Tag Archives: planning

Critical Components of Casino Player Development

Is your host team doing everything it should be to secure (as best they can) the loyalty of your patrons? There is quite possibly something more that can be done to ensure the continued visitation of your Players of Interest.

My experience, as well as the thoughts of many experts in the industry, have led me to believe that lots of hosts spend too much time on retaining players who have already demonstrated their loyalty to your casino. Many of your high frequency patrons know folks in every department and come in with treats and trinkets for lots of your associates. While they certainly need to be able to depend on your property’s premiere customer service team from time to time, it’s important to ensure that these players don’t take up too much of the of the host team’s time. Why? Because your property’s premiere customer service team should also be (1) finding out why good players have not visited recently and (2) getting new members of worth to return. In fact, there is probably more opportunity for increased revenue from the acquisition and reactivation functions your host team performs.

While competitors right-size, my money’s on spending time building relationships with your players of interest on an ongoing basis. Certainly every employee should be doing this whenever possible, this is a task perfectly aligned with what a PD team is supposed to do. These components of a successful Casino Player Development program are critical to its continued success. Ensuring that you hit all these points and hold your hosts accountable for them should result in continued profitability from your PD team.

Identification
Identifying these particular “players of interest” to your property is the fist step. Taking a somewhat granular look at your database will help you identify the new and at-risk players in your database who present the most opportunity for you in terms of long-term loyalty to your operation. It’s not difficult if you have the right tools and someone to ask the right questions. Where do our most profitable customers live? From where are our most promising new club members coming? When do the players of interest come to the casino? How often? Are there times when they don’t visit? Or do they sometimes come in and play less (or better yet, more)? Are there fight zones with competitors where profitable players are equidistant to you and another property? Are any of those patrons at risk of defection? What can you do to keep them from visiting the other casino? If they decide to stray, how will you get them back?

Planning
Once you know who you’re going after, decide on your plan. There will certainly be mail components and, if you’re really on your game, some form of digital marketing as well. But we’re talking about critical components of PD here. Ensuring that the hosts know who they need to reach out to and with what offer(s), if any, is the most critical component at this stage. The players of interest have been identified, and now the hosts have to do their stuff. Phone calls and handwritten notes and greeting cards and gift baskets delivered to hotel rooms, reservations at spas and golf tee times, steakhouse dinner parties and special gifts are all examples of critical components the hosts may bring to sweeten the deal to bring back even reluctant players of promising worth. Sometimes you have to be armed as though for battle, particularly in increasingly crowded regional gaming markets.

Acquisition
As a baseline, new players need to make 3 trips in order for a casino to recoup its reinvestment and turn that new player into a profitable one. Ideally, the patron will return twice more within 30 days. While an aggressive new player incentive and generous mail offers combine to increase the odds that a new patron will return, for those who play to a higher level there is nothing as effective as a personal “touch” from a casino host to provide an incentive to come back right away. In this capacity, the host becomes the new player’s “touchpoint,” or his “inside man,” so to speak. When the host offers to make a reservation or some other consideration for the player, he feels important and is more likely to return to the casino whose host made him feel this way. A personal connection is certainly a host’s strength, and this connection begins the journey by which a player can find his “home” casino. The patron may well return sooner than he might have if he’d only received a mailer.

Reactivation
For players who have gone quiet and haven’t returned in a while, a host may be the most effective method for getting that return trip. While a robust mail program targeted at reactivation can have a great response rate, having the hosts call the top levels of guests in that mailing can certainly provide a profitable boost to the results. Some of the players who receive your Where have you been? mailer will appreciate the opportunity to tell someone why they haven’t returned, as many of them are just looking for a reason to feel valued enough by your property to come back. A host can deliver the personalized experience that these players (rightly) feel they deserve. I’ve seen players who remember a host (“Oh, Bobby! Hi!”) return within two weeks of a “personal” call…at a rate of about 30%. (The host I’m referencing marveled at how effective simply calling and asking how people were doing really was in getting them to make a visit to see him.)

Retention
While I believe that many hosts spend too much time in this role, it’s still a vital part of the work they do to ensure your property has patrons coming through the doors with regularity. Divided equally, a host should spend roughly 30% of his or her time in contact with familiar faces, guests you know you’ll see on a predictable basis, and recognizing when those patrons are off their visitation and/or play pattern. As always, balance is key…and retention is a function that is necessary to maintain your expected levels of activity and revenue from these dependable patrons.

Analysis
Sometimes you’ll have to change direction, as markets change and people move on for one reason or another. New challenges will always be ahead, so having the ability to spot trends and apply the principles of preemptive reactivation, particularly when paired up with a robust view of your database, all combine to provide you with the ability to find a new path almost as quickly as your favorite GPS app. See what happens, keep identifying patrons who deserve host attention for whatever reason, and look for ways to stay ahead of the game using analytics.

Tracking
It’s important that you have a clear view of your host team’s productivity. When you assign new or inactive patrons to your hosts for contact, you may want to include a qualifier for the hosts to achieve before they can “claim” the patrons in question. Perhaps you will set a threshold for theo and a number of return visits so the hosts can have the players coded and see the benefits (extra theo toward my goal!) of bringing those players back. See who they’re contacting, what the conversion rate is, and how much they’re adding to your overall reinvestment in the way of comps and other freebies. Review this information at least once a week. Daily is better. Use your tracking data to keep each individual host on track throughout the goal period.

