Inside this Issue:Inside this Issue - Raving Consulting · Inside this Issue:Inside this Issue: ......

2012 Quarterly Issue #1

Inside this Issue:Inside this Issue:Message from the President ............. 2

Promotion Analysis Gaming and Non-Gaming ........................ 10-15

Leadership & Innovation ..... 3-9, 16-22

Don’t Think Your Casino Is At Risk? — Eliot Jacobson, Ph.D. .....3

How Player Development Is As Easy As Berry Pie — Nicole Barker .................................................................................. 5

A Promotion Is Born — Toby O’Brien .................................. 6

Are You Paying Too Much For Your Ad Agency? — Chad Germann .............................................................................. 8

Conquer Your System Fears — Chris Archunde ................ 16

Why Do Promotions FAIL? — Chris Wrieden ..................... 19

Personalization Of Your Direct Mail Doesn’t Mean “Dear

First Name” Anymore — Michael Hemphill ...................... 21

A Good Promotion Could Be Better — Winnie Grand ...... 22

A Gaming Executive’s Guide to Reading ....................................... 23

Save the Date ................................... 23

ravingconsulting.com

Raving Consulting | 475 Hill Street, Suite G | Reno, NV 89501 | Tel: 775-329-7864 | Fax: 775-329-4947 | ravingconsulting.com

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Dear Ravers,

My alcoholic beverage of choice is beer. And one of my favorite domestic beers is Sam Adams.

A short while ago, my wife and I joined some of my fellow Stanford alums in watching the Stanford-Cal football “Big Game” at the sports bar/restaurant of a Reno area locals casino. It was a perfect viewing area, with our game being on the single huge viewing screen (with full audio fi lling the room), and other concurrent college football games of interest scattered on the numerous other TV screens in this spacious auditorium-type setting.

And getting there early meant we had a “primo” viewing (and eating/drinking) spot. Perfect!

I noticed on a large banner in the sports bar that there was a special on Sam Adams Seasonal Lager. Buy a 12 ounce glass of “Sammy” and keep the commemorative glass. Even more perfect! I fi gured I could enjoy one of my favorite beers and do some Christmas shopping for one of my beer drinking buddies. A set of four beer glasses that you can’t even buy in stores!

I told my server of my intent to collect four Sam Adams glasses. She wasn’t sure if I could get more than one (Huh?). When she brought back my fi rst beer order to me, it wasn’t in the special Sam Adams glass, since I had ordered a “large” beer and the glass only came with 12 ounce orders (Huh?). Wow, a great promotion, with a very interested customer (me!), turning to crap right before my eyes.

It made me think about all of the other times that casinos try to delight their customers with some giveaway, some new off ering or some positive touch, and somehow succeed in just pissing them off .

Fortunately (and somewhat miraculously), another server took over our order and our table service. Our food order came out hot, tasty and promptly. We were brought glasses of water because “we might be thirsty.” The check came immediately upon request and payment was handled quickly and effi ciently.

And my Sam Adams glasses? Well, I left with four of them. One was a make-up for my fi rst beer order, when a “large” beer didn’t qualify for the free glass. The last one was complimentary, for a fourth beer that I never ordered. And all four glasses were taken out of fresh stock (I hadn’t drunk from the glasses) and individually wrapped and put carefully in a bag, to avoid breakage. All of this done with no request from me.

Another great example of a casino employee making lemonade out of lemons, or not letting the Sam Adams get fl at.

A Raving fan of Sam Adams and a great waitress in Reno,

Dennis ConradPresident and Chief StrategistRaving Consulting [email protected]

775-329-7864

MESSAGE FROM THE PRESIDENT

Cover models: Pictures taken in December at Raving’s Drive Revenue and Grow Business: An Advanced Sales Model for Your Host Department Conference. Thanks to Silver Legacy Resort Casino, in our hometown of Reno, Nevada, for hosting.


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LEADERSHIP & INNOVATION

Don’t Think Your Casino Is At Risk?Before you say you’ve got card counters fi gured out, read moreBy Eliot Jacobson, Ph.D.

Recently, I’ve been looking at a lot of new proprietary games for game protection weaknesses. I’ve long been interested in this subject, dating back to my decade of play as an advantage player. But now it’s just getting downright silly. Every time I turn around, I fi nd another game with a weakness. There’s hardly enough time to write the articles or do

the analysis to keep up with the opportunities. If I had started my play today instead of in the haze of card counting smoky, single deck games, I may have stayed the course. Instead, it has become an avocation to track these things down and fi gure them out. What’s clear is that the situation is becoming more complicated all the time.

For decades, the light of game protection has been focused on blackjack card counters. Dealers, supervisors, and manage-ment center their attention on the game that comprises the bulk of the tables and the bulk of the vulnerability. Maybe there’s good reason for this. The phrase “blackjack card count-ing” returned 966,000 pages when I did a Google search. The online retailer Amazon lists 311 books on blackjack card counting. The average gambler, when asked if there is any way to beat a casino, can recite “card counting” without skip-ping a beat, while admitting that you have to be really smart to keep track of all those cards (bzzzt), and that you can’t count a shoe anyway (bzzzt). Among the many movies featur-ing card counting are “Vegas Vacation,” “Rainman,” “21,” and “The Hangover.” A shift supervisor recently told me that the counters were each taking $500 to $700 a night from them (no way!). One casino I visited had an absurd policy to deal only one round from the single deck 6/5 game as protection against counting. It’s hard to get your mind off of card count-ing when information and discussion about it comes at you from everywhere.

While blackjack remains the center of the universe for game protection, management has long been aware of other seri-ous issues. Baccarat, roulette, and craps each have their own list of well known weaknesses. However, the modern pit is changing. Often there are more proprietary games in the ca-sino, in total, than there are traditional tables. As for these new games, very little is known about their vulnerabilities. For most

of these games, issues like card counting, shuffl e tracking, and hole carding have not been investigated or quantifi ed.

In the beginning, proprietary games were given a complete pass in game protection. The fi rst indication that something funny was going on came in the early 2000’s when Three Card Poker started getting hammered by hole card players. As soon as Shuffl e Master was made aware of the problem, they informed casino management of procedural and game protection options. Later, they introduced a new shuffl er to assist in game protection. However, many strong advantage players began their careers playing against this game.

By way of comparison with blackjack, Amazon lists only six books that discuss Three Card Poker, and only half of those discuss hole carding the game. But times have changed and Three Card Poker is yesterday’s news. With the explosion of new proprietary games and side bets, a much bigger edge is easy to fi nd.

You read that correctly – a much bigger edge is easy to fi nd. Almost every casino I visit off ers one or more proprietary games or side bets that can be hammered, if the conditions are right, in ways that blackjack card counters could only dream about. For the most part, casino management knows this may be happening, but they have no direct knowledge of the protection problems, and nowhere to turn to fi nd critical information about them. The chain of responsibility doesn’t have a link that can be relied on to uncover game protection issues. From the game inventor to its manufacturer to the licensing authority to the distributor to the director of table games to supervisors and pit staff to surveillance to the dealers, there is no one whose job it is to fairly judge the weaknesses of proprietary games and side bets, and honestly report them.

Having game protection weaknesses hurts the bottom line in another way – through the marketing department. Advan-tage players are usually some of the biggest bettors, generat-ing the greatest THEO. For these players, there is nothing quite as nice to inspire big bets as playing with a big, juicy edge over a casino. After a few sessions, the advantage player is getting comped rooms, shows, and fi rst-rate meals. In a few weeks, those mailer off ers with free play and match play cou-pons start arriving. When reacquisition marketing kicks in, the advantage player gets a second wave of free stuff . Advantage players boast about their comps with pride, in many cases holding them up as victory trophies.


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The success of the MIT blackjack teams of the 1990’s showed advantage players that publicity for the methods they use is not a good thing. Modern advantage players keep their discoveries secret. Ways of beating proprietary games are rarely discussed on forums or message boards. There are no books or how-to manuals. Amazon and Google each give zero hits. There is no movie featuring a hole card team beating a modern casino table game. New vulnerabilities are shared among select groups with carefully guarded privacy. Casino management is rightfully suspicious and hungry for answers.

My advice is to fi rst deal with the games already in your casino. Use the mindset of an advantage player to ask yourself if the game can be beaten. Be fl exible and open minded and assume the answer is always yes. Don’t be afraid of a game just because you fi nd a weakness. The problem may be small. There may be an easy fi x. There may be far more serious problems that need your attention. With this information, cre-ate improvements to your policies and procedures, revise the equipment and layout if necessary, and educate your staff .

