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.
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.