Tag Archives: Gambling

Casino Host Culture, Casino Host Evaluation

Why do casinos need player development?

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I’ll bet your property sends out a lot of mail. Tons of it.  Right? I remember when I was on the seed list at my last property, and it seemed like I got a LOT of mail…and that was just the stuff from my own property!  The mailers I got from checking out the competition weren’t as numerous, since I wasn’t a high roller, but I got a pretty fair number of those, too.

There is a lot of e-mail communication, too. I get something at least once a month, even from properties I haven’t visited in some time. So I know casinos are reaching out and doing database marketing; in fact, I believe casinos do this better than many other businesses today. There’s certainly room for improvement, particularly in terms of “if this, then that” marketing, but that’s another blog post…

Casinos do a lot of things to bring players through their doors.  They post giant luxury cars onto multiple billboards, radio ads let patrons know who is going to be in the showroom soon (and more billboards sport the same message), postcards alert tier card holders there’s a continuity gift program for the upcoming holiday, and reservations agents are scheduled overtime to book the hotel once the coupons arrive in mailboxes market-wide. There’s clearly a lot going on to provide incentives for players to visit a particular casino.

Events are held, show tickets are handed out, food is served, prizes are awarded, and guests show up. So, why do casinos need player development?

Casinos need a true-to-life player development department because it can generate revenue the programs and activities above don’t get for them.  Sure, a player who has had a “pretty alright” experience at your property in the past may come in if you dangle the right prize or giveaway or food coupons at them. But to get the right ones to come in more often, there’s nothing like the personal touch.

A host can make it easier and more inviting for a player to return to a particular property than any other service you can offer.  A host can simply provide the final push a patron needs to commit to the trip your coupons got them to consider.  A host can find out whether a particular guest enjoys tournaments and invite them. A host can let them know when it looks like their favorite progressive is about to hit. A host can get them to share the tale of their bad experience and convince them to give your property another chance to get it right.

There are any number of ways to get a player to come to your casino for a visit, but there is nothing quite as effective as a casino host when it comes to bringing back players or potential worth.  These players expect more than coupons and promotions as a “reward” for their patronage.  Many of them know they are worth a lot to you and expect to be treated as such. Targeting new players who aren’t yet loyal, finding players who are at risk of defection, and reaching out to those you have already lost are cost-effective ways to boost revenue, and there’s no one better than a host to bring them back to you. A well-trained and equipped host team can drive revenue that will have a significant effect on your property’s bottom line.

If you aren’t sure where to start, or if your team needs additional tools or resources, find a PD partner who can show you how to refocus your host team and target the right potential players in your database.  You’ll be pleased with the results.

 

This post is brought to you by Harvest Trends. We specialize in Player Development (PD). Please take a look at PowerHost, a comprehensive way to drive revenue from your team of Casino Hosts and Player Development Executives. Or contact Paul Cutler at 561.860.2621 or pcutler@harvesttrends.com.  Paul will overnight you an informative package along with pricing.

Casino Host Culture

A High Roller Told Me

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What things do casinos do that make their high rollers crazy?

I had the opportunity recently to become re-acquainted with a gentleman I’d met some months ago. His wife is my friend’s sister, and my friend kept telling me that her brother-in-law and I needed to have a chat about his casino experiences so that I could gain a deeper insight into the player’s mind. As a Casino Player Development pro, this was an opportunity I couldn’t pass up.

This gentleman is the sort of blackjack player most any casino would be happy to have. He’s worth millions in gaming revenue each year, and he is fully aware of the fact that the odds are in the house’s favor. He’s a methodical player who is willing to play a higher minimum per hand in order to keep less experienced players off his table. Let’s put it this way: if he loses, it might mean that table games hits their number for the day, but if he wins it won’t tank the day’s drop. He is looking for the gambling plus a high roller experience that he can share with people who are important to him. If the value is there, he doesn’t so much mind leaving some of his hard-earned dollars behind at the end of his visit.

We sat down in his suite at a Mississippi Gulf Coast casino last week, and after I’d given him a quick breakdown of my experience and my current role, I asked him what casinos do that makes him crazy. This man delighted me by answering that question and then following up with examples of things they do right. I was delighted because many of the things he says are done right are all foundational concepts in casino player development. Basically, this high roller confirmed what I believed to be true about how a strong PD team can contribute to a property’s bottom line.

Since this was where we started the conversation, it’s where I’ll start:

What’s Wrong?

