What Lottery Brands Can Learn from Casino Operators in CRM
CRM marketing is all about personalization, retention, orchestration, and optimization. Nailing CRM is especially crucial in the gaming space, and some brands could learn from others. Here’s how your brand can hit the jackpot with the right CRM best practices
Be it Sports Betting, Casino, Lottery, or Bingo – players are looking for a personalized experience that will delight and engage them. Innovative gaming brands understand that a customer-led approach has to be put at the forefront of their marketing strategy.
Inevitably, some gaming categories do it better than others. For instance, there’s a lot that Lottery brands could learn from Casino operators when it comes to segmentation, messaging, and the various marketing channels they use to communicate with players.
So, here are a few pages Lottery can take from Casino’s play book.
Lottery VS Casino in CRM
Optimove marketing data analysts compared CRM performance of Casino and Lottery brands.
The goal was to observe how each gaming category identifies and groups its players in different segments and then communicates with them.
Data was pulled from several Casino and Lottery brands to gain a more detailed picture.
Here’s a quick recap of the findings:
Conversion Rates
Casino brands convert 30% more players than Lottery does on average.
Active Lottery Players
We checked whether active Lottery players who played at least one Casino game have a higher future value. The answer is yes!
Active Lottery players who have played at least one Casino game since their registration have a higher average future value of 69% than those who haven’t played any Casino game.
Expert Tip: Brands that offer both Lottery and Casino games want to create a CRM campaign that focuses on cross-selling players from Lottery to Casino, as it is clear they have higher future value.
Percentage of Recurring Campaigns
We checked how brands from each category communicate with customers and found that Lottery lags behind Casino by 5% on average when it comes to their recurring campaigns.
When campaigns are sent automatically on a recurring basis, marketers do less manual work as monthly calendars are planned and scheduled in advance.
All CRM campaigns (except ad hoc) should be planned and organized ahead of time, so each player segment receives the optimal message at the optimal time.
Retention Rates
Casino retains 4% more players than Lottery does on average.
New Retention Rate (One point for Lottery!)
In this analysis, new retention rates describe first depositors who remain active with a brand for one to three months. In Lottery brands, new retention rates were 31% higher than Casino brands, on average. Therefore, there are plenty of exciting opportunities for Lottery brands to engage and retain players who exhibit loyalty.
Number of Marketing Channels
Our analysts checked the number of channels and campaigns Lottery and Casino brands use to determine if there’s a difference in how they communicate and send messages to players.
Here’s what we found:
Lottery
Less than 10% of Lottery brands’ campaigns are multi-channel.
There are a variety of additional channels they can take advantage of to communicate smartly with their players. They are missing opportunities.
Casino
Some Casino brands use multi-channel campaigns in more than 90% of their campaigns. Impressive!
Therefore, it’s clear that Lottery brands have a lot of catching up to do when it comes to communicating with their players on multiple channels to increase engagement and retention.
Here are two examples of a welcome email, one from a leading Casino brand and another from a leading Lottery brand:
Notice the significant difference in how they engage players right from the very start.
Average Future Customer Value
For the final part of this analysis, we checked brands that offer both Lottery and Casino games.
To find out what lifecycle stage is likely to generate higher revenue, we compared several brands offering both gaming products under one roof.
We found that active Casino players have a 73% higher future value on average when compared to Lottery players in the same brand.
Therefore, Casino players generate higher revenue than Lottery players over their lifetime. One possible explanation might be the use of powerful marketing promotions in Casino brands. They are packed with bonuses and offers used to make players log in, deposit, and play more often and in higher amounts. A second possible explanation is the more frequent presence of upselling techniques in Casino.
The Winner is… Casino!
Upon completing the Lottery versus Casino CRM analysis, it’s safe to say Lottery brands are playing catch up and have a long way to go before they can match Casinos in creating those strong, long-lasting customer relationships.
But Lottery brands don’t despair. This represents huge potential to grow your business and strengthen your customer relationships. No luck needed!
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Dafna is a creative marketing content writer and editor who produces strategic content for various online industries. With over ten years of professional writing experience, she helps brands grow and increase profitability, efficiency, and online presence. Dafna holds a B.A. in Persuasive Communications from Reichman University (IDC Herzliya).
Roni is a Marketing Research Analyst serving on Optimove's Professional Services team. As the Marketing Research Analyst, Roni specializes in gathering actionable marketing insights through research and analysis of customer data for retail and gaming clients. Roni holds a dual degree in Psychology and Business from Reichman University (IDC Herzliya).
