The need for target practice in casino marketing

The need for target practice in casino marketing

It’s not often that you’ll find a marketing and advertising consultant advising his clients not to advertise. However Arjan Korstjens, the Marketing Lecturer of the Totally Gaming Academy, is one of those who believes that badly targeted promotions will just cost an operator money.

In the last couple of years I have seen casinos do promotions and just by seeing the campaign, I could tell this was not making money for the casino, only costing money.

I see a lot of casinos do the regular promotions: give away a car, give a huge cash prize, do a raffle or prize draw. In most cases they are rewarding their big spending frequent guests, even though they were targeting a broader audience. Trying to get new people in requires another kind of promotion than increasing the loyalty of your regular, low-spending guest.

In the Casino Marketing Masterclass, one of the topics that comes back a couple of times during the course is the definition of target groups. In general we can speak of three different groups: The Fun Player, The Time Player and the Risk Player.

The Fun Player

This is the casino guest, for which we advertise. Beautiful young people, well dressed and all cheerful the moment they set their way to the casino. They come to the casino at most a couple of times per year and have a budget to spend. The thing they seek is the complete experience. This is also the group that is attracted by cars, trips, iPhones etc.

The Time Player

This is the cork that keeps a lot of casinos afloat. The group with a fixed frequency and a fixed budget. Coming to the casino is part of their daily/weekly routine. They know the staff, the staff knows them, their names, friends and kids. They do not have a big budget so doubling or tripling their daily budget is a good winning experience. For this group (depending on the country) winning between the 100 and 200 euro is a very nice prize. And because of the lower amount, the frequency of these wins can be fairly numerous. So, winning a car is also not in their interest; they will take the money or sell the car.

The Risk Player

This is the real gambler, the one that takes financial risks for the kick of it. Even taking more risk than they should. This can be your high roller or also low stake player, but the only thing this group is interested in is winning from the machine. Promotions will hardly influence their frequency or budget. A high progressive jackpot can do that.

In the course we talk all about these definitions and which promotions work for which groups.

ROI on promotions

Take this scenario. You are giving away a car that costs €30,000 and spending €20,000 on promotions. If you have 60 machines with an RTP of 95%, how much extra time played should be generated if you have a promotion period of 1 month to break even? The answer is 45 minutes, per machine per day!

In the course we do a lot of exercises with the ROI model the Academy developed. Being aware of what a promotion should generate on the floor is important for anyone who initiates a promotion. With the help of two excel files we calculate different promotions, so we can also see an effect of an extra increment to support the promotion.

What is also important is to know is what casinos can spend on bringing new guests in. If you know more about your target groups, their expected frequency and on what they spend you can also calculate how much you can spend on getting them in.

In the three days of the course we see a lot of theory, including practical excel or word templates that each trainee can take home. But besides this practical theory there are a lot of examples for casinos all over the world and the best part is that your fellow participants can share their experiences as well.

Next course date: 5-7 December in The Netherlands. Find out more here.

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