  • Casinos send offers in the mail that aren’t remotely of interest to the player. This player only plays blackjack, but more than one casino sends him slot free play every month. He’s not a tournament player, but his ADT is high enough that he receives multiple invitations to blackjack tournaments. He’d love it if you’d send him something that is meaningful to him instead, and he knows the information necessary to make that happen is in your system somewhere, if you’d only leverage it.
  • Rewards programs veiled in smoke and mirrors. As a player who keeps track of his spend, this gentleman already has a good idea what he’s worth to the casino, and he expects that his rewards will be in alignment with his worth.  It should be easy to tell a patron how many points he needs to earn to advance to a higher tier, whether or not he can receive a comp based on his play, and what his average bet and time played are in the system. If it’s too complicated for your employees to explain, it’s probably too complicated.
  • Being made to haggle over comps. To his point, this guest understands how the system works. He told me about an experience at another South Mississippi casino where he had to make a case for getting a pack of cigarettes comped. He was frustrated by this because he’d just dropped roughly $15,000 at a single blackjack table in a few hours and felt like he was being made to beg for a comp he had surely earned. FYI: He doesn’t go to that casino any more.
  • Employees who don’t have access to pertinent player information. When this guy asks for anything, he anticipates that he has earned it and that his request will be granted. He expects that when a host approaches him, that host will know who he is, how much he’s played, and what rewards are available to him because of that information. He even suggested that hosts should have a smartphone app which would enable them to quickly access such information wherever they are in order to provide the best possible personalized service.
  • Casinos who forget who pays their bills. The casino this patron frequents near his home has recently made some changes that make him feel as though his long-term (and significant) patronage is no longer appreciated. He went from having an executive host who anticipated his needs to having a junior host who will have to call him back when he wants a room or show tickets. Remember, this patron is worth literally millions in gaming spend. But this property is apparently trying to attract even bigger players, and in the process is likely to lose many like this man, who would help to balance the scales when a bigger player wins.
  • Failing to get the details right. When I talked with this player, we were sitting at the dining room table in his suite, smoking cigarettes while we talked. He was staying in a non-smoking suite despite the fact that he’s a smoker…whose cigaretters are sometimes comped by the property. While the casino hotel operator in me cringed, I thought, if you know he’s a smoker and you put him in a non-smoking suite, shouldn’t you expect him to smoke in it?
  • Sharing the high roller experience with players of opportunity. He related a story from his “home” casino where he headed to the pool only to find it closed for a private party being held for a lower card tier than his. It was exclusive to those patrons who had that level of player’s card. He thought this was a good idea, because he saw the promise of aspirational play from those patrons who attended the party. He wasn’t even annoyed that he couldn’t use the pool because he understood the business reasons for having the party.
  • Hosts who understand and anticipate his needs. His wife isn’t a gambler, but she is definitely interested in the pool, the spa, some of the shows, and the restaurants at the casinos they visit. His host here on the Mississippi Gulf Coast does a pretty good job of keeping track of the things this player will want during a weeklong trip, and she even goes so far as to alert associates in other departments when he (or his wife) is going to be utilizing their services. The special personal touches this property provides mean this player will return again and introduce people in his life to the benefits his play earns. He may take 4 extra people to the steakhouse or ask to exceed the usual number of cabana guests, but his play warrants that and his host doesn’t make him ask: she offers what she knows he will want.
  • Protecting the player’s benefits from unauthorized use. On the flip side of the coin, the casino in question always asks for ID or a room key before anyone redeems or room charges anything. His wife kept her maiden name, so she is sometimes asked to provide identification to ensure that she is who she says she is. While I was with them, the service was exceptional and included accommodation when she didn’t have her driver’s license readily available. She told me about her first visit to the spa where a new employee didn’t recognize her. After a quick call to the player’s host to verify his wife’s bona fides, her request was handled efficiently and professionally, and she appreciated the extra effort required to ensure that her husband’s (and, by extension, her) benefits were being protected.

All in all, I’d say the casino where I talked with this patron gets about an 8.5 out of 10 for their handling of this high roller and his expectations. He agreed that they get it right more often than many of the other casinos he’s visited. That tendency to get it right more often than not has earned that property this high roller’s loyalty and repeat business.

Amy Hudson

Link in with me at https://www.linkedin.com/in/hudsonamy/

Casino Host Culture

War Stories: Cautionary Tales from ‘The Trenches’

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Many years ago, I had primary responsibility for a big casino promotion. My bosses were at the big gaming show in Vegas (before it was called G2E; it was a loooong time ago) and I was launching a big 6-week extravaganza without them for the very first time. We had floor sweeps to hand out scratch-off tickets, offering a variety of prizes for matching symbols. Every ticket had the potential to be a winner, but the odds suggested we’d have only one or two “big” winners (of $1000, if I recall correctly) for the entire 6 weeks.   Non-winning tickets could be dropped into a big drawing drum for the grand finale: a pickup truck to be given away on the last night of the promotion. When the second and third “big” prize winners showed up within hours of the first floor sweep, I knew we had a problem. Someone had figured out how to cheat the scratch-off…and I was sure of it when the fourth winner of the night was the same person who had turned in the first winning ticket.

The GM and I wrote an announcement that I would read over the PA to suspend the scratch-off portion of the promotion, and we quickly printed out truck giveaway entries to be handed out until we could sort out the issue with the game tickets. It was with trepidation that I began reading our announcement, but security and a handful of sympathetic guests (regulars, but the good kind) were nearby to offer moral support. Only twice since have I been in front of a crowd so hostile. As I clicked off the microphone and took a step to leave, a handful of them surged toward me, blocking my exit route to complain about the provision that we would not accept any more “winning” tickets. A few of these had multiple tickets in hand, suggesting that they had picked up tickets others had left behind…it was a mess.

