Analytical Case Study of Casino and Resort

Casino and Resort Management is a fast growing industry combining the business potential of the gaming and hospitality industries. It requires player-centric thinking to drive revenue and increase profitability.

Real time marketing/sales practice makes it financially worthwhile for the casino to invest and form intimate relationships with its players. For real time marketing/sales to be profitable, casinos must be able to understand their loyal player base and be certain that they are going to reap the rewards for their player acquisition, activation, retention, and maturation efforts with higher profits. This is where the concept of customer lifetime value (LTV) applies. The underlying premise is that player LTV is fundamentally built from an aggregation of each player’s trips to the Casino and Resort combined with external data sources that can lead to a more accurate picture of that player’s potential LTV.

In this Knowledge Sharing article, Wei Lin, Bill Schmarzo, and Pedro Desouza examine the impact of “big data” on real time marketing, customer service, and casino floor management in the casino gaming industry.

The article explores the challenges faced by key decision makers to look at all aspects of information, including:

• Tier longevity analysis, which shows opportunities to encourage play and Tier Acceleration.

• Statistical analysis, which indicates when player odds shift and when the house can potentially encourage alternate behavior.

• Analyzing individual player data, which can predictably indicate games that will be played and when as well as casino winnings from  that play and game playing optimization.

Read the full article.