Inside this Issue - Raving Consulting · 2015 Quarterly Issue #3 Inside this Issue: Dennis Khanh, Raving Partner, Food and Beverage ravingconsulting.com Message from the President

2015 Quarterly Issue #3

Inside this Issue:

Dennis Khanh, Raving Partner, Food and Beverage

ravingconsulting.com

Message from the President .......... 2

Promotion Analysis Gaming and Non-Gaming .................... 29-31

Leadership & Innovation .. 3-28, 35Make the Most of Geek-Speak and Accomplish Your Strategic Goals — Toby O’Brien ............................................. 3Level 5 Leaders — Sean Vestal ................................................ 5Marketing Technology — Jeff Gorovitz ................................ 7How to Create and Manage Your Own In-House Research Panel — Deb Hilgeman, Ph.D. ................................................ 9Creating Value in an Industry That Enriches People’s Lives — Chris Faria ........................................................................... 11How to Fit Bingo into Your Loyalty Program — Nicole Barker .......................................................................................... 14Why Integrity Audits Need to Be a Priority — Derk Boss ....... 16How Developing Strategic Partnerships (aka That Bad Word, “Outsourcing”) — Kell Houston .............................. 18How Can Casinos Use Food and Beverage to Drive More Guests and Be More Profitable? — Christine Faria ........ 20Whether It’s the Law or a Shift — Interview with John Stewart ........................................................................................ 22Five E-Principles for Building Casino Brand Loyalty — Mark Astone ......................................................................................... 25Five Reasons Your Data Analyst Can’t Analyze Data — Adam Smithline........................................................................ 27Casinos, Don’t Change Your VIP Formula to Make It Commonplace — Winnie Grand.......................................... 35

A Gaming Executive‘s Guide to Reading ..................................... 33

Save the Date ................................. 34

Raving Consulting | 475 Hill Street, Suite G | Reno, NV 89501 | Tel: 775-329-7864 | Fax: 775-329-4947 | ravingconsulting.com2

MESSAGE FROM THE PRESIDENT

Dear Ravers,

This edition of the Raving Solutions Magazine is hitting your email inbox two weeks before my dear friend, Steve Browne, and I are scheduled to each receive a Lifetime Achievement Award at the Casino Marketing & Technology Confer-ence at the Rio in Las Vegas on July 15.

While I can’t speak for Steve, I can share that for myself, the Award and the thought of receiving it after my presenting speaker (Anthony Curtis of Hun-tington Press) tells everyone how wonderful and visionary I am, raises a number of diverse feelings.

Honor. Gratitude. Embarrassment. Guilt. Completion. Validation. Unworthi-ness. Discomfort.

Geez, you’d think I could just be gracious and accepting, and enjoy my few minutes of fame in the limelight.

It’s not that I think that I haven’t accomplished anything or done some pretty cool and rewarding things in my marketing career. I know I have and will con-tinue to do so, with the help of numerous co-workers, partners, clients, friends, family members, and others.

Perhaps it is my Catholic upbringing, but the thought of receiving this Casino Marketing Lifetime Achievement Award makes me wonder about all of the truly worthy gaming industry leaders who have not yet received it. It makes me a little sad that the dozens, perhaps hundreds, of people in my career who helped me earn it, are not being honored with their own Award as well.

And it makes me truly miss my late mom and dad, Helen and Joe, who only saw me early in my gaming career when they thought I was wasting my Stanford education and promising future, to serve drinks, pitch cards and deal dice in an industry that, to them, looked like it had little future and little redeeming social value.

Well, Mom and Dad, I’ll be thinking of you when I accept my Award. And I want you to know that our industry has cre-ated a lot of value in a lot of ways. It has given your grandkids, your daughter-in-law and your son a wonderful life, it has challenged and engaged me for an entire career, and it has allowed me to meet and learn from some of the finest people in any industry, anywhere.

Not a half-bad lifetime, wouldn’t you say?

Sincerely,

Dennis Conrad

Honored, Humbled, Proud, and a Little Embarrassed

Cover model: Can casinos strategically use food and beverage to generate additional gaming revenue? How can a casino’s mix of food outlets, quality and service be used as an effective marketing tool? Meet Raving’s newest Partner, Dennis Khanh, on page 20 to find out the answers to these questions.

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LEADERSHIP & INNOVATION

Make the Most of Geek-Speak and Accomplish Your Strategic GoalsTake time to make your data analyst your partnerBy Toby O’Brien

During my early years in the gaming business, both at properties and as a consul-tant, there really weren’t many “data analysts.” In those days, the employees who provided marketing with information, reports and what little mea-surement we had available, were often in the IT depart-ment. You asked for what you thought you wanted, and they

tried to bring it to you. There was little communication and even less understanding … on both sides.

I used to joke about the fact that any time I requested something from a casino client’s IT department, a group of at least four guys (there weren’t many females work-ing in IT then) would show up at the office I was using. When I’d ask why it took so many employees to get the job done, the explanation was usually that some were in training or that only some had the knowledge about the particular topic. Maybe they were just insecure. Maybe some were good at numbers and others were better at communicating. Maybe it was just more fun. The IT march always reminded me of the soldiers guarding the castle of the Wicked Witch of the West.

I remember working with a gaming client back in 2002. It was one of my first consulting gigs, and while I was trying to prove my value to the casino management team, I wasn’t exactly welcomed by all the departments outside of marketing. “Meddler” would probably best describe my image.

Trying to acquire information from the player database, I asked the head of IT to provide some basic data regard-ing the number of active players club members. What I really wanted was a simple summary … how many play-ers were in the database, how many had played in the past twelve months, average frequency of visits, average amount of play (what we now would refer to as ADT). At the time, I probably wasn’t particularly clear about what I needed. But they seemed peeved at what I was requesting; in those days, it could take many, many hours to run the reports to get the data needed. And their way of demonstrating their disapproval was in the chosen method of delivery: the following morning, the IT team

arrived at the office I was borrowing with a hip-high stack of printed, green bar reports. They had printed the data on every single players club member since the open-ing of the property. “That’s what you asked for,” they said. On the last page, at the bottom of the huge stack of green and white-striped, pin-fed computer paper, was the sum-mary … the only sheet I really needed.

I couldn’t believe the number of trees they must have killed in order to make their point, but I did the one thing that changed our relationship forever: I laughed. Out loud. Until tears ran down my face. They knew that I knew. And they laughed, too. And we became buddies ever after, for the five years that I worked with the team.

Since then, I have learned significantly more about the business and about working with real data analysts. They may have quirky personalities (fed by all that geeky stuff that interests them). They may have a dry sense of humor that isn’t immediately apparent. It can be challenging for them to translate their knowledge from geek-speak to applicable, strategic information. Marketers don’t always speak their language. They are often some of the most intelligent people on the property. And they CAN get you what you need if you invite them to partner with you. You just need to spend some time in each other’s worlds.

Here are my guiding principles for developing a rela-tionship with your data analysts:

1. Include them in your earliest strategy and planning sessions. Going to an analyst at the end of a project and demanding information, deteriorates their ability to help you. If they know your goals and your measure-ment criteria upfront, they can design the reporting medium to gather pertinent data at the beginning of the project, and have appropriate comparisons at the end.

2. Don’t tell them what reports you want; tell them what you are trying to understand. Data analysts are good at translating your needs into appropriate report informa-tion. You may think you want them to give you a ton of numbers, when instead they can streamline the infor-mation in order to fulfill your desire to figure out what direction to take next.

3. More isn’t always merrier. Endless spreadsheets may not be as important as strategic information that helps you make decisions. I worked with a data analyst who

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was used to producing hundreds of reports every week for a prior Marketing Director. When I advised him that I was more interested in the data that enabled me to do comparisons and make strategic decisions, he was able to unbury my email inbox and focus my reports in order to support my way of doing business.

4. Get everyone on the same page, and be realistic about expectations. Has the executive team agreed upon the kind of information that will enable group decision-making? Is your data analyst just working for the market-ing department? Or do his/her responsibilities include creating reports and providing analysis for the entire management team? Data analysis takes time and focus; everyone’s expectations should match the quantity and variety of work being asked for … or quality will suffer.

5. Enter the strange world of Geek, Inc., once in a while. Maybe I’m biased because my son has a big streak of

geek, but take the time to listen to what interests your data analyst. A collection of Star Trek figurines, end-less nights playing Dungeons and Dragons, memorizing thousands of Seinfeld quotes, calculating sports statistics on everything from football to the Triple Crown … it may not be your personal bag, but what the heck, you might learn something new as your relationship devel-ops. Data analysts have a wide variety of interests, and it doesn’t hurt to engage them … they could someday be your “phone-a-friend”!

This article is dedicated to the best data analysts I have met throughout my career, who have supported my suc-cess, and sometimes were responsible for it: Onie, Roy, Terrell, Mike, and Nicole. I salute you!

The difference is in the details.

Creating Destinations That Inspire. encompass-ddc.com

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Level 5 LeadersHow the success or failure of your organization depends on these fewBy Sean Vestal

He was in Las Vegas for the Global Gaming Expo. The casino he hailed from was far different from the fairy-tale casino that he found himself in. He had read the articles and the books, but he wanted to see for himself if the Wynn Resort was as beautiful and wonderful as everybody had said it was.

Immediately, he was mes-merised by the extreme attention to detail. As he ran his thumb across the stitching on the top of the slot machine chair, he was struck by the gentle softness of the white leather. His gaze lifted to the casino, where he delighted in the way that the woven fabrics danced in perfect con-trast to the marble floor.

He had a brief moment when his eyes relaxed their focus, and the light, textures, and people all seemed to blend, like a beautiful painting come to life. All his senses were enjoying this moment, even the air in the casino smelled like lilacs to him.

As he moved just off of the casino floor into a restaurant, something unexpected happened. Steve Wynn himself had appeared before him.

Now, to this young casino executive hailing from a rural casino, seeing Steve Wynn in the flesh was the equiva-lent of catching a glimpse of a unicorn or snatching a leprechaun. In fact, this was a bit of a Halley’s Comet moment, because he had the pleasure of observing Mr. Wynn on the casino floor, actually inspecting the intrica-cies of his empire.

Mr. Wynn walked toward him and stopped. He looked up at a light outside the restaurant, shook his head, and whipped out his cell phone. He was awestruck and even a bit nervous, as he was close enough to eavesdrop on Mr. Wynn’s phone call.

Initially, he was surprised by the cantankerous nature of the phone call, but ultimately he was more impressed by the thorough expectations that Mr. Wynn had for his casino. After all, Mr. Wynn spent ten minutes on the phone, because one light in a sea of lights was not exactly

perfect. He described with crystal clarity his high expec-tations, and seemed quite unsettled at the notion that “good enough” would ever fly in his world.

He felt a little apprehensive when Mr. Wynn hung up the phone, but if he ever wanted to introduce himself, now was the time to swallow his fear and go for it. He acted decisively, got out from behind his table, and extended his hand in introduction.

