Prescriptive Analytics – a Winning Bet for Casinos
The casino business is one that is booming quickly. It has not only tripled in size in recent years but sources predict that it is about to rise to new heights in the coming years. While its operation could throw many challenges your way, it presents even more and bigger opportunities. Ever since the digitization of casinos, casino managers are being exposed to a great deal of data. Today, by sticking to such traditional methods, they are missing out on a great opportunity. Hidden tangled within this sea of data lie many insights, which can open up new opportunities for growth and revenue. This is what makes the casino industry a great use case for prescriptive analytics technologies and applications.
The need for prescriptive analytics
Prescriptive analytics is the area of business analytics (BA) dedicated to finding the best course of action for a given situation. While descriptive analytics provides us with a fair picture about what has happened and predictive analytics – as the name suggests – helps predict and forecast what might happen, the science of prescriptive analytics goes beyond. Simply put, it’s a field of study that helps us to determine the best solution or outcome among various the many choices, given the known parameters.Today, the gaming industry is ever-evolving and dynamic. Thus arrives the need for casinos to adopt such new strategies and approaches towards business to stay ahead.
By banking on prescriptive analytics, casinos can not only prepare and plan to take make the most of future opportunities but also avoid and tackle any impending risks and problems. When implemented correctly, prescriptive analytics can continually and automatically analyze and sort new data to improve the accuracy of predictions, so casinos can make better business decisions.
Image source: https://nicoleparmar.com/moving-from-descriptive-to-predictive-and-prescriptive-analytics/
Benefits of prescriptive analytics
Through it is process-intensive, the deployment of prescriptive analytics helps us analyse potential decisions, the interactions between those decisions and how those decisions may affect other operational factors of the business. Keeping this in mind, casinos can ultimately chart an optimal course of action in real-time.
Given that casinos have several sources of money generation, advancements in the speed of computing and the development of complex mathematical algorithms applied to the data sets generated from these avenues of money generation help us stimulate better gaming scenarios, improve user experience and more.
Advanced analytics are enabling some casinos to identify each gaming facility’s performance in real-time. These are providing a holistic picture of the casino’s operations as well as in silos. Gathering such insights can assist casino managers to make better budgeting and take better decisions that can delight their customers.
Such analytics tools can assist casino managers to find patterns in consumer spending, popular games, restaurants, plan the optimal layout of facilities and many more. For instance, by analyzing data on consumer spending habits casinos can micro-segment their customer base by gathering data on their age, demographics, income levels, the time they have spent at a casino, etc. and provide incentives to big spenders and leverage incentives to those who are losing to make sure they don’t leave.
The road ahead
Once the sorting and analysis of data is performed, casinos can use such tools and methods to focus on building attractive marketing and service offerings that can drive response, revenues and profits. Casinos can identify and push tailor-made offerings according to customer preferences that can be driven to masses to generate a favorable and profitable response.