Scott Kreeger, CIO of Station Casinos, gives his top three tips for CRM.

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Case Study: Station Casinos

High Stakes

Station Casinos goes all in with its new customer loyalty program.

Station Casinos occupies an important niche in the Las Vegas gaming marketplace: It is the premier provider of gaming and entertainment for the nearly 2 million people who live in and around the city.

Founded in 1976, Station Casinos has grown to a portfolio of 18 properties, most of which are off the Las Vegas Strip. In addition to an extensive gaming floor, a typical property includes a hotel, restaurants, bars, arcades, movie theaters, live entertainment venues and retail stores. Unlike its competitors on the Strip that cater primarily to tourists visiting a few times a year, Station sees many of its guests weekly or even daily.

Deeper, Broader Insights

Creating a brand to attract local customers across so many properties and venues demands a uniquely focused company culture, one that adapts to changing customer needs. The Station Casinos Boarding Pass program is a prime example. Millions of guests have signed up for a loyalty card that tracks their gaming activities and other purchases, and then rewards them with points.

On A Roll

Despite a challenging economic environment, Station Casinos’ investment in its Total Guest Worth program has really paid off:

  • Cut $1 million per month from its nearly $13 million budget by being more precise with campaigns
  • Achieved a 4% increase in total monthly net slot revenue
  • Garnered a 14% lift in guest retention
  • Improved overall company profits

“The Boarding Pass is a very sophisticated loyalty program that generates an amazing amount of data,” says CIO Scott Kreeger. Making sense of the diverse information coming from various touch points can be a daunting challenge. “We knew we needed a way to analyze the entire value of each guest to Station, across all of those venues,” says Kreeger.

Doing so would require having all that data in a central location and employing advanced analytics to yield deeper, broader customer and operational insights. The flagship piece would be a new way to measure customer value, which Station dubbed “Total Guest Worth.”

The Payoff

Implemented in three phases over 18 months, the new system integrates customer, gaming and finance information from as many as 500 heterogeneous sources (gaming, lodging, food and beverage, etc.). It also conducts in-line data matching across millions of customer records to resolve identity issues and correct errors.

"With this solution in place, we can develop those new services quickly and efficiently, and adapt them in near real time as customer needs and behaviors change.”

—Scott Kreeger, CIO, Station Casinos

An early and easy win came in slot promotions. By being more precise with campaigns, Station cut $1 million per month from its nearly $13 million budget. But campaigns are not just more efficient—they are more effective. Station has achieved a 4% increase in total monthly net slot revenue and a 14% improvement in guest retention. Moreover, by maintaining the profit per active guest, the greater retention rate has improved overall company profits.

It’s not only that the results are better, they are achieved faster. “The two key components [of the system] are ease of use and speed,” says Jeff Martin, director of BI. Designing, developing and deploying highly personalized marketing and promotional campaigns takes only days now, compared with weeks previously for less personalized and less effective campaigns.

And campaign analysis that once took weeks is now done in hours. Martin and his team have created more than 160 different functional area reports for several hundred internal customers. Users can also run ad hoc queries (3,000 to 5,000 per day) within the framework of existing reports.

Such analysis provides a much more granular view of Station’s customer base, which leads to more effective promotions. Station used to analyze 14 base segments but now analyzes 160 sub-segments each month. “We can run tests on every single segment to determine who should get an offer and what kind of offer to send,” says Marc Oppenheimer, vice president of relationship marketing. Station also knows exactly who responds to what offers and, using the solution, automatically generates the appropriate reward.

Adding to the overall payoff is the fact that despite more segments and programs, production and processing expenses have decreased by $500,000 per month.

Winning Ways

Station truly has a stake in the game. “To deliver a rewarding customer experience,” says Karen O’Dell, director of BI and business systems, “you have to recognize and cater to that uniqueness and predict and stay ahead of their needs.”

Station believes that its Total Guest Worth project enables the company to do just that, to help enhance customer service and build customer loyalty.

“Ultimately, to maintain our leadership we have to build new services for customers and new ways to reach them,” says Kreeger. “With this solution in place, we can develop those new services quickly and efficiently, and adapt them in near real time as customer needs and behaviors change.”


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