I tell this story as I reflect on how important leader-ship is to our success as an industry. One of the great privileges of being a consultant is the gift of perspective. I get a lot of exposure to how different leaders run their businesses.

I have witnessed leaders who are convinced they know everything, and create cultures of blame and accusa-tion. I have witnessed leaders who focus solely on their P&L, and completely forget about their customers and the people who serve them. I have witnessed selfless leaders, smart leaders, leaders who inspire, and even the occasional leader who you may want to take a bullet for because they are so awesome.

What I can tell you is I firmly believe that quality lead-ership is a key ingredient in how successful a casino ultimately becomes. One of my favorite authors, the acclaimed business writer Jim Collins, often discusses the importance of leadership in his books.

I thought it would be interesting to share with you a summary of what Jim Collins refers to as a “Level 5 leader.” For those readers who don’t know Jim Collins, he is a business consultant and author, who has spent the last 25 years researching what makes the highest performing companies in the world better than their competitors. He writes frequently for the Harvard Busi-ness Review, and he has written several bestselling books, like Good to Great and Built to Last.

In his research, Jim Collins has found that the best leaders in the highest performing companies, all had very similar traits. He often discovered their overlap-ping traits when he would interview these leaders for his books. It occurred to him that they all seemed to answer his questions in the same way, and had very similar lead-ership philosophies.

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In his work, Jim Collins outlines an entire hierarchy of leadership. He has leaders from Level 1 to Level 5. He refers to these super leaders as Level 5 leaders. The Level 5 leaders have all the qualities of the other leaders, plus some unique traits. Here is a quick summary of the key traits that he finds in these leaders.

1. The best leaders have an unrelenting, profes-sional will. Simply, the best leaders have high stan-dards and high expectations. Their unwillingness to accept anything less than their high standards and expectations, is often what drives company perfor-mance. They have an unwavering resolve to produce the best long-term result, no matter how difficult it may be. They take facts around them into account, but they have an unbreakable faith that their company will prevail, no matter what the challenge. They seem to have a belief that tomorrow will always be better than today, and if today is bad, it could always be worse.

2. The best leaders get the best people on the bus. The best leaders have a knack for identifying and collecting the most talented employees in the marketplace. They find ways to put those employees in positions that maximize their strengths, and they develop those employees to be better than them-selves. The best leaders do not suffer fools easily. The employees who are not a right fit for their company, need to get off the bus immediately. The best leaders understand the importance of human capital; they incorporate their same high standards into the businesspeople who they choose to surround themselves with.

3. The best leaders exhibit personal humility. The best leaders shun public adulation, and they are never boastful. They channel their ambition into the cause of the company; their ambition is never self-serving. The best leaders ALWAYS attribute the success of the company to the individuals on their team. If these leaders are pushed beyond to comment

on their own individual importance, they often attribute their own individual success to blind luck, or to surrounding themselves with the best people. Success is absolutely never about them. However, when things are wrong, the best leaders always look in the mirror. The best leaders always accept full responsibility for mistakes; they do not blame others or external factors.

To bring this article full circle, I will return to the begin-ning of the story. A co-worker of mine at my first casino, really met Steve Wynn while he was inspecting the lighting on his casino floor. He was impressed with his incredibly high standards and his commitment to his company. He was also impressed that he would take the time to have a nice conversation with him, and he was even more impressed when Mr. Wynn recalled hiring another co-worker of ours at the Mirage 20 years earlier.

I am not sure if Steve Wynn is a Level 5 leader, since I have never met him. Though I do wonder if his immense success has to do with his incredibly high standards, and the pride he takes in walking his floor to make sure that every light is perfect.



Marketing TechnologyDon’t get caught up in another frenzy and throw the baby out with the bath waterBy Jeff Gorovitz

The casino industry rode the crest of technology for many years, making the guests’ expe-rience faster and more efficient through technologically-driven systems.

Before the economy crashed, many casinos engaged in “tech frenzy buying” – grabbing every piece of software avail-able, without a clear vision of

how one piece fits with another or what it will accom-plish.

Despite the abundance of various systems you have purchased, chances are that your property cannot match consumption data from even one amenity back to a loyalty club member. All this technology, yet all that most casinos can measure is their guest’s play!

THOUGHTS ON SOLUTIONS

• Focus on your players and return to personalized service and relevant communication, enhanced, not impeded, by technology.

• Recognize the scope of the problem and make the financial commitment to resolve it.

• Start with an internal assessment – an evaluation defining what information needs to be tied together and what technology you already have collecting pieces of that information.

• Contact several consultancies that integrate data. Ask them to help you map a progressive integration plan – start with mission critical.

• Hire the one with the most logical and affordable plan, and get it in writing.

Even while many operators need to be focusing their IT energy on integrating the systems that they already have, there is a new tech craze luring them.

APPS!

To hear some, no property will survive without an app, but buyer beware!

DON’T REPEAT THE PROBLEM

• When evaluating apps (and other web-based marketing tools), separate the shiny stuff (features)

from the benefits that will help you connect to and understand your patrons.

• Ask, does the app or other electronic platform allow patrons to communicate with the casino?

• Is it capable of asking players what makes them tick, and then transferring that knowledge to a place where their personal data can be evaluated alongside their behavioral information from the casino?

• Is it built on an iGaming platform? • If yes, especially where Sovereign Tribal Casinos

are concerned, ask who controls the gaming content. Will the buyer self-direct its iGaming vendor negotiations? Or will the app provider restrict content?

• Ask about what data the app provides, who owns it, and how easily it will integrate with other internal data. MAKE SURE that your unique player data can’t be sold, assigned, transferred or used by any third party.

• Do your own research – Is an age 45+ gamer likely to use an app? Is that their key touch point?We asked 15,000 casino players who access web-based casino portals about how they want to receive information from their casino, and aggregated the results.

Roughly half want offers to be communicated through email, and the other half still prefers mail. An insignificant percentage said text message.While we’re still gathering responses on app usage from players, empirical research (see www.comscore.com) indicates that people in our core gaming group (age 45+) do use apps, primarily for social media, navigation, banking, and games. Facebook is the number one app across all age

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categories. Social media, games and radio account for half of total app engagement time, while search and other categories vary, depending on whether they use IOS or Android platforms for tablets and cell phones.

At age 54, monthly app hours usage takes a significant downturn and is about 2/3 that of the younger than age 35 segment. Mobile engagement (including search browser time) accounts for 60% of the total, with desktop occupying the remaining 40%.A 2014 Pew Research project reports that 92.9% of American adults between ages 18 and 64 have Internet access. 57% of age 65+ have Internet access.Nielsen reports that 64% of US adults own a smartphone, and 54% of ages 50-64 own a smartphone. This would indicate that while mobile engagement has surpassed desktops, it is driven more by younger users.

This body of research indicates that the core gaming customer of age 45+ is less likely to use apps than younger players, but they are very likely to use the Internet, more so via desktop/laptop, and to a lesser degree via mobile web. Based on this research, a layered communication approach through mail, email, web (desktop and mobile), and apps would seem to be the best way to communicate with our core players and accommodate our younger up-and-coming demographic. This research also leads us to conclude that a transition will take place from more con-ventional device access to mobile engagement, and as our younger age demographics reach the 45+ threshold, apps will be much more important and likely the main source of iGaming engagement.

CONCLUSION

Technology can and should be core to a personalized player communication strategy, and integrating as many touch points as possible is key. Keep in mind that the newer the technology, the slower it is adopted by our

older players. The US has a high penetration/usage rate across most age demographics for Internet use, but smart-phone ownership in the core casino demographics is still a little over half. Your casino will benefit by going the extra mile to accommodate your players – whether through mail, web, or applications.

While many of our players still want to be communicated to by mail, many prefer electronic communication. Elec-tronic communication is a NOW issue. It can be instanta-neous, highly relevant to the individual player, and much less expensive. For those who want that means of commu-nication – fulfill their preference. Research all the options.

Where apps are concerned, realize no app is a “be-all, end-all,” but they should be viewed as a component, or tactic, of the current player communication strategy. A preferred means of communication by a small segment of our overall player population, and not the popular choice of engagement by our current core gaming customer – but an important element in the not-too-distant future.

The moral of this story is to fix your existing integra-tion problems, do true due diligence when assessing any and all electronic player communication, accommodate your players’ wishes, and above all, don’t get caught up in another frenzy and throw the baby out with the bath water. Don’t create new problems … there’s probably already an app for that!

The Ultimate Player Portal and App!

A web based, player portal communication solution from player to casino and casino to player. Accessible from the player’s device of choice, with a mobile app. Proven ROI!

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How to Create and Manage Your Own In-House Research PanelAvoid the tremendous cost of making bad business decisionsBy Deb Hilgeman, Ph.D.

I’ve often written and lec-tured about the simplicity and affordability of survey software programs, such as Question-Pro, which is what I use for my research. This software costs about $100 a month, and enables your casino to conduct customer research that takes the guesswork out of market-ing decisions. What are you doing right, and what can you

improve? What competitors are your customers visiting, and why? How do your club members rate your ben-efits? How can you improve your promotions? The list of topics for customer surveys is endless.

This article explains how you can amp up your survey program by setting up an online survey panel. This is simply a pre-recruited pool of respondents, who agree to give you feedback about any research topics that you choose.

Rather than sending out mass email invitations for sur-veys, if you set up a panel, you can categorize members by gaming activity, zip code, income, loyalty behavior, age, gender – whatever descriptors you want to include.

Some of the key benefits of having an online panel include:

1. Research quality – You recruit and manage the panel, so you are in control of the sample and quality.

2. Convenience – Whether you want to conduct a survey to find out what moti-vates Millennials or to test promo-

tion ideas, you have pre-approved access to qualified respondents.

3. Increased reliance on analytics – Having an easily accessible online panel encourages companies to conduct more research and make significant busi-ness decisions based on research, as opposed to guesswork and gut feelings. Moreover, online panels contribute to analytical research that can be cross-linked with data from other sources, such as your tracking system.

4. Cost – The cost of making a bad business decision can be huge. By using an online panel, you can test ideas before committing, so bad ideas are weeded out or modified before you spend money and effort on changes or initiatives that won’t deliver what you expect or need.

Getting Started

The first step is to create a Panel Portal website that your panel members will use for administrative processes, as well as the site where they log in and take surveys. This website should explain the following concepts very clearly:

• Privacy policy and spam considerations – Privacy is a very big consideration for users giving out their personal information, such as email addresses and other demographic data. Be very clear in explaining your privacy policy. Also, be sure to explain what is done with the data that is collected.

• Prizes/Gifts: Policies and restrictions – Spell out

how you plan on compensating the panel members for

their time. This could be a free buffet or free play coupon for each person completing the

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survey, up to a certain quota that you set. Or you can offer a fixed cash prize amount, with a certain number of winners (randomly choose five $100 cash winners, etc.). Incentives can vary by survey.

