MRI Casino Marketing Blog
A Formula for Casino Brand Messaging

Since 1988, Marketing Results Inc. (MRI) has developed and maintained a consistent formula for the successful promotion of casino brands throughout North America.

Four cornerstones of branding will determine the success or failure of a brand. These cornerstones apply to the gaming and hospitality industries (along with most products and services).

For a casino brand to consistently outperform the competition, our casino market research and findings have indicated that it must include:

1. Relevancy

The brand must become relevant through innovation. Does the brand have a demonstrable significance within the casino industry?

Many casinos understand that the concept of winning is relevant to gamblers -- in the meantime, benefits are a nice incentive. Tangible rewards like free play, comps and discounts may lead to the intangibles: that winning feeling; social engagement; a sense of belonging…and fun! Hopefully, brand association will ensue.

On the flipside of the poker chip, irrelevant messages may confuse gamblers. An example of this type of confusion occurred in Tunica, MS some time ago: gaming messaging was eclipsed by entertainment and rewards and benefit messaging. At the time, billboards focused on heavily on club benefits i.e., comps and points players could earn in one club versus another. Meanwhile, the service offerings did not match what players sought out in the casino. This situation created an opportunity for the market leader (Horseshoe Casino) to refocus the messaging on something relevant for the players, while focusing on the strength of their food product with a concise and straightforward billboard, “Sure, you could earn comps somewhere else, but then you’d actually have to eat there.”  This message resonated with players and positioned the property at the top of the, well…food chain.

Some brands will consistently remain above the fray; they succeed on platforms that consider customer needs by transcending pricing and discount models:

Most gamblers will seek the following:

• Friendly staff
• Comfortable environment
• Great food options
• Better chances to win

Identifying the best relative chance of winning is a lifelong study for committed gamblers. These are relevant topics for gamblers with an emphasis on winning.

The “better chance to win” is a highly sought-after benefit that many casinos will tend to overlook in their communication strategies. Instead, they opt to promote free play, promotions, and entertainment schedules. It is more difficult to differentiate promotions and entertainment because most operations provide similar offerings. The investment in promotions and entertainment competes for budgets that are focused on better odds on games and looser slots. But arguably, the best gaming offers are more relevant to gamblers.

2. Uniqueness

A successful brand must be established as distinct from the competition. Once established, further innovations and competitive barriers should be considered to maintain marketplace positioning.

Looking as far back as the late ‘70s, a casino located outside of Las Vegas was somewhat of a unique proposition. As we have edged closer to casino saturation, the gaming industry has become prominent in many other major markets across the US. Uniqueness has become an increasingly difficult hurdle to overcome in the casino industry…in and beyond Nevada’s borders.

These days, inundation with daily messaging from numerous sources has become the norm. Advertising on TV, online, smartphones, social media, billboards (and more) are all part of the equation. The landscape is ready and willing to market toward the gaming lifestyle, nationwide. The search for something (anything!) that can set a brand apart, has become a daunting, but mandatory task.

Casino marketers who plan to succeed in the digital/real world, must be in a constant mode of self-evaluation. As new markets expand, the job of the marketer in the established markets will only become increasingly difficult. The ability to adapt is intrinsic to success.

3. Honesty

Living up to the standard of a well-positioned/established casino brand can be a difficult endeavor for any organization. Discrepancies between truthfulness and branding must be avoided to ensure long-term success.

For decades, casinos have promoted gaming through print and outdoor media, but they were not allowed to broadcast messages about “winning” or “gambling.”  This all changed once many gaming jurisdictions began reporting casino payouts through their state gaming commissions. Advertising messages immediately began to focus on winning, with claims supported by statistics. Ongoing disputes arose among gaming brands over which casinos had the most winners.

Consider the following definition:

English law describes “Puffery” as a legal term that refers to promotional statements and claims that express subjective rather than objective views, which no "reasonable person" would take literally.

From this time on, casinos focused on the winning experience with blackjack hitting, dice rolling and slot reels aligning surrounded by passionate, attractive people winning money.

Promoting gaming advantages like 100X odds at Craps, early surrender at Blackjack, and 3 for 2 - 21 payoffs matter to table players. Slot selection, payouts, and volatility matter to slot players.

These messages, however, compete with the instantaneous free play reward messages that are prominent today.  Free play is a generic commodity that replaces cash. It is the easy message, but as very competitive markets illustrate, it becomes an arms race among competitors that will hamper profitability even in peak seasons. Differentiators that build player loyalty are overlooked too often.

4. Trustworthiness

The goal of a casino brand is to develop a bond between customers/clients and the casino that is based on trust. Trust will lead to loyalty…and loyalty will lead to success.

Casino brands that earn trust will flourish because the experience is repeatable. So why do brands like Apple® and Harley Davidson® earn irrational trust, while so few casinos achieve the same success?

Many casinos haven’t invested the time and research to truly understand what players will consider to be a repeatable experience. There is more than one answer because there is more than one segment of players.

Trust is earned with no-strings-attached casino promotions. It’s a cinch that if the fine print with qualifiers and catches requires explaining, then players aren’t going to receive what they expected. Casinos that thrive on big promotions create huge wait times. Gamblers tell us through research that they hate lines and would rather be playing.

One instance of a breach of trust occurred when a casino resort consistently sent free lodging offers to players. To manage yields more effectively, the hotel prioritized reservations for high-tier players while still promoting the offer to various other player segments. Unfortunately, the room inventory was fully booked before many players could ever secure a room reservation, yet the property continued to communicate the room offers month after month leaving many players frustrated with the situation. A customer satisfaction survey and subsequent focus groups revealed this issue, and the issue was eventually corrected.

Extensive gaming research over the past 36 years has led us to the following primary motives for gambling:

a) Recognition-driven players:  These players seek a place to show off their achievements and expertise while enjoying the prestige of the best that a casino has to offer. These are players that are loyal to one or two properties. Their play is double the average and they represent approximately 15% of players.

b) Dedicated escapists: This player segment seeks a place to retreat from the pressures and disappointments of life. They hope to be treated with appreciation and respect that they may not receive elsewhere. These are players that are loyal to a few properties and are likely to focus on service and products within an acceptable bandwidth. Their play is 50% above the average and they are approximately 20% of players.

c) Reward seekers: This player segment chases deals and discounts and they decide where to play primarily based on the determination of immediate gratification. These are promiscuous players who will follow discount and reward offerings. Their play is 50% below the average but they represent the majority of players.

To best serve the players, it is important to know your audience and to prioritize resource expenditures accordingly:

“If a casino brand is built for the customer segment that is not loyal, the casino will (endlessly) become caught in the quagmire of giveaways and promotions to meet financial goals. However, if casinos can capture a loyalty segment by catering to their service needs, players will repeat the experience without the requisite free play arms race.”