As casino properties continue to monitor and adapt to the ongoing health crisis, some may choose to simply hit the pause button. However, in a predominantly non-stop, 24-hour, 365-day-a-year business, this unique situation gives us a rare opportunity to take this precious extra time to evaluate all aspects of your marketing plan.
The Red Circle Strategy Team recommends our clients regularly evaluate their direct mail program. We encourage holistic reinvestment strategies, but often the direct mail program can get set on autopilot with less frequent review as other aspects like monthly promotions or events.
So, in the spirit of Spring cleaning, when was the last time your direct mail program got a good scrubbing or dusting? The first and biggest step in any direct mail program is research. All research will assist in understanding where the opportunities are. By focusing on recency, frequency, distance, and spend, the segmentation strategy can be adapted to minimize the impact on reinvestment and drive additional revenue.
What defines your active players? By looking at the last play date of your players in the last 12 months along with their contribution to theo win, the active players can be separated from the inactive players.
How many trips are your players making each month? Another important KPI to look at is the frequency patterns of your guests and how they contribute to revenue. Like recency, looking at players’ trips per month and their overall percentage of theo win can help determine how to segment your players into either high-, medium-, or low-frequency groups.
What would you consider your local market? By looking at your players’ distance along with their theo win, it becomes easier to identify a natural break in distance. You might find that the “local” market reaches beyond the expected short distance from your property. This break typically occurs where the percentage of players at that distance becomes larger than that distance’s percentage of theo win.
Who are your big spenders? Who are you small spenders? When looking at players’ ADT and evaluating their total theo, it becomes easier to group players into the right number of segments. This way you can avoid any potential over and under reinvestments.
With careful and measurable research, the planning and executing of your direct mail will result in lower reinvestment and drive additional revenue. And of course, if you need any level of assistance with any or all aspects of a marketing “deep clean,” we’re here to help. We’re data-driven professionals with tools to target the right guests in the most effective way.