• Age limitations – Clearly explain age restrictions. • FAQs – Compile a list of FAQs. Anticipate what

users will ask, and you can also add to the FAQs as time goes by.

• Problem resolution – Designate a person to respond to panel member concerns and questions, so that they know they are being heard and responded to, as opposed to sending an email to a generic inbox.

• Contact information for further questions – Make sure that you provide members with other contact information (phone, email, etc.) if they have further questions regarding membership.

Finding Members

The idea behind all the different modes of recruitment is to drive users to your panel website, where users can sign up and agree to be part of the panel. You can recruit by adding links to your existing website, where you can ask viewers if they’d be interested in joining an online survey panel. You can also recruit members from other surveys. When customers participate in one of your surveys, you can ask a final question about if the users are interested in joining a panel. And you can use existing mediums, such as direct mail and casino signage, to publicize panel recruitment.

Demographic Survey/Data

Once customers agree to be panelists and participate in future surveys, the next step is presenting them with a profile survey. The profile asks for key data elements (age, gender, income, etc.) that you consider vital for segmenta-tion. Customers must answer all of the profile questions in order to be on the panel. This process would all be on your Panel Portal website.

Survey Delivery

When you’re ready to conduct a survey, send an email to panelists explaining the research objective, as well as the compensation being offered. This enables the respondent to match his/her interests with yours. Panel members are then directed to the Panel Portal, sign up with their email address and password, and take the survey.

Follow-Up and Cross-Linking Data for Further Analy-sis

It is generally considered a good practice to share sum-mary results with the panel members. This has a “buy-in” effect for the panel members. Most users would like to know how their individual thoughts compare to the generalized population. It is not necessary to make all of the results public, but sharing an executive summary with the panel members increases your chance for member participation the next time around.

Conclusion

Your casino may not be ready for an in-house survey panel yet, but as casino marketers and executives, you already know the value of reliable data when making the best decisions. One of the goals of a panel-based research initiative is to encourage analytical business decision-making. An online panel not only encourages members within your organization to rely on research practices, but it also enables you to deliver forward-thinking solutions that complement your marketing initiatives. As market research continues to evolve, creating in-house survey panels is the step that many companies will be consider-ing.

If your plate is too full to do this on your own, know that this “Doctor makes house calls.” Contact Amy Hergenrother at 775-329-7864, or via email at [email protected], for information on in-house customer research, survey setup, etc.

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Steve Browne will be the first one to tell you that if you’re working in the gaming industry and you don’t believe that what you do enriches people’s lives, then you’re in the wrong business. Dennis will nod his

head in agreement, and add that if you really want to make a difference to a guest, make it easy for them to do busi-ness with you. AND listen to what your customers want and actually GIVE IT TO THEM.

With these simple messages, both Steve and Dennis have impacted thousands of casino employees; and as partners, they created a brand and a standard for training in the gaming industry.

As Dennis expressed in his Message from the President pre-viously in this issue, both he and Steve are humbled to have been chosen to receive the Lifetime Achievement Award at the Casino Marketing & Technology Conference this July. They’ll both tell you that it’s been a fun ride, and continues to be so. In regards to the Award, they use the old line that they are “a little suspicious of any club that would have US as

members.”

With that having been said, we asked a few of their friends, mentors and “students” (unbeknownst to Steve and Dennis) about why they thought these two guys deserved such a prestigious award.

Angie Groeneveld, Director of Hospitality, Harrah’s Ak-Chin Casino

“I first met Dennis in Las Vegas when I joined Holiday Casino in 1990. He was the crazy guy having fun on the casino floor with guests. It took me a while to under-stand what he really did!!!

“In 1992, I was very fortunate to be selected as one of five emerging leaders from our property for ‘Excellence in Management’ (EIM) (see photos on the left). This is when

I got to know and appreciate this man. We were quite the diverse group: Dennis the marketer, Rick from Security, Jerry in Casino Operations, and Rudy in F&B. I was in Hotel Operations then, and the only female in the group. We enjoyed the time that we spent together working, learning and partying (there was always time for that). Our presentation on the transition from Holiday Casino to Harrah’s was highly applauded by the CEO, and envied by all of the other teams.

“The friendship we formed has strengthened throughout the years. It has extended to our families, and although we may not see each other as often as I would like, we know that we can always count on each other. I am so happy that he is receiving this much-deserved award, not just for his contributions to casino marketing, but for the humani-tarian that he is. Congratulations, ‘RADCON’!”

Kirk Houser, VP of Casino Marketing, L’auberge Casino Resort Lake Charles

“Steve’s commitment, hard work, and knowledge of Player Development, sets him apart as a leader in our industry. Everyone who knows Steve is aware that he is a man whose integrity is beyond reproach. Steve is responsible for creat-ing a systematic approach that results in successful acquisition, retention and reactivation of casino customers; he gives his clients results … not excuses. Perhaps most refreshing is that Steve believes his business is more of a creative endeavor, and in teaching what he knows, he is able to keep a group both engaged and eager to follow his path of success. I am so grateful for his con-tributions and for the innovative approach that he brings to the changing needs and evolution of Casino Marketing. Congratulations on this well-deserved recognition!”

John O’Looney, Retired Casino Executive

“Back in 1988, seems like just yester-day, I was transferred from Atlantic City to Las Vegas as VP of Casino Operations. I arrived in Las Vegas not knowing a single soul, and got put into the middle of the infamous ‘good old boy network.’ As I looked around for someone to befriend me,

Creating Value in an Industry That Enriches People’s LivesDennis Conrad and Steve Browne are honored this July for their work in the casino industryBy Christine Faria


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I came across a delightful fellow named, Captain Casino. The Captain was the most energetic, committed, and truly innovative casino marketing individual I had ever run into. He was a dashing figure in his captain’s jacket and the very stylish captain’s cap he wore. At the time, he was promoting ‘Fun 21’ on the casino floor, and noth-ing in the way of funky promotions was off-limits. The Captain and I bonded and worked together until destiny and his creative juices led him to create Raving. I am very proud to be a friend and mentor to the Captain. To the Captain, aka Dennis Conrad, I say congratulations and well-deserved.”

Larry Close, Retired Casino Executive

“From the time I first met Steve Browne at Del Webb’s High Sierra at Lake Tahoe in the late 80’s, where I served as Gen-eral Manager and he worked in Table Games (in those days ‘the Pit’), I was impressed with the enthusiasm he had for his job – and the positive way that he treated our customers. As opposed to the majority of our dealers, he cre-

ated noticeable interactions with his players, engaging them in friendly conversation. The seats at his table were always full. And despite the conversation, he always met his required hands per hour. He learned as much from his guests as they learned from him. He was curious about where they came from, what they planned to do during their visit, and how many times they had come before. See, even in those early days, he was database marketing (a term that would not be used in our business until many years later). He offered new ideas to anyone who would listen, and wrinkled his nose noticeably to the response, ‘we’ve always done it this way.’ He later took his ideas to Carson City, where, as owner and GM at Cactus Jacks Casino, he implemented them, refined them, and reaped the positive results. He has unselfishly shared those ideas during his career, which has spanned almost 40 years. That positivity, passion and enthusiasm I first saw in Steve has never left him. Thank goodness, because we have all been the benefactors. Steve, you have plenty left to do in your lifetime, but it’s been long overdue to recognize you for the significant contributions that you have made to casino marketing and our industry. Congratulations, buddy! Can’t wait for your next best thing.”

Steven Neely, Chief Marketing Officer, Casino Del Sol Resort

“There are very few people who have had the impact on my career, or has taught me as much as Dennis Conrad. The reality is that I may not still be in the business, if not for Dennis and a chance encounter at my first World Gaming Conference. Here I was, a newbie in the biz, struggling to figure out if I had made the right decision to leave a different, very successful, career in another indus-try, and I end up at several ‘sessions’ with both Dennis and the late John Romero. While I cannot remember the exact words, I do remember the lessons that were taught that week, which have continued to guide my career to this day.

• Plan. It really is amazing how simple this is, but how, as marketers, we often ‘make it up as we go,’ and oftentimes screw it up badly!

• Do smart things. Of course, item 1 often feeds item 2, and if you don’t do smart things, you just may end up on the list of promotions that were, well, not smart that Dennis would be sharing at the next conference.

• Do the math. Yes, marketing people, basic arithmetic comes in handy. Figure out what your exposure is, and what it could be if things go wrong. Also, talk to people who know, before doing something that you don’t know …

• Challenge the status quo. This lesson was especially helpful for me at that time, because I was the young guy looking at things through a new lens, and facing seasoned veterans who ‘had always done things a certain way.’ Unfortunately for this group, the industry was changing rapidly, and they were not really ready for it.

• Stay out of your office. You learn more in 20 minutes wandering around the casino floor, than you will spending a week in your office. See, be seen, find things to challenge, and fix things you find that are broken.

• Take some chances. You will never know if you don’t try, don’t be ‘that guy’ who sits around and wonders about what would have happened. I see what Dennis has done with his company, and I



am happy for him. Certainly, he could have lived a comfortable life doing property ‘stuff,’ but instead he went out on his own and has touched thousands of lives by doing so, and I am guessing that he had a lot more fun.

• Be passionate about what you do. I think more than anything else on that cold October occasion was that Dennis was absolutely passionate about what he did, what the industry was all about, and the people who he interacted with, and that resonated with me. Over the past couple of years, I have really seen a rebirth of this with Dennis through his work with the NB3 Foundation, and I see that passion that I remember.

• Tell the story. We, as marketers, have become very transactional – you spend this much, you get that much. But we do not have ‘customers,’ we have ‘people,’ and people like a good story. Give them a compelling story, and they will give you the transaction.

“There are many more, some are actually fit to print, but you get the idea. Dennis, on this special occasion, allow me to publicly say, thank you! I am not sure that I would still be enjoying the career I have, without your inspira-tion, and I am certain that I would never have had the level of success, and the amount of fun, I have enjoyed if not for you.”

Jon Lucas, Executive Vice President of Operations-Hotels & Casinos, Hard Rock International

“I have known Steve Browne for a long time, but each time I see him, I am amazed. Steve ALWAYS brings passion, enthusiasm, energy and knowledge. Having been an operator, he brings real-life experiences to the classroom.

His ability to keep people engaged, interested, and awake never ceases to amaze me.

“Of course, his passion and love of the Hard Rock brand is particularly appealing to me (for selfish and obvious reasons). Steve ‘gets’ customer service, and sees it, as I do, as a real differentiator in our business, something that can set you apart from the competition. I appreciate all that Steve has done for me and my teams over the years. He is truly deserving of this award.

“Rock on, Steve!”

