Cash withdrawal data has been used as a proxy to evaluate frequent patrons’ loyalty and value trends for only a couple of years. Most busy casino marketers and hosts ignore its potential primarily because it’s not yet conventional. For this reason alone, it merits further consideration since gaining a marketing advantage has become both more important and, unfortunately, ever harder to do.

Good news! Using the payments data to create value for your casino has never been easier. Instead of trying to simply decipher payments data, DiamondStream now offers a monthly pre-segmented report that identifies the four key patron segments you should be targeting: 24k (those withdrawing more than $24k annually at your competitors); newbies (whose first withdrawal at your property happened in the past 30 days); loyalists (who withdraw more than 90% of their money at your property); and defectors (who are still gaming elsewhere, just not with you).

For now, let’s focus on where the biggest opportunity probably lies at your property: those who had withdrawals at competitors of more than $24k/year. There are four reasons to focus here first:

  1. These people often spend a vastly disproportionate percentage of their wallet outside your casino. Figuring out how to shift a portion of their wallet for even a sliver of these patrons can prove quite lucrative. One casino claimed that winning a higher percentage of one player’s wallet more than paid for the CSI subscription. Instead of the Pareto of 80/20 (where 20% of the people account for 80% of the value), it could be even more skewed in terms of where the incremental value for your casino lies.
  2. These patrons might also be gaming with other big spenders who you have not yet identified. For many, gaming is a social activity, and frequent gamers share their stories with others like them. Winning more of the hearts and minds of some of these high rollers (based on frequency and daily value) could lead to a positive knock-on effect.
  3. As you learn the reasons that kept these big players from spending their money with you, you may learn some lessons you can apply to players in lower tiers and increase your gaming revenue.
  4. There usually aren’t too many of these people to target, and thus it’s easier/faster/cheaper for you and your team to coordinate an action plan and measure the results.

“OK, but now what do I do with this data?”

Step 1

Pick up the phone! These patrons are all host-able. Regardless of whether they’re hosted or not, call them up and ask three questions:

  1. Since we want to be the best casino around, we’re keenly interested in learning from you: where else do you like to game and what do you like best about our competitors?
  2. What would it take on our part for you to give us more of your time?
  3. Since you’re an important client of ours, I’d like to personally give you [fusion_builder_container hundred_percent=”yes” overflow=”visible”][fusion_builder_row][fusion_builder_column type=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”no” center_content=”no” min_height=”none”][x and/or y and/or z] if you come by our property in the next [two weeks]. When should we expect to see you?

Sure, there are many other great questions, and it is fine to ask them. However, we encourage you to get your hosts to set a calling plan and to record the patron responses which should be disseminated to your GM, VP Marketing, and VP Player Development. Tracking this religiously will pay long term dividends, especially if you hear many of the same comments regularly.

Step 2

After the initial wave of calls, make sure the hosts are assigned the task of calling these players again in another 3 months.

You know there’ll be pushback to doing this of course. You’re likely to hear objections from some hosts, including these three:

Objection 1: “I know some of these folks, and they’re never going to spend more time with us because…”

You’re right! Some in this group you won’t convince…at least not right now. However, we’ve learned over the years that some folks simply are slow to change, no matter what the incentive. …but we’ve seen them change for reasons that might have nothing to do with your property (e.g., their host at the other casino retires), and they’re open to re-evaluating the relationship. Don’t you want to be the casino that’s been appropriately trying to woo them while they were loyal to another casino? We’ve found that these loyalists may change their loyalty to your property and become equally loyal to you.

So, the lesson is to be patient and persistent. As you cull the list, try to identify those who you should periodically check up on, and the good news is that this list is ‘slow moving’ in that the names on the list won’t often change. The updated payments data ensures that if someone no longer qualifies as being worthy of attention because their value falls, you can drop them off the list with no real effort.

Objection 2: “Some of these folks are already getting our maximum offers. We have nothing left to give.”

Really? If you knew for a fact that a patron had at least $24k of incremental wallet that’s being spent with your competitors, you wouldn’t want to try to find a way to woo some of that spending your way? Get creative and change the rules! Don’t go ‘upside down’ and create advantage players (who consistently receive more in benefits than their theoretical value) by over-comping. Do measure the behavior of all of the 24k patrons in a way that will enable you to easily see what the payback is. Some patrons want ‘more’, and that ‘more’ can easily be cost justified if the behavior change you seek is delivered. Some patrons may want something extra that’s not that costly, and may even be essentially free (e.g., a backstage experience with a musical group they adore).

Objection 3: “Some of these folks are ‘users.’ We can buy more loyalty, but the moment we take the extra stimulus away, they’ll shift their wallets back to our competitors.”

That’s true for some for sure since some folks are highly offer sensitive and anything but ‘loyal.’ But who cares? …so long as the math works out such that the expected ROI exceeds your casino’s threshold. You may indeed need to comp some folks more than others to ‘buy’ their loyalty. Don’t let your desire to attract loyal patrons get in the way of your need to operate a profitable business. If two otherwise identical patrons (in terms of value) have different offer sensitivities, that’s life. You can’t handle ‘one-off’s’ for the masses of customers you serve, but you can do so for the elite patrons with the most incremental value.

Conclusion

To recap, identify the high incremental wallet patrons who are already customers of yours with the help of a tool such as CSI. Get your hosts to call them. Record their answers to (at least) 3 questions and disseminate this information to the senior team in charge of revenues. Anticipate and proactively address some of the objections your own team will have to taking the steps above. Let us know how this works out for you by contacting us at [email protected], please. We love to learn what worked or didn’t work and why. Bon chance![/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]