Technology is the pursuit for more, isn’t it? Today, across all spectrum’s of business, technology is being used to empower smarter and efficient solutions. At BizAcuity, we’ve identified one such domain of business that we felt could use a technological makeover. And that is what today’s blog is about – Customer Behavior Analysis
Casinos and clubs are a major source of recreation and entertainment for people. The casino industry itself is touted to hit the 130 billion yield mark in 2019 according to reports.1 Needless to say, it’s a hugely successful category of business. And we feel, there isn’t a business that cannot be made more efficient, more intelligent or smarter.
Decoding the Visiting and Wagering Behavior
One of the biggest challenges for casinos is to get people to revisit their casino over and over again – customer retention. And for to achieve that it’s important to know the customers – a task that can be easily resolved with the help of consumer behavior analysis. And today, customer analytics has upgraded from just predicting patron behavior to a model that is capable of predicting profitability, customer behavior, customer value, time a consumer is going to spend at the casino and other data, which can come very handy in influencing customers. This data can also be used to conceptualize business strategies and offers that can increase the casino’s revenue.
Such modern casino analytics are highly evolved and intelligent. Such management systems can analyse patrons who visit a casino and predict a great deal of information about when is the patron most likely to visit the casino, how often the patron visits, how much a casino patron is going to spend at a casino property and so much more. Consumer behavior analysis can help casinos get insights about all that and much more, such as:
- The worth of a patron.
- How much a patron is likely to lose or win in the future.
- And based on that, determining if a patron is valuable or not.
- Which patrons come together?
- The patrons are most likely to make the most of an offer.
- The patrons are most likely to reject or respond to an offer.
- The promotional offers that have or will work the best.
The Upside of Customer Behaviour Analysis
Leveraging upon the data collected by casinos from their various data touchpoints, the casino operators can create an elaborate profile for each customer. Such a predictive analysis allows casinos to tailor highly specific and focused marketing campaigns to different pockets of customers in a casino’s database.
This opens up new avenues for casinos to create better relationships with their customers as they can up-sell or cross-sell items that a particular customer is most likely to buy rather than simply selling everything, most of which he or she is likely to reject. All of this creates a great advantage for the casinos. But only if they are successfully deployed.
Segregation and Customer Behaviour Analysis Go Hand-In-Hand
For that to happen, it is important to put the right segregation models in place. With the help of such models, customers can not only be classified based on their dollar value but also based on behavioral traits that can be identified from various activities within the casinos and their demographic information. The more accurately the customers are segregated, the more effectively the findings of the predictive analysis can be executed.
The Advent of Smart Casinos
Thanks to the use of technology, today, we are witnessing the advent of the smart casinos. Where patrons are offered great offers that are relevant to them based on their visiting behaviors and wagering patterns and thereby making them revisit casinos.
Author: Aditya Satyadev ,Co-Founder BizAcuity