Tag Archives: casino host goals

Casino Host Basics

So you’re a casino host.  Now what?  There are tasks and goals and guests and procedures, and some of them seem to be at odds with one another.  Simply put, it’s a host’s job to balance all these things.  Your primary objective is to drive more trips or get more play from the best players at your property.  The tasks and goals and guests and procedures are all parts of the whole role, which is to build relationships with players on behalf of your property in order to secure their loyalty and limit the amount of their gaming wallet that goes to your competitors.

As a rule, the relationships you build with your players will become second nature after a time.  They may begin to feel like your actual friendships.  You’ll learn which of your players are interested in what sort of events at your casino.  You’ll figure out which ones want more comps than their play warrants (manage them carefully!) and which ones would rather just be left alone to play.  It won’t take you long to remember what brand of smokes your best players prefer, and which restaurants each of your better players frequent.  Who golfs, who owns his own business, who takes care of their grandchildren on weekends, who gets all worked up if you don’t return their call within a couple of hours…you get the idea.7K0A0523

But you have to start somewhere.  Begin with a letter to any “new” players, meaning ones you haven’t yet met face-to-face.  After a few days, give each guest a call to inquire whether they’ve received your letter and whether there is any service that you may offer to them.  Have a calendar or list of upcoming events handy so you can tell them what’s going on, and note the events in which they seem interested.  (That way, you know which ones to contact them for in the future.)  Explain the services you can provide and ensure that the guest knows how to reach you when they need you. As a host, it’s your responsibility to provide the guest a touchpoint for your casino.

A player’s host is his “inside man.”  You should be able to get him a room or dinner reservations or show tickets or registration for a tournament or other event without him having to do more than ask you to take care of it.  Afterward, relentless follow-up is required.  Always return a guest’s call as soon as humanly possible and do what you say you will do.  If you’re making reservations, call back with confirmation that the task is complete, no matter whether the reservation is for today or in three weeks.

Work within the guidelines you’ve been provided, and remember that when you break a rule for a guest, you are, in fact creating a new rule.  Players will share with one another what you’ve done for them, and others will begin to expect the same sort of consideration.  Be diplomatic, and learn to say “no” and make it sound like “yes,” using the phrase, “what I CAN do for you is…”  It’s never a good idea to create an expectation for something you cant deliver.

Learn how to read player accounts well enough to quickly determine whether a guest will still be profitable after redeeming all his or her offers before providing additional incentives.  If she redeems her room and meal coupons, downloads all her points for free play AND you give her a comp, how much of her play is left over as profit?  Let that be your guide.  As a general rule of thumb, don’t comp someone more than 10% of their average theo (or loss, if that’s a bigger dollar amount.)  When you DO provide an extra incentive to a guest, be sure they understand whether or not such an incentive may be provided again in the future.  Tell them what they need to do to get what they want.

Ask the other hosts on your team (particularly those who are more experienced) how they handle certain situations and take the best practices from among them to make your own.  Every host is different in some ways from his or her counterparts, and because of that, your own signature approach will often serve you well.  Learn from your mistakes and always ask someone you trust for help when you need it.

Remember always that your job is to get more visits or more play from the best players at your casino. The best hosts find a way to accommodate their guests without creating unrealistic expectations, learn to anticipate their guests’ needs, and accurately report on their activities so the property’s leadership understands the Player Development team’s contribution to the bottom line. The tasks and goals and guests and procedures are how you get there.

 

 

10 Tips for Casino Hosts

A couple of recent e-mails from casino hosts gently pointed out that many of my blog posts are aimed squarely at those who lead casino player development teams and that there wasn’t a lot of content for those who actually ARE casino hosts.  With this post, I am addressing casino hosts directly in order to help them streamline their efforts to drive more visits from their property’s most profitable players.  The following guidelines may be applied as needed in order to help hosts accomplish more during a shift.

