Tag Archives: feedback loop

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Ethical Scenarios for Casino Player Development

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In these blogs, we have covered a lot of ground: things hosts should do, things they shouldn’t do, how to evaluate them, how to set and measure goals, and we have gone into some depth on a few of these topics.  One important aspect of a host’s job, however, is one we’ve only briefly touched.  It is especially important that hosts keep in mind the effects of their decisions and the ethical implications thereof.  This post is designed to be interactive, so please comment with your responses.

Let’s pretend for the purposes of this post that I am a successful casino host.  I work at a property that has thus far been blissfully free of growing competitive stresses, though some of my players occasionally travel to Las Vegas for an extended gambling vacay.  I’ve been at my property for just over 5 years, and I’ve developed some solid relationships with many of my high-worth guests.  I am not allowed to accept cash tips, but guests may give me gifts of a reasonable value.   In the following scenarios, what should I do?

  1. One of my players has been indicted for embezzling a significant amount of money from the banking company for which he worked (until the indictment, anyway).  He continues to visit and play, even coming in more often now than he used to since he’s got more free time these days.  As his host, what is my responsibility to him and to the property?
  2. I have an older player who sometimes invites other guests to come to her room (in my on-property hotel) to assist her with getting in and out of the shower.  Because she obviously trusts these players, she is heartbroken and sobbing when she comes to find me on the gaming floor to tell me that someone has stolen $300 in cash from her purse.  I immediately suspect the latest of her “assistants,” but she begs me not to say anything to that lady.  What is my best move in this situation?
  3. My best friend is a hotel supervisor at my casino, and she calls me over to stand behind the desk so she can make an emergency trip to the ladies’ room.  I know how to check people in and issue card keys, so when someone approaches the desk, I assist the guest, who tips me $50 with a wink upon check-in.  Rapidly, I go through the options available to me: upgrade to the last host room (it’s a suite), upgrade to a room with a better view, say “thanks” and put the cash in my pocket, hold the tip to give to my BFF, or explain that I’m just filling in and suggest that the tip should be given to someone else since I can’t accept it.  Which choice should I make?
  4. One of my players was delighted with the anniversary amenity I had waiting for her and her husband in their hotel room last week.  She was so delighted that she sent me a thank you card containing a $100 bill.  The guest sent the card to my home address.  I’m not sure where she got it, as I’d never give a guest my address…What should I do with the cash?
  5. I believe that one of my players makes his money illegally.  I don’t know any details, but I have heard other table games players (and dealers) gossip about him.  Speculation on the sources of his income runs from gunrunning to illegal drug sales to house-flipping to a sizable inheritance.  He doesn’t seem to have a regular job, he travels a bit, and he always has lots of cash and a fancy “new” car almost every month…so I know something isn’t typical about how he earns his living.  What is my responsibility to the player and/or my property in this case?
  6. I overheard a conversation between one of my co-workers and his wife last night.  He was on his company cell phone, shouting at her in the back-of-the-house hallway.  Visibly upset, he returned to the office not long after and began making guest calls.  One of his guests must have known he was upset, because next thing I know, he’s spilling the story to a guest on the office phone.  What should I do about this?
  7. One of my favorite players is moving (permanently) to her lake house about 4 hours’ drive from my property.  She has extended to me and my family an open invitation to come and visit her sometime.  She’s not likely to make many visits after the move, since she is reluctant to drive such a distance alone.  She doesn’t have much family and considers me one of her closest friends.  Is it okay if I accept her invitation?

Many hosts encounter similar situations to these, and it isn’t always easy to know what one should do.  Your feedback might help a casino host to make a better decision, so don’t be shy.  Choose one scenario or reply to them all…but use the number of each so we know which scenario to which your answer(s) refer(s).

Ready?  Set?  GO!

Casino Host Culture

Player Development isn’t a Department. It’s a Mindset.

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Does everyone at your property sell the gaming experience to your guests? Just as importantly, does everyone at your property understand that the main function of a Player Development department is to sell the gaming experience to your most worthy guests?

