Five key metrics that drive additional casino trips
We are lucky in the casino industry to have access to piles of data about our players.
In spite of the available data, many properties rely almost exclusively on player value data generated through gaming systems. However, ADT or ADW may not be the most reliable measurement to predict value accurately. By focusing on player value alone, are we missing opportunities to leverage other key metrics to increase player reward outcomes? During a lively discussion with a group of industry experts, I believe the answer is “yes.”
According to Michael Minnear, Pechanga Resort Casino; Steve Browne, senior Raving partner; and Heidi Hamers, Mille Lacs Corporate Ventures; we can drive additional trips by considering five other key metrics. Additionally, and most interestingly, they arrived at this conclusion from very different perspectives—Minnear as a data scientist with an outside-the-industry perspective; Browne as a player development expert and operator and former casino owner; and Hamers as a data analyst and marketing expert.
Here are the five additional metrics to consider:
• TRIPS: Predicting worth is very difficult, if not impossible, especially when evaluating only one trip. Most databases are full of low-trip frequency players, and although trips are considered in player evaluation, typically they are used to exclude players from receiving an offer rather than as an opportunity to entice additional play. “Recent behavior is often a good indicator of future performance,” Hamers said. “Players who made a recent trip are also more responsive to quick response offers.” This creates an opportunity for properties to develop quick bounce-back incentives.
The next step is to uncover why people make a trip in the first place. By understanding the trip motivation, marketers can customize offers based on the individual player. Is the trip for gaming, entertainment, dining or a special occasion? This information can help us to understand the one trip and overnight player better.
“Instead of changing this behavior, we can begin to market to preferences, and therefore, actually give the player what they want out of their gaming experience,” Browne said. “We can use this information as a tool for player development.”
• LOSS TOLERANCE & CLUSTERING: We all know our players have an amount of money they are willing to spend or lose during a trip. By understanding the wallet elasticity or loss tolerance, we can begin to recognize and reward players for their unique playing habits, which means an increase in play-per-trip.
By using a loss tolerance scale, we can begin to build reinvestment models delivered to a player while they are on property. For example: a player’s experience depends on whether the game is working for or against them. “This means we must begin to factor game volatility into a player’s experience,” Minnear said. “You can improve loss tolerance through trigger technology or finding ways to recognize and reward players while they are experiencing the loss.” Additionally, by evaluating the number of sessions played during a trip, you can further cluster players into segments who may have a stronger wallet.
• DEMOGRAPHICS: Once we begin to understand trips and potential trips—along with the driving factor for a trip—we can start to dig further into demographics.
Lifestyle factors should be considered along with the driving factor for the trip. As you examine these factors, you begin to get a more complete picture of the guest. As a marketer, this can allow you to differentiate your offers from the competition.
• RELATIONSHIPS/INFLUENCERS: If you have worked the floor, you quickly discover the guests who influence the “regulars.” They are in charge of the self-imposed complaint committee. They are the ones who either advocate for the property or sway players to mutiny to another location. Once we identify the value of these individuals, we can prevent a rating that could send a group of players down the road.
• TOTAL WORTH: Evaluating a player’s total worth must be a consideration to ensure nothing is being missed. Improving understanding of a player’s overall spend allows us to more thoroughly calculate total worth and significantly improve offer personalization.
Luck really has little to do with driving additional play in today’s competitive market. Properties that understand their product and data will improve revenues.