MRI Blog
Are We Making Deals With Gamblers When We Should Be Making Friends?

Are we making deals with gamblers when we should be making friends?
Posted on Jun 11, 2014 in Casino Marketing Comments

Segmenting markets of consumers (gamblers) by their desires and behaviors enables savvy marketers to direct more relevant, powerful messages to the audience that can move the needle.

Start with play behavior.

To solve the mystery behind inordinate campaign response rates we begin by studying gamblers’ behavior through the player tracking system.  Every database manager does this – though some are far more effective than others.

Offers are sorted to the benefit of better players, so naturally we would expect weekend rooms are reserved for the best guests.  But there is so much more that an experienced marketer can apply to accelerate results.

CRM data can speak volumes and a great CRM engine translates that information into productive campaigns to increase demand and even create an imbalance that enables you to increase prices for rooms and entertainment.  Though CRM engines are available in generic templates AIM® was designed specifically for casino operators and marketers.

Focus on the performers.

The next vital step to ensure you can win competitors’ market share is segmenting the message and offers to reach the exact players who matter.  Players that matter, of course, are those who contribute the top 50% of revenue in rank order.  Typically casinos earn half of their revenue from 5% of their players.  The value skew is extremely important in managing messages and service delivery.

If 95% of players are worth half of your income then how much effort should be spent on the other 5% whose value is geometrically greater?

We examine and recommend you study the best players and respond promptly to their needs. Their loyalty can increase win much faster than the majority of your customer base.

Segmentation research revealed three valuable and different market segments:

  • Recognition driven players:
    • Want to strut their stuff and the casino is their stage
    • Prefer attention
    • Name recognition is important
    • Seek best dining and entertainment experience
    • Are more loyal than most players

  • Escapists:
    • Are retreating from jobs, families, annoyances
    • Love the freedom of a casino
    • Seek common respect and attentive cocktail service
    • Are down to earth
    • Hate to hear “no”
    • Don’t expect concierge
    • Are the second most loyal and valuable players

  • Reward Seekers:
    • Want deals
    • Gamble less frequently
    • They will easily switch casinos on short notice
    • Their gaming value is the lowest
    • Are disloyal to brands and focus on offers to select a destination

Messages to each segment should be different to remain relevant and compelling.  Messages that appeal and are written for “Reward Seekers” will alienate “Recognition driven players”. This is a common mistake in monthly casino newsletters. They are designed to appeal to the masses with upcoming promotions and coupons, yet the highest value players receive the same communication. Yes, the coupon offers are segmented based on player value, but for economies of scale in printing, the creative and message to a $50 player is the same as a $500 player.

Your communications strategy should focus on the messages that match the player segment you want to reach, then service delivery should match.

Communications channels can be used to direct specific messages to players based upon their needs.  Politicians use this technique to create unusual attention for specific messages.  Campaign managers test and re-test the messages, the messenger and the delivery channel that will appeal to the audience and capture votes. Even negative messages win campaigns.  Demonizing an opponent and creating an inordinate importance on an issue, regardless if it is fact-based, puts candidates in office.

With gambler segments the analogy is similar.  If you focus on appealing to the best segments and deliver the promise, you can increase their engagement with you and grow revenue in less time.


comments powered by Disqus
Back to Blog Home
Gaming by State
Native American Gaming