Next, don’t put in a new game until you are satisfi ed that you fully understand it. Along the way, ask the vendor a few ques-tions. Is the game vulnerable to advantage play? How? What should you do to protect it? What have others done to protect it? What are the “tells” that indicate something funny might be going on? What operational issues have other casinos had with the game? Ask the vendor to demonstrate to you that they have done their due diligence. Most have not.

Casino management knows there are issues, but has no way of putting these vulnerabilities in relative terms. All weaknesses are treated equally. It is much easier to take out a game with a known weakness than to consider the potential weaknesses of every game and take appropriate relative actions. Overreaction is common. It is precisely for these reasons that the focus remains on blackjack. The game of blackjack is known. Its vulnerabilities are well documented. Game protection for it is understood. It is straight forward to catch card counters. But as long as the spotlight remains on blackjack, no real progress is being made. It’s time to take that spotlight off of blackjack and let it shine on all your games.

What’s Happening at Raving Online?Where can you fi nd in-depth articles on marketing reinvestment, loyalty programs and players clubs, using food as a marketing tool, and combining sales and guest service? Look no further than our archived article section online, and if you can’t fi nd it there, just email us at [email protected]. Check out our news page for up-to-date information on our partners, including CSG Direct Mail, Raving Contests powered by SportGame and Red Circle Agency.

Check out the latest news, events and case studies by going to www.ravingconsulting.com. Have you missed the latest Flash! Report, Perspectives News-letter or Solutions Magazine? Archived copies are at your fi ngertips. And don’t forget, you can follow us on Twitter and Facebook – you don’t want to miss any exclusive off ers!

http://www.sportgame.com

http://www.csgdirect.com

http://www.csgdirect.com

http://www.redcircleagency.com


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How Player Development Is As Easy As Berry PieHow to pick out the choicest players from amidst the bramblesBy Nicole Barker

Have you ever been blackberry picking?

If so, you know why the most visible berries may not be the tastiest.

There’s a reason why there’s a two-foot rule. Don’t concentrate on the lowest berries, the ones that are most easily seen by the eye. If you

can readily see the fruit, then you’re most likely in the pee zone of all the four-legged friends in the neighborhood. These are your known players – the ones who come every day. More often than not, these players are comped indiscriminately. They know the hosts, the hosts know them, and the path to all your amenities is paved in gold.

Higher up the brambles, the birds have raided the outer harvest. This set of players plays the fi eld. They are comped at all the properties in the vicinity, and the game transcends the slot machine to which property can divvy out the most to win short term favor with this savvy VIP.

Skilled berry pickers know where to look. Skilled berry pickers know that it’s the feel of the berry as it releases from the stem that defi nes its fl avor. Sight can be decep-tive. Players you know, players you hear from regularly, players who’ve been around for a while are a host’s low hanging fruit. The host naturally knows what to do; his charm kicks in to gear and the relationship is maintained.

Analytics allow a player development organization to feel their way to the choice berries: the players ripe for further courtship, the players on the rise to their optimum poten-tial. Hosts need not get their hands too dirty to deploy a set of simple tools that will cull out the choicest fruit.

How do you harvest data to keep your player develop-ment folks from getting scratched by the brambles?

Aim for the Middle

Hidden in the middle of your worth segmentation are players on the rise. These are the gaming athletes who have yet to make themselves known. This moves beyond a data pull that solely looks at your players from the top down. This requires looking at the acceleration of loyalty.

Who has signifi cantly increased ADT and Frequency over the past weeks and months? Your tiered card system may have yet to kick in because the player has not yet earned enough points to break in to your upper tiers. However, whose play has put them on track to get there? Can your player development folks intervene sooner?

Defi ne Sweet Spots and Thresholds

A Sweet Spot is a segment of players who contribute a greater percentage in worth than the size of their cohort. You can wrap your arms around this group, and it’s aff ord-able to reward and incent them in some way.

A Threshold is a small group of players who are on the cusp of change. This player has the potential to give a bit more in Theoretical, or generate a few more trips per month with the proper incentives. Incent them eff ectively and they will cross over in to one of your Sweet Spots.

Set Triggers Based Upon Behaviors You Favor

The fi nal data trick starts with a qualitative evaluation of player behaviors that you like. What games on the fl oor are the most profi table? What market serves the greatest loyalty: local, regional, or national? What age range falls within your Sweet Spot and Threshold cohorts? Would you rather infl uence players who have a high ADT and Low Frequency, or fi ght for a higher ADT from your High Frequency folks?

If a player demonstrates a behavior that is indicative of how your existing best players play, then run regular que-ries to fl ag these prospects. Your other reward programs like Direct Mail, Points, Tiered Cards, and Promotions may not catch players who are potential VIPs quickly enough. Set triggers in your database that let the creamiest be-haviors rise to the surface. Let your hosts pounce on these opportunities.

Sales leads are the juiciest berries that a player develop-ment professional should seek to harvest. Write regular queries to line up these opportunities so that your player development team can focus on outreach and courtship, instead of sifting and searching. The best berries are ripe for the picking if you know where to look.


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A Promotion Is BornHow a little fl our, water, and newspaper can drive more play on your machines. Really.By Toby O’Brien

Casino marketers are always asking me where to get new ideas for promotions. “It seems like it’s all been done.” “It’s hard to come up with new stuff for our locals.” “Our programs are stale and we don’t know what else to do.”

Let me tell you a story about the birth of a promo-tion … it all started with pheasant hunting.

Last summer, I was visiting a client in South Dakota. Over breakfast, Michael Peters, CEO of the Dakota Nation Gaming Enterprise, said he had an idea he wanted to share with me (That, by the way, is one of my favorite conversation starters!). Mike has been a business associate and good friend since my earliest days in gaming consulting … a member of the Squaxin Island tribe in Shelton, Washington, he has held execu-tive management positions with tribal casino properties in Washington, Idaho, and the Dakotas. Mike is also an operations guy who understands the value of spending marketing dollars to drive revenue.

So, Mike tells me that it would soon be pheasant hunting season in South Dakota, which prompted him to make a pheasant.

Not sure how to go about this, he decides that he can make the pheasant from whatever materials he can fi nd in the temporary home he is renting. Somewhere in his “always a Boy Scout” brain, he thinks he remembers how to make papier-maché. So he throws some fl our, water, and newspaper into a bowl, mixes it up, and after squeez-ing and shaping, “Voila!” He’s got himself a pheasant … that looks like a seagull. He adds some stain left over from a hope chest he made for his granddaughter and some paint he fi nds in the garage and, amazingly from memory, he believes he’s created a pretty decent replica of a pheasant.

And he pulls it out of the plastic bag sitting on the seat beside him.

For those of you not from pheasant country, here’s what a real pheasant looks like:

Impressed? I was.

Now, Mike has the idea that this would be a great way to involve his employees at the Dakota Sioux Casino. His plan is to invite staff members to create their own pheas-ants with a contest for the best design. And, what did I think of that?

In about fi fteen minutes of animated conversation, we developed an entire promotion. The employees would participate in a “design-a-pheasant” competition. Pheas-ants would be displayed and casino patrons would vote on the best pheasants. And players club members could earn drawing entries by playing their favorite slot ma-chines, with the winners selecting an employee-created pheasant and winning prizes associated with each (cash, hunting paraphernalia, hotel stays, food). Yes, as simply and oddly as that, a promotion was born.

What does this mean for you and your casino?

It means that when your marketing staff is feeling creativity-challenged, just about ANYTHING can become a promotion. Let’s face it; there are really only fi ve promo-tions:

Photo by Toby

Photo courtesy of Wikipedia


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1. Drawings based on entries earned through play.

2. Hot seat drawings based on randomly selected play-ers’ cards, machines, or seats.

3. Threshold promotions where players earn a desig-nated number of points and get a gift.

4. Free gift off ers meant to drive visitation on certain days.

5. Daily swipes/entries off ering contests or kiosk games that have instant winners and/or long-term winners of weekly and monthly prizes.

Everything else is an iteration of those concepts. You can make drawings progressive by off ering bigger prizes throughout the day, week, or month. You can make the promotions more exciting and interactive by having winners play a game for a chance at a variety of

prizes, rather than just handing out cash. You can set a minimum play requirement for hot seat eligibility (with the right technology). You can off er more entries to higher tier players, or give higher end players a chance at bigger and better gifts. You can reserve valuable prizes for a VIP event. You can let customers pick the winning football teams with SportGame, play Pun-chout with SCA’s insured promotion, or swipe every day for a guaranteed prize. And you can build these concepts around any theme you can dream up.

So, when you’re feeling stymied or stuck or stale or even brain dead, sit down with a group of people – your staff , frontline employees from other depart-ments, players, or even a consultant – and brainstorm ideas. You can always come up with something and then turn it into a promotion.