Measurement
Now that you’ve honed your identification and targeting skills, it’s time to see how well your plans have worked. The tools you use to locate your players of interest should be of use in determining your success rate as well. How many new players in which areas did we convert to our monthly mail program? Are they visiting us with regularity, and is there a pattern in the play that indicates we may be able to get more of their gaming wallet? What offers move them? Which ones do they ignore? Will something else work?

And repeat. If you’re not sure you have the resources to pull off the identification, analysis or measurement components, let us know. Harvest Trends is continuously refining its tools for casino marketers…we may have just what you need.

Did I forget anything? Are there critical components in your PD program that we didn’t list here? Please sound off in the comments below.

The Stanislavsky Method in Customer Service

Fall often brings reminiscing, at least for me, about cooler mornings and warm weekday afternoons in a classroom.  In my high school years, I was fascinated with acting and drama, so it’s no surprise that I thought back to those classes after getting the kids onto their respective buses this morning.  Happily, I remembered learning The Stanislavksy System (or Method)…and realized that it influenced my approach to customer service. (Cool, huh!?)

For those of you who never aspired to act, the Stanislavsky Method (known more commonly these days as “Method Acting”), was a huge departure from the 19th century approach to bringing characters to life on stage. Instead of the big, broad movements and exaggerated speech that had been the norm up to the turn of the century, Constantin Stanislavsky believed that a more natural-looking performance would be more believable and just as entertaining.  At its heart, his Method stressed that the actor must first be believed, an accomplishment even more important than being heard or understood.  He must have been on to something, since his Method is being taught in acting schools around the world today.

So, you’re asking, “What the heck does all this acting stuff have to do with Customer Service?”  I’ll answer your question with a question of my own.  Have you ever had to act your way through a customer service interaction?  Have you had to pretend to care, or hold your tongue because the guest in front of you was being unreasonable, or try to keep from laughing because the situation was so absurd?  Yes?  I thought so.  The Stanislavsky Method, applied to these situations, would be immensely helpful.

Here’s how the Method works:

  1. Ask the “Magic If.”  “If I were insert name or description of person here, what would I do?  This is helpful because it allows you to step outside yourself for a moment and find a different perspective for handling the situation.  You could put yourself in the guest’s shoes, channel your boss, a mentor, or your mom to find the right point of view with which to approach the situation.  (WWJD also applies in this step, but from a slightly different perspective.)
  2. Re-think how you move and talk.  This step could make or break your interaction with an upset guest. Letting your own negative emotions show can quickly escalate an already unpleasant situation.  Take a moment to check your body language, facial control, and tone of voice.  If you look and sound annoyed or inconvenienced, the guest will pick up those vibes and react accordingly.  Make a conscious effort to project positivity, confidence, and empathy.  The rest of the steps will support this effort.
  3. Observation; be a people watcher.  Actors are always looking for a way to get into the thought processes of their characters.  One way to accomplish this is to observe real people in their natural habitat and learn about different behaviors, interactions, and personalities.  There are multiple ways this powerful tool can be of help to those who deal with customers every day.  First, even without a guest in front of you, if you are paying attention, you can spot people who are on the cusp of an issue (people looking around for help, confused facial expressions, guarded body language) and sometimes avert disaster before it develops.  Additionally, while you are interacting with someone, paying attention to how they hold themselves and respond to you and others around them can be a powerful guide to handling them more appropriately.  Plus, you can learn from the examples others have provided in their customer service conversations and adapt their more successful strategies for yourself.
  4. Ask “What’s my motivation?”  Surely you’ve heard aspiring actor characters in pop culture asking this question of an acting coach or director.  It’s a great question for actors to ask, because understanding the reasons behind someone’s actions helps an actor get more deeply into the head of the character. The same is true for customer service.  If you understand WHY the guest is angry or frustrated or laughing hysterically, it’s easier for you to resolve the situation to that guest’s satisfaction.  Without an understanding of the motivation behind a behavior, you will have difficulty convincing the guest that you really care about their issue, and you’re taking shots in the dark to hit the right solution.
  5. Emotional memory.  If you’ve ever wondered how someone can cry on cue, this Method step may be the answer.  Clearly, actors sometimes have to transmit emotions that they may not actually feel. To display the appropriate emotion (whether you’re feeling it or not), channel a time when you did feel the emotion in question. Dredge up that memory and let the replay loop in your mind’s eye. You’ll start to feel it again, and it will show up in your expression, posture, gestures, and tone.  In customer service, use a memory of being helpful, in charge and successful.  Or, if you prefer, find a memory of poor service and “wear” that to empathize with your guest, then bring him back with you to a level playing field where you can work with one another to solve the dilemma you are now facing together.