Thomas J. Walsh, Gaming and Tourism Reporter, Reno Gazette-Journal, 2002-2005

“Though I once lived in Nevada and was hired by the Reno Gazette-Journal to write about the business of gaming, I’ve never been much of a gambler. A few good hands of poker at a couple of sodden bachelor parties is the extent of my table game prowess. But I do like the ambiance of certain gaming halls, from a no-nonsense ‘local’ joint to the swankiest of resort spas. Still, with gaming new to me, I needed a rabbi, and I found one in Dennis Conrad. If there was ever a man who could whip an agnostic into a frenzy of appreciation over the casino business done right, it most surely is Dennis. A quick story: Feeling like I should be more in-tune with the heart of my beat, I once asked Dennis to show me how to play craps at the Siena in Reno (I liked the Siena because it sat along the river and had elegant décor). It was hopeless, but Dennis obliged, putting on a veritable clinic while charming the other players and the dealer (who he knew, of course), while nailing an 11 on the first roll and never looking back. Eclipsing a grand in winnings over the course of my short tutorial, I hazily recall rolling a few dice on my own with some of his winnings. Mainly though, I remember the joie de vivre of a man utterly in his element, the $100 chip he flipped to the dealer after-wards, and the one he stuck in my shirt pocket, with instructions to pick a bottle of the best pinot noir in the Siena wine cellar. Dennis couldn’t really teach me to play craps, but I never stopped learning from a guy who has made his industry a fascinating one, better for his having observed it so thoroughly, and best of all, a helluva lot of fun.”

http://www.nb3foundation.org



You’ve tried to force it. You’ve tried to stretch it, tweak it, fold it, and bend it; but making Bingo and Slots fit into the same loyalty program is worse than fitting a square peg into a round hole. It’s worse because you are trying to force your back-of-the-house strategies to serve two unlike Game Types in order to

please players who will not appreciate the final product. Ultimately, you will try too hard behind the scenes and end up royally confusing your customers. One set of rewards should not be manipulated into serving another. That’s when overinvestment and unsustainable entitle-ment begin.

There’s got to be a better way.

There is.

The first step is to embrace what you can and cannot do for your customers. A loyalty program in its worst form is a program that tries to make all people happy all of the time. If you try to manipulate your Points, Direct Mar-keting, and Promotions to serve everyone equally, no one will be satisfied. The math can be perfected, but its interpretation will be a muddled mess.

Step One: Be Honest with Your Bingo Players

Bingo has been around a long time. Veteran Bingo marketers know what promotions are popular when and with what customers. Veteran Bingo marketers know how to upsell on the floor. We have con-ditioned our players to expect a varied calendar of events and to count on how to make the most out of our specials. Frankly, we have invested about as much as we can. But that doesn’t mean that we can’t involve a Bingo player in our property’s loyalty program. It just means that our Bingo friends will not be receiving Bingo coupons as part of our Direct Marketing program based solely on their Bingo play. We won’t be sending them Slot Free Play unless

they earn it playing Slots either.

Step Two: Build Multiple Strategies for Different Player Types

One program does not fit all players. We are not in the loyalty business to be equitable. We are in the loyalty business to favor business that either contributes the lion’s share of our profits, or represents a greater avenue of incremental growth. That doesn’t mean that Slot play trumps Bingo play. That just means that we will value benefits based on what we can do with the behaviors that we see.

People play for different reasons. Along those lines, play-ers are motivated by different incentives. The first step is to drop your players in to different buckets to get to know what drives their business; the smaller the bucket,

the more relevant the value proposition.

Data analysis is about carving finer and finer slices from a big slab of infor-

mation: the order in which you approach how you trim the pieces, matters. The

first step is to gather all the players who have significant

value to you: not your top play-ers, not your bottom feeders, but

choose a starting point and cast your net.*

How to Fit Bingo into Your Loyalty ProgramOne program. Divergent strategies.By Nicole Barker

http://www.ravingconsulting.com/about/#nicole



Bucket 1: Slot Only Players

This player doesn’t need Bingo offers. They came for Slots, let them play Slots. Well-traveled loyalty tools that use Points, Direct Marketing, Promotions, Tiered Cards, and Player Development have been perfected to cater to this segment.

Bucket 2: Bingo Only Players

This player doesn’t need Slot offers. Try as you might to throw Slot Free Play in this direction, few will bite. A handful of players may migrate over to the Slot area to take advantage of a Free Play Coupon, but few will continue to use your Players Club Card or take money out of their wallet to fog a mirror. Let them play Bingo. They like it.

Bucket 3: Slot Dominant Players

At some point, a player favors one game type over another. Let’s say that this is at 60-plus percent. Carve away all the players who divide their wallet across Slot and Bingo, but favor Slots more than 60%. Get to know this group. Is there a trend for when these players play Bingo? Do they play Bingo with friends or family, and then cross over to the Slot floor when they want to play by themselves? Do they earn enough to get Direct Mar-keting Free Play Coupons, or is their Bingo budget keep-ing them from an ADT that is high enough to receive recognition for their Slot play?

Bucket 4: Bingo Dominant Players

Why are these players throwing some of their atten-tion over the fence? Are they playing Slots because they assume that the loyalty program favors Slot play? Are they playing just enough to become eligible for Direct Marketing and Tier-based rewards? How new is their Slot play? Are they dabbling in Slots to see if they like it? Do they only play Slots while they are waiting for the next Bingo session to begin? In many cases, Bingo play-ers have a wallet that is bigger than what they can spend playing Bingo. Slot play provides the rush that they are looking for, and a means to keep the excitement going after their Bingo session ends.

Getting to know why your players play the way they do will begin to clarify what you want to accomplish by incorporating Bingo and Slot play into a cohesive loyalty program. Player Development and a Tiered Card program is where the two game types can come together. This is where a loyalty program can recognize both sectors of your business. Start with the players’ likes and dislikes first, and then build your strategies to match their preferences and motivators. Most successful strate-gies within a loyalty program are based upon recogni-tion and well-deployed touch points, over the addition of other costly benefits.

*Note: Proper data analysis for disparate game types begins with a common means to value the business. Once you find a way to evaluate Theoretical, count unique players even if they play different games, and assess Trips according to gaming days that a player visits the gaming floor, you can begin to co-mingle your analysis across game types.



Why Integrity Audits Need to Be a PriorityWhat every GM and Director should know about stopping losses at their casinoBy Derk Boss

Recently, I wrote an article about the need for and the value of integrity audits. Since then, I have been asked by readers several times to further explain what an integrity audit is, how it is set up, and what should be audited.

Because I believe strongly in the use of integrity audits as one of the com-

ponents of a robust loss prevention program, and their ability to detect the criminal activity occurring underneath the surface, I think it is important to address these questions more thoroughly.

By now, most of you know, or should know, that one of the biggest problems any business organization has is employee theft. It is generally estimated that we can expect to lose 5% of our gross revenue to this type of theft alone. I can tell you sincerely that I believe that number. It may be even more!

If that is so, then we should be able to find employee theft on a regular basis. However, it is usually hidden quite effectively by the employee committing the theft. Additionally, employee theft nowadays is taking place in non-traditional areas, such as the players club, bars and restaurants, nightclubs and pools, as well as at gaming tables and in slots.

It’s important to keep in mind that we’re not talking about the theft of someone’s tips or a couple hun-dred dollars. By the time they are detected, these thefts and fraud may cost a property in the tens of thousands or hundreds of thousands of dollars range.

Employees know where the cameras are and what they can get away with. They are especially adept at camouflaging their activity. In fact, the theft, viewed through the camera and without knowing what the customer ordered or said, may appear perfectly normal, thus, the integrity audit. It is used to place trained personnel into these areas to pose as cus-tomers to see how the employee handles their trans-action. For example, a shopper orders and receives

a beer at a bar. He places cash to pay for the beer on the bar and walks away. The bartender picks up the cash and places it directly into his toke bucket. Because surveillance is covering the shopper and the bar with video, a clear case of theft is identified.

Another case we worked occurred in a nightclub. Shoppers posed as customers and, within an hour, were approached by employees who would provide “certain services” for a fee. This is certainly something nobody wants to have happen at their property. The property was able to use that information to quickly clean up the nightclub. We must use an undercover shopper to conduct such integrity checks.

Setting Up a Shopper Program

• Select a reputable and experienced shopper service. In some states, Nevada being one, the service must be licensed by the state in order to perform shopper services. I recommend that the shopper service have gaming experience. It’s extremely difficult for a shopper to learn what to look for on a gaming table in just a few hours.

• Meet with the shopper team leader to identify and detail what you would like to have shopped, what you are concerned with, the schedule for the shop, and to determine who the shoppers can contact, if needed during the shop. I often find that we develop information that needs to be communicated immediately to property leadership.

• Identify who will receive the information generated by the shoppers. As even guest service information can be sensitive, and certainly observation of illicit activity is, access to the information should be limited to only those who need to know.

• I highly recommend that the shopper team work with the surveillance department (unless you are not comfortable doing so, for integrity or performance reasons). In most cases, working together allows the use of video as evidence, if necessary.

• The first shop should set a baseline of service and/or integrity. Future shops will check for

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changes in service levels, employee behavior, and adherence to controls, policies and procedures.

• Review the shopper reports and make necessarychanges.

• Maintain shopper reports for later review, ifnecessary. Gaming properties can be requestedby gaming regulators and local law enforcementagencies to provide evidence of a proactiveapproach to keeping some venues (Night and DayClubs/Pools). Such reports and proactivity mayassist in the mitigation of potential fines.

The question of what should be audited is best answered by first determining where you are most at risk. I think such areas or activities should be checked as soon as possible. For example, if Blackjack has been performing

poorly for quite a long period of time, the use of a shop-per team may pinpoint the underlying issue.

After checking your high-risk areas, the next step is to audit each of your service areas, such as bars, restaurants, ticket sales, players club, etc. Doing so will assist you in detecting existing illicit activity. As mentioned previously, we are seeing a growing number of employee thefts and frauds occurring in these areas. I suggest that integrity audits be used on a regular and consistent basis, and serve as one of the pillars of your loss prevention program.

The use of a shopper program can assist any gaming property in ascertaining guest service levels and identify-ing existing internal theft and fraud.

It’s out there; we just have to find it.

Looking for something in particular? Articles on host development, free play, service challenges, surveillance, players clubs? Just email Amy Hergenrother, [email protected], and she’ll find it!

Get More at Raving OnlineWe’ve got an enormous library online, on just about every topic that marketers and operators face in their day-to-day business. Even we forget the depth of information our team has gathered since 1998!