Even a papier-maché pheasant.



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Are You Paying Too Much For Your Ad Agency?There are two ways that creative agencies make too much money in the casino business. This article is about the second.By Chad Germann

Look, when dealing with “creative stuff ,” I know it’s easy to get lost and con-fused, and buy the exact opposite of what you think you’re buying. Creative agencies make money the same way as any other service business: Find a company — or a casino — willing to pay them for pro-viding a creative service, like producing television ads or designing database mailers. And when the agencies are doing their best creative

work, it is worth the money. Strong creative, in service of a smart brand idea, can drive people through the casino doors. But what you need to be aware of is agencies that are selling you their best “factory-made widgets,” rather than the original, creative labor you’re looking for.

OK, what do I mean by a widget?

A widget is a generic creative idea — or design template look — that works for your casino, works for the casino down the street, works for any casino. Like a widget stamped out at a factory. If your casino creative looks 85% like everyone else’s, your creative is a widget.

Now you may ask, why don’t I want to buy a wid-get?

The widget seems like an easy-to-use creative idea. Doesn’t require too much time or cost, etc. That’s true — but that’s not the point of marketing, is it? Marketing should tell the story of your product IN CONTRAST TO your competition, and strong, creative marketing gives consumers a reason to WANT YOUR PRODUCT, BECAUSE THEY UNDERSTAND THAT YOUR PRODUCT IS DIFFERENT AND BETTER. That’s marketing in a nutshell. Now try and fi t that nutshell into the widget paradigm; it doesn’t work. Being the same, selling the same thing, DOES NOT SELL YOUR DIFFERENCE, does not give consumers a reason to think/feel that your product is better. Think about how successful Apple would be if they marketed their prod-ucts in the exact same way as Dell computers. Wait ... Dell is out of business, isn’t it?

So now you are thinking ... How do I know if my agency creative is a widget vs. original creative?

Well, most people are not trained to think about the “science of advertising,” and therefore, they don’t know exactly what to look for. If you want to fi gure that out for your casino, here’s a tip. Collect a bunch of your marketing materials; put a sticky note over your logo. Ask yourself — and be honest — could this marketing work just as well for another casino? If the answer is yes, your creative is a widget. And that means your marketing is missing the target, and losing current profi ts and probably future revenues. You probably know just how much your casino spends on marketing, so think about that, and ALL THE REVENUE THAT MARKETING WOULD DRIVE IN YOUR DOORS IF IT WASN’T LOST INSIDE A WIDGET. How much is THAT?! (Could be a big ouch!).

As I said, agencies are trained to understand the “science of advertising”; they know the diff erence between good creative and generic creative, so why would they sell you a widget? Unfortunately, the answer is business math and profi t. You see, to create anything for your casino — a tailored design look, or a creative brand idea, or even a billboard headline — costs the agency labor hours. The better the idea, the better the work, the more expensive the labor. The agency makes their money — like any business — on the diff erence between the cost of the creative labor and what they can charge for the service. After costs and overhead, 20% to 30% is the norm for a well-run agency.

But what if the agency produces an idea for Casino A, and then sells it again to Casino B; the labor costs don’t change, but profi ts can double! Now imagine the agency that operates on a pure profi t philosophy by selling that same labor ten times. Sadly, many agencies are really, really good at this; just look at the evidence of their work. They are selling the same work over and over again ... nothing original, all widgets. Does the widget provide the casino with eff ective, creative marketing? You know the answer is no. Is this best (honest) business practice on the part of the agency? No, but it is profi table for the agency, but rarely for the casino. You accept that your agency has to make a profi t ... but 90%?

Creating a widget is not exclusive to outside agencies … remember the “science of advertising.” So what if you do your work in-house, but when you do the sticky-note-test, the creative still tests as a widget? There are tradition-ally three possible answers for that:

1.) The marketing team may be taking direction from an executive group, which means decisions are being made


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by a dedicated group of non-marketing, non-creative businesspeople trying to do what they think is best for the casino. Businesspeople, especially when they are organized into large groups, often make the traditional decision. Which is to say, they look at their competition’s marketing and say, “Do it like them, but do it a little better and please try and stay within the budget.”

2.) The creative marketing team is made up of traditional casino marketing people fi rst. Which means their job is to market the casino fi rst, and build a creative brand second. These people are often very loyal and dedicated, but they are self-taught. Like the executive group, they look around and try to do what the other casinos are doing, “but a little better and within budget.” And the result ... a widget.

3.) The marketing team is “lost” and frustrated, or they have no real creative talent. Widgets are easy for agencies to replicate, and likewise easy for in-house teams, too. Need a new billboard? Change out the colored back-ground of that old design, change “Play and Stay” to “Lots of Slots,” and done ... quick, easy, and safe! But does the billboard tell anyone why your casino is diff erent and bet-ter? Is it fresh and interesting, or will someone look at it and at the very least notice your logo in the corner? If the in-house team feels overwhelmed or they are just not the creative types ... you get a widget.

Now I hear you say ... what’s the answer, then? The answer is:

1. Do it as a team, do it with the right people, and give them the tools and support they need.

2. Find a new agency.

3. Limit (with respect) the infl uence of the executive group and help your in-house team become creative and fresh.

4. Figure out what makes you diff erent and special, either on your own or with the help of an agency that has a track record for fresh and interesting ideas.

5. Recognize the advertising factories that pump out the same sort of casino advertising everywhere they go.

6. Search for real, true points of diff erence at your casino and fi ght for them. The CEO and the GM think they want to highlight the “excitement of the slot machines” because they don’t understand the “science of advertising” and why widgets are wasteful. Fight for what’s original and show the CEO and the GM why.

7. Then, partner with the most talented, creative people you can fi nd to fully execute the idea. If you can only aff ord to have them do it once, that will work. Take the work they created for you and have your in-house team pick up the idea and run with it. And by great creative, I don’t mean the biggest or most expensive agency either, although, plenty of big agencies are great. I mean the agency that’s winning the awards at the regional shows; the weird stuff , the stuff that makes you laugh, the stuff that when you saw it, you couldn’t forget it. Imagine if your creative marketing ideas were made of the stuff people couldn’t forget.

Remember, great creative doesn’t happen just because your bosses ask for it, and give you some budget dollars. It requires a deep understanding of your product, your market and your audience (this is what you, the casino staff , bring to the table) and ... cutting edge creative tal-ent from either in-house or a good, creative agency. And perhaps most importantly for all parties involved ... the strength of will to be diff erent, even though being diff er-ent can be scary. Nothing good will ever happen if your goal is: “Make it like the other casinos, but a little better and completely within the budget.”

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CALIFORNIASan Manuel Indian Bingo and Casino

(Highland) – Rock ‘n’ Roll Bingo

Photo: KCAL 96.7

Keeping Bingo not only alive but rockin’, San Manuel combined a massive session of Bingo with a success-ful attempt to set a Guinness World Record for Largest Air Guitar Ensemble. Teaming up with supporting radio station KCAL 96.7 ROCKS!, 2,377 fans, all pre-qualifi ed through the radio, gathered to play Bingo and air guitar (the Hall capacity is 2,500). Celebrities invited to partici-pate in the celebration included former Raiders legend Tim Brown, Air Guitar Hall of Famer Björn Turöque, KCAL DJs, and a live Ozzy Osbourne cover band played before and after the games. There was no buy-in fee for Bingo, but ten standard games were played; the fi rst nine paid $1,000 each to a single winner, and the fi nal game paid the winner $10,000 in cash. San Manuel continues to leverage their relationship with KCAL with a Football in The Pines promotion that takes place in The Pines lounge every Monday night during football season. Radio DJs Stu, Jimbo and 4orty host the event, where they give away $300 in cash prizes each week, reward $500 at halftime in their Sportswatch Calendar Model Search, and invite guests to participate in their football pick-the-winners contest to try for up to $250,000.

“For the past fi ve years, I have organized Bingo University for the BingoWorld Conference. The presenters are always looking for new ideas to share with Bingo managers from around North America who are running halls in casinos, non-profi t venues and stand-alone properties. The challenge is that Bingo, which had for many years been a mainstay in raising charity dol-

lars in the U.S. and Canada, and was the sole support for numerous Native American tribes, hasn’t been able to keep up with the prolifera-tion of slots. So San Manuel’s concept was a breath of fresh air for this dying game and not only created a one-time event, but succeeded in introducing Bingo to a wide demographic of KCAL-FM rock followers, especially the younger generations, who will hopefully continue to be tomorrow’s players.

