Over the past few months we have seen the rebirth of two casinos in Atlantic City, a new casino in the Catskills of New York and sports betting legalized.
Truly this has been a great time in our industry and it creates opportunities as competition heats up in markets.
Most of our casino clients have increased their player loyalty spending and ask us what we see as far as emerging trends.
Here are a few key points:
Brands:
Retail store closures have created incredible brand opportunities in the incentive market. Brands are desperate to pick up sales as the retail landscape shrinks, and they see this channel as very attractive. It is attractive to them in terms of sales units but it is also a very precise way to position your brand. Incentive programs can target and reward specific demographics and can act as brand ambassadors. These brands create new excitement in programs and most importantly give players rewards that they want. Long gone is the “knock off” brand or the tchotchke gift. Players want name brands and they want new brands. This situation at retail has allowed us to bring on great brands. Check it out at books.rymaxinc.com/books/mmju.
Communication:
The penetration of “smart” devices to all ages has had and will continue to play an important part in how we deliver information regarding promotions. We are just scratching the surface when it comes to video, virtual reality and immediate gratification. There are so many ways to integrate the on-line gaming and new sports betting opportunities into the rewards programs, and casinos have a great tool to increase foot traffic and coin-in. The player loyalty program needs to integrate all areas and deliver real time updates and incentives to be part of the program.
Market Conditions:
From trade wars over tariffs to impending inflation driven by many factors including low unemployment, the question that is most often asked is how will this impact our loyalty programs?
For starters, as the economy tightens up and consumer confidence erodes, the redemption items move from luxury to practical items. When the economy imploded in 2008 we saw redemptions increase as people did not want to spend money, and we saw that they redeemed for more household items.
The casinos weathered the storm and as the economy improved we saw the redemption trends shift back to luxury goods. What was a constant was that the player wanted branded goods and there is no turning back to off brands and “knock offs.” We have over 400 brands and over 15,000 SKU’s so we feel that we are positioned for swings in the economy and different consumer trends.
The Forecast:
The multi-billion-dollar incentive industry is on a rapid growth trajectory. The casino industry knows that player loyalty is a primary marketing initiative. We see that the second half of 2018 and moving into 2019 as an opportunity to do new and unique promotions to drive play and create loyalty to the casino.
Be sure to visit Rymax at OIGA booth #516!
