“ We ’ re processing the information in real time , how they react on a spin-by-spin basis .”
“ We ’ re processing the information in real time , how they react on a spin-by-spin basis .”
— Noah Acres , Acres Manufacturing
munication protocols . You can even have other AGI watching your AGI , and interrupting if it ’ s doing something wrong .”
Cardno ’ s biggest concern is that gaming as an industry “ doesn ’ t embrace ” this new approach to service and optimization .
“ We ’ re not very famous in hospitality for being adopters of technology ,” he notes . “ But this one we can ’ t miss .”
Practical Applications
What can AI add to the casino marketing space ? For one thing , it can drag it into the digital age , says Earle G . Hall , president and CEO of AXES . ai , maker of a cloud information management platform for the industry .
“ We ’ re so used to things like the Starbucks app or Amazon Prime ’ s suggestions in our daily lives , but the casino industry still relies on hard-mail marketing to enhance loyalty ,” says Hall .
“ AI can help provide the personalized recommendations needed for tailored marketing . AI algorithms can track individual customer behavior , including the games they play , the times they visit and their preferred amenities . This data can be used to make personalized recommendations for games , promotions or events , enhancing the guest experience .”
Predictive analytics , gleaned by intelligent technology from vast data farms , enables AI to tell the future , somewhat reliably . “ It can predict customer behavior , such as the likelihood of a customer returning to the casino , their potential spending , or the types of games they might be interested in ,” says Hall .
Needless to add , that same information can be used to help players wager responsibly , “ as the responsible gaming tools for brick-and-mortar casinos are woefully behind their online counterparts .”
AI systems like AXES ’ Black Box enable casinos to access real-time , actionable data about customers while they ’ re on-site , when a marketing pitch may be most effective .
“ The average casino visitor spends four to five hours at your property ,” says Hall . “ With current casino management system providers , you get a snapshot in time that typically is far after a patron has left your property . Don ’ t you want to market to them while they ’ re there ? AI helps you do that .”
Fast Forward
Since the 1960s , casinos have pampered their best customers with complimentary drinks , hotel stays , show tickets and other perks . But early loyalty programs were work-intensive , requiring staff to physically prowl the floor and monitor play to see who deserved a special coupon or promo . In the 1970s , John Acres created the first player tracking system to automate the process , reducing human error and eliminating much of the staffing .
AI takes the process one better . Based on historic data , it can determine existing players ’ value , detect who ’ s at risk of churning , identify who ’ s taking a pause but may be lured back with the right offer , and even suggest the right time to make that offer .
“ Our claim to fame is we gather more data than casinos have ever done before ,” says Noah Acres , partner with his father John at Acres Manufacturing , creator of data-gathering products Foundation and Foundation HQ . “ Historically , when casinos wanted to run information on slot players , they could only do it after the sessions and measure how much the player spent . We ’ re processing the information in real time , how they react on a spin-byspin basis .”
Acres ’ suite of products let casinos “ target bonuses to specific players or floor-wide , send rewards in the midst of a losing streak to ensure long-term brand loyalty , and send in-game promotions or add-ons to any display , mobile device or sound system .”
Using data analysis , casinos can also learn why some players return and others don ’ t , then “ work through the bonusing and messaging technology ” to more successfully convert and retain them . Importantly , it can identify and reel in new customers , a demographic that has often eluded operators .
“ Other industries don ’ t rely on physical loyalty cards , because everything is digital ,” says Acres . Asked to stand in line at a kiosk to sign up , many would-be cardholders could just walk away : “ Too much friction .”
Acres ’ Foundation technology can rate uncarded play — how much a newbie is spending , their average bet size , their potential worth over time — and send an offer during the session . That takes them to an enrollment site based on a QR code correlated with their value , and opens the door to a previously untapped customer pool .
“ Right now we ’ re in a feedback loop , where casinos are competing against each other for core players who are simultaneously aging ,” says Acres . “ That means we ’ re not growing new players ”— which is a long-term prescription for decline .
There ’ s a lot of waste in casino loyalty programs , he adds ; operators on average spend up to 30 percent of player losses on comps , but they may be throwing some of that money at the wall . Maybe they ’ re rewarding the wrong players . Maybe they ’ re rewarding them so often that the perks lose their perceived value and become entitlements .
Bottom-Line Benefits
AI narrows the scattershot approach to marketing for better ROI , and also can reduce costs , especially direct mail , says Hall .
“ Using the AXES app , I can build a profile for you : I know when you visit the casino , how long you stay , how long you play and how much you spend . I can push instant offers to you while you ’ re on-site , to make your experience more rewarding . So instead of a $ 100,000 hard-mail campaign that generally ends up in the trash , I can give you something of value that recognizes you for who you are .”
It ’ s the personalization that matters . “ Every guest is unique and different ,” Hall says . “ Some may show up , go right to their favorite slot and hammer that thing for hours . Others might play for 15 minutes between dinner and the start time for a show at your theater .
“ What if I push you a two-for-one drink offer at the center bar after the show ? What if I push you $ 10 in free play when you get up to get a soda ?
NOVEMBER 2023 www . ggbmagazine . com 19