“In this case, the public relations event was not designed to drive Bingo revenue (participation was free), however many types of large-scale Bingo events have been successful at fi lling Bingo halls and driving Bingo revenue with package pricing that promises larger-than-usual game prizes. And, one would assume that put-ting over 2,300 people in your Bingo Hall would result in some cross-over play at slots and table games. I would hope that there was a follow-up plan in place, such as collecting email and cell numbers from participants so that they could be contacted for a future paying event … such as Cosmic Bingo, the ‘crazy lights and sound and fun’ format that appeals to the Gen X & Y group.

“Plus, be sure to note the ongoing relationship with their sponsoring radio station. It’s a great way to stretch mass media marketing budgets and leverage public relations opportunities with the DJs.

“Thank you to my friend and marketing writer, Amy Fanter, for making sure I didn’t miss this one. And as Amy said, check out the photo – all ages, all types of people – after all, who can’t play air guitar?” – T.O.

MONTANAThe Cellar Casino (Miles City) – 100 Bottles

of Whiskey on the Wall

Actually, that would be 650 ornamental Jim Beam whis-key bottles on display at The Cellar Casino, out of the ac-tual collection of 1,174 bottles. When the casino’s owner, Denis Leidholt, rebuilt the casino after a fi re destroyed three buildings on Main Street, he also recaptured a piece of the history of Miles City. Salvaged from the original casino building were cast iron columns, bricks used to decorate the bar, and the steel door to a walk-in safe that

PROMOTION ANALYSIS GAMING AND NONGAMING


11

has now become part of a wall. An artist and designer created scenes depicting images from the history of Miles City, laser cut from black stainless steel that sits atop the inner walls of the slot room. At the same time, the exten-sive collection of Jim Beam bottles, the designs of which represent hunting, fi shing, politics, transportation, various states, birds, historical fi gures from the American West, and more, was purchased and special display cabinets were built, lining the walls throughout the property.

“When you think about it, pretty much all casi-nos are the same. Add the unique limitations to Montana commercial casinos (no property can have more than 20 video gaming machines), and it’s very likely that each one of those casino venues in Montana off ers an almost identical product. A few add gas stations, some off er small restaurants, others are liquor distributors, but most provide the 20 multi-denom video poker and keno devices, some snacks, and a few pro-motions. That is to say, Montana casinos have the same challenge as casinos in any competitive jurisdiction … how to stand out and off er a dif-ferentiated experience.

“The Cellar has created its own niche by giving guests an opportunity to feel the history of the area, and to enjoy the outstanding and fascinat-ing Jim Beam collection. I visited the property in September and was awed by the beauty of the bottles and the stories that surround each individual design. Even without gambling in mind, The Cellar calls to tourists and gives locals a special place to bring their visitors.

“What unique off ering do you have at your casino? What says, ‘You have to come here to get …’ or ‘This is the only place you can try …’ Is it a specialty food item? Antique slot machines? A few slots that still accept and pay out in coins?

The most comfortable mattresses and pillows on earth in your hotel rooms that you can buy at the gift shop? Find something outside of the gam-bling experience that calls to visitors in a unique way and you may fi nd your newest acquisition tool.” – T.O.

NATIONWIDECaesars Casinos – Seven Stars® Signature Events

Each Caesars Entertainment casino property holds a “Sig-nature Event” for its top tier of casino customers, which is the Seven Stars® level. Recent Signature Events included:

• Harrah’s/Harveys Lake Tahoe (Stateline, NV) – event included up to four nights of accommodations, entry into the $50,000 Millionaire Maker Slot Tournament, a Lake Tahoe beach luau brunch, and a choice of one Tahoe Adventure Activity (Miranda Lambert Concert, Thunderbird Lodge tour/wine tasting, horseback riding, yacht tour of Emerald Bay, Heavenly Ski Resort gondola trip), or $175 free play.

• Harrah’s New Orleans (New Orleans, LA) – event included three nights of accommodations (with two diff erent dates to choose from) and “All-Access Admission to Five Exclusive Events,” including a seafood extravaganza welcome party on the banks of the Mississippi, Bloody Marys and dinner with Archie Manning, a ride in an authentic Mardi Gras Parade with a VIP balcony party/dinner and a beignet and café au lait classic New Orleans breakfast.

“I have followed Caesars Entertainment’s Seven Stars® Program now for years (I have several ac-quaintances who are members at that level) and certainly they are excellent at executing a high end loyalty program, and these property ‘Seven Stars® Signature Events’ are an important part of it all. But there is a lot more to it than just a bunch of fancy events, no matter how attractive they might be.


Photo: Billings Gazette


12

“Caesars ‘gets’ high end loyalty marketing and these Seven Stars® Signature Events fi t into that strategy, which is very comprehensive, and very strong. From my perspective, these are the other hallmarks of Caesars’ Seven Stars® success:

1. High end is really high end – Seven Stars® members have an annual value of upwards of $100,000 to Caesars.

2. They celebrate their customers’ Seven Stars® status – when a Caesars player fi rst reaches Seven Stars®, they receive an impressive, glossy welcoming package listing all of the core benefi ts and what they can expect in the coming year. And they throw a celebration aff air for Seven Stars® members who re-qualify for their status for another year.

3. They leverage their entire Caesars network – Seven Stars® members can go to a fancy chefs’ event in Atlantic City, get spoiled on a yacht in Lake Tahoe, or go to a high end cigar event and celebrity concert in Tunica. They really don’t care at what cash register the top players deposit their money, and this opens up an array of options that other competitors can’t match.

4. They load the Seven Stars® status with numerous attractive options – Seven Stars® members receive an annual trip to a Caesars casino of their choice. An annual celebration dinner worth $500. A complimentary annual cruise on Norwegian Cruise Lines. An annual gift selection from an exclusive catalog. A companion Seven Stars® card for a spouse or friend. And this is all on top of the usual free stuff a high roller receives – rooms, food, shows, invitations, a personal host.

5. Caesars allows numerous choices – want $175 in free slot play? You got it. Don’t ski or ride horses? Hey, sure you can go to a concert. Prefer Lake Tahoe to Reno? No problem. These choices make Seven Stars® players feel like they are in charge of their benefi ts.

“So your casino doesn’t have any $100,000 annual THEO players? That’s OK, just take the principles of Caesars’ wonderful Seven Stars® program – exclusivity, class, choices, value adds, and ease of use – and adjust them to your market and your goals. And don’t forget to include some strong relationship building executives into the mix. Now that’s a formula for loyalty!” – D.C.

Various Casinos – “Stuff ” That Works

A recent review of direct mail samples from across the country revealed some unique uses of merchandise and goods as casino promotional incentives:

• Hard Rock Hotel and Casino (Las Vegas, NV) – had a number of “play and get” giveaways:

o “Football Platter” (one free and a second earned with 250 points of play) – a serving dish in the shape of a football

o A Bottle of Jagermeister (one free and a second earned with 250 points) – a 375 mL bottle of the well-known liqueur

o An All Weather American Flag (one free, 250 points for a second) – a 3’ by 5’ high quality Old Glory

o A Pumpkin Pie (free) – given to certain Rockstar Club members on the Tuesday or Wednesday before Thanksgiving

• Golden Casino Group (Black Hawk, CO) – had a weekly giveaway in August where earning 400 points got players club members a collectible doll (diff erent doll each week)

• Station Casinos (Las Vegas, NV) – in its annual tradition, all Station Casinos in Las Vegas gave out a free pumpkin pie to all Boarding Pass members from 10 AM – 8 PM on the Wednesday before Thanksgiving

“I know, I know. Players want ‘time on device,’ and when given a choice of rewards, will over-whelmingly choose free play or cash back (which allows them to have ‘free play’). But over the last twenty-fi ve years, I have seen enough examples of ‘stuff ’ driving casino business. Not all stuff , but the right stuff . Built around solid core business principles.

“For me, when I was in the marketing trenches, it was collectible coins, T-shirts and jackets with the casino’s logo. Over the last ten years of my consulting business, it has been numerous items that have driven business for clients – collectible dolls, trinket boxes, dinner serving sets, War-dynski hot dogs, summer beach items, pumpkin



13

pies. Especially pumpkin pies. Especially before Thanksgiving or Christmas.

“Part of me is mystifi ed why many casino cus-tomers will play (often play more) to get ‘stuff .’ Part of me says it must be a throwback to child-hood and warm feelings from prize arcades. Whatever, you shouldn’t fi ght it, but accept it and try to leverage it as part of your casino marketing strategy. Here are what I think are the important principles in using ‘stuff ’ to drive casino business:

1. Make sure it’s the right stuff – part of this is trial and error, and part of it is staying piped in to feedback from your best customers as to what stuff they’d like to see.