From this promotional War Story, I learned many things.

  • Have scratch tickets printed by someone who has lots of experience with them so it’s impossible for players to cheat.
  • Involve the Security Manager and Compliance department when doing promotional planning to help ferret out vulnerabilities in the conceptual stages.
  • Don’t be afraid to do what’s right for the honest guests, even in the face of some who are angry that they can’t take advantage of a vulnerability they found.
  • The NGCB had our back. Our rules were clear and enforceable, and they stayed in the loop with us as we navigated those uncharted (for us) waters.
  • The loudest voices you hear aren’t always the ones you should pay the most attention to. My GM was cool, calm, and collected as we worked through our short-term plan. Loud, angry voices had no place in that discussion, though we obviously thought through the effect we’d have on our guests.

Everyone who has worked with the public at all probably has some pretty good stories to tell; it’s likely they’ve got some that will curl your hair. Thinking about them for this post actually had me chuckling earlier:

  • The club rep who figured out how to cash out points belonging to inactive guests, but didn’t notice the transactions on a detail report the same rep ran each night for the manager’s review.
  • The angry patron who grabbed a supervisor’s tie to pull him over the counter and almost found himself prone when the (former military) associate instinctively drew back a fist. Fortunately, no one was harmed during this little episode.
  • The promotional attendant who set up a promotion to run with pre-determined winners…and didn’t see any problem with that.
  • The guest who called the company headquarters to complain that he’d been told his patronage wasn’t important…since the casino wouldn’t increase his offers just because he thought they weren’t sufficient.
  • The high roller who hung up on his host because the host uttered the word, “No” during a brief phone call. (The host called right back and said “It seems we were disconnected before I had a chance to tell you what I CAN do.” The guest was all ears.)
  • The small gang who gathered at the promotions desk to write down the winner’s names at nearly every drawing because they were convinced the giveaway was rigged against them.

Here’s the best part about these War Stories: every single one of them teaches us something. The club rep learned that there are checks and balances to prevent theft and that a few hundred bucks was all it took to lose a promising career in gaming. The patron learned that he would be asked to leave private property after assaulting an associate, with a minimum 12-month exclusion to boot. All of us who have worked with casino promotions have learned that people feel entitled to win and will always suggest that someone is cheating them if they don’t. The high roller learned that sometimes it’s better to be quiet and listen to the rest of the story before shutting someone down (particularly if it’s someone who can help you). The gang learned more than they ever cared to know about how electronic drawings work, as the executive responsible for promotions gathered them close and did a mini-workshop on the software’s capabilities.

So, tell us in the comments below: what are your favorite War Stories, and what did you learn from them? Any lesson is a good one, though the ones learned “the hard way” tend to stick with us. Those where we learn what NOT to do are even better, because we may not have to live through the awkwardness and difficulties ourselves (or only tangentially).

Share with us the stories that came to mind as you read some of mine. We can’t wait to learn from your experiences!

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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!

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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.

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Preemptive Reactivation? Huh?

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Everybody's so serious lately
Everybody’s so serious lately (Photo credit: TheeErin)

“You just made that up, didn’t you?”

Well, yeah. I kind of did.

I was a panelist at the Raving Player Development Summit in 2011. (You may know me as Amy Burbidge. Life changes happened.)

My response to one of the topics we discussed led the term “Preemptive Reactivation” to drop out of my mouth (and into the microphone).

Steve Browne stopped mid-step, spun around and locked eyes with me for a beat. He grinned and said, “Ladies and gentlemen, Amy here just paid your registration fee for you.  Preemptive reactivation! That’s powerful stuff…” I’ll never forget it.

He’s spoken about it since, and I believe Raving featured the term in one of their publications not long ago.  Me?  I worked to continue exercising it for as long as I ran a Player Development team afterwards. I tried to instill in my Casino Host team that Preemptive Reactivation is essential for player retention. In fact, I believe Casino Hosts are uniquely situated to readily practice Preemptive Reactivation, particularly in an increasingly competitive worldwide marketplace.

How can  YOU benefit from this fortuitous turn  of phrase?  You can learn what it is and how it will help you retain your best players BEFORE they start to spend their time and money someplace else.

Preemptive reactivation first requires you to know which of your best players are visiting you less frequently than they once did.  Then, you go about finding out why they are visiting you less frequently.  Finally, you do something about what you’ve learned.  Often, just a phone call from a host is enough to accomplish preemptive reactivation: they know you noticed their absence, found it important, and asked them to return.  Sometimes you have to solve a problem for the player(s) in question.  Sadly, there are also some who have just begun to drift away and you may not be able to get them back.

Why do I call this process “preemptive reactivation”?  Because you are taking action BEFORE you lose the player entirely.  Proactively identify any threats to your strongest players, reach out to them to let them know you don’t want to lose them, learn what you will have to do to keep them close to the fold, and then put your money where your mouth is.

I’ll be happy to help you figure out what preemptive reactivation means at your property, if you like. Been there, done that.  I even have the t-shirts to prove it!