Understanding Your Customers Through Market Research
When was the last time you withdrew $1,000 from your ATM with the sole purpose of visiting a nearby casino for an evening of gambling? Have you ever gambled in a casino six times in one month and lost $250 per visit? Have you ever drawn a marker for $5,000? If the answer is “no” then you are like most gaming executives. In fact most people in the general population do not gamble at these levels or frequencies yet the core customers that make up the most profitable segments of a typical casino most certainly do. There is no better example of the 80/20 rule than a basic segmentation analysis of an average casino. 80% of the gaming revenue comes from 20% of the database.
Many casino marketing executives devise promotions, design advertising campaigns and mail customer incentives without ever truly understanding what it is that motivates their core customers,
what the reasons are for their visiting a casino and what it is they seek in terms of rewards and recognition. Some executives will state that they “talk to their customers on the Boor” and through that process have an understanding of their customers’ desires.