“Declining revenue” is a two-word phrase that is the worst nightmare for any casino marketer. When revenue is up, work is a breeze and everyone is happy. When revenue is down, tensions grow high and misery brews.
The initial knee jerk reaction is almost always to cut budgets, and who has the biggest budget on the chopping block? Marketing.
The best solution is almost never to cut expenses, but to spend smarter. We were able to help Lode Star Casino spend smarter and drive revenue during a time of decline. Here's the case study.
When a new competitor entered the market, a small locals’ casino in a tiny Midwestern town began to see declining revenue. With 68% of revenue generation from locals, it was time to act fast. How could this local casino get their share of the market back, as well as generate new revenue?
Put RECON’s segmentation power to work through a sharply-targeted direct mail program. Develop a healthy reinvestment strategy (minimum expenses, maximum return) to keep the loyal, frequent guest, as well as drive new growth in this most profitable segment — the local market. Test and retest, continually optimizing revenue.
- Monthly revenue increased 20% year over year — with just one direct mail campaign
- Local market revenue grew 23% year over year
- Local active players grew 21% year over year
- All active players grew 18% year over year
- Local trips grew 41% year over year
"Red Circle’s expertise in casino database strategy is what sets them apart from other agencies in the business. They fully understood the challenge we were faced with and implemented a customized, RECON-powered solution that was a perfect fit for our unique database. This helped us revitalize our revenue when we needed it most."
Myra Isburg, General Manager, Lode Star Casino