2. Make it good stuff – it doesn’t have to be expensive, but if it’s a T-shirt, make it a good T-shirt.

3. Don’t be just a ‘stuff casino’ – a good host program, friendly employees, solid direct mail, value-adding casino promotions and other marketing tools are also very important, so don’t just become a ‘schlock merchant.’

4. Get enough stuff – and if you ever run out of a highly desirable item, be sure to make it up to your players who were shut out.

5. Don’t kill yourself warehousing the stuff – many quality vendors can help you do this and save you from becoming a retail merchant with all of the stocking, inventory, storage, and product pipeline issues.

6. Make sure the stuff drives the gambling behavior – except in rare cases (e.g. thank you gifts before the holidays), use a reasonable ‘play and get’ formula for the stuff getting, rather than a ‘just come in and get.’

7. Do a pumpkin pie giveaway on the two days before Thanksgiving – it has always worked for Station Casinos, and that company is very ‘locals savvy.’

“‘Stuff ’ works. Follow these principles to ‘stuff ’

your gaming coff ers.” – D.C.

NEW JERSEYTrump Taj Mahal Casino Resort (Atlantic City) –

Nip, Tuck and Lift Sweepstakes

In an attempt to “change the face of a typical casino promotion” (the Associated Press quoted SVP of Market-ing for Trump Entertainment Resorts, Kathleen McSwee-ney), Trump Taj Mahal created the Nip, Tuck and Lift Sweepstakes. Players Club members received virtual entries based on points earned throughout the month of October. One lucky player, present and playing with a club card at drawing time, was selected to win $25,000 worth of plastic surgery, or he or she could choose the same amount in cash. Surgical procedures, such as breast enhancements or reductions, tummy tucks, liposuction and face lifts, could even be mixed and matched up to the total prize amount. The promotional concept was to off er customers the chance to get some work done with-out spending their own, hard-earned money to do it.

“Casinos are always searching for ways to tweak promotions in order to make them unique and their own. Apparently, a review of the Atlantic City casino’s database revealed a signifi cant number of players of the age where cosmetic surgery would be appealing. Then again, what casino doesn’t have this demographic?

“The question posed by the media was: is it ethical to off er a promotion that pairs poten-tially compulsive behaviors … too much plastic surgery and too much gambling? One might imagine that the price of cosmetic surgery could be an incentive for a little more gaming (arm lift: $5-6K, Botox: $200-$400 per area, breast augmentation: $5-8K, lipo: $2,500-$10,000, face lift: $7-9K, nose job: $5-6K). My concerns were the potential lawsuit issues that might arise from a botched surgery. Not to mention the nasty looking imagery in collateral graphics! But hey, it certainly is an original concept, and as we in the business all know, most winners take cash anyway. (Hmmm, to display a Hummer on your slot fl oor or photos of a boob job…).



14

“Here’s another example of a promotion that capitalizes on the human condition: Seminole Casino in Coconut Creek, Florida, celebrated the last Mardi Gras with ‘Fat Tuesday Worth Your Weight in Free Play.’ Selected winners were invited to step up on a scale and receive two dol-lars in Free Play for every pound of their weight. Winners choosing not to reveal their personal secrets received an automatic $50 in Free Play, a Shake Weight (I wonder if demonstrations got them bonus play?), and a home workout video.

“So, what could you do for your next promotion? Speech therapy lessons if you can’t quite get rid of that Brooklyn accent? Select winners to participate in wheelchair and walker races with shiny, new transportation equipment as prizes? Earn the most points in a month and receive free oxygen tank refi lls for life? Ahhh, the possibilities are incredibly strange, but seemingly endless.

“Thanks to Scott Gothberg, Bingo/Pulltab Man-ager at Mystic Lake Casino, for the tip on Nip, Tuck, and to Amy Fanter of Odds on Promotions for bringing Fat Tuesday to my attention!” – T.O.

NONGAMING BUT COULD BECarino’s Italian (Reno, NV) – Bag This Dinner

As part of its Anniversary Celebration, Carino’s Italian Restaurants in the West included a white, lunch-sized paper bag as an insert in the daily newspaper. On the bag (in bright red letters) was an off er for a free dinner (up to $9.99 value) and a bag of “signature pasta” (uncooked, to take home) if off er recipients brought the bag to a Carino’s in the next three months. There was a limit of one bag per table per visit and the off er was not valid for “To Go” orders.

“Well, here’s another promotion from outside the gaming biz that just might have some applica-tion. And although home delivery of newspapers appears to be disappearing from society’s land-scape, this Carino’s promo just might be worth a try.

“I liked several things about this ‘Bring In The Bag’ promo:

• It was aggressive. Carino’s really put it out there, off ering a free meal AND a bag of pasta to all newspaper readers. And it wasn’t just good for one day (overwhelming the restaurant), but for three months. And all locations participated.

• It had a hook, the bag of pasta, that was unique and stood out among all the newspaper inserts for that day. And it sounded like fun; bring in the bag to a Carino’s, get a free meal, and fi ll up the bag with pasta!

• It had a theme – an anniversary celebration – that could be repeated every year, if successful.

“So, what’s the application for casinos? I’ll let you fi gure that out, but I’d be thinking about let-ting players ‘bag’ a bunch of slot payout tickets, or a signature dessert, or a pile of scratch-off s. You should try it – success might just be in the bag!” – D.C.

WASHINGTONTulalip Resort Casino (Tulalip) – $250,000

Golden Ticket Celebration

Loosely based on the Golden Ticket contest in the story Charlie and the Chocolate Factory, eighteen cash win-ners were selected in virtual drawings each Wednesday in July (six winners at 4, 6 and 8 PM). Each winner could pick a Golden Anniversary box that contained either $100 cash

or Golden Tickets. The Golden Ticket holders competed in a Cash Grab Game to win prizes ranging from $500 to $1,000, and were invited back at the end of the month to enter the Golden Ticket Celebration Finale. The Twelve Golden Ticket holders selected in the Finale won cash and prizes, plus one was chosen to play an interactive game that could win them up to $250,000. Virtual drawing entries were automatically earned for every 2,000 Re-wards Club slot points, and table games players received an entry for every $300 buy-in and every fi ve hours of tracked poker play. Eligible Club members were required to activate their earned entries on drawing day by playing with club cards, or swiping at the Rewards Club desk or at the pit. Bonus Golden Tickets were also distributed at the Rewards Club, Table Games, Poker, and to participants in the July Hot Seat Slot Tournaments, and to jackpot winners over $2,500. Following jurisdiction promotion requirements, all Rewards Club members were entitled to one free entry per week.



15

Nicole Barker — In partnership

with Raving Consulting Company,

she works with casinos across the

country to harvest potential from

patron databases in order to fi ne-

tune the segmentation, messaging,

and programming of multimedia

and multi-channel campaigns.

Dennis Conrad — President

and Chief Strategist of Raving,

Dennis has over 35 years of casino

experience including keno writer,

bartender, dealer, fl oorperson,

gaming instructor, special events

manager, casino marketing director,

gaming institute director, and

corporate vice president of employee

training and development.

Christine Motta Faria — Raving’s VP of Operations &

Communications has been one

of the company’s core marketing

writers since 2001. Chris has had

a lifelong passion for fi nding and

sharing unique stories of people

and places through her travels and

daily life. She enjoys nothing more

than incorporating writing and

photography into her multifaceted

role at Raving.

Toby O’Brien — Toby entered

the gaming industry with a seven-

year stint as the Marketing Director

for Bronco Billy’s Sports Bar & Casino

and Buff alo Billy’s Casino in Cripple

Creek, Colorado. She joined Raving

in April 2001 as Vice President of

Marketing & Client Services.

Winnie Grand — Winnie has

studied the casino industry since the

early 60s. With a Masters Degree in

Psychology, she has been interested

in the psychological aspects of

gaming along with the growth and

development of the industry. She

and her husband, a retired physician,

travel to casino destinations for

much of the year. She has written

for Strictly Slots magazine and is an

active participant in the gambling

scene.

Chad Germann — Chad

Germann is an enrolled member of

the Mille Lacs Band of Ojibwe Tribe

of Minnesota and founder and CEO

of Red Circle Agency. Germann’s

career in gaming started while

he was still in college, serving as

a summer marketing intern at his

tribe’s two casinos, Grand Casino

Hinckley and Grand Casino Mille

Lacs, during each of his 4 years

of undergraduate school. After

graduate school, Germann joined

Grand Casino Hinckley as the

Director of Advertising, where he

managed all advertising and media

strategy, planning and budgeting

for more than 3 years. With the

support of the casino and his tribal

leadership, Germann left the casino

in 2001 to start a casino marketing

agency called Red Circle Agency.