Drop by www.ravingconsulting.com to find out about:

Direct mail vs. emailResearch reveals what your customers want

GMs are shocked …How extending your secret shopping to other areas will uncover fraud and theft

Personalized marketing is not a trendStop wasting your precious marketing dollars being irrelevant

http://www.ravingconsulting.com/

http://www.ravingconsulting.com/wp-content/uploads/2013/05/6-8-15DirectMailOrEmailTheCustomerSpeaksHILGEMAN.pdf

http://www.ravingconsulting.com/wp-content/uploads/2013/05/6-1-15StopWastingYourMarketingDollarsBeingIrrelevantGOROVITZ.pdf





How Developing Strategic Partnerships (aka That Bad Word, “Outsourcing”) ... Can be more profitable for your casino By Kell Houston

In today’s business world, partner-ships are more important than ever before. In our casino world, it is the same. Often these partnerships get referred to as outsourcing. Out-sourcing just doesn’t sound as pow-erful as partnerships, and is often misunderstood. The reality here is that powerful and competent stra-tegic partnerships are behind every

successful business.

Everywhere you look, businesses are cutting back on staff, trimming spending, and looking for ways to stretch their budgets. Casinos are in the same boat. Employees are being asked to do more with less money. They are scrutinizing all expenditures, and they are asking for accountability. Successful businesses leave clues, and their partnerships are, for the most part, the difference.

How your casino can save money when you outsource

When it comes to the marketing and entertainment departments in your casino, the same strategy applies. Outside partnerships with advertising, marketing and entertainment buying are a very important part of the partnership process. Companies that specialize in these specific areas are much more connected to their respective business fields, than any standalone casino person. Plus they have a much broader view of the new trends and success stories being created. Additionally, they will get you the “real” price. An outside com-pany’s buying power and experience will far outweigh a standalone buyer in a casino.

One of the common misconceptions about partnerships with outside companies is that the outside people

cost too much money. However, what is not being understood is that the outside people are specialized, experienced and very well-versed in their particular field, with a lot of important relationships. How much is too much money? If your outside company saves you time, phone calls and research, plus gets you answers, what is that worth? If they can bring options to the table that you haven’t looked at before and that are successful, what is that worth? Do you have time to go to all of the conventions and conferences, and still get your job done at the casino? Do you have time to sit on the phone all day, building relationships and making calls? The bottom line can be enhanced by your strategic partnerships.

When “I’ve gotta guy” makes more sense than trying to buy entertainment in-house

For example, an inside entertainment buyer for a casino is directed to get the concert entertainment booked directly, and in doing so, the thought is that it will save the casino money. An outside buyer is working with a bigger picture scenario, and will know what is really going on with that particular Artist and the routing that the agency is working on. They also know what the “real” price for the act should be. When it all gets added up, the

inside buyer is oftentimes easily paying from 10-20% more for the Artist, or

even more.

Another unknown to an inside buyer, is that

agencies representing Artists have agen-das. In their weekly

planning meetings, the emphasis will shift to and from which groups need the most help in a

region, or which man-ager is pressuring the agency to book more

dates. The act you are being pre-sented may not be the right act for you, but for the agent, he has to get that act booked in your terri-

http://www.ravingconsulting.com/about/#Kell



tory. They are pros at selling their acts, but what’s in their best interest is not always the best for you and your casino. An inside buyer seldom has this kind of information.

Wouldn’t it make more sense to be included in a series of dates, rather than anchor those same dates? Wouldn’t it be better to have access to inside informa-tion so that you can make the best decisions possible? That’s what a “qualified” outside buyer brings to your casino. Your outside company will have much more buying power, because of the volume of work that they do with other casino businesses and agencies around the country. They bring you routing, pricing, and yes or no answers. They bring acts and special events to the table that the inside buyer has never con-sidered, been exposed to, or heard about.

Most casino employees wear several hats, and are asked to cover a lot of projects and events. The inside person only deals with their world, and they seldom have the opportunity or the time to look at a bigger picture perspective. Their day is full of meetings, managing upcoming events, and trying to get caught up. How can an inside buyer operate and do their job successfully and effectively without a “qualified” outside buyer? That is why you see so many success-ful casinos using outside partnerships. They qualify these outside businesses by using vendor licensing and checking references. Once the outside person or business is qualified, an important partnership can be put in place. This partnership now benefits both businesses, and a win-win scenario is created. The more you build successful partnerships, the more your network expands.

On and off. On and off. On and off.

“Would someone PUHLL-EASE turn off that service light?!?”

“Ah, they probably just hit the button by accident. It can wait.”

Fact: 40% of the time that the service button is hit, it was an accident.

Fact: The other 60% of the time, your guests do need help.

• PROBLEM SOLVED: The solution is so simple, and so inexpensive, you might be suspicious.

• It is a simple button cover that adheres directly to the button panel – no special gizmos, tweaking or training needed to place on your expensive slot machine.

• It took a couple slot “dudes” – yeah, the guys that have put miles on their shoes answering those phony lights, to come up with the SLOT SERVICE GUARD.

• The guest must lift the guard to request service. No hitting it on accident with their drink or instead of the wager or cash-out button.

• Where these guards have been installed, there has been a 40% reduction of service requests/change lights. That is thousands of times less per week that the attendants have to run to games; and thousands of minutes that can be spent servicing guests for what they really need.

• The cost? Less than a couple comped cocktails.

What are you waiting for? Try a couple of dozen; test an entire section – guaranteed, you will see the results. Call Tony Renz today at 317-652-4380 or email [email protected].

Please contact your regional representative

from Patriot Gaming

LIFT FOR

SERVICE

http://slotserviceguard.com/



How Can Casinos Use Food and Beverage to Drive More Guests and Be More Profitable? Q&A with Dennis Khanh, Raving’s F&B PartnerBy Christine Faria

Can casinos strategically use food and beverage to generate additional gaming revenue? How can a casino’s mix of food outlets, quality and service be used as an effective marketing tool? Dennis Khanh has helped both Tribal and Commercial casinos and hotels, answer these ques-tions and optimize their

food and beverage programs for the last forty years.

Let’s talk about how Dennis helps Raving clients take advantage of those opportunities:

CF: Where do you most commonly see overages in payroll? Is there a way to decrease payroll over-ages without impacting guest service?

DK: Overages in payroll are usually at both the front of the house and back of the house. Front of the house – most restaurants schedule their staff to all come in at the same time and leave at the same time. Let’s use the 24-hour café as an example. In most cases, you will see that the schedule is divided into three shifts. The day shift goes from 6 AM until 2 PM. The swing shift will go from 2 PM until 10 PM. The graveyard shift goes from 10 PM until 6 AM. Let’s say that we have eight persons on day shift, eight on swing shift, and six on graveyard. While there are guests coming in at 6 AM, most cafés do not get busy until between 7 AM and 8 AM. By staggering the schedule, we can most likely save two shifts per day. Two shifts per day multiplied by 365 days, you do the math.

And the same can be applied to the Beverage department. Of course, this will require more work, because it requires the Manager of the department to hold more than one pre-shift meeting. Back of the house – the same can be applied to the Stewarding department and the kitchen line. In most cases, it does not hurt the service one bit.

CF: An experience at a casino’s food outlet just might be the longest interaction that a guest has. How do you train for WOW service in food out-lets?

DK: When a guest checks in at the hotel front desk, it might take them a maximum of 6-8 minutes to interact with the Front Desk Attendant. In a restau-rant, unless it is at a Grab and Go outlet, the guest will spend at least 30 minutes eating their meal. During this time, a good server can get information about the guest, such as where he/she is from, is he/she staying at the hotel, what is their favorite game, and if he/she has heard of the latest promotion on the casino floor. The server can also share informa-tion with the guest about upcoming shows. This might induce a return trip for the guest. During all this time, they need to remember to call the guest by his/her name every single time that they talk to the guest. And remember that all mistakes can be nulli-fied by a great smile.

CF: If a casino approached you and said, “How can we use our F&B to drive more casino players,” what would you tell them?

DK: Besides the regular restaurants that a casino operates, there is a need to create more events with food and beverage. Depending on the location of the casino, it can create such events as a Food & Wine Festival, a Microbrew/Craft Beers Festival, a BBQ Festival, etc. These events can be done on an annual basis. On a smaller scale, casinos can have monthly winemaker dinners.

CF: Where do you see the biggest gaps in commu-nication between departments in a casino that utilizes F&B?

DK: The biggest gaps in communication happened because departments function in a silo. If there is no time for meetings, a simple, detailed email can solve everything.

CF: As the convention planner for Raving events over the last 14 years, I’ve seen inspired conference

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menus and presentations, to just plain boring (for the same price). How can casinos that do group events and conventions distinguish their product?

DK: The cost of food products is pretty much the same for all the casinos in one region. The casino needs to hire talented people who can create great menus targeted to their guests.

CF: Should a casino create a signature food item that represents their Tribe, their area, their culture?

DK: I usually refer to these items as “window dressing.” We can create anything we want; however, we must ask what our customers want. Too often, a Chef will create a very creative and wonderful menu, but it is not what our customers want.

CF: Do you believe in training food servers to upsell? If so, how do you do this so that the guest feels like they are getting more, instead of “being sold”?

DK: Absolutely! Every Food Server must upsell. First, in order to do a good upsell job, the servers must be very knowledgeable about what they are selling, and have experienced the food themselves. While they do this to increase the average check, in order to please the boss and also increase their tip earnings, they must come across as being very sincere. When a guest asks a server about what is good, please do not say everything. For me, that is an absolute turn-off. Instead, pick a couple of dishes from each category on the menu and promote these items; and make sure that you’ve tried them. Education about wine is also necessary so that you can knowledgably say, “And by the way, we have an exceptional wine that would go well with this dish.”

CF: When you work with different casinos, you look at the overall quality of the food, even down to the recipes. What are you looking for exactly?

DK: I look for taste, plate presentation, and plate tem-perature (hot food should be hot, and cold food should be cold). I like to get feedback from the service staff; after all, they are often the first touch with a guest. How did the guest enjoy eating it? Did he/she finish the plate?

CF: How do you determine the right mix of food outlets for a particular casino?

DK: By doing focus groups with your customers. Raving can help with that.

CF: Are there any trends you are seeing in success-ful gaming operations that more casinos should take a chance on? I’m thinking “indoor food trucks” or gameside food service.

DK: I believe in solid food concepts; they will last forever. Just serve your customers great food, along with great service. Again, each casino must know where they are located and what their customer mix is.



Whether It’s the Law or a Shift …Creating a profitable and pleasurable outdoor gaming space when smoking is banned inside your propertyInterview with John Stewart, Raving Partner

When Mountaineer Casino, Racetrack and Resort was faced with a county-wide smok-ing ban, Joe Billhimer, EVP/COO of Mountaineer parent company, Eldorado Resorts, Inc., hired Raving Partner John Stewart, Encompass Develop, Design & Construct, to develop a plan to construct one of the largest outdoor gaming patios in the U.S.

So, yes, that’s right, we’re talking about putting sensi-tive machinery, yes, slot machines and table games OUTSIDE.

John laughs that his team has come into a niche market. “We truly have become the experts on outdoor gaming patios and the nuances of dealing with health depart-ments.”

