Reinvestment Strategies for Slots and Tables
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1 Raving Workshops During NIGA Rewarding Your Slot and Table Games Players Are You Reinvesting Profitably? Monday, April 2 10:15AM 11:15AM Room 23B Speakers: Nicole Barker, Raving Partner Database & Loyalty Marketing and Eliot Jacobson, Ph.D., Raving Partner Table Games Operations and Casino Math Analysis Slot Promotions That Keep Players In Their Seats Monday, April 2 11:30AM 12:30PM Room 22 Speakers: Chris Archunde, Raving Partner Technology and Marketing Operations and Toby O Brien, Vice President of Marketing and Client Services, Raving Consulting Company Advanced Player Development Sales Models for Tribal Casinos Tuesday, April 3 9:00AM 9:45AM Room 26A Speaker: Steve Browne, President, Raving Service Please leave your business card with address to receive PowerPoints from these workshops.
2 Reinvestment Strategies for Slots and Tables Eliot Jacobson, Ph.D. & Nicole Barker Monday, April 2, 2012
3 Reinvestment Strategies for Table Games Sweet Spots for Casino Sweet Spots for Player
4 Table Game Play Incentives for Tribal Properties Tournaments Walk-in money RFB Discount / Quick Loss Promotional / Dead Chips Merchandise & Shopping Cash Mail / Free Play Match Play & Coupons Game Rule Modification Special Betting Limits
5 Incentives with Challenging Valuation Discount / Quick Loss Promotional / Dead Chips Cash Mail / Free Play Match Play & Coupons Game Rule Modification
6 Purposes for Table Game Incentives The usual and To keep up with slots As game starters To attract high limit play
7 TG Incentive Premium- Mid- Low- BJ Tournament X X Airfare / Walk-in X RFB X X Discount on / Quick Loss X Promotional / Dead Chips X X Walk-in Money X Merchandise / Shopping X X X Cash Mail / Free Play X X X Match Play & Coupons X X X Game Rule Changes X Special Betting Limits X X Free Buffet for 2 X X X
8 Table Game Player Valuation Who gets what? Theoretical Win (THEO) = (Average Bet) x (Time Played) x (Game Pace) x (House Edge)
9 Average Bet Not a consistent methodology or policy Some systems only allow one observation For proprietary games, hard to know Some games are hard: e.g. craps / roulette
10 Time Played Player cards not entered in a timely fashion Buggy systems (1 hr 7 min) Players not closed out in busy times
11 Game Pace Games move at a different pace depending on the number of players Paces are not reasonable for the game Games with higher limit players move faster
12 House Edge May not take player skill into account Utilization of side bets changes edge Some games are hard (craps) Game may not be understood by management
13 Table Game Player Theoretical Game Comp value earned (at 10% reinvestment of THEO) Comps Earned = Craps (Time Played in Hours) x (Average Bet) x 40 x 2.00% x 10% Blackjack Six Deck (Time Played in Hours) x (Average Bet) x 60 x 1.43% x 10% Blackjack One Deck (Time Played in Hours) x (Average Bet) x 70 x 2.30% x 10% Spanish 21 (Time Played in Hours) x (Average Bet) x 60 x 1.63% x 10% Three Card Poker (Time Played in Hours) x (Average Bet) x 45 x 3.50% x 10% Texas Hold'em Bonus (Time Played in Hours) x (Average Bet) x 30 x 2.50% x 10% Roulette (Time Played in Hours) x (Average Bet) x 35 x 5.27% x 10%
14 Table Game Player Theoretical Using a point-based system: Each table game has a Point Multiplier that gives the points per hour for a $1 bet POINTS EARNED = (Time Played) x (Average Bet) x (Point Multiplier)
15 Table Game Player Theoretical: Points Game Points Formula (at 10% reinvestment of THEO) POINTS EARNED = Craps (Time Played in Hours) x (Average Bet) x 36 Blackjack Six Deck (Time Played in Hours) x (Average Bet) x 34 Blackjack One Deck (Time Played in Hours) x (Average Bet) x 64 Spanish 21 (Time Played in Hours) x (Average Bet) x 39 Three Card Poker (Time Played in Hours) x (Average Bet) x 63 Texas Hold'em Bonus (Time Played in Hours) x (Average Bet) x 30 Roulette (Time Played in Hours) x (Average Bet) x 74
16 Reasons to use point-based system Players prefer transparent interactions & tiers Unifies point bucket for players who play both Unifies point bucket for couples Multiple point days apply to slots and tables equally Helps move threshold TG players up Helps set consistent reinvestment levels
17 Reasons to NOT use point-based system Doesn t fix problems rating TG players Table game players want discretionary comps Point system is hard to explain to TG players Points are earned at different rates at different TGs Free play at Slots & TG is different Slots aren t perfect either
18 Slot valuation has issues too: Basing points on coin-in penalizes some players Basing points on theo is too confusing Usually: theo actual, but Usually: theo and coin-in have weak correlation Points earned do not correspond to theo
19 Reinvestment Strategies for Slots
20 Key Strategic Steps to Setting Reinvestment for Slots & Tables Identify player profiles (segmentation) Match the appropriate marketing vehicles to each segment of players Deliver amenities that are relevant and sustainable Solve for variability is player valuation
21 Slots Player Profiles Joe Blow Frequent Low ADT, High Frequency Gabby Gamer Mid-level ADT Victoria VIP High ADT, High Frequency
22 Players Who Fall Through the Cracks Dashing Dan Playa Drops $100 one time Farmer Jones Plays $350 ADT quietly Red Hat Ladies Communities of players who game to enjoy each other
23 Slot Marketing Vehicles Rewards Direct Host Special Events/ Program Marketing Program Promotions Rewards and recognizes frequency and coin-in Rewards and recognizes play (ADT) Sales function that delivers a personal touch Generates floor excitement, anticipation, repeat visits, extended play, and inspirational rewards
24 Programmatic Handoff Worth Segmentation Low Mid-level High POINTS PROGRAM DIRECT MAIL HOST PROGRAM PROMOTIONS PROMOTIONS PROMOTIONS C U S T O M E R S E R V I C E
25 Direct Marketing Rewards and recognizes play (ADT) Rewards Program Rewards and recognizes frequency and coin-in Host Program Sales function that delivers a personal touch Special Events/Promotions Generates floor excitement, anticipation, repeat visits, extended play, and inspirational rewards
26 Slot Incentives for Tribal Properties Parking Low Cost FREE Play Valet Express Lines 2 for 1 High Perceived Value Free Tickets Free Buffet FREE Food Free Hotel CASH High Cost Low Perceived Value Ads
27 Amenities for the Slot Player What works Delivering free play through direct mail Training floor personnel to explain the value of a point Washing player windshields when they valet
28 Amenities for the Slot Player What doesn t work Delivering hotel and food offers as a tiered card benefit Handing out benefits once the player is in the door
29 Slot Player Valuation Pitfalls Muddying the waters for direct mail Using coin-in for direct mail Missing total monthly theo for PD Setting the appropriate thresholds between tiers
30 From Slots to Tables Player Profiles Joe Blow Frequent Low ADT, High Frequency Gabby Gamer Mid-level ADT Gary Grinder Low ADT Buddy Blackjack Mid-level ADT Victoria VIP High ADT Victor VIP High ADT
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