Kurt Gross TLG Gaming Ensuring the Success of Your Casino Promotions

Why Do We Create Promotions?

Generate additional revenue –Incremental play –Incremental trips –Cross-sell amenities Added value above and beyond product and offering Create excitement

Why Do We Create Promotions? Grow database Build/drive customer traffic –Maximize peak times –Increase off-peak Reward best players Keep up with competition

What are the biggest challenges for Marketing Directors?

Lack of time Being pulled in too many directions –Everyone needs marketing help “Buy-In” from Operations team –Lack of involvement (takes time) –Crammed down (being forced)

What are the biggest challenges for Marketing Directors? Lack of depth in support staff Lack of accurate data (financial, database/tiers, benchmarks) Staying in front of business needs Finding balance: –Creative brain vs. Process improvement

What are the greatest assets of Marketing Directors? Visionaries Problem solvers Energetic/Inspiring Risk takers Good multi-taskers

So What Does A Compromised Promotion Look Like? Little if any planning (not segmented) Nike slogan: Just do it! –“Just get it done, it starts in two weeks” ie: hurried execution demands Little/no financial analysis (pre or post)

So What Does A Compromised Promotion Look Like? No regard to timing (internal/external) Measurement is usually non-scientific: –“It was OK, we were pretty busy.” –“That was a flop. The floor was dead!” –“We were about as busy as last month.”

Elements of a Successful Promotion Accurate benchmarks (data) Proper planning (time) Superior creative execution (support staff) Internal communication (support staff) Accurate measurement (data)

Elements of a Successful Promotion Honest evaluation (support staff) Delivery on value proposition (support staff/buy-in) Guest experience exceeds expectation (support staff/buy-in) Desired outcomes are achieved (all)

Promotion Diagram

Promotion Sweet Spot

Promotion “Sweetest” Spot

What Success Looks Like

Promotion Basics Understand what segment of your database or player lifecycle you want to target/grow Understand what is valued in that segment – what do they desire – what is a “meaningful” payoff

Promotion Basics Anticipate the amount of growth/value Capture the data from this specific segment from the promotion Understand what types of promotions appeal to different tiers of players

Know What to Measure Cost of Player Acquisition “Efficiency of promotion” – % of prize money that goes to guests – Will vary by market

Know What to Measure Revenue Slot – Coin-in – Win-per-unit per day Table revenue – Drop as the value indicator

Know What to Measure F&B revenue – Covers – “Loss” per cover – C.O.G.S. (cost of goods sold) Hotel revenue – ADR (average daily rate) – Occupancy Rate

Know What to Measure Retail revenue – Profit margin Recreational revenue – Cost/Revenue per unit Guest satisfaction scores

Know What to Measure Advertising expenses Prize expenses F&B expenses Decorations Comps (rooms, F&B, other) Labor expenses

Know How to Measure Year over year Previous 3-week average Promotion vs. Promotion Revenue New player acquisition Theoretical and trip frequency Investment in marketing

Other Considerations Weather Seasonal visitation patterns Competition Other community events Staffing Physical plant changes (expansion, parking, construction, etc.)

Range of Likely Outcomes Pessimistic Anticipated Optimistic

Utilization of Analytical Templates Pro Forma Evaluation Process Improvement

Visit us at booth