Acting and customer service don’t have a lot in common at first glance, but the Method proves that there are effective steps to find the right approach almost any situation in which you need to convince someone that you are who you claim to be.  These steps, whether put together in this order or applied one at a time as needed, will help you to become a better, more empathetic advocate for your guests.  They will appreciate the time and energy you put into it, and you will grow from the experiences.  It’s a Win/Win!  (And how often does THAT happen in the casino industry?)

6 Tips for a Better Plan for 2015

It’s time to wrap up your plans for 2015.  Do you, like me, leave out something that has an impact on your spending patterns or your operations and you find yourself either adjusting or going without all year?  Or, is there the possibility that your capital won’t be approved and you’ll have to spend P&L dollars on maintaining something that should have been replaced? (I’m looking at you, card embosser…)

Obviously you’re going to submit and obtain approval before getting your plan and budget’s final incarnations.  You may, however be able to mitigate some of the pain that comes from surprises in the new year.  Try these tips for better planning.

Tip 1: Take a hard look at this year

For this exercise, you’ll have to be ruthless.  It may even be a bit painful, but it is essential to a successful planning process.  From a budget perspective, it is imperative to understand where your dollars were spent well and where they were not. From a business or marketing plan perspective, you need to know where there’s room for improvement and which things are working for you today.

What did you plan that didn’t work out in 2014?  Were there things you didn’t have the funds for despite your best intentions? How could you have improved cash flow, yield, labor, data, events, etc.?  What goals or strategies did you employ that just did not give you the results you anticipated?  What processes or events or promotions met, or even better, exceeded your expectations and should be incorporated in to your plans for next year?

Take what you learn from this exercise to build a framework for the upcoming year.  Avoid being accused of insanity by proactively deciding NOT to repeat the things you did in 2014 and expecting a different result in 2015.

Tip 2: Get the interested parties together and hash things out

Sit down with the rest of your department and those departments whose budgets and plans are interdependent with yours and talk things through.  If your host team needs resources or new tools to identify or maintain contact with your players of opportunity, who better to ask about what they think?  If Food & Beverage wants to place steakhouse ads in the local newspaper, doesn’t marketing need to know that?  If Entertainment is planning a series of comedy shows, if the hotel is doing renovations, if slots is replacing a third of your machines…you see where this is going, right?  You can’t plan or budget in a vacuum and have the result be something you can actually stick to for an entire year.  Have a “big ole” meeting, have everyone put their ideas and plans on the table, and figure out how it all affects the other departments’ plans and cash flow.

Tip 2: Look at others’ plans for opportunities

Take what you’ve learned from the big meeting and determine what provides you with opportunities.  Is there going to be a big hotel refurbishment in your future?  Ask what they’re doing with items that can be re-purposed: some of the items could even be useful in a player giveaway or promotion, or you could have a big tag sale and drive revenue on a traditionally slow weekend after the renovation is done.  Is the slot department replacing under-performing machines?  What opportunities are there for events or promotions related to the arrival of the new machines?  Could you invite your best and most loyal players to cut a ribbon to open them up for play?  Surely there are lots of things in your peers’ plans that could provide you a chance to make a splash.  Learn about them now and incorporate them into your plans.

Tip 3: Dream realistically

Every department head has a wish list.  Brainstorm everything you’d like to have, see, or do; then cull the list by priority without regard to expense.  Then, rank according to priority with a note about how much it costs, so you can come up with a realistic scenario.  Obviously, not everything on a wish list is going to come to pass, so while you’re spending time with your friends from the other departments, ask about their wish lists and see if there are some synergies that can be leveraged to help the entire property.  Is IT buying any new computers next year?  Let them know about your technology wish list so they can spec your equipment for a combined order with a bigger discount.

Tip 5: Expect the unexpected

Clearly, some of the things you plan for will come to pass just as you envisioned them.  Others, however, will morph into something you hadn’t anticipated.  Spend the time now planning for contingencies and you will be better prepared for the unknown when it occurs.  Might you have to choose between two of your pet projects because the revenue projections were too high?  Sure.  Could you find yourself in need of a technology solution due to a hiring freeze or lack of qualified job applicants? Absolutely.  Is there the possibility that a competitor will launch a campaign or promotion to which you will have to adjust?  You betcha!

Any (or all) of these events will be easier to handle in the heat of the moment if you have spent some time preparing for them in advance.  Happily, there is no better time to plan than while you are already planning.  Look at some of the things you may have eliminated in your early planning process and decide whether any of them could readily be put on a back burner to be deployed in case of a major shift in your market or competitive set.

Tip 5: Get buy-in from the stakeholders

This is a 360-degree exercise, but totally worth the time and energy you invest in it.  Once you’ve got a first draft submitted, ensuring that your plans are in alignment with those of your boss, the department, the property and your employees will go a long way to assuring that those plans  and strategies are successful in the end.  Have a meeting with your team(s) and share the vision with them.  Ask them for ideas or suggestions to streamline their daily tasks or processes.  (It’s a good idea to do this periodically even when you AREN’T planning for the year ahead, by the way.)

This brings the process full circle and provides you with an opportunity to verify that your plans and budgets are on the right track to help you and the property achieve all you hope to in the year ahead.

 

Did we leave out an indispensable step you can’t plan without?  Please share for the edification of all our readers.