Using AI and lifecycle marketing to grow share at a major U.S. casino
Engagement - A major casino the crowded north-east corridor want to grow share. Analysis indicated that the property had lower than expected share from patrons outside of the key 20 min drive-time catchments.
What we did - The data-scientists at Differential Labs trained a model to detect share-of-wallet upside (non-loyal patrons). With a audience of non-loyal patrons and leveraging our non-loyal shelf campaigns focused we developed offer journeys, reinvestment models for consolidating durable share of wallet.
Impact - Long-term (this is what we mean by durable) share increased by one point overall and grew spend from the audience of non-loyal patrons by 30%.
“Understanding a player’s degree of engagement is the cornerstone of modern casino marketing.”
— Mana Azizsoltani PhD, Head of Analytics at Differential Labs
What is lifecycle marketing? In pursuit of maximizing customer lifetime value, we need to meet patrons where they are in the customer journey. Every patron is mapped to a stage — from new sign-up, to loyal, to lapsed, and everywhere in between. Each lifecycle phase has specific objectives and distinct strategies / tactics for achieving those goals.
Lifecycle Stages:
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This is the classic acquisition stage. The objective is overcome switching costs. We have found that patrons become more regular visitors after three to four visits. Tone: of the message is education.
A sub-segment includes players who are not new-sign-ups but never made it past that three to four trip level.
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These are patrons who are splitting their trips with a customer. Objective is to consolidate wallet. Non-loyal patrons have the most upside but are hard to find as they only show part of their wallet.
Non-loyal patrons looks wildly different in Miami, Las Vegas, Macau, Manila, etc. We have developed models for over ten different types of markets.
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These patrons rarely play elsewhere and while are few can contribute 40%+ of revenues. The objective is right-size reinvestment, focus on lifestyle experiences and monitor closely for signs of defection.
Sub-segments includes incliners and decliners, overdue, churn-risk.
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These are patrons are likely dormant or have switched their wallet. The nature of the patrons lapsing indicates if they switched to a competitor and can be reactivated. Objective to drive a visit and reinstill a love of the property.