Tag Archives: Preemptive Reactivation

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

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!

Casino Host Culture

7 Habits That Help Hosts Succeed

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In a world of increasing digital contact and fewer human interactions, Player Development still has a focus on personalized contact, whether by phone, email, snail mail or in person.There are techniques that successful Casino hosts employ to build relationships with valuable players and secure their loyalty.

These the 7 Habits that we’ve observed in successful casino hosts:

  1. Successful hosts are detail-oriented.  When you’re responsible for hundreds of valuable casino patrons (and their spouses, at least by proxy), it’s easy to get lost in the weeds. Remembering a guest’s children’s and grandchildren’s names is just the beginning. Does she smoke cigarettes? Which brand? What kind of room does he prefer, and does he have a favorite in your hotel? Will he want to go to the steakhouse right after he checks in, or will you need to go and pull him off the tables so he won’t lose his reservation? This kind of attention to the details about his or her players allows a casino host to provide personalized service that hardly exists anywhere these days. It sets them apart.
  2. Understanding profitability is key.  The details a good host remembers about his players aren’t limited to preferences and habits. He needs to understand the profitability profile of each player and his associates in order to proactively motivate them to make visits to the property without overspending the casino’s assets. Here’s a good rule of thumb for tough comp decisions: If you wouldn’t foot the bill yourself, why would you expect the casino to do so? Look at play patterns, redemption patterns, and associated play in aggregate before making a comp decision. It is entirely possible to motivate a player without spending money on supplemental offers.
  3. Good hosts don’t let good players languish. Does Susie usually make at least one trip per week? Have you seen her lately? If not, you should give her a call. Did you hear that Ron was upset about not getting tickets to last weekend’s Beatles tribute show? You should look into what happened and check in with him. While it’s sometimes appropriate to allow an angry guest some time to cool off before making contact, it’s better to reach out soon and re-establish communications before they try a competitor and decide they’re treated better someplace else.
  4. Information is king. Sharing it is key. Whether overheard on the gaming floor or learned in a training session, like any good employee, a good casino host will look for ways to incorporate things they learn into doing a better job taking care of their players. This includes learning what not to do! A great PD team leader will encourage hosts to share what they’ve learned, particularly about promising players or competitor activities, so they can work together to be proactive against any threats or looming disappointments which might be mitigated.
  5. Balance the wants of the guest with the needs of the business.  It’s often a precarious position to be in: your players want what they want and your company says it’s a “no go.” There are a myriad of ways to make everyone happy, and a good host will navigate through the possibilities until finding just the right one. From making an alternative offer, meeting the player halfway, presenting a case to the leadership in advocacy for the guest, or coming up with a brilliant out-of-the-box idea, hosts whose heads AND hearts are in the game will find a solution that keeps the players and the bosses happy.
  6. Remember to take “me” time…but not too much!  While it’s true that working in a 24-hour business with some of its most demanding patrons is almost assuredly a recipe for burnout, most of the PD pros we’ve met love their jobs so much they don’t ever want to do anything else for a living. In order to keep themselves on an even keel, dedicated casino hosts have to take a breather now and then to keep from going into overload. Leaving their players in the hands of their co-workers may be nerve-wracking, but the time away from the constant demands of  the job is essential to long-term well-being and success. Aside from weeks-long vacations, there are ways to regroup and refresh during the work week as well. Enjoy a hobby, take a walk around the neighborhood, meditate, go to the gym, read an engaging novel. Finding a way to disconnect from the world for a few short hours and recharge one’s batteries can make all the difference.
  7. When all else fails, host pros ask for help. It’s not easy to admit it when we need assistance. Whether it’s with a computer program, finding time to accomplish everything on the day’s to-do list, or handling a sticky guest situation, there’s nothing like another perspective to help a host move past a roadblock and keep things moving. There’s no reason a host who needs a hand shouldn’t ask for the assist. Studies have shown that people who do favors for others tend to regard the recipients in a more favorable light, because who wants to help out someone who isn’t deserving? This happy side effect can help to bring a host team closer together while solving the issue at hand. Nice, huh!?

There are a lot of moving parts in a casino host’s set of responsibilities. These 7 attributes can indeed make a good casino host better. Think about it: If you’re refreshed and fulfilled, have the tools you need to execute what’s best for both the guest and the business, and you proactively seek solutions to the day-to-day demands of your players, you can’t lose.

This article is brought to you from casinoplayerdevelopment.wordpress.com, sharing Helpful Ideas on Player Development.

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.

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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!

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Isn’t guest service more important than ever?

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As more and more casinos open across America, doesn’t it seem like providing a superior customer service experience would be the first thing existing casino operators would do?

Sadly, many casinos are hiring only part-time employees who aren’t invested in the long-term prospects of the property. This may someday extend to the Player Development department, where the effects could be quite dramatic and negative.

With more options available than ever, and with online gaming just months away for at least SOME casino players, how will you know what is happening to your very best players?

If you’re doing it right, your casino hosts will know. Prepare for and respond to threats to your business by utilizing Preemptive Reactivation.