Michael Hemphill —

Michael Hemphill, President/CEO

of CSG Direct Mail, Inc., has been

in the direct marketing industry

since 1987. CSG Direct Mail, Inc.

specializes in database marketing

for Gaming, Tourism and Banking

industries. Michael also managed

the installation, training and

maintenance of over 1500 public,

private, state and federal mail

processing facilities in his career. CSG

Direct Mail is also a special Raving

Project Partner.

Eliot Jacobson, Ph.D. — Eliot Jacobson received his Ph.D. in

Mathematics from the University

of Arizona in 1983. Eliot has been a

Professor of both Mathematics and

Computer Science. After nearly 30

years, Eliot retired from academia

in 2009. Eliot founded Jacobson

Gaming, LLC in 2006. His company

is one of the world’s leading

independent businesses specializing

in casino table game design,

development, and mathematical

certifi cation.

Chris Archunde — Chris

Archunde, Raving’s Marketing

and Technology Project Partner,

was raised in rural New Mexico.

Chris spent the fi rst 10 years of

her professional life travelling the

continent in the Entertainment

& Retail industries. Over the last

11 years, Chris has thrived in the

Gaming & Hospitality world mainly

due to her leadership style, her

clever corporate brand development,

and her uncanny ability to formulate,

implement, and evaluate strong

marketing campaigns by utilizing

casino player tracking systems.

Chris Wrieden — Chris

Wrieden, Strategic Partner, XPAND

Strategies, has been in the hospitality

industry developing promotions,

interactive experiences and events

for more than 20 years. He spent 9

years with Barona Resort and Casino

overseeing promotions, special

events and Internet marketing in

his tenure as the Director of Special

Events and Promotions, producing

16 Romero Awards “wins” for casino

marketing excellence. A casino

marketing instructor for the College

of Extended Studies at San Diego

State, Chris enjoys the interaction

with students/guests, the creativity

of developing and executing

promotions, and an occasional nap.

Contributors

“Note: no chocolate bars were used or harmed during this promotion. Although, since the Golden Ticket idea is so linked to that book (or the movie Willy Wonka and the Chocolate Factory), it might have been fun to have winners select giant choco-late bars instead of anniversary boxes to fi nd their Golden Tickets. But other than my intense desire to link promotions to continuing themes, this was a great, revenue-driving promotional idea. It had all the critical elements for success:

a. Required Club membership AND play to earn entries in a variety of gaming areas to participate and win.

b. Used a visual theme that could easily be represented in collateral, signage, and casino displays.

c. Provided bonus opportunities to win the cherished Golden Tickets in order to sustain interest.

d. Involved an interactive process for winners to select their prizes. This tends to keep both participants and the audience engaged and

excited, and adds the spice of ‘gambling’ and ‘luck’ to the outcome.

e. Drawings were held on Wednesdays, to drive mid-week business, rather than on already busy weekends.

f. Entry activation was required on the day of the drawing to eliminate/reduce the lengthy selection of winners who might not have been present to win.

g. Don’t know if this was part of the design, but it would also be possible to reward higher-end players or members of higher tiers with multiple entries, increasing their chances to win, and motivating players of worth to play more and participate in the promotion.

“Not to belabor the theme concept, but if they had candy bars, they could have had the ‘Oompa Loompas’ give out Golden Tickets and prizes throughout the month! (Just saying).” – T.O.



16


Conquer Your System FearsLaunching a new system with minimal collateral damageBy Chris Archunde

You have a new system, a great team, and great pro-grams. How do you make the most out of this combination? This article will explore ways of using your technology to enhance your programs, eliminate wasteful steps and spending, and empower your employees.

As successful operators, we approach change very scien-tifi cally; we do our research, we determine the best tools to acquire, and we negotiate the fairest pricing possible. Unfortunately, for some of us, that is where the science stops and the directives start.

How many times have you heard … “We’ve purchased a new system … we install next month … we go live a week later and … we’ll need to see results a week after that?”

Ok, I’ll grant you, this may be a worst case scenario, but I’m sure parts of it ring true with everyone who has un-dertaken great change within their operation.

Is there ever a foolproof way to launch a new system? Of course not, however, it can be done with minimal col-lateral damage.

I’ve talked about approaching system installs and/or upgrades, but I haven’t written much about rolling out or launching the actual programs associated with a new system.

We lead our organizations in development, and we can easily do the same in implementation and innovation by applying the same principles.

I’ve posed some questions you should ask yourselves as an organization when you’re embarking on system installs and/or upgrades. Now I’d like to help you answer the questions and move on to the next steps in getting the most out of your system.

• What does your system do and can you make the most of its capabilities?

o Determine expectations throughout all divisions and fi nd out if they are getting what they need from the system. Today’s systems provide highly specialized functionality for all divisions and contain extensive “canned” reports that are easy to adjust and run.

o Canvass your vendors if you’re not sure what your system can do, or if you’re not sure how to utilize certain features.

• Is your system data accurate, do you have a way to fi nd out, and can you analyze it in a timely manner?

o Are your slot fi les, AutoCAD’s and player demographic data up-to-date, and do they meet system format requirements?

o Determine reports required for business decisions, format those reports accordingly, and ensure that the proper permission rights are set so they may be run by the right individuals.

• Do you know who needs the data and do you know what format they need it in?

o Set your timelines and report content wants and needs, then determine how and to whom your data should be circulated.

o Circle back often and review your report libraries. You will fi nd as the information fl ow increases, so will the requests for more in-depth analysis.

• Do you have the teams in place to administer your technology?

o Identify system user administrators throughout all divisions utilizing the system and its data. It goes without saying that IT is the main system administrator, but they need to know your specifi c needs and who should have permission rights, and it is the division’s responsibility to keep information up-to-date.

o Develop simple system function guides and troubleshooting tips for your divisions. Again, consistency is the key across the board. When you


17

have turnover (and you will), you need to have the tools in place for successful system use.

o On that same note, identify “trainers” within your divisions whose responsibilities include educating team members as needed, as well as staying informed of updates, upgrades, and known issues.

• Do you have the infrastructure in place to drive your technology?

o Determine if your networks, software, and hardware meet or exceed standards required to perform capacity fl oor transactions, and substantial data queries and reporting. This includes front and back of house PCs, scanners, kiosks, hand-helds, and printers.

o Assess your multi-media broadcast capabilities. Are your devices equipped to handle HD, high-speed, multi-format communications?

• Do you know what your competition is using?

o When possible, fi nd out the systems and versions your competitors are utilizing in order to have a better idea of how they execute their gaming off erings and rewards.

o Candidates fi lling new positions in your organization may have practical knowledge of your system, resulting in “hit-the-ground-running” performance.

As you refi ne your technology, so should you refi ne your campaigns and programs. There are many ways to keep the features of your tried and true programs while incor-porating system functionality, accuracy, and enhanced player experience.

There are various reasons our players choose gaming as their form of entertainment. There are a couple key reasons I focus on when developing successful marketing products and programs. Our players look for excitement and value provided by experienced and friendly employees.

We off er real-time, risk/reward entertainment in a provocative environment that our players cannot get anywhere else. Our objectives are to keep our players on our games for extended periods of time, and ensure that

ours is the casino of choice for their next visit. What reso-nates with loyal players is the amount of time they are able to game within the budget they’ve set aside. Players appreciate when we recognize and reward their loyalty through bonus targeted off ers they do not receive from our competitors. We are able to extend time on device and rewards for play when we design eff ective, aff ordable promotions and deliver them in user-friendly formats that they can take advantage of.

The next section of this feature is more of a “worksheet” for assessing your existing programs, which you can then use to determine how you can improve upon the most eff ective programs and/or develop new programs using today’s technology. As always, some new ideas work and some need to be modifi ed in order to be successful. You will only determine this when you practice careful plan-ning, timely analysis, and informed decisions.

Program Review:

1. Examine your current programs and promotions from various points of view. Ask for candid feedback about programs from within your marketing team, executive management, frontline employees, and players.

a. Categorize programs in order to help groups with their ratings or comments. Examples: new enrollment, special event, loyalty, etc.

b. Ask open-ended questions that encourage detailed responses.

2. Review costs associated with current programs.

a. Include labor, printing, advertising, leases, insurance, etc.

b. Determine how your programs may be “layered” on top of one another.

3. Review actual processes for current promotions.

a. Look at how your programs are set up. Including proformas, system input, etc.

b. Look at how you analyze your programs. Including postformas, audit reports, analysis, archiving.

