 06
Ma Market Planning 06 (Photo credit: nancydowd)

How do I set up and track Casino Host goals? (Part 1 of 5)

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.

There are key dates on the calendar that impact the customer wallet, customer availability or both. Do you factor these annual Life Events into your Casino Marketing Strategy?
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In the gaming industry, we typically compare each month’s results to both the previous month and to the same month last year. And I bet that when you compared your February to January revenue you experienced a slight increase. And when comparing March with February, the majority of you will experience a more significant increase. How can I place this bet with confidence? Because the data shows ups and downs in revenue in the same periods year after year.

This short article looks at the gaming revenues reported to State agencies and shows a predictable biorhythm in when people gamble, and then reflect on how we might adjust our marketing strategy to influence behavior and buck the trend.

This article is published in the Spring 2012 edition of Gaming & Leisure Magazine.

Susan Kesel has spent the past 20 years in the gaming industry working across mainstream and tribal gaming. An Alumnus of the Board of Advisors for TribalNet and for Gaming & Leisure Magazine, Susan is an innovative and open-minded business technologist. Susan was instrumental in the development and implementation of Turning Stone Resort and Casino’s patented Account Based Wagering System.

Read her other articles here or send Susan a comment at skesel@harvesttrends.com