  1. Understand who your customers are and what they want.  This sounds pretty simple, but is , in fact, as complex as each of the players themselves.  Think for a moment about the things you hear over and over again in conversations with your players.  These are common themes, and it’s likely that your players have discussed their feelings about your program with one another as well.  Are they getting more free play from your competitors?  Since there’s not much you can do about that, remind them that you provide them extra “value” for their visits by making it easier for them to make room or dinner reservations.  Do they tell you that they don’t like your promotions?  Get specifics and pass them along to the pertinent associates in your marketing department in order to provide those folks the direction they need to make those promotions more appealing, which makes them more profitable when better players participate.  Talk with the [layers and share what you ‘ve learned in order to keep your casino ahead of the curve.
  2. Know how to say “no” and make it sound like “yes.”  This concept suggests that you can share with them what they need to do in order to get what they want.  Rather than shut them down as soon as they ask for something not warranted by their play, tell them how much they’ll have to play in order to earn the thing they want.  Remember to look at spouse play or other mitigating factors (how frequently they customarily visit, whether they likely visit competitor properties, recent illnesses or bad weather, etc.) in your calculations.  Then tell them how many points or trips or comps they will have to earn (or make) to qualify.  Put the ball back in the player’s court, so to speak, and then the “no” doesn’t have to be spoken.  Empower the guest to earn what’s necessary to have their wish fulfilled.
  3. Understand how your property’s direct mail program works.  This single accomplishment will enable you to more profitably manage your player list.  If the guest has hotel coupons that haven’t yet been redeemed, offer to make the reservation for them using the coupon.  (If your property requires that the actual coupon be surrendered upon check-in, remind the guest to bring it to the hotel desk.)  When the guest asks for a steakhouse reservation, look at their offers and determine whether they want this meal in addition to what their coupons provide and decide if the comp is warranted on top of the other offers they might redeem during the trip.  If they’ve got an offer for 2 (two) show tickets and they want 4 (four) seats for an upcoming show, look at recent play to see if the add-on is warranted.  (Maybe they had a big loss since the offers mailer…or maybe they didn’t.)  Understanding your mail program helps you better address player concerns when their offers change, too.  And you’ll get that question a lot.
  4. Make breaking (or bending) a rule a last resort.  Once you’ve broken a rule to accommodate a guest’s wishes, you’ve actually established a new rule.  The guest will likely come to expect a similar accommodation in the future unless you tactfully communicate to him that this is a one-time only situation.  As other players hear about the special favor you’ve done (and they will!), some of them are likely to ask you for similar consideration due to their own extenuating circumstances.  It can be a slippery slope, so it’s probably best to avoid the trip down the hill.
  5. Pass along player comments to your team leader.  Whether you know it or not, your team leader is probably going to follow up on the information you share.  Often, managers and directors are so busy with the day-to-day tasks of their own jobs, as well as the occasional firefight, that they don’t get to talk with guests and learn what is important or vexing to them.  In your role as a host, players will often share their frustrations or delights with you.  Close the feedback loop by sharing this information with your boss in order to ensure the guests concerns are at least within his awareness.
  6. Always maintain confidentiality.  It may seem like a no-brainer, but it’s easy to forget who is around you when you are speaking with co-workers or even other guests.  If you are going to be talking about specific player patterns or proprietary company information, always ensure you are in an area away from guests as well as employees who do not have access to the information you are sharing.  Never reveal things like ADT ranges or levels, customer losses, company policies and procedures, or sensitive information like room numbers or addresses.  When speaking with a customer directly, use generalizations or anecdotes to share pertinent information without going into specifics…unless you are talking about that guest’s own play patterns.  Even then, only use points or another metric which the customer can plainly see for himself to make your point.
  7. Never let ’em see you sweat!  Even when you’re running around the casino like a madman on a Saturday night, take your time to walk through the gaming areas, keeping in mind that the guests may take a cue from your behavior.  Walk with a purpose, but like you own the place.  Even when you’re on your way to a firefight, take advantage of opportunities to briefly “touch” players you know and make a mental note to get back to them when you have a moment.  Be calm and plan your next move instead of being buffeted by the tides of a busy casino floor.  Better yet, plan your day ahead of time.  Build in a buffer to accommodate the unexpected, and you’ll accomplish more.
  8. Don’t come out of the gate with an offer.  When you approach those players on the gaming floor, or when you reach one by phone, don’t automatically offer free play or a buffet comp.  Player development is about relationships, and it isn’t your job to be Santa Claus.  Talk with the guest.  Learn why he visits your property instead of a competitor’s.  Find out why he doesn’t like the buffet or never brings his wife with him.  Make a connection instead of an offer.  When you do this via telemarketing, you’ll often find that the overdue or inactive guest will make a visit to your property within a couple of weeks even if you didn’t sweeten the deal with something extra in the way of perks.  Just having you as their host will often keep your property top of mind, so touching base will sometimes generate a visit on its own.
  9. Share your ideas.  One of the best hosts I’ve ever known is also once of the most creative people I’ve met in my lifetime.  She is great at decorating, throwing parties, and generating ideas for casino promotions that drive revenue.  Fortunately, she is also a “sharer.”  She’s put together game shows, suite parties with hors d’ouvres and an open bar, slot tournaments, and countless other engaging events for her coded players.  She included other hosts in these events when they were interested, and they worked together to make the events memorable.  At the suite parties, they even set up a photo “booth” and took pictures with their players.  Those photos were featured at future events to show those who’d missed the parties just how much fun they’d had.   The hosts who opted out of participating in these events generally didn’t drive as much revenue in the same time period, and all of these great ideas were profitable.  Brainstorm with the creative minds at your property and provide your coded players another reason to come have fun at your casino.
  10. Never forget who you work for and who provides the dollars in your paycheck.  These entities are not one and the same.   You work for the casino, but the players provide the dollars in your paycheck.  It can create a balancing act for you, because sometimes what the player wants is at odds with what the company says you can provide.  Making sound business decisions is the hallmark of a good casino host.  Therefore, you must always balance the guest’s needs with the company’s success.  Paying a player to patronize your casino is never a good idea, because you haven’t actually secured their loyalty…and that’s ultimately what your job really is.

