How the Right Data Can Improve Casino Marketing Campaigns
INTRODUCTION
Many organizations, including casinos are facing a challenge about how to acquire, enhance, store and manage marketing and operational data. How to collect these data isn’t a problem anymore; it’s converting data into some useful information that finally determines marketing success.
The gaming industry has been changed a lot over the last few years. So for those markers who working in this industry, it is important that they should evolve with the changes. A recent survey from the Global Gaming Expo (G2E) indicated that 77% of casino marketers said advancements in the last 10 to 15 years have dramatically changed the way they interact their customers. Furthermore, a full 95% of the same respondents believe casino marketing programs will undergo “much more”
…show more content…
The traditional casino marketing channels like direct mail, print ads, and billboards can still be very effective, but the arise of social media and online gaming are forcing marketers to re-evaluate their business. Today’s reality in casino marketing involves shorter player attention, interacting with customers on Facebook and Twitter, emailing players and having mobile apps accessible to customers. None of these is possible without data analysis.
PROCEED WITH CAUTION
Casino marketers use player databases to enhance their business, such as their relationships with players, sales and marketing activities. So, an efficiently run data management environment will help you have a good understanding of these data.
However, there are many risk of poor data management.
When casinos don’t invest their time and money into data management, the consequences can be very bad. Here are the most common repercussions according to V12 Group (2012):
• Inability to perform in-depth
In the hilarious 2009 blockbuster hit The Hangover, “the three best friends that anyone could have” need to find a way to get the money they owe Mr. Chow in order to have the groom to be, Doug, returned to them. Phil, Stu, and Alan devise an intricate scheme that uses card counting while playing Blackjack to win a lot of money. The scheme uses many distractions such as Stu, and his stripper wife, acting as a distraction as well as Phil making lots of noise and obscene gestures to the cameras of the casino in order to bring attention to him and allowing Alan to do the card counting and win the money they owe Mr. Chow. When the casino managers begin to become suspicious of the possible card counting that is going on, Stu’s recently married stripper wife falls to the floor causing the security to focus on her giving Alan and Phil time to escape unseen with all the recently won cash. This scene, although entertaining, does not accurately portray what goes on when someone is card counting in these big time casinos, such as the one seen in this movie, Caesar’s Palace in Las Vegas. Card counting is much more subtle and not such a big scheme as it is portrayed in this very funny movie.
Precise and comprehensive information is the basis of all successful commerce activity because it provides a vast amount of information about possible customers, existing ones and the firm’s competition. Market research allows business proprietors to establish the viability of a business venture before committing sizeable resources.
Sallam, Rita L; Tapadinhas, Joao; Parenteau, Josh; Yuen, Daniel;Hostman, Bill (2014, February 20). Magic quadrant for business intelligence and analytics platforms. Retrieved from http://www.gartner.com/technology/reprints.do?id=1-1QLGACN&ct=140210&st=sb
Compared with other faux pas such as cigarette smoking and alcohol consumption, gambling is a relatively new and legal outlet for people to abuse leading to self-harm, maladaptive family structures and an eventual strain on society. While gaming has been around since the beginning of time, the last thirty years has brought about new and more aggressive marketing and with it has come new set of problems. The new world of gambling is orientated around continuous and rapid mass consumption (slot machines) focused primarily upon individuals betting in increasingly socially dislocated environments (Adams). Communities with gaming centers, race-tracks, and casino’s are often located in the poorest parts of cities and suburbs. In the United States, racial and ethnic minorities are among the groups most at risk for gambling problems (Wiggins). A random-digit-dial telephone survey revealed that 8% of Hispanics were pathological gamblers, which is four times higher than the 1.8% rate for Whites (Wiggins). From a social exchange point of view we have to ask ourselves if the risk of increased social disruption outweighs the rewards of local economy stimulation. Is it acceptable to harm the social fabric by increasing crime, bankruptcies, and social pathologies? (Chhabra)
In the multi-billion dollar industry that is professional sports, the ability to connect with and retain customers has become increasingly difficult. The cost of being a fan is almost always on the rise. According to Team Marketing Report, the average cost for a family of four to attend a professional sporting event has risen to; $326.60 for an NBA game, $212.46 for an MLB game, $359.71 for an NHL game and $459.65 for an NFL game. Customer relationship management can help reduce costs and increase profitability by helping to organize and automize business processes that nurture customer satisfaction and loyalty in the sales, marketing, and customer service fields. (Microsoft)
Gambling in the industry is fast-growing, multi-million industry in the United States. Gambling could also be traced back to the “Wild, Wild, West.” Gambling is not uncommon at root of many saloon gunfights...
Yuan, C. (2013). Business: Intangible value; Online gaming in China. The Economist , 391 (8625), 67.
With so much money at stake, the average gambler does not stand a chance. against this big business. The casinos go to every length to analyze what makes a gambler bet, stay longer, and lose as much money as possible. Gamblers who come to casinos with the intention of winning money are habitually disappointed in the snare. As casino crime lord, Meyer Lansky's universal.
Employees are not the only people whose information interest companies. To a far greater extent, businesses are looking to gather data on their users and the market in general. User data collection has become one of the most important components of market research. For example, online retailers can use data collected from a consumer’s purchase to target advertising on products that the consumer is most likely to buy....
University of Phoenix, (2007), retrieved January 19, 2007 from the University of Phoenix rEsource database MarketLine Business Information Center
Kwon, E. (n.d.). Lodging & Gaming. Standard & Poor's Capital IQ. Retrieved December 1, 2013, from http://www.netadvantage.standardandpoors.com.ezproxy.bu.edu/NASApp/NetAdvantage/showIndustrySurvey.do?task=showIndustrySurvey&code=lng
First, the transactional support system encompasses all of the information contained within a single business process or unit of work, and its primary purpose is to support the performing of daily operational or structured decisions. Some examples of transactional information are when customers purchase stocks, make an airline reservation, or withdraw cash from an A.T.M. (Baltzan, 54). A customer of Actionly could use this information for behavioral targeting purposes. Behavioral targeting refers to a range of techniques and technologies which allows advertisers to increase the effectiveness of their campaigns (I.S.P., 2009). Actionly’s customer could then apply this information to its current advertising strategy to ensure that they are getting the most return on their advertising investments. For example, McDonalds may choose to advertise grilled chicken sandwiches on the screen of an A.T.M. machine close to one of its restaurants at 12:00 p.m. if transactional information gathered by Actionly suggests that there is a spike in the frequency of the A.T.M.’s use at that time.
These databases allowed companies to better understand what customers were buying regularly, what they spent and what they did. (Ruchi, 2014) The earliest definition of this was "Database Marketing is an interactive approach to marketing, which uses the individually addressable marketing media and channels (such as mail, telephone and the sales force): to extend help to a company 's target audience; to stimulate their demand; and to stay close to them by recording and keeping an electronic database memory of the customer, prospect and all commercial contacts, to help improve all future contacts and to ensure more realistic of all marketing."
"(Davenport, 2006) Data is compiled to enhance business practices. When samples are taken, they are used to examine research and understand how to solve problems or why situations are as they are. Furthermore, in this article, Thomas Davenport discusses analytics from a business
Prior to the start of the Information Age in the late 20th century, businesses had to collect data from non-automated sources. Businesses then lacked the computing resources necessary to properly analyze the data, and as a result, companies often made business d...