It still amazes me how many people work in gaming without a clear understanding of the role Player Development professionals play in the operation. When given the opportunity to do the job they were given, Casino Hosts can drive revenue. They build relationships with patrons. They make it easier for a guest to choose YOUR property over going to visit a competitor. They provide concierge-like service to players who have a real impact on the bottom line, especially when those patrons don’t come in as often or play as much as they once did.

How is Player Development a mindset? It extends to every casino employee who has direct guest contact as well as those whose work affects the guests. (So, basically everybody.) If a dishwasher doesn’t do his job properly, one of your pickiest profitable players might receive a drink in a dirty glass. If a slot attendant assists a guest without introducing himself, he doesn’t exactly make a good impression even if the service was timely. When maintenance isn’t keeping up with broken fixtures in your restrooms, your guests notice. Honestly, we don’t want ANY casino guest to experience these things. This means that every employee needs to understand the basic principles of Player Development in order to keep the guests raving about your property.

These principles include using a guest’s name, responding quickly and professionally to guest requests, and anticipating guests’ needs (and meeting them). These are all things that PD pros do every day. Happily, they are things every casino employee can do, too! These simple measures help to solidify the loyalty of the guests who frequent your property, and they give new or undecided guests a reason to come back.

Even if front-line employees don’t fully understand the Player Development function, they can learn to do the things inherent in building player relationships to make your property more profitable. By keeping your guests top of mind, all your associates can facilitate keeping your property top of mind with those guests. In general, building relationships with patrons who help to keep your doors open is a function of player development that applies to every guest and every employee with whom they come into contact, either directly or indirectly. Helping your associates understand this is the first step in creating a PD mindset that will differentiate your customer service from that of your competitors.  And that, folks, is a good mindset to have throughout your operation.

Casino Host Culture

Finding Balance in Player Development

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As many readers of this blog already know, it is the job of a casino host to produce return trips from a property’s best players.  That means they are always in contact with guests, building and enhancing relationships with their players both “old” and new.  The key to doing it right means ensuring the host is in contact with a variety of players, many of whom are at different places along the bell curve of their player cycle.

What do I mean?  Well, think about a cross-section of a casino’s database.  There are guests who have just discovered your property, or maybe they just signed up for a card even though this is their 4th visit.  Either way, these are your new players in terms of marketing.  Then you have the “regulars.”  These people play within a predictable pattern, and are likely to be in one of the top tiers of your players club.  You know them and they know you.  Surely you have decliners, who might fall between the cracks in your player retention programs.  If direct mail doesn’t move them, a host call might, but if no one realizes they’re missing, they might get that call too late; after they’ve found an alternative in one of your competitors.   Finally, there are the ones who are “lost.”  They haven’t been in for a while due to reasons you may or may not know.  Obviously there are players like these at all levels, but your hosts really need to be aware of those who are among your best.

Since it’s easiest to talk with people you know, many hosts tend to communicate over and over with the same core group of guests.  I often refer to them as “the usual suspects.”  They are generally good players who become the ones you look for in a roomful of players at an event or show or tournament.  These players absolutely deserve the attention, but focusing too much time on these players means that the host doesn’t manage her time properly and other guests go unnoticed or un-contacted.  Additionally, contacting them first every time there is a value-added opportunity for them means the profit margin on the guest (or couple) shrinks with every offer they accept.  You run the risk of unprofitability once spending on these players exceeds your target reinvestment percentage.

It’s better to spread that spend around.  Make sure your department’s overarching goals include specific activities targeting players in all stages of their cycle of worth to your property.  Identify a player profile of those you stand to lose to a competitor (using drive time, ZIP codes, frequency, and other metrics to see what those players “look like.”)  Determine how you’re going to segment new players and build goals for getting enough of them to return and become loyal (and profitable!)  Teams of generalists should have goals targeting reactivation and acquisition as well as retention, and they should include a little reach so they don’t fall by the wayside throughout the goal period…your property will lose good players along the way if the hosts aren’t working them.

