Utilizing Self Service for Lotteries. Gilbert Cheng The Hong Kong Jockey Club November 28, 2012
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1 Utilizing Self Service for Lotteries Gilbert Cheng The Hong Kong Jockey Club November 28, 2012
2 2
3 Utilizing Self Service for Lotteries Agenda 1.About HKJC 2.Integrated Channel Strategy 3.Self service Channel Strategy, its Implementation and Achievement 3
4 About The Hong Kong Jockey Club (HKJC) A not-for-profit organization in Hong Kong Licensed to operate pari-mutuel betting on horse racing, lottery and fixed odds football betting HKJC was found in 1884 Lottery business started in 1975 Football business started in
5 Facing Challenges Facing challenges from direct and indirect competitions Casino Online Gaming Theme Park/Disney Need to be commercially run to maximize returns to the community Provide competitive product and service offerings Use a lower cost structure to deliver the services 5
6 Follow key marketing principles to ensure quality product and service offerings Place (Channels) Manage customer experience through touchpoints Product Ensure a comprehensive product portfolio that meets market needs Recruit New Customers The Three Rs Retain Existing Customers Revitalize Sleeping Customers Price Right take-out rate to optimize the bottom line Promotion Marketing programs appealing to targeted segments 6
7 An Integrated Channel Strategy Adopt a holistic channel strategy to deliver the best possible services to customers leveraging on the unique capabilities of different channels Potential Customers Shops Selling counters Self Service Terminals Customer Service Staff TV (interesting content) Cashbet Customer recruitment and migration Sports interest cultivation & customer education Services and fulfilment Interactive Services Internet / Web Mobile Devices Smartphone Account Customers Voice IVRS SMS Telebet Account Based Convenience Fund Transfer facilitation Secured transactions 24x7 hotline support CRM 7
8 Strategic Value of Self Service Channels Good Implementation Poor Implementation Customer Benefits Convenience Any time, any where, any means Fast and timely content Win Win Situation Operator Benefits Improve customer loyalty Better operations efficiency Lower rental, labour and ticket costs Customer attrition Loss of market share Brand erosion 8
9 The idea of self service has existed in many industries for years or even decades... 9
10 Self Service Channel Strategy The key success factors to drive self service are: Identify opportunities for self service Research what customer expects, wants and would like to see from self service Design the user experience Articulate to customers what's in it for them and educate them to use this channel as their preferred choice Balance the service mix between self service and human interaction 10
11 Self Service Implementation - Cashbet Full manual operations First self service terminal (CV) Self service Terminal upgraded to support Electronic Shroff Card (ESC) Self Service Electronic Fund Transfer (EFT) Introduced touch screen function to provide better user experience and reduce ticket cost Full Manual Operations Self Service Terminal (Cash Voucher) Electronic Shroff Card (Account Based) Touch Screen Input 11
12 Cashbet: Self Service Betting Terminal - Implementation Strategy and Results Elimination of Cash handling ( Cash Voucher ) Introduction of account based ESC card ( EFT ) Easy to use UI Active Promotion, Dedicated SVT zone, Lower minimum bet 40% transactions from self service betting terminals 60% self service betting terminals 123million transactions per year 800,000 Electronic Shroff Card issued 12
13 Self Service Implementation - Telebet Full manual operation : voice betting service First computerized Facilitate operator electronic terminal money for instant transfer transaction processing Increased capacity and enhanced call management to provide quality service IVRS Cost effective self service channel Cover most products Operator assistance available Manual Operation Computerized Electronic Fund Transfer Expansion to Satellite Centres ACD System Enhancement Automated Betting 13
14 Telebet IVRS Implementation Strategy and Results Lower minimum bet High accessibility Automated promotional message Operator cross-selling IVRS IVRS Transaction 23% of IVRS 50M in a year Customer Enquiries 5288 / 5888
15 Self Service Implementation Internet Based Channel Mainly Betting Basic Content Introduced Internet Betting Service One Stop Shopping Online Account Opening Transaction Processing Differentiated services provides flexibility and Enriched information different / customer convenience content segments ( eg Speed From P-cert to ekba Auxiliary services Bet (e.g. for higher value Electronic Fund customers Transfer, ) Online account statement) Differentiated Service Online Account Opening Browser Diversity (Security enhancement knowledge based authentication) Support additional browsers : Firefox, Mac Safari Enhanced Security Mechanism 15
16 Internet Based Channel Implementation Strategy Live Racing Webcast Service Full, Rich and Real Time Content and differentiated service Speedbet / speedy odds Differentiated service Football Betting In Play Centre
17 Self Service Implementation Handheld Devices Customized High performance Leverage with business Popularization of application PDA smartphone/tablet In-house developed partners to develop and more mobile phone available on Network speed handheld device devices Develop WAP based mobile phones advancement Link to telephone Enhanced line mobility Betting Service Supporting Apps development Overseas accessibility major brands on of common phone platform Explosive growth The first Customer Input Terminal (CIT) Joint Development of mobile betting device with external vendors Betting service on PDA and mobile phone Java Application on feature phone Betting Apps on Smartphone 17
18 Handheld Devices - Evolution proprietary device Customer-owned device Single purpose Multiple purpose Club-owned platform Open platform
19 Handheld Devices Implementation Strategy 4 G : Go Mobile, Go Social, Go Push, Go Gamify Go Social Go Mobile Optimize navigation experience Gamification Go Push
20 2000/ / / / / / / / / / / /12 channel share Implementation Results of Interactive Services (Internet Based and Handheld) +26% turnover growth vs 2010/11 43% turnover share Smartphone betting app achieved 8% share in 1st year of launch 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Non-Smartphone & Others Online (ewin) Smartphone 100% Self service! 20
21 Share of Self Service channels in the Club Branches & Racecourses Telebet Interactive Services Self Service Transactions : 60% of the total transactions (20% five years ago) Turnover Growth the same period : 30% 21
22 Overall Contribution of HKJC 22
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