475 Hill Street, Suite G Reno, NV 89501 Phone: (775) 329-7864 Fax: (775) 329-4947 [email protected] www.ravingconsulting.com What We Are Missing In Our Slot Marketing By Dennis Conrad Over the years, the formula for effectively marketing casino slot floors hasn’t changed too much – find the right game titles with the right denomination, hold percentage and hit frequency and put them in the right places in the casino; offer the right amount of player rewards and slot promotions that give the players a sense of value for having the “one armed bandits” slowly but surely take their money; create a fun environment of (usually disjointed) lights and sounds; and provide reasonably quick slot service through technology, procedures, and just simply “paying attention.” This long standing, tried and true formula can’t be all bad, as slot revenues continue to grow, slot players continue to report being reasonably happy with their casino experience, and slots continue to be the mainstay “cash cow” in gaming. But from my work and observations, I have noticed some disturbing trends in the slot area that should give pause to slot directors, namely: 1. Casino goers in the 21 to 35 year old age group are increasingly finding more value in table games than in slots. 2. The slot player is increasingly being touched by technology (card readers, touch screens, kiosks, credit meters, bill validators, coin redemption devices, etc.) and less by human beings. 3. The volume of regular casino customers’ comments about their favorite casino having “tightened the slot machines” has gotten significantly louder. 4. Casino slot service consistently ranks in the bottom third of all casino departments in comprehensive service evaluations. 5. Higher holding penny slot machines (with higher hit frequencies) have become increasingly popular, creating potential for a future backlash. 6. As the use of branded game titles (and their associated royalty fees) slows down, there appears to be a “creeping sameness” in the slot products of different manufacturers. 7. As server based gaming looms on the horizon, the concept of “my favorite machine” is threatened. In short, I believe the era of “just throw some (good) slot games on the floor and count the money” is ending and that savvy slot operators have to become more focused, more creative and more comprehensive. They need to look more closely and more opportunistically at all casino marketing and business activities that touch the slot playing experience. And here are the “reel” opportunities as I see them: 1 • People – yes, the ubiquitousness of TITO has allowed our slot departments to reduce staff. But when our most hallowed slot floor event, the jackpot, can now go nearly unnoticed as a mere (and quick) adding of credits to the playing meter, then I think we have gone too far. Slot executives need to be looking at how they can bring human contact and human relationships back as a more meaningful part of the slot playing experience. • Sampling And Selling – part of the fun of the retail shopping experience is trying on new items, browsing, hearing sales clerks talk about what’s new in the store. We need this on our slot floors, whether it is through free game trial areas, playing lessons (yes, playing lessons in SLOTS, have you ever watched a senior citizen approach a new fangled, multi-line penny game??!!), more training of casino employees on slot product and play features, or just plain cheerleading. • The Playing Experience – slot chairs should be the most comfortable seats known to mankind. Hitting buttons or pulling handles should never create ergonomic strain. Lights and sounds shouldn’t assault our senses, or tire us prematurely. Playing areas shouldn’t be too hot or too cold, too drafty or too smoky, too cramped or too isolated. We have huge opportunities in these long undervalued areas. • What Happens To Losers – while most casinos now do SOMETHING to recognize slot winners (announcements, celebrations, photos, winner parties, etc.), the future will belong to those with a comprehensive strategy for their LOSERS. Think random jackpots, bonusing, special amenities, REALLY NICE, SYMPATHETIC EMPLOYEES. And you might laugh, but I would be thinking of how I could give one, or 10, or 100 people every day their money back. Not CASH BACK but FULL CASH REFUNDS. Think about it. • Slot Player Input – while some casinos do some research, I don’t see near enough “gauging the temperature” of our slot players, especially our best ones. What do they think of the new machines? Of TITO? Of the Player Rewards Program? In fact, I always thought it was crazy to take our casino executives, instead of our customers, to G2E every year to shop for new slots. • Special Amenities – why is serving food at slot machines the exception instead of the norm (wouldn’t that increase “time on device”)? Where are the masseuses to ease sore and tired slot muscles? Or the vibrating, massaging slot chairs? Or the headphones with soothing music (or the radio cast of the NCAA Finals?). I believe we have lost sight of the fact that what occurs at a slot machine is the slow, but sure, whittling away of a slot player’s bankroll. That certainty should make us want to create the greatest slot customer experience in the world. “Pretty good” will be, pretty soon, no longer good enough. ------------------------------------------------------------Dennis Conrad is the President and Chief Strategist of Raving Consulting Company, a full service marketing company specializing in assisting gaming organizations. He can be reached at 775-3297864 or e-mail [email protected]. Visit Raving’s web site at www.ravingconsulting.com. 2
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