OLIVER LOVAT | GAMING AMERICA However, the real value within players clubs is in the data collected by the operators. To manage effectively, you need to measure accurately. The data obtained by players clubs allows almost real-time updates in customer behavior, allowing for the more effective management of resources. Historically, managing casinos was an intuitive discipline, with expert managers offering insights based on experience, observed knowledge and a degree of intuition. By collecting data, this process became structured, with data scientists emerging as prized assets within the decision-making chain. As we note, a decade ago, Caesars led the way; however, MGM Resorts has surpassed Caesars in the number of visitors to hold its cards. Furthermore, 77% of those holding MGM Rewards cards also hold Caesars Rewards cards, but 92% of Caesars Rewards members hold MGM Rewards, proving the success of MGM Resorts’ investment in challenging Caesars’ competitive advantage in information. Commanding customer loyalty via transactional methods, and applying the data collected to enable management decisions, is of great value. Once collected
YEAR
Total/Caesars Rewards
2011
2021
70%
69%
Mlife/MGM Rewards
68%
84%
Wynn Rewards
43%
37%
Grazie/Vene�an
40%
29%
None
16%
7%
Table 2. Players Club Membership
and analyzed, resort operators make decisions from this data, investing in amenities based on customer profiles. Only 7% of Las Vegas visitors are not members of a players club (down from 14% in 2011) implying that 93% of visitors are being targeted with offers to stay. Despite theoretically being focused on customers within the database, the effective practice of multiple casino operators repeatedly targeting the same customers with discounted packages was a method to drive competitive advantage; but today, with customers being multiple card holders, direct marketing has reduced
WHICH OF THESE ARE IMPORTANT TO YOU WHEN SELECTING A RESORT FOR YOUR LAS VEGAS TRIP?
effectiveness and, with rising postage costs, is a practice done at increasing cost with diminishing results.
NEW LOYALTY DRIVERS? Our research shows that transactional loyalty, which was once dominant, is only part of the marketing mix; and there are equally important findings in what drives the customer decision-making process going forward.
TABLE 3. CUSTOMER DECISION-MAKING Table 3 shows the aggregated decision-making behaviors of Las Vegas visitors. Although there is variance between the customer segments, there is near agreement that the resort experience and offering is the primary rationale for which property to choose when coming to Las Vegas.
Resorts Experience and Offering
72.19%
Loca�on
65.09%
Loyalty Program/Level of Comp
61.24%
EXPERIENCE THE CLICHÉ
Guestrooms
55.33%
Previous Experiences
52.37%
Prices
51.18%
Design and ambiance
45.86%
Pool
34.32%
If I had a dollar each time an executive commented that Las Vegas was all about “the experience” I would be a wealthy guy; but the truth is, Las Vegas’ success isn’t just about the experience, it's about the range of experiences.
Range of Food and Beverage
32.54%
Resort Apperance
32.54%
Friendliness of Staff
26.92%
Property History and Reputa�on
24.56%
Range of Ameni�es
19.53%
Table 3. Customer Decision-Making
TABLE 4. WHICH OF THESE STATEMENTS BEST REFLECTS YOUR FEELINGS WHEN STAYING IN A LAS VEGAS RESORT What this research shows us is that the range of experiences attracts customers. If delivered strategically and holistically, GAMINGAMERICA | 23