Why Lottery needs a multi channel approachRICHARD BATESON, 5TH NOVEMBER 2013
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• Our philosophy
• Background – our players
• The need for multi-channel
• The results
Our philosophy
Allow players to play wherever and whenever they want to…
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It is about player convenience
We don’t tell our players where to play, they tell us!
Background – our players
The UK lottery operates in one of the most competitive markets in the world
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9,000 Sports Betting outlets 677 Bingo Halls
144 casino’s800 Society Lotteries
2,000 gaming centres
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The UK lottery makes up only 22% of the gambling market
UK consumers have ‘choice overload’Camelot has had to innovate
Compounded by consumer changes
The changing consumer: 2013
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Consumers are adopting technology quicker and this will accelerate
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To reach an audience of 50m took:
50
radio years
30
TV years
4Internet years
3iPod years
1Twitter year
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Smartphones are accelerating this need for convenience
Retail is adapting to convenience demanded by consumers
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Use of smartphones in-storeClick and collect
E-vouchers/couponingSelf serve/self check-out
Taking the store to the shopper…. the list goes on
The need for multi-channel
The need?
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• Our core-weekly players don’t demand it!• You can’t download an Instant• You can play in thousands of shops in my
State!• Business has grown by over 3.5% last year!
• Who are we missing from our current set-up?
• How can we become relevant to more consumers?
• How can you fend-off competition?• How can we make the lottery more
convenient?
V’s
The facts
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Player penetration is fallingYounger players aren’t interestedin the current tired lottery formatToday’s consumer expects immediacy and convenience from all brands Gamification/other leisure activities are stealing our lottery $
The offer
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Offer full interactive services: - PC, smartphone and tablet (today)Continue to invest in retail: - UK $220m over the last decadeCarefully target players to complimentspend and bring in new players to the lottery
Continue to invest in retail!
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Place order View & select Pay Receive
tickets
App
YOUR NUMBERS
My Card1234 5678
Scan phone order Virtual ticket / voucher
Paper ticket /Game Store
voucher
Scan player card / registered
Fast Pay card
‘DRP’ points
Traditional
Retail experienc
e
Digitalretail
experience
Place order View & select Pay Receive
tickets
App
YOUR NUMBERS
My Card1234 5678
Scan phone order Virtual ticket / voucher
Paper ticket /Game Store
voucher
Scan player card / registered
Fast Pay card
‘DRP’ points
Traditional
Retail experienc
e
Digitalretail
experience
The results
The results so far…
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Over 6 million players registered
Growing retail and interactive business - record lottery sales at $11bn - interactive sales over $1.9bn - retail has grown 28% over past 5 yearsPositivity and trust in the UK
lottery at record levels
Record participation levels – 70%+
Top 5 interactive site in UK and Top 3 consumer goods brands
Players shop across channels and their value increases as they do
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Retail Only 89%
On-line Only 5%
Multi Channel 6%
Participation by Channel
All Pla
yers
Retai
l Only
On-line
Only
Multi-C
hann
el
£3.98 £3.74 £4.46
£7.30
Average Weekly Player Spend (claimed)
In summary
Multi channel is not an if, it is a when
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Competition is increasing and requires innovation to stay ahead
Our players’ behaviours are changing and will do so more rapidly in the future – consumer expect immediacy and convenience
Multi-channel builds value - It is not about retail or interactive, it is about both
Need to invest in all channels Interactive will attract younger players and those not currently disposed to the lottery
Thank you