By Rick Harshman
H2R Agency

You’ve spent valuable time and effort in your new acquisition program. You’ve convinced your boss, the board and your team of the need for new players. Now you’ve been challenged with attracting new players on a budget that fits comfortably on a posted note.

You do realize you’ve got access to new players who are right under your nose, right? Unfortunately, they’re right under your competition’s nose too. But they’re your players.

What now?

“Companies can improve profits by at least 25% by reducing customer defections by 5%” Harvard Business Review

Your goals are simple: keep your players playing more in your casino while you keep their players playing more in your casino. Simple? Yes. Easy? Of course not.

To accomplish this, you really need to understand why most player’s defect. Then you’ll understand why your players are defecting and know how to correct it.

The Defector’s Doctrine is as follows:

1. They Die.
   There’s not much you can do when a portion of your database just expires, passes away, self-archives. It’s inevitable…it’s nature’s way of ensuring you never get lazy with your new acquisition programs.

You can plan for it, however. Make sure you always follow your own 80/20 rule and know what percentage of your database is generating the biggest ratio of revenue.

You have to think of your player database as an escalator. New players get on at the bottom. As they become more loyal and elevate their play, they start ascending to the top. Of course, one day, they’re going to come to the end of the escalator and step off.

Translation: you need to keep people hopping on and riding your escalator longer.

2. They Move Away.
   How dare them. You spent so much time talking with them, implementing their suggestions, comping their brother-in-law to the buffet, giving them the offer when they forgot their coupon…the nerve.
   You can try and implement a non-local/destination activation program to try and “keep in touch” with them. Some of these folks may routinely come back to visit friends and family, and one day, perhaps even move back. The thought is actually quite nice. Imagine, you move away but still get communication from one of your favorite places to shop. “We’re sorry you’ve moved, but if you do come back and visit, we’d love to see you again. And since we know your friends and family are important, we’re extending the offer to them as well. Here’s a little incentive to let you know that we miss you too!”

Here’s the problem with trying to reach back out to players who’ve moved away…How often did you stay in touch when they were playing? You run the risk of trying harder to get them back than you did to keep them while they were here. Who’s going to monitor the program? How many times do you reach out before you give up? And curiously, do you know why they moved away, family…illness…a new job?

Again, if you didn’t get to know the guest when they were here, chances are it’s too late.

3. Your Competitors Took Them.
   Really? You didn’t choose to keep your player? You didn’t see that coming? You didn’t know what your competition was doing to entice your players…no conversation…no secret shopper program…just a surprise…hmm (have you read the first paragraph of #2?).

Are you sure they didn’t just visit the competition…and never came back? How does your casino’s perceived winning stack up against theirs?

Remember how aggressive you were to get a new player? Three simple steps. Promise. Deliver. Repeat. Seriously, what happened? I would have left too.

4. Bad Service.
   Losing a player to bad service or perceived bad service really hurts. Service is what separates your place from their place. I mean we all sell the same magic, right? “Here’s my 10 bucks…show me something different and make me happy.” And now I hear we can’t get that right?

Bad service is the curse to the casino industry. You don’t always see it and you can’t always hear it, but you just know…it’s there. It comes in many forms, from front line team member’s idle conversations being overheard, to the PBX operator who doesn’t pick up on the 5th ring, to the third TITO kiosk out of order.

Take the time to walk your property and observe. Go on, sit next to a player, park your car in valet, cruise the parking garage at midnight, see how long that trash can goes by not being emptied, how long is my call placed on hold? You can fix the instances you see and hear, but you’ll never be able to fix those problems you don’t know about. Those who want to stay complain. Those who don’t leave.

5. They’ve Outgrown Your Amenities or Offers.
   You should know your players better than anyone. You understand their likes, dislikes and why they still continue to come see you. But whether you like it or not, change is inevitable. If your players think they are happy, they have no reason to change. Then what happens…Someone offers them something bigger, better and brighter.

Gamers are like cell phone users. Over 50 percent are always looking to make a change, for service, amenities, style, or just to keep up with the Jones’. Look what happened when Apple invented the iPhone. Making a phone call was good enough before. You didn’t even know you wanted a camera, downloadable music, a crazy phone saber, and built-in GPS…until it was there, nudged right in front of you.

You can’t stop players from changing, but you have to remain consistent with your message, offerings and amenities. You can’t be something you’re not, and you can only be the best at what you’ve got. Ask yourself, has your slot product been updated? Are your new team members as courteous? And what about you? Are you going through that mid-life crisis, sporting that new Tommy Bahama look instead of a coat and tie? Did “Good morning miss Sally” become “What’s happening?”

Knowing why your players defect will help you solidify a game plan to keep them loyal to you. Remind yourself with these Tips to Triumph:

• Deliver a high-quality gaming product every time and exceed expectations.
  • Always deliver high perceived value.
  • Offer clear benefits, not just features.
  • Be accessible and reliable.
  • Focus on positive experiences.
  • Resolve disputes fast and always respond.

Rick Harshman is the CEO of H2R Agency, the leading advertising and marketing agency specializing in inspired creative and results-driven strategies in the gaming industry. For more information, call (720) 226-3229 or e-mail RickH@H2RAgency.com.