TEN TIPS FOR CREATING REVENUE PROMOTIONS PLAN

By: David Brents, Casino General Manager & COO

 
1. BREAK GOALS DOWN BY DAY. When your GM identifies a 5% revenue growth target it is very vague. When you break it down by day, it becomes tangible and a goal that each team member can understand. For example, if you are seeking $24,000 in additional revenue on Monday and each player has an ADT of $80 then you need 300 players. Each team member can understand the goal of getting 300 players on Monday.

 
2. IDENTIFY THE DAYS AND TIMES OF DAY WHEN YOU CAN GROW THE BUSINESS. There are two philosophies on revenue management. “Peak the peaks” is one very popular philosophy. The difficulty with this approach is that the guest experience tends to deteriorate as the casino is dealing with the mass of humanity. The other is “Fill the Valleys”. I subscribe to “Fill the Valleys” because it levels out the volume allowing you to provide consistent good service during the week.

 
3. TARGET SPECIFIC GUESTS FOR PROMOTIONS. Weekday guests are often different than weekend guests. During the week, you tend to draw people from within 30 – 40 miles. Weekends provide guests from further away. The inner ring may have different income levels than the outer ring. In general, the guests are value-seekers and they will go where they have the best experience with the greatest value.

 
4. SPECIFY CRITERIA FOR PROMOTION OR EVENT. Identify whether the purpose is acquisition, loyalty or increased frequency. Acquisition is getting new customers into your database. Loyalty is rewarding known guests for their patronage. Frequency is increasing the number of trips during a month. Each promotion needs to begin with clear understanding of what you want to accomplish.

 
5. BRAND THE DAY. This is the key for success. When you brand the day, your guests and your team will appreciate the consistency. The promotion needs to be supported with advertising, social media and the monthly mailer. Over time, your special event on Tuesday will become a favorite for the guest and a must for their weekly calendar.

 
6. EVALUATE TOOLS. There are many tools at your disposal. Favorites include: food offers, Free Slot Play, hotel offers, tournaments, entertainment, car giveaways and earned entries. Choose one for the day. It is best not to overlap offers.

 
7. BUILD CONSISTENCY OF PROMOTIONS. Through time build a consistent quality experience for the guests. If it is a themed buffet on Monday, make it the best buffet in the area.

 
8. OWN THE CALENDAR. It is difficult for a casino to be spontaneous with promotions. The guests and team need to know in advance what to expect. It takes a good six to eight weeks to develop a promotion and communicate it to the team and the guests. Casinos generally do not do well with ad hoc promotions. If you cannot do something well, you are better off not doing it.

 
9. RUN PROMOTION FOR THREE MONTHS. The first month is about executing on the launch. The second month is about evaluating the results and improving the outcomes. The third month is when you determine to continue the promotion or to scrap it for something different. The organization is always learning and improving the yield.

 
10. MEASURE RESULTS. The assessment of performance is very important. The assessment should include quantitative factors and qualitative factors. Quantitative factors to be considered are based upon your criteria for the promotion such as attendance, revenues, new club sign ups and costs.

 
Qualitative factors to be considered are fit with your brand, quality of guest experience and feedback from your team.
I have had much luck growing revenues as the general manager of various casinos using these tips. I wish you the best of luck growing revenues during this challenging environment.

Categorised in: Blog

This post was written by Gary Stahl