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Learn Best From Casinos

2011/1/14 11:32:00 44

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Just as many industries are fighting for the disposable income of consumers, the $90 billion gambling industry in the United States is also dependent on the promotion of database marketing.

But there is a significant difference between the customers of the gambling industry and the customers in other industries.

For example, a movie seller knows that they will spend 8 to 10 dollars on a ticket, maybe buy some pop and popcorn, and then read it.

Film

Go home.

Some of the gambling customers will lose a lot of money, while others may make a lot of money, especially those who are good at playing 21 point poker.

Can a casino owner identify and predict which regular customers often gamble? How often will these people come? How will they distribute their bets? By analyzing these players in depth, can the casino make a more direct and effective marketing plan?

Walton, a professor of marketing at RaghuramIyengar school, Ohoward Elishaberg (JehoshuaEliashberg) and Sam K. Hui (SamK.Hui), a professor of marketing at Stern business school, has been interested in this topic. They are trying to study whether they can produce a mathematical model to identify these profitable customers for the casino.

Researchers believe that the answer to this question is yes.

Moreover, they want to know why the casino has not made full use of these tools.

"The key to gambling is to attract the best customers." most casinos have collected a lot of marketing data related to customers.

Ours

Detailed list

To a certain extent, they coincide with each other, but they are not exactly the same.

Casinos are also trying to get close to their customers, but they can do better. "

The three scholar's thesis is entitled "AModelforGamers RevenueinCasinos".

Research

A mathematical model is presented, which integrates data from customers to casinos, customer's total bet, gambling on tables and slot distribution of slot machines.

The researchers wanted to know whether individual gamblers' earnings came from "skill" or "luck". They could tell who was the skilled gambler or who was the spendthrift.

Avoid "unattractive customers".

In addition, the team also observed how age distribution of customers can provide valuable information for marketing analysis.

For example, data show that women spend more money on slot machines than table tennis, such as 21 poker, while men are more skilled at gambling tables than women.

If we have more accurate demographic data, they will be able to gather more useful information.

"This information does help casinos lock in more attractive customers, because you certainly don't want to lock in those customers who are not attractive," Alice said. "You always want to spend your money in the most profitable place."

Although their research papers only aim at gambling industry, researchers say they can identify and lock customers in other industries based on their special skills or unusual customer behaviors.

For example, they note that a better customer behavior model can help hotel managers make better use of small bars or business centers in hotels, or enable car rental companies to better use additional cost products, such as GPS devices or satellite broadcasts.

However, it is the huge gambling industry in the United States that makes it the carrier of this individual expectation model, which is often referred to as database marketing.

Americans spend about 10:1 on gambling and in movie theaters, and spend more money than they do in large shopping malls.

According to the American gambling Association, 59 billion of Americans spend $90 billion on legal gambling is spent on gambling, rather than lottery or horse racing bets.

The unique characteristics of the gambling industry enable casino operators to develop different tools for CRM.

These tools are different from other industries. For example, the shopping center operators analyze how much customers go to stores and what products they buy.

By using the VIP card and other tools, casino managers can more closely track the skills of a single player.

Owning this player's behavioral data and mathematical models will help reveal the gambling level of a single gambler. This is an important consideration for determining the individual goals of direct selling activities.

"Using mathematical models to predict future behavior is very important, because the most profitable gamblers are not necessarily the most profitable in the future," Alice said. "You must examine a person's behavior in general, such as the frequency of his going to the casino, whether he bet more or more on the slot machine, or bet on the gambling table. At the same time, he must observe his skill level, and you need a comprehensive customer model."

Ayangg and alisaac noted that the casino had conducted extensive mathematical calculations based on overall behavior, trying to predict casino revenues and profits.

They said that the purpose of the study is to propose a mathematical model that can measure the difference between theoretical consumption and actual cost in terms of skill level of different players.

"The formal model makes a clear distinction between different individual gamblers and is more effective than casino operators based on intuitive judgment," Alice said.

share of wallet

The researchers surveyed data from a multi Casino Casino operator in the United States. He provided detailed information about the casino gambling to more than 1500 customers collected by VIP card between December 2004 and April 2007.

These customers went to 9000 casinos in total.

Gambling companies also provide information about age and sex of about 400 clients.

To identify gamblers' skills, the author made a series of complex calculations based on various parameters, including specific games played by individuals, casino's expected returns and actual returns, and whether gamblers' winning or losing will affect the next behavior.

Researchers believe that although there is more work to be done in predicting gamblers' skills in a game, such as 21 point poker, their models will be a powerful starting point.

For example, the author predicts that the combination of new and more detailed data and customer survey results will be able to get more information about "shareofwallet": that is, the actual cost of gamblers' casino and their budgeted ratio.

In addition, they strongly hope to conduct other studies on promotional activities of the casino, such as free hotel accommodation or cash rebate awards, with a view to better understand the different impacts of marketing plans on gamblers with different winning and winning situations.

In addition, they note that customized data can help operators analyze how to better design the layout of the casino to increase revenue, such as using environmental cues to encourage gambling or change the ratio of desktop games to slot machines.

"The behavior of a casino may be different from that of the other, but we believe that this information will help to make your place design more consistent with customer behavior," Alice said.

The authors point out that in future studies, they will investigate more demographic data, such as marital status, family address, occupation and education level, so as to get more information about personal gambling habits.

According to Aiyang, the study also has implications for other industries.

"A sales manager may have a better understanding of how someone can achieve sales," Aiyang said. "If they can figure out whether the product is sold well or because the salesperson has excellent sales skills, it will have a great impact on the company's strategy."