Joe Billhimer added that, “If you hire an architect, you get the design, but they’re not precise at pricing. Working with a full service team like Encompass, they can oversee the entire project, or parts of the project, depending on our specific needs at the property. You get a very good idea of the entire scope of work, and understand on a practical level what you can afford to build. And if you’ve ever met John, you’ll understand how his thoroughness, demeanor and style helped us achieve a positive result to work with our Department of Health in a positive way.”

The Mountaineer project is the most recent outdoor gaming space that the Encompass team has created. The project includes relocating six table games and over 100 video lottery terminal machines to a new gaming space that is approximately 10,000 square feet. Horse-shoe Casino in Cincinnati and Scioto Downs Racino in

Columbus also commissioned outdoor gaming spaces due to the Ohio Smoking Ban.

The county-wide regulation in West Virginia bans smok-ing in all restaurants, bars, gaming facilities, private clubs, hotels, motels, bingo operations, sports arenas, and concert venues. It also bans smoking in public parks, including pavilions, playgrounds, fairs, festivals, outdoor service lines, outdoor serving areas of restaurants, and other outdoor public places.

Whether your gaming jurisdiction is facing regulation, or your casino-resort wants to shift your smoking areas, consider what John Stewart has learned through this process:

1. These spaces are open year-round in climates that can make outside gaming a challenge. We’ve learned that there is a right way and wrong way to create these spaces. We have to provide ventilation to keep the smoke from lingering, heating and cooling to keep the games operational during the hot and cold months, and keep sunlight off of the game screens to prevent damage. There are a lot of challenges to consider.

http://www.ravingconsulting.com/about/#John



2. Another challenge has been working with the local health departments to understand these new rules. Health departments typically don’t often deal with facility design and architecture, so working closely with them and building officials has been key. If you are planning an outdoor space like this, get involved with the folks who enforce the regulations. From the initial meetings to review the proposed solutions, to the final meetings before the grand opening, staying engaged with the regulators will help everything go smoothly.

3. Players seem to enjoy these spaces and stay longer. From experience in the industry, we understand that the win per unit on the outdoor games can be double or more than the non-smoking floor average.

4. Part of the challenge of designing these outdoor spaces is to create a unique environment that will enhance the customer experience on a cold, rainy day and on a perfect, sunny day. We have added things, like a fire pit with outdoor seating and landscaping, that you typically would not have the opportunity to do in the interior spaces. These details help to create an inviting escape for the non-smoker as well. A customer might say, “Wow, I can play my favorite slot machine, have a drink beside me, be outside on a beautiful day, sur-rounded by sculpted plants, all at the same place. I’m heading in that direction.” These spaces are not limited to states with smoking bans; I believe that this will be the new alternative gaming experience.

According to Dennis Conrad, Raving’s President and Chief Strategist, “In the past, when casinos have tried to offer a non-smoking alternative, these areas have failed for a few reasons. They’d only allocate a very small area, meaning that there would be limited games to attract players. Players, who are typically superstitious, would hear the sounds of winning and the ‘noise’ in the smok-ing areas, and decide that the non-smoking area was not ‘lucky.’ Of course, the smoking areas have more machines, more people, and are livelier. Finally, the biggest reason

I feel that non-smoking areas have failed is because management would see an immediate drop in revenues. They’d never wait long enough to see that eventual increase – they only think in the short-term. With these permanent and planned outdoor spaces that John at Encompass is creating, operators should see positive growth in the long-term.”



Mark Astone — Raving Partner, Branding, Advertising and Media Services, is the Owner and CEO of Catalyst Marketing Company. He has spent many years studying and working within the casino industry and understands what it takes to drive gamers to increase a casino’s bottom line.

Nicole Barker — In partnership with Raving Consulting Company, she works with casinos across the country to harvest potential from patron databases in order to fine-tune the segmentation, messaging, and programming of multimedia and multi-channel campaigns.

Derk Boss — Raving Partner, Security and Surveillance, has served as a senior casino executive in surveillance, security, loss prevention and compliance for over thirty years with major gaming companies. The surveillance teams trained and led by Derk have a proven track record of continued success in the detection of cheating at gaming, advantage play, and internal and external theft and fraud

Dennis Conrad — President and Chief Strategist of Raving, Dennis has nearly 40 years of casino experience, including keno writer, bartender, dealer, floorperson, gaming instructor, special events manager, casino marketing director, gaming institute director, and corporate vice president of employee training and development.

Christine Motta Faria — Raving’s VP of Marketing has been the company’s core marketing writer since 2001. Chris has a lifelong passion for finding and sharing unique stories of people and places through her travels, business and daily life.

Jeff Gorovitz — Raving Partner, is the “voice” of Kaleidoscope – a personalized web/mobile portal and app for casino players. He’s been the Vice President and Director of Operations for Kaleidoscope’s parent company, SMP Communications, for 15 years.

Winnie Grand — Winnie has studied the casino industry since the early 60s. With a Masters Degree in Psychology, she has been interested in the psychological aspects of gaming, along with the growth and development of the industry. She and her husband, a retired physician, travel to casino destinations for much of the year. She has written for Strictly Slots magazine and is an active participant in the gambling scene.

Deb Hilgeman, Ph.D. — An experienced casino marketing executive & consultant, Deb was founding GM of Mississippi Gaming News until Hurricane Katrina devastated the state’s casino industry in 2005. Deb developed and taught the first casino marketing course at Tulane University. She has an M.S. degree in International Relations and has currently completed her Ph.D.

Kell Houston — Raving has worked with Kell since 2001, and throughout the years, we have not only valued his friendship, but his integrity. That combined with his gaming savvy approach to utilizing entertainment as a tool to drive folks to the casino floor, makes him a perfect fit for Raving clients. Kell is the Owner/President of Houston Productions, with offices in Las Vegas, Minneapolis, Seattle & Vancouver, BC. Houston Productions is a proven industry leader in casino entertainment buying and consulting. Houston has worked in all aspects of the entertainment industry over the past 30 years, focusing for the last 15 years on Indian Gaming.

Dennis Khanh — Raving Partner Dennis Khanh has helped both Tribal and Commercial casinos and hotels, optimize their food and beverage programs for the last forty years. In such a unique industry, Dennis recognizes that an experience at a casino’s food outlet just might be the longest interaction that a guest has.

Toby O’Brien — Raving Partner, Marketing and President of Toby Talks Marketing. After 21 years in the gaming business, Toby O’Brien has launched her own company, Toby Talks Marketing. As a Raving Partner, reprising her nearly 12-year role as a Raving consultant, she will be assisting casinos in building strategies that engage employees, attract guests, and grow business.

Adam Smithline — is CEO of Opticity, a hosted casino marketing system that enables operators to harness the power trapped in player tracking systems. Opticity makes it easy to understand player value and drive effective campaigns, increasing gaming revenue while reducing inefficient player reinvestment.

John Stewart — the President of Encompass Develop, Design and Construct, LLC, is an award-winning registered architect, licensed contractor, and licensed authority in the gaming industry across the country. John’s experience includes project development in industries including gaming and hospitality, restaurant and food service, retail, healthcare, religious, and manufacturing.

Sean Vestal — Since 1999, Sean Vestal, Raving Partner, Marketing and Player Development, has held several executive level marketing positions with a number of Native American casino operators. He brings the advantage of versatility and leadership across multiple disciplines inside a casino marketing department. During his tenure in the gaming industry, he has had successful engagements as both the Director of Player Development at Lucky Eagle Casino, and as the Marketing Director at Suquamish Clearwater Casino Resort.

Contributors



Five E-Principles for Building Casino Brand LoyaltyWhy going back to the basics to ensure you are building brand loyalty really works!By Mark Astone

For me, the term “Brand Loyalty,” or for the sake of this discussion, “casino branding” or “rebranding,” can mean a lot of different things to a lot of different people. So, I’ll define it, first in business diction-ary terms:

“The extent of the faithfulness of consumers to a particular brand, expressed through their repeat purchases, irrespective of

the marketing pressure generated by the competing brands.” (BusinessDictionary.com)

Now I’ll define “casino branding” in the terms that I would use to explain to a casino client and anyone else who cares to listen:

“How dedicated a customer is to a particular casino, measured through repeat visitation and/or increased spend, regardless of competing casinos’ location, promotions, club rewards, etc.”

Branding (or rebranding) can be such an obscure and difficult task, even an intimidating one. Obscure because how one person distinguishes a casino property’s charac-teristics, traits and attributes can vary greatly from how another person views the same characteristics, traits and attributes. For instance, how do you create a brand that fits an individual casino’s specific style or vibe? And then how do you do it while incorporating owners’, managers’, employees’ and customers’ views and perceptions? You can see how daunting the challenge can be. But branding (or rebranding) is not just obscure, it is also very difficult. How do you change potential customer perception? How do you shift current customer behavior? And how do you evoke emotion from both potential customers and current customers? Finally, how does all of this correlate into real, measured success? Most importantly, how does this equate to profit?

For most of us marketers, we would all like to think that we can always create a differentiating brand for our casino clients, where customers become very committed to that brand, and the results are positive and profitable. Sounds easy, right? The truth is that most of us struggle to build brand loyalty. In reality, it takes a village in order

to change customer perception and behavior. What has been successful for us, outside of getting out of our own way, is to always remember the basics.

Here are five of what I call “E-Principles,” which make up a back-to-basics approach to keep in mind when building Casino Brand Loyalty:

Enterprise – As we know, no two casino properties are alike. How will your ideas, vision, and concepts affect your specific casino enterprise? Are they realistic? Maybe your focus is on “escaping the city,” but the casino enter-prise envisions that it is “just as exciting as Las Vegas.” The two concepts are quite opposite. Be sure you con-nect with Boards, Members, Management and Employ-ees to fully understand the casino enterprise you are working with, and that the brand concept makes sense to that specific property.

Engagement – For the gamer, it’s the moments that matter. Will your new brand or rebranding idea recog-nize the moments that you have tried so hard to define? Maybe your focus is on “friendliest service in town.” Will the customer notice the “friendly” details? AND, more importantly, will those “friendly” details change their behavior for the better? Be sure the details in the brand are not only what the customer wants, but that their behavior is what you want.

Economics – Ultimately, for any client, it’s the results that matter. Are they in line with a budget that makes sense? Because branding can sometimes be an obscure endeavor, it pays to be clear about your strategy for development costs and any associated training. Maybe your focus is on “fantasy, luxury, elegance and sophis-tication.” But your budget is not quite at the “Wynn Las Vegas” level. Remember that the goal is to increase market share, lift, visitation, hotel stays … you get the picture … without spending all of the profits. Be the voice of reason when pie-in-the-sky ideas are brought to the discussion, even when the ideas come from owners and/or managers. Be sure that the costs associated with branding are equitable to the monetary parameters of the property, and don’t forget that the results should be measurable.

http://www.ravingconsulting.com/about/#mark



Enablement – Okay, this one seems like a no-brainer, but it is the hardest to incorporate. We’ve all been there. You can have the greatest brand vision, but if no one can iden-tify it, repeat it, or understand it ... then it sucks. Maybe your concept is that “everyone is a winner.” How does the brand integrate into every part of the casino, outside of winning at a machine or table? Is it a small hospitality gift in the hotel room? Is it an unannounced soda refill? Is it a bottle of water from the valet? How will you make “every-one” feel like a winner? Be sure that integration of your concept can be easily accomplished for the organization; a concept that is easily repeated and understood by employ-ees, and most importantly, identified by the customer.