Being a good casino host takes a lot of varied skills.  You have to be a god communicator, both written and verbal.  You have to quickly weigh circumstances and crunch numbers to make decisions, the results of which your players will take personally.  You have to develop real working relationships with people around the casino to help you meet your guests’ needs in addition to the relationships you’ll need to build with the guests themselves.  You have to be ever mindful of the policies, procedures, regulatory concerns, ethical considerations and other guidelines by which you have to conduct your business.  While thinking like an entrepreneur, to manage your book of business, you have to abide by the rules your casino has for reinvesting in its players.  Often, you’ll have to do this on the fly without access to all the tools available to you, do it in addition to other tasks, or do it with so much data you can’t wade through it all.  It’s not a job for the faint of heart.

But you are a people person, and likely have casino player development in your blood, like I do.  That means you’ll come back again and again in an effort to get your guests to do the exact same.  7K0A0246

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.

RecentForActiveCasinoPlayers

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.

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)

Coaching a Host to Success

Coaching a Host to Success is a unique 1:1 coaching program that helps the Manager to coach a host to success. Do you have some hosts that beat their goals and others that under-perform? This program takes you through the detailed steps of addressing and improving casino host performance with practical management experience and based on detailed metrics that you just don’t have the time to prepare. In addition to improving host performance, you will learn new tips and techniques to enhance your own effectiveness as a manager.

HostGoals

Sign up for this 1:1 Coaching program for managers of Casino Hosts. The program is delivered by phone and/or Skype. The charge is an hourly rate and the program follows this structure but is adjusted to your specific needs:

Assess (8-12 hours)

  • Send host goal achievement and summary of disciplinary history, if any
  • Include summary of hosts’ interactions with guests and co-workers
  • Meet with consultant and begin to talk about strengths and shortcomings

Recommend (16-20 hours)

  • Determine action to take with host and draft plan agreement
  • Sit down with host and discuss plan, ask host for input
  • Finalize document and get signatures; communicate 360 degrees

Implement (16-20 hours)

  • Use agreement as guide; set 6 (min) weekly one-on-ones with host
  • Print host pace for goal and discuss with host weekly; ask for ideas
  • Write notes and sign at end of weekly meeting to document discussions and progress

Monitor (3-6 hours)

  • Determine at end of agreement period whether new agreement is needed or if host has made sufficient improvement
  • Draft new agreement and repeat Recommend and Implement steps -OR-
  • Finalize original agreement, compile all follow-ups, sign and file

Contact Amy Hudson at 304.218.1265 or ahudson@harvesttrends.com for a confidential discussion without obligation. Or learn more about Amy’s style and experience via her blog at http://casinoplayerdevelopment.wordpress.com

Advanced Goal Setting

Setting goals for casino hosts is both an art and a science. The creative side of setting goals is to think outside of the box and create a program that incents each host to focus on the activities that will bring results to the bottom line. The scientific side of setting goals is to create a measurable program with supporting assumptions and metrics, and without any loop holes!

