34 Indian Gaming January 2007

How to Design, Advertise and Execute SuccessfulCasino Promotions

MARKETING

by Linda Gordon

Successful casino promotions are not an accident. They area result of thoughtful planning, defined goals and master-

ful execution. In essence there are only three reasons to do acasino promotion, to increase incremental gaming revenue (rev-enue a casino would not realize without the promotion), as aplayer acquisition/development tool, or to promote your brand.

Once a casino has decided to run a promotion there are afew fundamental steps that should be followed.

Strategize. What perceptions, competitors or market con-ditions block the way and how do you overcome them?

The promotions must incorporate tracked play. Tieredpromotions work at every level. You can award 30 chancesto players with minimal earning potential at the same timeyou award 300 chances to players with greater earningpotential. Track the expense/profit ratios per player.

Offer a desirable prize. Million dollar prizes can beoffered by casinos without the risk of a payout. Gaming

promotions companiesoffer coverage of the topprizes for a small fee andwill pay in the event of a win. Available as wellare customizable gamedesign, prize kiosks withmulti-tiered database

functionality as well as operating as a data collectingdevice, or if the casino prefers, a full size game show.

Promotions must be easy to understand. If you cannot explain a promotion in 10 words or less you willhave difficulty acquiring buy-in from your players aswell as your staff.

Consider if the promotion will assist you in acquir-ing new players or developing existing ones. What isthe cost of acquisition? Does the new customer show thepropensity to gamble? Will the additional promotionalexpense make sense for existing players who intend to visitwithout the incentive?

The best promotions are flawlessly executed. Wonder-ful promotion ideas may not be appropriate because ofthe difficulty in executing them. Keep it imaginative butsimple.

Stuart Richey, COO of Propulsion Marketing and speakerat G2E 2006, defined the planning phase. “Make sure to set rea-sonable goals, create a proforma and come up with the idea.

Don't assume you know what the customer wants, survey yourplayers and ask your staff.”

Proformas are very useful in formulating your promotioncalendar. Although they are initially an estimate of potentialgaming revenue and expense, reasonable proformas are goodpredictors of future business.

Experienced marketing professionals use proformas todecide the feasibility of new promotions as well as a guidelineon whether to repeat previous promos. Details should includeexpected gaming revenue as well as itemized expenses, includ-ing complimentaries and anticipated response rates.

Brand building is necessary in new or expanding markets.Jan Talamo, Chief Creative Officer of the Media & Market-ing Group, speaking at G2E 2006, described promotions andbrand building this way, “Great operators take a revolutionaryapproach to promotion planning and actually establish formal-ized promotion planning that includes measurable rationale forthe existence and timing of each promotion. They plan everypromotion not only for the success in meeting its objectives,but also as a communications tool that adds value to the brand.”Jan goes on to say, “The casino should consider the value andappropriateness of advertising, direct mail, and merchandizingin meeting the objectives, executing the strategies and reach-ing the target audience.”

Post promotion analysis should be a clear thinking processthat welcomes failings as well as successes. No one learns asmuch from promotions that go swimmingly as they do fromthose with problems. It is important not to rationalize amarginal outcome by blaming the weather, the airlines or acompetitor's marketing efforts. A promotion should be ableto stand on its own and should fall within a few percentagepoints of the expected result. There are several tools

January 2007 Indian Gaming 35

available to analyze the success or failure of a promotion, notthe least of which is to ask the players. Players love to sharetheir ideas and are very pleased when someone takes the time to listen to them.

Detailed analysis should include the following:

• Design the analysis so that it defines actual win as well as theoretical win from your players.

• Create line item results by tier as well as overall.

• Take out the biggest win and the biggest loss for a more balanced look at the result.

• Differentiate comp expense from promotional incre-mental expense.

• Track response rates.

• Include all activity as it relates to drop dates, e-mail blast stats as well as tracked calls.

• Follow up with a thank you letter that includes an invi-tation to the player to share any suggestions he might have to improve the promotion.

When is it better not to do a promotion? The answer ofcourse lies in one simple question. What are your direct com-petitors doing? If your casino feels that results are strong,forecasting is looking good, room occupancy is up as well asthe casino hold, it might be the right thing not to run a promotion. Before that decision is made, a serious bench-marking effort to learn what is on the marketing calendars ofthe competition for the upcoming months should be done.Although most players are loyal, they are not monogamous. Ifyour players receive an offer from a competitor that intereststhem, it is reasonable to assume that they will respond.

At the end of the day the best promotions offer a big cashprize, are interactive and exciting and every player feels like theyhave a chance to win. Finally, your advertising after the pro-motion is just as important as before it. Photos of million dol-lar winners on slot toppers and casino duratrans will generatetremendous results. ¨

Linda Gordon is Director of Gaming Promotions for SCA Promotions, Inc. She can be reached by calling (702) 315-4294 or email Linda.gordon@scapromo.com