Once you’ve taken a global view of your current pro-grams, it’s time to start “fi lling in the holes.” What pro-grams are “keepers” that just need to be updated for com-



18


patibility within the new system? Where do you need to boost profi tability? Where do you need to recognize and reward specifi c player activity? Again, do you know what your competition is doing? Make sure your programs answer your competition, or have a competitive advan-tage that is sustainable. You will need to review internal controls for modifi cations or additions to your programs. I strongly recommend that you take a look at all of your current policies and make sure you update them as needed to acknowledge any changes and/or additions that apply to your new system processes. This is also a good time to review your marketing terminology and ensure your program success with accurate, easy to understand verbiage.

Now go back to #1 on your worksheet and work with the same groups, this time to communicate new programs and processes. It is very important to create this commu-nication in ways that resonate with each group. At times, change can cause confusion and apprehension. Clear, easy to understand communication that focuses on relevant topics is essential. I cannot tell you how many brilliant programs collapse due to non-existent commu-nication. Remember, as marketers it is our job to manage clear communication … if folks don’t hear you, you have to change your approach until they do.

Player tracking systems come with a great many bells and whistles. You won’t use all of them right out of the box. In fact, there are features you may not use for months after you go live. All I ask is that you commit to utilizing your system to enhance your programs, and to develop programs that were not possible in the past. I’ve been fortunate to work with many diff erent player track-ing systems and have developed programs, policies, and reports that provided the competitive advantage that I talk so much about. At the very least, when applying these processes to your own system approach, you will discover a great deal about your existing programs and their strengths and weaknesses. At the very best, you will provide seamless programs and products that can’t be beat, period.

Teams that embrace change and harness technology build successful operations that dominate markets.


19

Why Do Promotions FAIL?How to “market” your promotions to your staff and to your guests By Chris Wrieden

I’ve spent plenty of time in previous columns covering the basics of promotions; the how’s and why’s, the impor-tant basics to consider, the prize mix, even execution choices and obstacles. Now we’re going to cover the key to the kingdom, communi-cation and marketing.

Let’s say you and your team have developed the world’s greatest promotion ever seen … you’re sure your guests will go crazy over it and you’ll be the envy of the industry. Congratulations! But now’s NOT the time to get complacent, now you need to focus on the key building blocks to a successful launch.

Communicating the Excitement

Your best method of communicating with your guests is your fl oor staff ; get THEM excited and behind the promo-tion and you’re well on your way. But how? One of my favorite launch methods is a parallel promotion, mirroring the fl oor promotion, for your staff . You may not be able to devote the same resources to the prizes you give away, but coordinate your eff orts with the HR Department and see what they are able to contribute and you may be surprised at what you can accomplish. Staff rallies provide an excellent opportunity to educate the staff by allowing them to participate for cash and prizes. The investment in staff prizing will more than pay for itself by their positive reinforcement of the promotion on the fl oor. One of the things I always look for in casino properties is the staff ’s ability to articulate the current promotion. A staff member who has won the “staff ” version of the promotion should be able to describe it and should have a spark of genu-ine enthusiasm that comes through. If the staff member “cares” about it, the guest will be more infl uenced to “care” about it as well.

Your HR people will also discover that the rally will be more engaging for the staff when the promo is intro-

duced. It’s fun … and sometimes the messaging from the executive leadership and HR might be a little dry.

Sometimes it’s simply not expedient to piggyback a staff rally, and you may fi nd introducing staff training at de-partment meetings can serve the same rollout purpose. Make arrangements to be included on meeting agendas and conduct mini-versions of the promotion. Keep it fun, let them participate, and you’ll increase the eff ectiveness of your staff ’s ability to communicate the details of the promotion.

Supporting material, promotional details

Rules brochures and pamphlets at your club booth should be a standard part of your operating procedure. They can be inexpensively produced, or more fi nished, depending upon your cost sensitivity, but they are indispensible aids to your marketing eff orts. Rules, drawing times, eligibility, and other essential details should be included. I favor hav-ing them located at the club booth for two reasons; the fi rst is they provide “talking” opportunities for your players’ staff with guests. If a guest comes up to the booth and asks for a rules brochure, the staff member has an excel-lent opportunity to communicate details to an interested player … in addition to serving as a conversion point in the event the player is not already a club member. The second reason is the material can be controlled more eff ectively than a self-service brochure rack where they can be used for any purpose, including scrap paper and paper airplanes. Yes, I’ve seen it happen. Besides, the last time I checked, the players’ staff is far more dynamic than a brochure rack.

What about backlits and other supporting static dis-play materials? Slot toppers and wobblers can certainly impact the message, though wobblers tend to need to be constantly monitored and replaced. Timely placement of these types of standard marketing tools, and replacing them when needed due to damage or abuse, should be SOP for you. Timely REMOVAL of outdated materials is equally important.



20


VIDEO ANIMATION, yes, yes, yes!

Leverage your video system and invest in some anima-tions to support your promotion. Keep them simple, emphasizing your specifi c marketing message, and go EASY ON THE TEXT! A backlit can handle more copy … it’s static, and should provide more information than a video animation (but less than a rules brochure). Your video animations should focus on the sizzle aspects of the prizes and the essential information that drives guests to participate. If a guest needs/wants more information as a result of your animation, you’ve accomplished two primary objectives, whetting the guest’s appetite for your promotion AND providing a positive point of contact initi-ated by the guest with your guest services staff .

Flashy and visual … easy on the text, that’s a winning recipe.

The NEWSLETTER!

Make sure you are far enough ahead of your promotions that your players’ club newsletter can feature the upcom-ing promotion. Whether it is the greatest concept ever, or simply a good one, it is meant to accomplish some strategic goal and deserves, nay, requires placement in the newsletter. Generating excitement and anticipation with your players is your goal. Adding free entries to the newsletter is an easy and eff ective method, besides pro-viding value to the mailbox of the guest. This leads us into database marketing …

Database Marketing, making targeted off ers to maximize results …

Some promotions warrant a specifi c, promo only mail piece, complete with off ers and/or free entries. Under-standing who and how to target is a basic necessity in your casino marketing eff orts, and should not be neglect-ed when promoting your promotion. Depending upon your sophistication, you can determine who should get entries, how many they should get, who you are wasting money sending entries to, and a whole host of other con-siderations. Not all guests are created equally, and not all guests respond equally to promotions … knowing who they are and targeting your spend accordingly, and your messaging, is casino-smart marketing.

Traditional marketing support; print, outdoor, TV, and radio

You need to defi ne and understand the strategic goal of your promotion and make sure it meshes with your

overall marketing budget and brand messaging. If you’re launching a large-scale acquisition promotion, you’re probably going to require some “acquisition marketing dollars,” i.e. a more robust marketing budget. These meth-ods cost more money and if you don’t have the budget for this, you will need to scale back your acquisition ex-pectations somewhat. All of your promotions should have a degree of acquisition to them, if it is not the primary focus. Loyalty promotions can face a tougher post-anal-ysis process because it is more diffi cult to postulate what factors or promotions caused long-term play levels. It is much easier to directly associate play attributed to the promotion during the promotional period, particularly with swipe to enter kiosks indicating a player’s willful intent to participate. The point is, without mass commu-nication of your promotion, it is probably unreasonable to expect mass participation outside of your player base.

Emerging technologies and the Web…

Yes, yes, yes! Now we’re moving on to far less expensive marketing eff orts that can have an impact, if they’re properly exploited. Viral marketing campaigns can expo-nentially impact your message eff ectiveness, as people forward messages to like-minded individuals. Finding the “viral tipping point” can be a challenge, but once you’ve done it, you’ll swear by it.

Providing a play along web version of your promotion can eff ectively drive your message into the mainstream. Be careful to include a trackable method of play you can associate to this vertical, and don’t forget that the value of a “web” player who doesn’t set foot into your bricks and mortar establishment is low.

Online couponing may be worth exploring as a low-cost method to induce trial and/or visitation, a la Groupon. Slotplaycoupons.com is just one of the emerging sites that off ers this service.

The keys to the kingdom are now yours!

Take the time to properly deploy your promotions … market them! Make sure to identify your preferred mar-keting methods for your promotion by integrating your overall marketing strategy methods and messaging to the specifi c needs of your promotion. INVOLVE your STAFF! No matter what, they can have a major impact upon your success. But you know this already … and if you don’t, we need to talk.


21


Personalization Of Your Direct Mail Doesn’t Mean “Dear First Name” AnymoreAfter all, how does just using someone’s fi rst name really target the off er directly to them?By Michael Hemphill

In the database marketing in-dustry, we always throw around the word “personalization” as if everyone already understands what we mean. It really is a generic term. Are you telling personal secrets? Are you talking about how much they drank on their last trip? I mean, are you getting too “personal?”