HostGoals

Sign up for this 1: coaching program for casino managers. The 1:1 structured coaching is delivered by phone and/or Skype, and includes free use of the HostMAPP toolkit for the duration. The charge is an hourly rate and the program follows this structure but is adjusted to your specific needs:

Assess (8-12 hours)

  • Send file containing current and past goals for 9-12 months
  • Include level of achievement and bonuses paid, if any
  • Evaluate current goals and achievements
  • Review the market and Club
  • Find trends and look more closely at what can be done to capitalize

Recommend (22-26 hours)

  • Assess the balance of emphasis on acquisition, reactivation, retention and growth
  • Discuss trending and determine whether all hosts are performing acceptably
  • Determine whether changes need to be made for individual hosts or subgroups
  • Find opportunities for revenue growth and write plan

Implement (24-28 hours)

  • Run the numbers, code players
  • Establish new target revenues
  • Build individual and team metrics to achieve new targets
  • Establish plans and goals; communicate 360 degrees

Monitor (3 hours, then 1-2 per follow-up)

  • Determine timeline for follow-ups with hosts (handled by property leaders)
  • Determine timeline for follow-ups with consultant
  • Arrange for follow-ups and schedule data reviews
  • Set long-term milestones for reviewing progress and growth

Contact Amy Hudson at 304.218.1265 or ahudson@harvesttrends.com for a confidential discussion without obligation. Or learn more about Amy’s style and experience via her blog at http://casinoplayerdevelopment.wordpress.com

How do I set up and track Casino Host goals? (Part 3 of 5)

Accountability starts with understanding. In order to truly be accountable for something, the accountable party needs to understand what it is they are being held accountable for. Right? Right. That means the goals must be effectively communicated to the hosts for whom they’re being set. A document of some sort is ideal, because it can be reviewed by the executive(s) responsible for the department, then it can be presented to the host at the beginning of the evaluation period. If everyone is on the same page, there are fewer misunderstandings. Consider using a document that may also be updated at the end of the period to show whether goals were achieved and what payments will be made to each host as a result.

What should be included in this document? Start with the host’s name, position, and the goal period start and end dates. Add each goal that pertains to the host. Separate each goal from the others and specify both the percentage of the whole that each goal is worth and the dollar amount that will be paid upon successful completion. If you have elected to pay for partial achievement or to include a super-bonus, include that information and its milestones as well. Make sure the milestones and payments for achieving them are clear. Provide spaces for your signature, your boss’s signature, the host’s signature and dates for each. A sample is included with this post.

Have the host sign the document, provide him a copy and file the original in your personnel files. Before the host leaves with his copy, provide an opportunity for clarification; elaborate on things hemust do to achieve his goals and ask him to think about some strategies he may use if he falls behind pace.  Instruct the host to keep the document in a secure location and to refer to it weekly in order to ensure he understands upon what he should focus. It is easy to lose sight of that over the goal period, especially if it is a quarter or longer.

Now it’s time for tracking. Weekly meeting frequency is the recommendation for reviewing host progress toward goal, which we will call “pace.” Weekly reports provide both the host and her team leader enough time between reviews to accomplish something while keeping  abreast of developments in order to stay on track. So, in our scenario (see part 2 if you need a refresher) we will divide each goal into 13 weekly sections to compare actual progress to pace. That means each host needs to generate $16,154 (or 7.69% of his theoretical goal) in play each week. Additionally, the host needs to have at least 1 new player return and 1 reactivated player each week with an “extra” once per month to be on pace. For the team theo goal, all the hosts’ theoretical should aggregate to $80,770 each week. It’s easiest to compare weekly. Below is the individual theoretical goal broken down by weekly pace:
Week 1: 7.69% or $16,154
Week 2: 15.38% or $32,308
Week 3: 23.07% or $48,462
Week 4: 30.76% or $64,616
Week 5: 38.45% or $80,770
Week 6: 46.14% or $96,924
Week 7: 53.83% or $113.078
Week 8: 61.52% or $129,232
Week 9: 69.21% or $145,386
Week 10: 76.90% or $161,540
Week 11: 84.59% or $177,694
Week 12: 92.28% or $193,848
Week 13: 100% or $210,000

Sample SP bonus

Next, make preparations for the weekly review process.

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.