Inside Asian Gaming

INSIDE ASIAN GAMING | March 2010 38 Marketing T he recent rise in fuel prices coupled with a decline in this nation’s economic growth has had a significant impact on casinos throughout the United States. Once thought immune to economic downturns, casino operators have come to realise that their industry is as vulnerable as others. To maintain revenue streams and gain market share in this tough economic climate, casino operators have increased the level of promotional activities that they use to attract new gamers to their properties and maintain visitation levels among loyal customers. Often these activities include an increasing number of direct mail campaigns, special events that target premium players and traditional large-scale drawing drum promotions. It is the latter marketing program that this article addresses: the design, implementation and measurement of traditional drawings in which a large marketing net is cast across the gaming population by offering a drawing for a new car (more often these days, a hybrid vehicle), a series of large cash drawings or some combination of the two. Often referred to on financial statements as “prizes and awards,” these promotions represent a significant expense to the casino operator and one whose effects often defy measurement. Casinos deploy large amounts of resources, both human and economic, in implementing such promotions yet they are often done with little regard to identifying particular customer segments, defining achievable goals or developing sound measurement tools. They are often done to increase volume in the form of bodies in the casino with little regard to understanding who those bodies are. Define your target market Before embarking on a promotion, it is critical to first understand what kinds of people the casino hopes to attract. Ostensibly, most promotional design worksheets begin by stating that the purpose of the promotion is to attract new gamers to the property, move customers from competitors’ properties, gain share of wallet, foster loyalty and/or create excitement on the gaming floor. All of these are reasonable goals but they neglect to understand the kinds of gamers that exist in every market and the risks associated with attracting the wrong segments. Gamers fall into five distinct psychographic segments: reward seekers, escapists, socialisers, value seekers and advantage players. By understanding what motivates each of these segments, casino operators can design more effective promotions t h a t d e l i v e r the right people to the property. Recognition seekers enjoy the acknowledgement and respect that they receive when they visit their favourite casino. Being greeted by name by the valet, approached by a familiar host and being recognised by the restaurant’s Maître d’ invigorates these players. They like being recognized. While they require high degrees of personalized service, they are an intensely loyal group of players and are consistently the casino’s most profitable customers. Escapists visit a casino to escape from their everyday lives. They come to a casino to forget about work, forget about their troubles, and to be left alone so they can focus on gaming. They do not want interaction with others; they have no need for hosts and would prefer to avoid contact with personnel at the rewards centre. They want to play, be left alone and escape. While they may share their loyalty among a small group of casinos, they require little or no Cashing In On Promotions Andrew Klebanow discusses the design, implementation and measurement of casino promotions