EXECUTIVE ROUNDUP
What can state lotteries do in 2016 to reach new players?
Three Ways Lottery Executives Will
Reach More Players in 2016
Big jackpots typically reel in new lottery players and high ticket sales, and with a
record PowerballTM jackpot won in January, state lotteries have reason to look at
2016 with an optimistic eye.
Yet these effects often vanish when the high jackpot does. Thus, lotteries continue to seek sustainable
ways to attract and retain new players, a foundational element of a successful state lottery.
To better understand how state lotteries plan to grow their reach, we asked lottery executives this
simple question: “What can state lotteries do in 2016 to reach new players?”
Executives provided a variety of options, from attracting consumers through convenience and catering
to millennials, to strengthening retailer relationships. Panelists represented nine state lotteries and
included a variety of roles, including executive leadership, sales and marketing. Their responses,
editorialized, can be found below.
THREE WAYS LOTTERY EXECUTIVES WILL REACH MORE PLAYERS IN 2016
In the continual effort to reach new players, one finding has clearly
emerged: convenience is king.
Reaching Consumers with Convenient Play
Engaging with Millennials
However, as consumer behavior changes, so does the
technology lottery executives and retailers have at their
disposal. Now, lotteries must carefully weigh trends in consumer
behavior with technology and marry the two to maximize their
lottery reach. Still, through these changes, one finding has
clearly emerged: convenience is king. In 2016, lotteries will seek
to build convenience by connecting the various channels of a
player’s lottery experience, making playing more accessible for
the customer.
According to recent studies, millennials are using their massive
buying power to support organizations with corporate social
responsibility initiatives . To capitalize on this, lottery executives
plan to amplify responsibility messaging in 2016. For example, the
Kentucky Lottery Corporation now produces a custom in-store
flyer that promotes how much college scholarship money each
individual store or chain generated the previous fiscal year.
In the continual effort to reach new players, there’s an
age-old strategy that lottery executives turn to time and
again: engage potential players where they already are,
whether it be where they shop, play or entertain themselves.
For example, the New York State Gaming Commission
is deploying portable kiosks to more efficiently collect
consumer data. The data from these systems will then
be used for drawings, as well as expansion opportunities,
such as subscriptions, electronic newsletters and
electronic couponing, driving the overall connectivity and
gratification of the gaming experience.
Other state lottery executives are delivering on the
convenience factor by using quick, self-service offerings
to streamline the purchase process. Lotteries are doing
this in hopes of reaching a larger, more casual audience,
which typically prefers to interact with a self-service machine
rather than a sales associate at the lottery counter. As a
result, retailers are expected to increase their usage of lottery
vending machines.
Last, but not least, retailers will continue to experiment with
newly developed self-service options that enable lottery play at
the fuel pump and ATM.
The benefit of these technologies is twofold: first, they offer
a convenient, cashless transaction for easier lottery play,
and second, they engage the millennial, a demographic with
growing buying power.
It’s no secret that many retail marketers have struggled to attract
and engage the millennial consumer. And with millennials
representing 25 percent of the U.S. population and more than $200
billion in annual purchasing power , it’s an issue weighing heavily
on the minds of most state lottery executives.
Millennials represent 25% of
the U.S. population & more
than $200 billion in annual
purchasing power.
Lotteries have also turned to digital offerings to further appeal to
millennials. Social media platforms provide lotteries the opportunity
to engage with millennials directly and to optimize lottery messages
and content in easily sharable packages. Another area of investment
is in mobile apps. Both initiatives should draw the attention of a
younger consumer and increase the odds of cultivating a new user.
Finally, lottery executives plan to connect with millennials by
abandoning cash in favor of a card. With an increasing number,
currently near 45 percent, of all U.S. transactions being completed
without the use of cash, state lotteries must partner with businesses
that allow card purchases before cash payments go the way of the
paper check.
THREE WAYS LOTTERY EXECUTIVES WILL REACH MORE PLAYERS IN 2016
Nourishing Retailer Relationships
While much of the focus for 2016 remains on consumer
engagement, healthy retailer relationships are a priority too. For
this reason, lotteries need to revisit their value proposition and
strengthen external messaging, reminding retailers that lottery
products increase overall in-store foot traffic, per-visit spending
and visits per week.
Next, lotteries need to look beyond current business models
and develop a less capital-intensive option for smaller
operations, as many retailers do not have the means to serve
as a full-service lottery retailer. Plus, lotteries need to work with
retailers to help them get over licensing hurdles and streamline
the overall process.
In addition to developing more accessible partnerships to
strengthen retailer relationships, lotteries must continue to equip
retailers with the most appealing games available, like novelty
games, which offer high brand recognition to keep ticket themes
new and exciting. By identifying compelling brands to partner
with, lotteries can capitalize on the borrowed interest and help
retailers reach new players through fresh prizes and exciting new
ways to play.
More Players for 2016
While 2016 started off with a boom for the lottery industry,
lotteries must remain focused on ensuring the remaining
days follow suit. New technologies and communication
efforts remain points of exploration for executives, coupled
with long-time initiatives to increase convenience for the
consumer. Relationships of course remain a 2016 priority,
as executives explore ways to engage millennials and grow
partnerships with retailers. Through these efforts, lottery
executives hope to make 2016 a record year for reach and
funds raised for lottery beneficiaries.
Lottery executives hope to make 2016 a
record year for reach and funds raised for
lottery beneficiaries.
THREE WAYS LOTTERY EXECUTIVES WILL REACH MORE PLAYERS IN 2016
LINQ3 would like to thank the following lottery
executives for contributing their thoughts to this article.
Tom Delacenserie
Secretary
Florida Lottery
Tom Horvat
Sales Manager
Colorado Lottery
Arthur “Arch” L. Gleason, Jr.
President & CEO
Kentucky Lottery Corporation
Gardner Gurney
Acting Director
New York State Gaming Commission
Division of the Lottery
Gordon Medenica
Director
Maryland Lottery
Ed Van Petten
Former Executive Director
Minnesota State Lottery
May Scheve Reardon
Executive Director
Missouri Lottery
Terry Rich
President and CEO
Iowa Lottery
Randy Warick
Assistant Director of Marketing
Washington’s Lottery
For more information, please visit www.linq3.com.
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the consumer – instantly when they swipe their card. Lotteries reach more players,
and retailers realize more revenue. Linq3: More players. More opportunity. For
more information, please visit www.linq3.com.