One Saturday night, as I sat in the audience of the play Mama Mia, one of the ABBA songs that make up the popular musical's score struck me as highly appropriate for the gaming industry . . . "Take on Chance on Me."
We openly invite our players to take a risk, to spend their time and money on taking a chance that has a long shot at winning. And they do it, because gaming is their entertainment of choice, and they are willing to pay for it. Breaking even, and, yes, even losing some, is not seen as a loss, because these people have had a good time doing something they enjoy.
As I reflected on this, two others familiar phrases that also can apply well to the gaming industry came to mind: "To open, push here." and "Trust me, Charlie Brown."
"To open, push here." Can you imagine seeing any more horrifying words on a box, especially that oh-so-friendly and familiar box of macaroni and cheese? You know it is not going to work when you "push here." You know you are going to have to rip the entire top off the box. Yet you try anyway.
"Trust me, Charlie Brown" is one of longest running gags in comic strips. Every fall, Lucy brings a football outside to Charlie Brown and tells him to kick it. Every fall, Charlie Brown remembers that the year before Lucy pulled the ball away just as Charlie Brown was about to kick it, and he ends up flat on his back. Every time Lucy says, "Trust me, Charlie Brown," and every time he does, with the same result.
We all hope against hope that this time the little cardboard button will work the way it is supposed to and that Lucy will not pull away the football. However, as we all know, "push here" does not open the box - you have to rip it open, or use scissors, or a saw. And, unlike Charlie Brown, we all know that Lucy will pull the ball away at the last moment.
And every day, we in the gaming industry tell our players essentially the same thing, asking them to "take a chance," or "push here" or "trust me." For the most part, they do. But do they do it at your casino? And are they worth your effort to get them to take a chance on you?
Let's examine that second question first. In essence, just as your players "take a chance" on you, you are taking a chance on them, at least insofar as you spend time, money and other resources to attract them to your casino.
How much does it cost you to attract a new player? How much does it cost you to keep a player? Can you afford to "take a chance" on all of them? The economics make it clear that you cannot. How do you know which players to attract and which to keep? You must focus and expend your energy strictly on the players who will provide the greatest return for your efforts. Those are the players on whom to "take a chance."
Rank your players as A, B, or C. An "A" player is profitable and productive and forms a strong relationship with your gaming organization. "A" players need a place to play and will pay for the extra services you provide. They will also bring in new players through referrals.
"B" players have the potential to become "A" players within 12 months. "B" players may be new, but they should demonstrate all of the qualities of an "A" player in a short period.
"C" players will never have the potential to become "B" players. They are not profitable nor do they have the potential to change. Do not bother with them. If they come to your casino, of course you welcome them, and do your best to give them the value they deserve. But you do not actively pursue them, because they will just take resources away from uncovering new "B" players and retaining your "A" players. So, identify "C" players quickly and remove them from your list as they will do nothing but take away resources you need to turn "B" players into "A" players.
And how do you do that? Just as your power lies in identifying the best and the most profitable players to concentrate on, their power lies in their level of contentment with your services.
If you want to survive and prosper in today’s marketplace, you need to anticipate your players’ needs and respond quickly and efficiently. If you do not, your competition will seize the new opportunity and leave you behind. The fact is that your competitors are also looking for a better way to increase their performance, better serve players and boost profits, so you have to be a step ahead.
To stay ahead, you need to think inside the box!
As hard as it can be to open that box of macaroni and cheese, we do it because it is not the box we want, but what is inside. I often hear that gaming organizations stress Player Satisfaction. Satisfaction is the problem, not the solution. What should be stressed is Player Insistence. It is not customer satisfaction that makes Kraft macaroni and cheese the market leader, it is the customers' "insistence" that they have Kraft and no other brand.
It is not about price. It is not about the package. It is about what is inside. If that were not the case, we would have stopped cooking Kraft macaroni and cheese four generations ago. The box may be difficult to open, but the contents are the #1 comfort food in the country.
No matter how enticing the packaging, if what is inside is not satisfying, we find another brand. When Wynn opened their multibillion dollar casino, the box was the reason to see what is inside. Today, the newness has worn off but people still come, because what is inside gives players what they want in the way they want it.
Red Rock recently opened a billion-dollar casino. It was the most expensive Station Casino ever built, and that "box" attracted a lot of people. But today people come not because it is so big and expensive to build, but because of the service, accommodations and "Red Rock activities." Again, once the box is open, it is what is inside that counts.
When you get to know your "A" and "B" players and treat them like your number one priority, you will capture the market. And when you concentrate on keeping what is "inside the box" so attractive and compelling that it not only meets but exceeds your players' expectations, you will have Player Insistence® and the competitive edge to leave your competitors in the dust.
Here are Four Sure Bets for success as you implement these strategies:
Sure Bet #1: Embrace Risk
Do not be afraid to "take a chance," whether it is to cultivate a new group of players, cut off your "C" players or move a "B" player to the "C" list. You must embrace these types of risk both to ensure your resources are deployed most productively and to stay competitive and grow.
Sure Bet #2: Find and Exploit Your Differences
You must differentiate yourself from the competition. When you are surrounded by competitors that offer essentially the same product, even the smallest detail can become a competitive advantage. Find out what those details are, learn which are most meaningful to your players, then promote and build on them.
Sure Bet #3: Promote Often
You cannot risk your "A" and "B" players forgetting you. Remind them regularly of what you offer, how much value you give for their entertainment dollar, and what you do to make it even more worthwhile for them to spend time with you. The more "touches" you have, the more often they will return.
Sure Bet #4: Re-evaluate Constantly
Just because something has worked or is working now, does not mean it will always work. To stay competitive, you must continually evaluate your strategies and your players. Review your strategies and results and make any changes necessary to keep you on track. Also, keep an eye on your competition to see what they are doing, then integrate this new information into your tactics. Above all, never become complacent.