The problem with using a generic term to describe what

we are doing is that everyone has their own idea of what it is. To some people in the industry, “personalization” means using the recipient’s name in the copy of the direct mailer. I get what they mean; that is what it meant about 5-10 years ago.

“Modern personalization” though is an incredibly diff erent animal that is not well represented by a simple one word term.

Modern personalization is creating truly 1-to-1 marketing conversations with your individual customer.

For example, Customer Mary visits the casino with her husband and enjoys playing Keno and eating at the buff et. Customer Jim is single and likes to come to your concerts, drink beer, and bet on sports. How do you make one invitation that appeals to both of these people? Just putting “Hey, Jim” in the direct mail piece is not enough to make an off er more appeal-ing to him if it isn’t relevant to his interests in your property.

A customer asked me the other day why they get so few responses to their concert promotions. They mail out 10,000 pieces and get 100 responses. “How come?” they asked. Well, it turns out the exact same 10,000 people are invited to each concert, and they aren’t sure if those particular people share a like for each particular type of concert.

They need to code their database with music interests and invite people that enjoy the type of act you are promoting. This is the fi rst step in modern personalization. Put the right act or promotion in front of your customers who like that act or promotion.

Music is a great way to have this conversation, but it applies to everything about your hotel casino property. You don’t push 80’s hairband music on 60 year old guests, and you don’t push the steak house on people that like the buff et. Send blackjack invites only to people that like blackjack, and only send slot

tournament invites to people who like slot play. This is the heart of high response marketing.

This can be done all in one direct mail piece!

With today’s modern technology, we can do all this in one direct mail piece. There are only a couple of hurdles to making this possible. First, you have to fi nd the easiest way to match your event and hotel casino off erings to the guests who like each of your amenities. This is best established by tracking EVERYTHING your customer does. For example, you need to track the types of rooms they stay in and the types of food they prefer on property.

Next, we need to establish information about your clients that you currently do not have access to. For example, do they golf? Are they married? What kind of music do they like? What kind of occupation are they in? There are many ways to do this with in-house surveys, or modern data-append services using some great outside consumer databases to glean new information.

Finally, the last step is to learn how to build a marketing matrix. This is a spreadsheet where we describe the diff erences in each dataset we have pulled and what each database gets for off ers. Basically we query each special interest we can market to and make a quick map to what off ers will be rotating in each direct mail piece to “personalize” the off ers, look, and feel of each piece.

The Art …

Now the fun happens. We build four diff erent art sets for the invitation. One set feels more blackjack, one set feels more like buff et and Keno, one set is 80’s hairband and buff et, and fi nally, we may do a golf looking piece that includes a slot tourna-ment and steak house for those people we know that like those. This is all for the same weekend, of course.

We compile your databases together and rotate the graphics in the printing and outputting process. This is the recipe for high response, modern direct mail, personalized casino marketing.

Everyone gets something that appeals directly to them and what they like in a gaming experience.

The even bigger gain is that over time each person in your database feels like your property is their favorite because it appears that your product is exactly what they are looking for. Every player gets a unique experience that is most comfortable to them and they visit more often, giving you a greater share of their annual gaming budget.


22

A Good Promotion Could Be Betterby Winnie Grand


One of our favorite casinos has a regular promotion each month that we really like to attend if we can. It is one of those free play events that is not tied to tournament action or a drawing. If you show up, you get the free play! We are partial to this type of promotion because there is no schedule we have to follow for tournament play, or no “must attend” drawing we have to be at in order to win. Sounds great, doesn’t it? So what is the problem?

It isn’t a big problem, as it won’t stop us from participat-ing in these monthly events, but it is annoying and we suspect some will just say, “why bother?” Here is how the promotion works.

We receive a mailer that has information about the event, along with the amount we will receive if we visit on certain dates – usually this is over a four day period. The mailer has a voucher with the amount printed on it. The instructions say that it must be validated at check-in and then taken to the host offi ce so the free play can be put on your card. There is a big warning on the voucher that the voucher will not be replaced if it’s lost. There are several problems we see with this promotion.

First, what is the point of saying the voucher will not be replaced if lost? After all, their records would clearly show the amount due to the guest if they come. And this requirement could lead to someone canceling a trip if the voucher was misplaced. I know that we would not come if we didn’t have our voucher in hand! It should be easy for a host to replace this if necessary, and then the guests would not be made to feel like they were suspended from school after a visit to the principal’s offi ce!

Second and third, why does the guest have to both validate the card at check-in, and also visit the host offi ce to have it activated? It would seem that either one of these should be suffi cient. The validation at check-in is usually not a problem as it is done as part of the check-in procedure, but the requirement to have the host activate the free play is defi nitely a problem.

The host offi ce is tiny, but does have two desks for hosts. However, most times when we go to this offi ce, there is only one host on duty. This host is not only putting on

the free play from the off er, but he or she is dealing with all of the many other duties of being a host. Many times, their interaction with the guests is very time consuming. This leads to a long line outside of the host offi ce. Waits of thirty minutes or an hour are not uncommon.

Meanwhile, the guests are visiting with each other and complaining loudly to anyone who will listen! Not only are they wasting time and becoming frustrated, but they are also not gambling in the casino, which is the point of the promotion – to get the guests to come and gamble!

The most annoying thing about these problems is that it seems all of them could be easily solved.

The vouchers could easily be replaced if they’re lost. All it would require is that a host verify the amount due to the guest, and that the guest is registered. That seems easy and wouldn’t cause undue stress on anyone. There just doesn’t seem to be any point in not replacing the voucher.

The other problems seem just as easy to solve. The guests could have their vouchers validated when they check-in, and then the registration desk could keep the vouchers. The guests could be told that their free play will be avail-able after an hour, or by a certain hour of the day – for instance, after 4 PM. Any guest who didn’t have a voucher would have to go to the host offi ce to have it replaced.

Periodically, a host could pick up the stack of vouchers, go to a host offi ce that isn’t accessible to the public, and me-thodically enter the free play into the guests’ accounts. No one would have to stand around in lines, and the hosts could more easily attend to their other duties.

This is a really fun promotion and it is a shame that it is marred by just a couple of things. Marketing should always be aware of requirements that cause guests to waste time unnecessarily, or that cause diffi culties for their employees. It should always be remembered that it is important for the guest to have time for the casino, as the object of the promotion is to bring in guests who will gamble!


23

Raving Recommended Reading ReviewBy Dennis Conrad

Book: Indian Gaming and Tribal Sovereignty: The Casino Compromise, by Steven Andrew Light and Kathryn R.L. Rand; published by University Press of Kansas

OK, so you may not be into history, and you may not be into law, or public policy issues. But if you are in the gaming industry and into gaining a thorough and honest understanding of the background of one of the most unique and important segments of that industry – Indian gaming – then you need to read this book!

Indian Gaming and Tribal Sovereignty not only sheds light on how Indian gaming came into being, but advances an honest understand-ing, especially for non-Native Americans, on what tribal sovereignty really is and how it is inextricably tied to the birth and growth of this economic development engine. In addition, the authors assess some of the impacts on various tribes that have occurred since Indian gaming went from “bingo to big time” on many reservation lands.

Light and Rand are academics (University of North Dakota), so this extremely well researched book does have about 50 pages of refer-enced notes in the Appendix. Nonetheless, the book contains essential information for anyone trying to understand the world of Indian gaming and how it came to be. It also addresses the numerous misconceptions, stereotypes, factual errors, and misinterpretations that exist among those who have not taken the time to understand these critical underpinnings of the Indian gaming industry.

Indian Gaming and Tribal Sovereignty is a must read for anyone whose work or interests touch on Indian country, especially Indian gam-ing.

Dennis’ Rating:

A GAMING EXECUTIVE’S GUIDE TO READING

4 out of 4 Thumbs Up!

Raving Conference & Events Schedule

SAVE THE DATE

Raving’s 14th Indian Gaming National Marketing Conferencewww.ravingconsulting.com/indian-gaming

Agua Caliente Casino Resort Spa, Rancho Mirage, CAJanuary 30-February 1, 2012

Raving at NIGA 2012www.indiangaming.org

San Diego Convention Center, San Diego, CAApril 1-4, 2012

Drive Revenue and Grow Your Business:

An Advanced Sales Model for Your Host Departmentwww.casinomarketingconf.com

Paris Las Vegas, Las Vegas, NVJuly 23-24, 2012

Casino Marketingwww.casinomarketingconf.com

Paris Las Vegas, Las Vegas, NVJuly 24-26, 2012

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