Categories
Casino and Gaming Mergers & Acquisitions

Small Footprint Casino

Company: Small Footprint Casino

Challenge:
Casino was struggling with revenue generation from their Slot and Video Gaming machines. They recently went through a renovation and had organized their machines into 3 clustered areas within the main casino floor. They noticed their revenue significantly drop (12%) in the following 3 months of production. Their management team had full access to detailed data on a machine basis, including historical performance. They were looking to identify where they were seeing opportunity to improve floor layout plans or simple placement of machines.

PAG Solution:
PAG worked with the client to review the existing & historical data they had available. We then spent 2 days onsite with several floor supervisors to walk through the current layout and review the previous layout.

Stage 1consisted of PAG evaluating the individual machine production and profitability, including constructing a generic floor layout with a heat map of the machine production. We then compared each machine’s recent performance to their historical trends.

Stage 2 included observing traffic flow of the customers during high traffic times on the Casino Floor. We also evaluated traffic flow during the slower times. We then created Business Intelligence (BI) reporting to show performance by machine by different casino floor traffic times.

Stage 3 allowed PAG to work with the Casino Management team to evaluate shifts in performance pre and post renovation and movement of machines. In addition, we were able to show them detailed statistics on their individual machine profitability and optimal location. Lastly, we were able to show the unreasonable lack of traffic flow that occurred in their clustering of machines, which caused many to go untouched.

Final recommendations included maintaining current renovation major changes while updating machine placement according to machine learning algorithms we created from the historical data (which occurred under 2 different floor plans and product placements). This allowed us to optimize customer flow from areas such as restrooms, restaurants, Poker Room, shops and other attractions. Here is a revised example of the heat map created, with removal of identifying marks, and slight movement of pieces to anonymize the Client:

Client Benefits:

  1. The new design and machine placement realized an improvement of 16.2% in revenue generation, after removing seasonality (improvement was 19.8%, which included seasonality over the summer months).
  2. Average time per session improved by 5%, while time away from machine improved by 7.1%. Data for this was based on individual customer’s who had their player cards inserted into machines only.
  3. PAG worked with the client to build ongoing automated reporting through our custom portals to continually track performance on a set of 10 metrics we established to assist the casino in optimizing profitability long-term.
  4. PAG has been engaged by the Casino for 2 subsequent projects since the implementation of the changes
Categories
Casino and Gaming Casino Management Platform Optimization

New York Based Racino


Company: New York Based Racino

Challenge:
Casino was looking to enhance their marketing efforts within their existing customer base and expand their prospecting for new business.They did not have a convenient way to access the data, as it was stored in their production servers for the analytics portion of the exercise. The Casino manually created reporting and QA through manual entry into spreadsheets. For new business prospecting, they were mass marketing to a very large untargeted population, resulting in under 10 bps (0.10%) of response rate.

PAG Solution:
PAG first worked with them to develop a true prospecting marketing campaign utilizing Geo-Fencing, by evaluating consumer behaviors based on location tracking of their devices. In addition, search engine queries. Finally, targeting individuals that met pre-determined criteria to generate digital marketing campaigns to generate foot traffic into the Casino.

Stage 2 included implementation of our GOBLIN solution. This allowed us to organize their data outside of production, allowing them to query, report and analyze as needed in an efficient and concise manner. We set them up with the Business Intelligence (BI) tools for dynamic reporting.
2 months after completion of the project, the Casino had seen such an internal lift in understanding their data & analytics, they engaged us to build out a custom portal for report organization, distribution and governance.

Client Benefits:

  1. PAG was able to quickly deliver a large lift in foot traffic within the Casino with the digital marketing strategy expansion
  2. PAG ‘s solution assisted in an increase of 18% in foot traffic Quarter over Quarter, which included an increase of 22% in average customer spend
  3. As opposed to building the solution and staffing to manage the final product, the Casino was able to save 31% to their budget, with no incremental headcount, by implementing GOBLIN and having PAG manage the process going forward.
  4. The Casino has seen a steady lift through seasonality, which continues through the 2nd Quarter of 2019.
Categories
Casino and Gaming Reporting & Analytics

Medium Scale Las Vegas-based Casino

Company: Medium Scale Las Vegas-based Casino

Challenge:
Company was looking to accomplish several initiatives, including organizing their data across multiple sources into one repository for analytics and reporting, developing live reports as the data updates for multiple distribution lists, driving analytics for Marketing responses, channel optimization and casino efficiencies. Major problem was data was residing on 4 separate platforms in 2 separate locations. In addition, linking data between sources was an issue.

PAG Solution:
PAG was able to aggregate all four data sources into one repository. The systems remain intact, with data extracts populating their new EDP solution (GOBLIN). PAG then mapped each of the four data sources to allow simultaneous use of the data to generate automated & manual reporting, business analytics and marketing strategies. PAG built a custom Portal for the business, which allows for automatic distribution of reports and analysis, which is controlled by user logins. This allows for specific reporting sets to be directed to specific individuals. Implementation of the EDP also included the Business Intelligence (BI) tools for internal resources to create analytics and reports. Finally, after implementing the final solution, Company engaged PAG to complete the development of their marketing channel optimization strategies and enhanced their existing response models.

Client Benefits: (3-4 and provide QUANTIFIABLE benefits)

  1. PAG was able to identify, and implement, key areas of automation for the company
  2. PAG provided a robust solution that was designed to allow future client integration with little technological knowledge
  3. PAG’s solution created a 67% decrease in manual efforts while adding much needed QA for the data and reporting needs
  4. PAG’s solution came in significantly under budget and will meet the company’s needs for the coming years
  5. The incremental marketing analytics work helped reduce marketing costs by 26%, while increasing responses by 13%.