Execution – Remember, keep it simple. Can the employ-ees execute your brand concept? Can management get behind it every hour of every day? Can it be executed flawlessly with seemingly effortless energy? Maybe your focus is on “exciting rewards,” but the rewards seem too complicated for customers to understand, too expen-sive for management to implement, or too irrelevant for employees to promote. Be sure that your branding can be implemented, maintained, and tracked (for success).

Best way I know how to do this is to start with buy-in. Ensure buy-in from the top-down and from the outside-in, through surveys and focus groups, and then assist in the education, communication and training whenever and however possible.

We all know that building brand loyalty is a huge task. Done right, it can create, strengthen and personalize long-term customer relationships. Wouldn’t we all like to create a brand where customers have a strong emotional attachment; one that attracts new business, changes perceptions, molds customer behavior, and provides profitability? Though building brand loyalty can be an ambiguous and tough task, I hope that keeping it simple with these E-Principles of Casino Brand Loyalty makes it a little less daunting.

http://new.teamcatalyst.com/



According to data analysts recently surveyed by data management software developer Trifacta, “80% of the work in any data project is wrangling the data.”

What does this mean, and why should you care? It means that the average data analyst is spending four days every week just trying to organize data so that they can create reports. This doesn’t even

include the time spent creating the actual reports. In other words, the typical data analyst has only one day per week to actually work on making reports, and no time whatso-ever to spend on analyzing data.

This is a serious problem, the impact of which can be felt throughout the property. A quick look around confirms this reality. Just consider which reports are getting done, and more importantly, which ones aren’t. Key operational reports most likely get produced with regularity. But how about slot performance analysis, or marketing campaign analysis? Teams must often wait for extended periods of time to receive these types of reports, forcing them to make decisions based on old data, or no data at all, when implementing reinvestment programs.

While most operators are aware of the problems caused by reporting delays, there is a far more serious problem that sometimes goes unnoticed. The complexity of player data spread among various systems, and the data wrangling that’s required to orga-nize it, doesn’t just cause slow reporting. It makes many types of reporting nearly impossible, to the point where most prop-erties simply go without.

Even though the necessary player data exists, properties continue to operate without knowing which players to target for player development, which players are underin-vested in, what the return on player reinvestment is, or which

players are most or least profitable. This sacrifice results in missed revenue opportunities and unnecessary losses, seriously hurting the bottom line.

In order to address this problem, it is helpful to first understand the root cause, before trying to identify a solu-tion. So, why does this problem exist?

Five reasons your data analyst can’t analyze data:1. Player data is spread out across multiple software

systems, and needs to be integrated.A typical casino has several transactional systems, each with a database that contains player activity data. Individually, player tracking, kiosk, point of sale and hospitality systems each contain only a piece of the picture. Only by combining data from each system, at the player level, can you create an accurate record of player gaming, non-gaming and reinvestment activity. The first step in this process is to extract data from each system and combine it all into a single database. Of course, this new database will need to be updated regularly for it to be of any value.

2. Data from one system isn’t aligned with data from other systems.Physically combining data from multiple systems

into a single database is only a partial solution. In its natural state, the data from each

system probably doesn’t match up very well with other systems.

Forcing it into a single database without first aligning it, accomplishes very little. Instead, all of the differences must first be identified, then resolved one by one, and this can be challenging, depending on the nature of the differences. Player IDs from one system might not match those

in another system. It gets confusing trying to mix and match carded activity with non-carded activity. Data is

Five Reasons Your Data Analyst Can’t Analyze DataWhat are the tools your casino needs in order to make data management painless, or even invisible?By Adam Smithline

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inevitably grouped differently in different systems. And each system may use a different name for the same thing.

3. Some of the data is “dirty.”As transactional systems are used over a number of years, it is quite common for users to run into limitations, where the existing data fields in the system no longer meet the specific business needs of the casino. When this happens, clever users will always find a way around the limitation. More often than not, this means using a field for something other than its intended purpose, or leveraging a free-text field in order to hold critical data. The result is data that needs to be interpreted according to a set of business rules, and often renamed, before it can be clearly understood or used for reporting.

4. Data often needs to be filtered.Most data analysis won’t concern all of the available data. Instead, report users typically want to see a subset of the data. The groups and subgroups needed to make this possible are usually nowhere to be found. This is another situation where business rules must be translated into complex queries, then applied to the data so that it can be filtered to produce the correct analysis.

5. Raw data needs to be aggregated and summa-rized.Even in a perfect world where the data is integrated, aligned, cleaned and filtered, this only enables the most basic forms of reporting. Savvy managers will still lack the information they need in order to make informed decisions. Rather than the total theoretical win for the day, of course, they want to know each player’s ADT. They may also benefit from knowing the AWT and AMT, not to mention ADW, or even ADP (Average Daily Profit). Summarized attributes like these must be calculated before they can be utilized in reports.

With the right tools, many of these challenges can be overcome consistently and accurately. Unfortunately, most casinos are still using Access or SQL queries, and relying on Excel heroics, in order to solve these problems. The

recurring workload this creates is so significant that it leaves little or no time at all for actual data analysis.

Fortunately, the tools needed to make data management painless, or even invisible, are widely available today. But there are a variety of solutions, and some may be better than others depending on your budget and your needs.

Be sure to look for “Three Ways to Solve Your Data and Reporting Woes” in the next issue of Raving’s Strategic Solutions Magazine, for an evaluation of the solutions available today, and a framework you can use to identify the best solution for your casino. Or attend the Casino Marketing & Technlogy Conference, and attend my ses-sion, “Casino Marketing Technology Demystified: Choos-ing the Right Tools for the Job,” on Wednesday, July 15, at 9:45 AM.

You’re either maximizingplayer lifetime value.

Or you aren’t.

www.opticity.com



http://opticity.com/


PROMOTION ANALYSIS GAMING AND NON-GAMING

MONTANAGlacier Peaks Casino (Browning) – The Red Solo Cup

Using the Casino Trac System, Glacier Peaks captured the spirit of Toby Keith with its Red Solo Cup promo-tion. Players earned electronic entries, one entry per point, for play on the slot machines. There was also a “red cup game” at a kiosk, where players could earn bonus entries, and where email addresses and cell phone numbers were gathered. On the Red Solo Cup giveaway night, active players’ names were drawn at random, three per hour, and each got to go to the “Red Cup Wall” of 100 cups and select a cup, each containing a cash prize of differing amounts. Toby Keith’s hit song, “Red Solo Cup,” played in the background at Glacier Peaks during vari-ous points of the promotion. On the Thursday giveaway night of the Red Solo Cup, coin-in was up 55% from a normal Thursday. And for the entire five weeks of the promo, carded coin-in was up 51% and players club new member sign-ups increased 108% from normal.

“Glacier Peaks is a small tribal casino (a little over 300 slot machines), near the border of Alberta, Canada. It likely isn’t able to afford big, fancy casino promotions, so it needs to be nifty, thrifty and innovative. And it accomplished that with Red Solo Cup, ably assisted by its vendor partner at Table Trac, a Minnesota-based company.

“Let’s take a look at all of the main casino promotion elements that Glacier Peaks used to hit its Red Solo Cup ‘home run’:

• Celebrity Brand Association – Toby Keith is likely very popular in Montana, and ‘Red Solo Cup’ was a hit song. Using that connection (and be careful to stay on good legal ground here to use the name, song and images) made the promotion seem bigger than it otherwise might have been, and the ‘Red Solo Cup’ music in the casino set the tone.

• Designed to Drive Play from Players – Red Solo Cup was designed for casino slot PLAYERS, who earned chances to win by PLAYING. It also was aggressive in signing up new players and starting that players club relationship with Glacier Peaks.

• Cost-Effective – I don’t know what the cash prize amounts were behind the 100 Red Solo Cups Wall, but based on the promotion’s ROI, I am sure they were reasonable, but also motivating. And the cups used on the Wall were nothing more than those red plastic drinking cups we all use at picnics, not fancy, but cost-effective and probably played well in small-town Montana. And what does it cost to pipe in a Toby Keith song into the casino???

• Fun – while I wasn’t there to witness this promo, you just know that it had to be FUN! Music blaring, cups on the wall, lots of winners, bonus entries on a kiosk game, a big giveaway night – doesn’t this just have a ‘buzz’ about it? And I’ll assume that frontline team members and management all got on board to make this a memorable time for Glacier Peaks’ players.

“You don’t have to be a mega-casino to have a splashy, revenue-driving promotion. Follow Glacier Peaks’ lead and find your own Solo Cup.” – D.C.

NATIONWIDEVarious Casinos – Celebs Rule!

Many casinos conduct VIP events around celebrities, in many cases, sports celebrities. Two of the more recent, successful examples were:

• Venetian/Palazzo (Las Vegas, NV) – held a series of ICON Blackjack Tournaments, utilizing some extremely well-known celebrities. They were created to address a decline in the mid and high-value domestic table games customer segments. Each event included celebrity interaction through



a “Meet and Greet,” which was held in public view, but with access limited to tournament VIP invitees and their guests. Five VIPs were drawn at the Meet and Greet to play blackjack against that evening’s celebrity in a single table elimination tournament. The winner received $10,000 and if the celebrity won, he or she donated the prize money to their favorite charity. The VIP winner also received commemorative items from the celebrity.

• Seminole Casino Coconut Creek and Hard Rock Hollywood (Florida) – on BCS Bowl weekend, these two Seminole properties held a $200,000 Blackjack Tournament featuring Joe Montana. On Saturday, VIP players were at the Hard Rock for the coaches’ press conferences and to receive their Bowl Game tickets, which included on-field access. On Sunday, these players were at Coconut Creek to play in a $200,000 blackjack tournament in which the top six played against Joe Montana on the final table. After the final, all the tournament players hung out with Joe in the VIP Lounge. And on Monday, the players attended the BCS Bowl Game in Miami, where they were hosted by the Presidents of the Coconut Creek and Hard Rock properties.

“I have witnessed HUNDREDS of casino events that utilize ‘Celebrities’ in some form or fashion, especially Sports Celebrities. And these various events/promotions/gatherings all seem to work at attracting VIP players. Makes sense, I guess – VIPs attracted to other VIPs. But ‘attracting VIPs to a casino’ and having a ‘profitable casino marketing VIP event’ are two different animals. From my experience, there are a number of critical factors to achieve success with a Joe Montana, Michael Jordan or the like, including:

1. Don’t overpay for the celebrity – big name celebrities are not cheap, and even if they are donating their appearance fees to their own charity, it is all the same to you – ‘hard costs’ for the event. Make sure your casino player base is healthy enough to support the cost of the celebrity.

