Casino Marketing and Profits
Satisfying the customer should be a priority for casino managers, but managers must realize that they cannot satisfy all customers.
They have to choose their customers carefully, selecting players who will enable the company to meet its objectives.
To compete effectively for their chosen customers, casino marketers must create a marketing mix that gives their target markets more value than their competitor's marketing mix.
Today's marketing is not simply a business function. It is a philosophy--- a way of thinking about and structuring the business.
Marketing is not a new ad campaign or this month's promotion. It is part of everyone's job, from the receptionist to the board of directors.
The task of marketing is never to fool the customer, or endanger the company's image, but to design a product/service combination that provides real value to targeted customers, motivates purchase, and fulfills genuine consumer needs.
The purpose of a business is to create and maintain profitable customers. Customers are attracted and retained when their needs are ,et.
Customer satisfaction leading to profit is the central goal of casino marketing.
Casino managers sometimes act as if today's profits are primary and customer satisfaction secondary. This attitude eventually sinks a firm as it finds fewer repeat customers and faces increasingly negative word of mouth.
Successful managers see profits as the result of running a business well rather than as its sole purpose.
It is wise to assess the customer's long-term value and to take appropriate cations to ensure a customer's long-term support.
In a casino study conducted just recently, the cost of retaining a loyal customer is just 20% of the cost of attracting a new one. Another study found that am increase of 25% to 125%. Accordingly, a casino that can increase its repeat customers from 35% to 40% should gain at least an additional 25% in profits.
Without customers, our assets have little value. Without customers, a new multi-million-dollar casino will close or go into receivership, with the receivers selling it at a fraction of its book value.
Marketing will enable an organization to create and maintain customers who will increase the value of the business.
The mentality of some Las Vegas casino employees is, 'we have 25 million people coming to Las Vegas, so we don't have to worry about customer satisfaction. There are thousands of guests coming out at the airport right now, so we'll always have a replacement for the departing guest'.
The fallacy in this thinking is twofold. First, guest satisfaction is a means of creating value; casinos that treat their customers well have more demand and do not need to count on price promotions to draw in customers.
Second, as competition increases, some casinos will be desperately seeking additional customers; those that are not successful will be forced out to cut back on operations and lay off employees. This has already occurred in Las Vegas, Mississippi, and Atlantic City.
Successful marketers design differentiated products--- ones offering new customer benefits. Marketing means 'hitting the mark'.
Like for an example, accounting has to develop bills that the hotel guest can understand; maintenance people should be able to answer a guest's basic questions such as where the casino's restaurants are located; and all employees should have a genuine concern for the customer's well-being.