120x110_tree_onlyTechnology can help you identify, segment, and track contacts with any player according to criteria you set.  Test, survey, adjust goals, monitor progress and measure results as often as possible to ensure your plans are working as expected.  Establish goals which require your team to shift priorities from only touching retention.  Talk with your hosts and understand the challenges they face.  Keep acquisition and (preemptive) reactivation top of mind with the team so they don’t lose sight of your best players in all areas of the cycle.  Keep everyone up-to-date with regular periodic reviews and updates of progress and pace to goal.  That way, every member of your Player Development team is on track, on pace and ready to change course if needed to reach the finish together.

Casino Host Culture, Uncategorized

What Kind of Culture is Best for Casino Hosts?

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It takes a special kind of “people person” to be a good Casino Host.  The backgrounds of today’s hosts are quite varied, but the thing they all have in common is that they are delighted to be in the company of others.  A host has the ability to make each of his players feel as though they are the most important person in the world.  Hosts can make “no” sound like “I’d really like to…”  And they need a particular kind of environment in order to thrive and do their best work.

Like employees in any sort of job, hosts expect to be compensated for the work they do.  Hosts should be paid a salary commensurate with carrying a company phone that is likely to ring at all hours of the day and night.  Casino hosts have to cater to some very demanding guests, but because the guests are worth it, most hosts pride themselves on satisfying those “difficult” players.  But again, just like any other employee, hosts require more than just a paycheck in order to do the job to the best of their ability.

Think about the primary tool in a Casino Host’s toolkit: the relationship.  It is more powerful than a comp, brings players to the casino more reliably than the direct mail program, and trumps new or updated competitors in the long run as long as it’s been properly built.  Interestingly, a strong relationship with a team leader should be part of a host’s compensation.

The relationship a Casino Host has with his or her team leader will, in many cases, directly affect the host’s level of engagement with his or her assigned players.  In a recent blog post on Harvard Business Review, the author suggests that engaged employees feel “loved,” and that the more “love” an employee feels drives a higher level of engagement in the job.  The post clarifies that the love in question is “companionate love,” derived from a feeling of connection and warmth in the employer/employee relationship.

“You mean we have to hold hands and sing Kum By Yah in a circle at our host meetings?”  As entertaining as that might be to watch (contact me before you do this; I want to have you record it and send me the video file!), what I am proposing goes deeper.  I am suggesting that team leaders invest some emotional capital in the hosts to help them flourish.

Any good Player Development professional will confirm that the relationships hosts (or any casino associate, for that matter) build with the property’s players build loyalty and help a casino hold on to their share of the gamer’s wallet.  Strong host/player relationships can prevent a player from defecting to a competitor over a disappointment or other negative experience.  Doesn’t it stand to reason then, that the relationship between an employee and his or her team leader would have a commensurate effect on the employee’s performance and direct engagement with the job?

Here are some ways to build that companionate love without crossing the necessary boundaries of a workplace relationship.  Spend some time with the members of your team during the workday.  Learn about them: family ties, personal motivators, challenges and frustrations, hobbies and interests, background experience, and growth aspirations.  Share some of your own workplace experiences with the members of your team so they see you more as a fallible person instead of just as a “boss.”   Ask them for feedback on your leadership style.  Demonstrate their importance to the property’s success and implement their ideas whenever you can.  Lavishly praise their accomplishments and provide candid and fair assessments of their performance when improvement is needed.  Observe their performance first hand and discuss your observations.  Talk WITH them and not just TO them, just like you should with your guests.  Generate a dialogue.  Build strong working relationships to ensure they each feel a connection with you.

Not the warm and fuzzy type?  Don’t fake it.  They’ll know.  Just be genuine.  Step outside your comfort zone for them.  Make the effort.  It will make a difference.

How will you know it’s working?  When the members of your team feel comfortable coming to you with their concerns and speak freely, you’ve arrived.  If someone isn’t doing the best job possible, and you approach them to discuss it, defensiveness melts away during the conversation.  If it’s real, you’ll both know.  And your team will thrive.

