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During my last trip to Las Vegas – for the recent IBM Information on Demand conference – I managed to drop a significant amount of cash. The part that is surprising is that I didn't gamble a dime.
How is this possible?
I am part of the gaming industry's fastest growing customer segment: non-gamblers. I'll dine and shop and attend shows, but blackjack? No, thanks.
You'd think this would cause concern for casinos, but expanding options for patrons to spend money beyond the gaming floor has been quite profitable for gaming enterprises, particularly those that are leveraging customer behavior, preferences, and attitudes into deep insights to maximize customer lifetime value.
Chickasaw Nation Division of Commerce, for example, operates the largest casino operation in Oklahoma and the third largest in the world. With business analytics solutions, the Chickasaw Nation now has deep insights into the targeting and profitability of its hospitality and gaming promotions, helping marketers identify successful offers and create better campaigns – for gamblers and non-gamblers alike. (Chickasaw Nation won an award from Information Management for its work in this area.)
It's also important to note that the definition of "gaming" has expanded dramatically and is no longer relegated to casinos and gambling. Gaming now includes the video game and PC game markets, and the social online gaming market that is exhibiting substantial growth with the rise of games and "apps" on social networks and mobile devices (think Farmville and Angry Birds).
In fact, social gaming just passed email as the second most popular activity online and the PC game market is projected to double to $25 billion by 2017, fueled by targeted advertising and monetization strategies.
Big money means being precise and smart about knowing the customer, their behaviors and delivering the right offers to maximize profitability, satisfaction and loyalty.
Gaming the system? Hardly.
Let’s consider the online gaming market. It’s the holiday season and some of the biggest selling new games are now on the market, such as the recently released Call of Duty®: Black Ops 2.
Gamers have unique characteristics. They are very loyal, especially to a certain game series. They can also very influential on their friends and other gamers.
By considering these gamers as both an individual and part of a distinct segment, game manufacturers can better understand their preferences, interests, what makes them happy, what will keep them playing longer and how to prevent them from leaving. And, by incorporating their conversations and chatter from social media, insights into satisfaction and loyalty can be uncovered.
By analyzing the behaviors of dedicated players to Call of Duty, the game developers and marketing team can offer highly targeted incentives to keep players engaged, or use feedback to make upgrades to the next version.
So be it an online game, mobile app or Las Vegas, gaining a deep understanding of customers is key for increasing revenues and customer satisfaction.
For instance, analytics can uncover that players who reach a certain level in Farmville tend to leave the game, or when a certain segment of patrons purchases Celine Dion concert tickets, they tend to also go to Cirque de Soleil.
The real value then comes when these tools are operationalized into the business process so that the right action can be deployed in real-time to make that player stay on a web page or present a personalized offer of concert tickets to that customer who will likely purchase.
For more information:
· Read the whitepaper, “Maximizing customer value in gaming organizations”
· Learn how Chickasaw Nation Division of Commerce leveraged analytics to gain a better understanding of patrons of their hotels and casinos.