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    ,: Players'Clubsparti Avalueproposition

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    Sudhir Kale
    Players' clubs have evolved from loyalty programs like grocery store discount cards and airline frequent flyer miles. They allow casinos to profitably change consumer behavior. Key considerations for players' clubs include having an online tracking system, developing rewards programs, building organizational support, and evaluating programs over time using control groups. Success requires having relevant and accurate player data, a forward-looking program to differentiate the casino, and building player trust.

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    ,: Players'Clubsparti Avalueproposition

    Uploaded by

    Sudhir Kale
    46 views23 pages
    Players' clubs have evolved from loyalty programs like grocery store discount cards and airline frequent flyer miles. They allow casinos to profitably change consumer behavior. Key considerations for players' clubs include having an online tracking system, developing rewards programs, building organizational support, and evaluating programs over time using control groups. Success requires having relevant and accurate player data, a forward-looking program to differentiate the casino, and building player trust.

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    G2E_Asia

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    Players' clubs have evolved from loyalty programs like grocery store discount cards and airline frequent flyer miles. They allow casinos to profitably change consumer behavior. Key considerations for players' clubs include having an online tracking system, developing rewards programs, building organizational support, and evaluating programs over time using control groups. Success requires having relevant and accurate player data, a forward-looking program to differentiate the casino, and building player trust.

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    Download as pptx, pdf, or txt
    46 views23 pages

    ,: Players'Clubsparti Avalueproposition

    Uploaded by

    Sudhir Kale
    Players' clubs have evolved from loyalty programs like grocery store discount cards and airline frequent flyer miles. They allow casinos to profitably change consumer behavior. Key considerations for players' clubs include having an online tracking system, developing rewards programs, building organizational support, and evaluating programs over time using control groups. Success requires having relevant and accurate player data, a forward-looking program to differentiate the casino, and building player trust.

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    P LA YER S' C LU B S , P A R T I:

    A VA LU E P R O P O SITIO N
    SUDHIR KALÉ , PH . D .
    GAMEPLAN CONSULTANTS
    !!!
    l t y
    y a
    L o
    2
    PLAYERS ’ CLUB EVOLUTION
    Evolved from ideas such as grocery

    stores discount cards and airline


    industry’s frequent flyer programs.
    Basic model of slot club

    implemented in early 1980s.


    Prior to online tracking systems,
    3
    WHAT IS A PLAYERS’ CLUB?
    Variant of a loyalty program.

    A viable loyalty program provides the

    ability to profitably change consumer


    behavior and do so at the expense of
    other options.

    4
    ASSUMPTIONS : ASIAN MARKETS
    Tables dominated.

    Culturally “different.”

    New to “frequent shopper”

    initiatives.
    Distrustful of parting with financial

    5 information.
    PRACTICAL CONSIDERATIONS
    Primary prerequisite is online tracking

    system.
    Sometimes difficult to multiply wagers

    by correct house advantage dues to


    system limitations.

    6
    Coordination across various divisions
    DETERMINANTS OF SUCCESS

    Culture Technology Executive Skills

    Success of Player’s Club

    Competition Trust Visitation Patterns

    7
    PROGRAM IMPLEMENTATION
    Outline Program Objectives
    Take Corrective Action

    Develop Budget
    Evaluate Success/Failure
    Determine Program Eligibility

    Select Program Rewards Develop/Manage Data Warehouse and Data M

    Consider Partnerships
    Develop and Maintain Program Database
    Build Appropriate Organization

    8
    PROGRAM OBJECTIVES

    Revenues

    Profits

    Customer Loyalty

    Customer Information

     Number of Members

    Reduce Member Attrition


    9
    BUDGET
    Initial and ongoing promotional

    expenses (including member


    communication)
    IT hardware and hardware servicing

    costs
    Database creation and maintenance
    10
    TYPES OF REWARDS

    Cash Back Coin-In Discounts

    T-Win

    Points Direct Mail Offers

    11
    BUILDING THE ORGANIZATION
    Cross-functional team consisting of

    personnel with experience in IS,


    marketing, accounting,
    operations, and call centers .
    Activities such as developing and

    12 maintaining member database,


    THE DATABASE
    Harrah’s uses its loyalty program

    to build customer profiles based


    on frequency of visit, preferred
    games, interests, and gaming
    ability.

    13
    Customers tracked through
    DATA MINING
    Harrah’s database has real-time

    capabilities so that a customer on


    a losing streak could receive a
    message on the card-reader
    display that she has been

    14
    rewarded a $20 credit to offset
    EVALUATING SUCCESS / FAILURE
    In determining cost effectiveness,

    a proper time horizon needs to be


    selected.
    Performance of any loyalty group

    needs to be compared with an

    15 appropriate control group of non-


    WHAT ARE WE REWARDING?

    Past Spending

    Customer Lifetime Value

    16
    WIN - WIN SITUATION?
    Casino Player
    Loyalty Consolation

    Player Recognition

    Information Status

    Targeting Convenience

    Guidelines Sense of
    17
    KEYS TO SUCCESS
    Relevant Actionable Data

    Accurate Data

    Forward Looking Program

    Effective Offer Tracking Process

    Player Trust
    18
    Solid Cost/Benefit Understanding
    TYPICAL PLAYER DATA

    Name: Business Phone:

    SSN: Anniversary:

    Spouse’s Name: Interests

    Address:

    Home Phone:

    E-Mail:
    How can management meaningfully differentiate the best
    players from others with only names and addresses?
    19
    FORWARD - LOOKING PROGRAM
    Aim to differentiate from

    competitors
    True as opposed to spurious

    loyalty
    Maximizes share-of-wallet

    20 Provides direction for


    THE CASE OF HARRAH ’ S

    Report/ Pred
    Analyze ict

    WINnet

    Customer Segmen
    Activity t
    Treatm
    ent

    21
    HARRAH ’ S

    Decision Science Capabilities


    Brand

    Total Rewards

    22
    R EC O M M EN D A TIO N S

    Crucial to precisely understand

    whether/why players’ club is needed


    (Could alternative approaches work
    better?)
    Staff need training on responding to

    frequent objections raised by


    23

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