By all means, share your own experiences with us.  Tell us what you’ve done that worked or what you’ll do to build that kind of relationship with your team.

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What IS Preemptive Reactivation?

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Simply put, Preemptive Reactivation is a name for a Player Development approach in casino gaming. It is a method for identifying and mitigating player loss.

There are three steps:
1. Identify a new or imminent threat to which you may lose good players
2. Determine which of your very best players are likely to migrate to the new option you’ve identified
3. Assign those players to a host (if they aren’t coded already) to work on solidifying the relationship to prevent their departure

Here’s an example. You are looking at the numbers and notice that your hosted players are making fewer trips than they did last quarter and compared to the same quarter last year. While this may not come as a surprise to you in light of the economics in the last few years, you are conscientious and want to find out why.

Time for step one.

Identifying the threat is often the most difficult thing to accomplish. If it’s imminent, maybe you already know about it. Perhaps there is a shiny new casino opening up in one of your main markets. You could be facing the expansion of an existing competitor, looking at an aging property you cannot properly upgrade, or it could be as big as the leviathan that will be legal online gaming in the USA. But, there’s a chance it’s more of an internal issue. Have you received feedback that better players are dissatisfied with club benefits, direct mail offers, service failures or something else you can address in-house? If it’s something like that, or if you just aren’t sure, leverage your host team in any number of ways to achieve this objective.

Give them a series of questions to work into player conversations to tease out the reasons for diminished play/visits. Give them a survey interface into which they can enter the card number and check (or type in) the reasons given to them BY THE GUESTS for their less frequent visitation. Hold events, have executives record outgoing calls to ask players to contact a host with concerns, or drop a postcard in the mail for a special “tell us about ourselves” day in conjunction with your operational department teams. Set up a feedback loop with your Casino Host team at its core. The answer you get the most often is your biggest threat. Then you’ll know why the numbers are down.

Now, step two.

Determining which players are most likely to defect is only marginally less tricky than identifying the threat. In our scenario, you should be able to identify which players are making fewer trips, but in the event of an imminent threat, you’ll need to do some detective work.

You know from where your better players come, right? Look at those zip codes and determine whether those players are closer to you or the new/upgraded competitor. They’ll tell you if they are getting more compelling offers from another casino they’ve visited. Determine who else has been there and evaluate whether you have the stomach for the bidding war that might ensue if you try to buy back the business.

Whatever the threat, you have to come up with a plan for mitigating the losses. Offer your players an alternative that’s more appealing than whatever they’re thinking of leaving you for. You’ll be able to see the effectiveness of your plan when the trip numbers start to shift.

Then, step three.

Make adjustments to your hosts’ player lists in order to ensure ongoing communication and satisfaction with your property. This single step will do more to secure the loyalty of your best players than anything else you do. Maybe in step two, you determined that the food offers coming from a competitor were driving your best players to their steakhouse. You don’t want to dismantle your entire direct mail program to cater to a small segment of high-end players. Instead, use the personal touch that is casino player development. Empower your casino hosts to offer those players a premium: the guest turns in to the host his mailer coupon for four buffets in exchange for an equal value in the steakhouse. The player can make the reservations and make all the arrangements for the guest’s convenience, meet him in the steakhouse, do some relationship building and exchange the paperwork.

In order to make this work, you’ll need some pretty specific analytics. You’ll need to have several months’ or quarters’ worth of player development reports, your direct mail redemption analysis, a breakdown of your hosted players including demographics and frequency, and that’s just for starters.

You’ll also need an articulate and engaged team of casino hosts, a participatory executive team and some guests who aren’t afraid to speak their minds. (Fortunately, that last one isn’t very difficult to find!)

Harvest Trends can help with some of the rest of the things you’ll need. (Sorry, you’re on your own with the executives.) Contact Amy J Hudson at ahudson@harvesttrends.com or at 304-218-1265 to find out how.