Overview of a Modern Player Development Function in a Highly Competitive Gaming

Industry

Monday, July 11, 12:30 pm – 1:45 pm

Presenter: Steve Browne, President, Raving Service

Identification – Identifying potentially valuable customers for the organization.

Value – Focusing on the value of customers to the organization.

Relationships – Developing relationships between the organization and the customer.

Reinvestment (Reward, Recognition) – Rewarding and recognizing customers who exhibit the desired behavior.

Communication – Communication between the organization and the customer.

Leverage/Leads – Developing sales leads/Leveraging the player to develop new players for the organization.

Building A Selling Machine – Basic Concepts The DNA of PD – Six Common Elements

1. We are in the business of being nice to people for money. The more money they spend, the nicer we are.

2. Player Development is not a department! Every area must be included.

3. Upper management must be involved in the effort.

4. The frontline must buy in.

5. Hire for attitude, train for skill.

Building A Selling Machine – Basic Concepts

The Guiding Principles of Casino Player Development

6. Communication is not a tool, it is a way of life.

7. Recognition is a drug more powerful than Viagra

(and a lot cheaper).

6. Good customers can help make good customers.

7. You get what you pay for!

8. It’s not about you! Player development should always be on the player’s terms.

Building A Selling Machine – Basic Concepts The Guiding Principles of Casino Player Development

• Casino Player (N.) – One who plays games of chance in a casino.

• Develop (V.) – To expand or enlarge; to improve the quality of; to refine.

• Casino Player Development (N.) – The business function of expanding the number of casino players or improving the quality (amount) of their play.

• Casino Host (N.) – A casino employee whose primary job duty is to expand the number of known casino players or improve the quality (amount) of their play.

Building A Selling Machine – Basic Concepts

Definitions

20% OF CUSTOMERS

PRODUCE 80% OF PROFITS

This principle has been proven across numerous businesses. While in some gaming markets, with little high end (premium) business, the Pareto principle

may be 20/50 or 20/60 or 20/70, the point is still the same:

A relatively small number of gaming customers produce a disproportionately high percentage of

gaming profits.

Building A Selling Machine – Basic Concepts

Pareto Principle:

• Acquisition – The act of acquiring new customers.

• Retention – The act of maintaining a consistent level of participation from regular customers.

• Growth (Incremental) – The act of improving the quality and amount of an existing customer’s play.

• Reactivation – The act of reacquiring existing customers who have stopped playing.

Building A Selling Machine – Basic Concepts

Four Key Player Development Strategies:

Building A Selling Machine – Basic Concepts

Host Position Design Models

Retention Growth

Reactivation Acquisition

Types of Hosts • Host Coordinator – Primary duties include sales fulfillment by providing

administrative services to all levels of hosts.

• Ambassador – Mainly focused on lower level activities, including club membership (Acquisition), card usage (Utilization), comp duties (Retention).

• Host – Primary host duties to include Acquisition, Retention, Growth, and Reactivation, with emphasis on lower value players and no supervisory duties.

• Executive Host – All host duties, but with additional duties of either high-value players (highest) or supervisory duties.

Form? Function? Both? Host Function Specialization

Types of Hosts • Ethnic (International) Host – Primary duties to players of a specific ethnic

or cultural group (Asian, Hispanic, etc.).

• Floor Host (Hugger) – Focus on Retention and Acquisition duties on casino floor (sales fulfillment).

• Sales Host (Hunter) – Little or no work on floor. Primary duties include player analysis, lead generation, sales campaign design, and sales calls/conversion.

• Outside Host – Usually in an outside sales office (remote market), but also working freelance on primarily Acquisition, Reactivation, and Leverage.

Form? Function? Both? Host Function Specialization

Form? Function? Both?

Department & Host Position Design Models

Retention Growth

Reactivation Acquisition

Form? Function? Both?

Department Design Model Dominant strategy will determine department design and organization. Retention

Growth

Reactivation Acquisition

Form? Function? Both?

Position Design Model Dominant strategy will determine host duties and support staff. Other models might include Utilization, Administration, etc.

Retention

Growth

Reactivation Acquisition

Examples:

Form? Function? Both?

Ambassador Floor Host Sales Host

Outside Host Executive Host/Host Coordinator

Acquisition Retention Utilization

Acquisition Retention Growth Reactivation

Acquisition Reactivation

Acquisition Reactivation Retention Growth

Administration Retention

• Generic – Inside Only/Multilevel

• Outside-Inside

• Domestic/International

• Hunter/Hugger

Form? Function? Both?

Current Models

Basic Types: • Pay • Bonus • Commission • Rewards/Prizes

Form? Function? Both?

Host Function Compensation

Pay • Salary or Hourly? – Salary

• Range – Supervisor to Area Manager

• Benefits – Full

• Other – Car/Clothing/Comp/Expense

Form? Function? Both?

Bonus • Type – Team/Individual/Both (recommended)

• Basis – Increases for coded group in Total Theo, ADT, ATF, % Active Players compared to base period (prior period, same period last year, average period); or achieve targets in Player Count (Acquisition), Performance Standards, etc.

• Period – Monthly, Quarterly (preferred), Annual

• Amounts – Percent of salary (range of from 10% to 50%)

• Other – Tied to performance standards (not recommended)

Form? Function? Both?

Commission • Type – Individual Host only (usually Outside or Independent Host).

• Basis – Coin-in or actual loss generated by coded players.

• Period – All active player sessions.

• Amounts – Unlimited or capped at predefined levels.

• Other – For inside hosts, it is limited to certain players (acquired new or reactivated); for outside or independent hosts, includes only players outside active database (new, owned, or reactivated players).

Form? Function? Both?

Rewards/Prizes • Sales Contests

• Incentive Programs

• Specific Sales Campaigns – Sales Goals

• Other Sales Goals/Targets Awards

Form? Function? Both?

Q & A

Thank you!

All registered attendees will receive this presentation

If you do not want these presentations emailed to you, please sign the list at the back of the room.

Questions? Contact Amy Hergenrother: (775) 329-7864 | amy@ravingconsulting.com