2. Make sure the celebrity is a ‘good guy’ or ‘good gal’ – trust me, some celebrities can be prickly, demanding, aloof, even rude. Stay away from them – you want genuine folks who don’t mind spending time at Meet and Greets, signing autographs, and mingling with fans and admirers.

3. If possible, find a celebrity who gambles – not only will that give him or her a natural affinity for your business, but it may even create some PR and net-working opportunities while they are gambling at YOUR casino, and you might also win back some of that hefty appearance fee you paid for the celeb.

4. Think about using ‘local’ celebrities – especially if your casino is in a small or local market, you may not be able to attract or afford BIG NAME celebrities. In that case, think local – radio DJs, TV Anchorpersons, restaurant chefs, college football coaches and former local ‘stars,’ etc. – they can all produce the same kind of appeal at a fraction of the cost.

5. Don’t forget that it’s really all about your VIPs and not the celebrity – there is a tendency with these Casino Celebrity Events to drool all over the Celeb-rity and take the VIPs for granted. Don’t! Yes, you pay the celebrity a lot to appear, and they excite everyone because they are a ‘star.’ But your VIPs are your real stars, and remember: THEY PAY YOU.

“Celebrities have long been marketing staples at casinos,



and they have great value if you can orchestrate these events successfully and cost-effectively. Pay attention to these successful examples and important principles of ‘Star Grazing.’ And remember: don’t Pay a Ton for Peyton!” – D.C.

OKLAHOMARiver Spirit Casino (Tulsa) – Summer of Love!

A while back, River Spirit Casino ran its hugely suc-cessful Summer of Love promotion. Toy “hippie buses” containing a “River Spirit or Bust” sticker were mailed to River Spirit’s top tier players, as well as those VIP players who had dropped a tier level in the first half of the year. Second and third tier level players received a Summer of Love keychain mailing, including a simple message along with a personalized URL, inviting them to visit their page. Each PURL had a different custom welcoming message depending on the player’s age and sex and whether they were a “Declining” or a “Maintain-ing” player. The page included fun 70’s trivia questions and a way for the player to print off a coupon for a free Summer of Love T-shirt and 2X points on Thursdays. Over the course of the promotion, this VIP group’s number of casino visits increased by 26% and their coin-in increased by 37%. On top of that, 420 players moved up in tier level during the promotion, 487 new VIP email addresses were captured, and 50% of those receiving a Summer of Love mailing accessed their PURL.

“There are a number of reasons to ‘love’ this Summer of Love promotion at River Spirit Casino. It had a great theme that spoke to the age demographic of their core cus-tomers. It effectively used direct mail, email, and the River Spirit website. It had prizes large and small, including the almost inexplicable favorite of casino players, T-shirts! It had double points on a slow midweek day (Thursday). It had variable imagery on the Summer of Love messaging, depending on whether the player was male or female, old or young.

“But the big reason I ‘loved’ this River Spirit promotion was the fact that part of its target player audience was EX-TOP TIER PLAYERS, who had gradually reduced their River Spirit spending. This is an altogether too ignored segment, with most casinos waiting to address this group when it has gone completely INACTIVE. And by then it may already be too late. Instead, River Spirit chose to speak to them on their way down the spending scale, offering them a fun promotion, personalized atten-tion, and multiple reasons to return to ‘experience the Love.’

“You see a lot of ‘casino love’ for INCLINERS, a lot of love for those reliable MAINTAINERS, and some attention to INACTIVES. But River Spirit has wisely addressed DECLINERS (who were once Elite players) with its Summer of Love, and has the results to prove it was a good idea. Just remember that the word ‘toke’ has mul-tiple meanings in the casino world when you do any tie-dyed messaging!” – D.C.

http://www.ravingconsulting.com/indian-gaming


A GAMING EXECUTIVE‘S GUIDE TO READING

Raving Recommended Reading ReviewBy Dennis ConradMy dear friend and mentor, John Romero, passed away on April 30, 2015, at the age of 85. His two books, Casino Marketing (1994) and Secrets of Casino Marketing (1998), are two of the true classics in the gaming industry. They are also out of print, so if you don’t have one of the 10,000-20,000 copies of each that were printed, well, you should start Googling, Amazoning, and scouring the Gamblers Book Club for some copies.

Casino Marketing was John’s first effort and was a compilation of his columns from International Gaming and Wagering Business Magazine. He chose his favorite 85 columns for the book. He shattered advertising myths, revealed key secrets of direct marketing, poked fun at management, and unmasked the art of persuasion. Once begun, John’s efforts lead to a shift from mass marketing to one-on-one selling through the mail, which is now the industry standard.

In Secrets of Casino Marketing, John’s instant best seller continued to reveal his timeless wisdom. A sampling of the Chapter titles says it all: “General Managers. On Edge and Bogged Down in Details,” “To Build a Relationship, Start a Dialogue,” “You Know Your Mail Is Effective When They Start Writing Back,” and my personal favorite, “Be Wary of Free Booze, But Take It.”

You know a book is great when its wisdom is timeless. And John Romero’s principles are as true today as they were when written some 15-20 years ago.

Thank you, John, for all that you did for the gaming industry. Sometimes we even listened to you.

If you have not read these two classic Romero books, start scouring the archives and book reseller landscape. There is nothing more valuable in our industry than anything penned by the late, great John Romero.

Dennis’ Rating: 8 out of 4 Thumbs Up!

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SAVE THE DATE

Raving Conference & Events Schedule

Raving’s Host Development ConferenceRio Las Vegas, Las Vegas, NV, July 13-14, 2015Produced by Raving Consulting Company for BNP Mediahttp://www.hostdevelopmentconf.com/If you are a senior host and player development specialist, General Manager, Player Development Senior Executive, or Marketing Director, you want to attend this program that will focus on developing and segmenting qualified sales leads from your database, and much more!

Casino Marketing 2015Rio Las Vegas, Las Vegas, NV, July 14-16, 2015http://www.casinomarketingconf.comVisit Raving on the tradeshow floor!

Raving @ OIGA Conference and Trade ShowCox Center, Oklahoma City, OK, July 27-29, 2015http://oiga.orgGive Amy Hergenrother a call today at 775-329-7864 to set up a meeting, or email her at [email protected].

Raving in Las Vegas 2015September 28th - October 2, 2015Are you headed down to Las Vegas this September for the big gaming show? Raving will be there to meet with clients and host our annual “Insider Party.” Make sure you are an active subscriber of our newsletter to get your invitation. Click here to subscribe. Need to find a room? We love Tuscany Suites — easy parking, remodeled rooms, terrific bar poolside. Call 877-887-2261, tell them you are with RAVING for your special room rate of $59 per night with no resort fee.

What’s the pebble in your shoe? There’s no better time to sit face-to-face with the Raving team to discuss ways in which we can assist you. Give Amy Hergenrother a call today at 775-329-7864 to set up a meeting, or email her at [email protected].

Raving’s 18th Indian Gaming National Marketing ConferenceHarrah’s Resort Southern California, Valley Center, CA, January 25-27, 2016http://www.ravingconsulting.com/indian-gaming/National tribal casino marketing conference and tradeshow.

Raving at NIGAPhoenix Convention Center, Phoenix, AZ, March 13-16, 2016http://www.indiangamingtradeshow.com/Content/778.htmWe’re headed to Phoenix and look forward to visiting with you on the trade-show floor — booth #929. Make sure to attend our always-popular workshops. Check back for more information and to get your FREE tradeshow badge.

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Casinos, Don’t Change Your VIP Formula to Make It CommonplaceAs a customer, I WILL play more to achieve elite statusby Winnie Grand, Raving’s High-Roller Contributor

From the early days in Las Vegas, casinos have treated their gambling customers in a way that makes them feel special. Those who were willing to risk their money at the machines or the tables were rewarded with treats that made their frequent losses less painful.

Over the years, casinos became very successful as they developed even more sophisticated methods of keeping their gamblers happy. Today, we see a variety of ongoing programs that reward behavior desired by the casino.

Most of the large slot clubs now have a selection of cards that are different and are rewarded based on the amount of action given by the customer. The top tier levels of these cards are highly desired by the frequent customer. Usually, the amount of action needed to achieve each level is published, so the customer knows exactly what they have to do in order to get to the level they desire.

I have known many people who have gambled more than they wanted to in order to achieve an elite level. This has been a very effective and successful model for the casino to increase gambling activity. These top cards have some very nice benefits that do not cost the casino any money, and yet they build loyalty.

What are these benefits that are so coveted? One of the most popular is the special VIP line at the buffets and coffee shops, which allows the customer to bypass the long lines common during peak eating hours. This is one of my favorite perks. I often comment that I would prob-ably starve if I had to wait in those long, snaking lines! I never feel that I am “cutting” in line ahead of others, as we all have the opportunity to play or not play. I probably pay a hefty price for my line pass!

These VIP lines are also found at most of the casino cages in the large casinos. This is very helpful at busy times. Some casinos even have a separate, more private area for their high tier customers. This is nice, as these customers are more likely to be conducting transactions involving large amounts of cash, or doing other mon-etary business, like getting or paying a marker.

Other VIP lines are found at the taxi stands. This is a popular benefit, as the taxi lines are extremely long after shows at the large casinos. The players club is another place where a separate and shorter line takes care of elite customers.

In addition to these VIP perks, there is usually special parking that requires a high level of play. This parking is convenient and often protected from the elements. Qualifying for this parking pass is extremely welcomed, especially by locals or frequent visitors.

None of these benefits that make the customer feel special are costly for the casino. The important factor for the casino is that these benefits must be really “special.” There has been a trend lately that is diluting the value of these and other high tier card benefits. I have heard many comments from my friends who love to gamble that they don’t plan on trying to achieve elite status anymore.

The problem is not that there are no wonderful benefits still available for the elite levels, but that the elite levels have been made much easier to achieve, so they are not as “elite” anymore. Many of the VIP lines are as long as the regular lines, and they are now often for the top two tiers – not just the very top tier.

Las Vegas seems to be moving away from what has made it a unique experience. Yes, I know that the shopping, convention and club businesses are bringing in big bucks, but those things are scheduled here mainly because of the gambling business.

We have all heard about the “high-roller” stories throughout the years, and we want to have some of those experiences. The elite programs have been successful in casinos, as they give the gambler a taste of that lifestyle. These programs also reward the frequent gambler and build loyalty. The customer will play more in order to achieve this status. It is a proven formula – why change it?

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Inside this Issue - Raving Consulting · 2015 Quarterly Issue #3 Inside this Issue: Dennis Khanh, Raving Partner, Food and Beverage ravingconsulting.com Message from the President