Stanley Casinos

Stanley Casinos

Challenge

In a then highly regulated gambling environment, requiring a 24 hour registration period prior to becoming a member, customer recruitment was difficult and inconsistent and mainly achieved through personal recommendation.

Due to the legal compliance issues, the business had built a customer database because every member had to undergo checks similar to opening a bank account today. This was not generally recognised by the business.

The business faced increasing competition from online gambling. Forthcoming de-regulation would mean that customers or members would be more able to visit other clubs much more easily as they would be able to join and visit any club on the same day.

The brief was to grow revenues by 10% prior to de-regulation which effectively meant from existing members.

Assessment

Our view was that the business effectively knew every member and due to the registration date of each visit, would also know the recency and frequency of use of the clubs by each individual. With that information it would be possible to segment the membership and market to them in groups depending on their habits and frequency of visit. There was an estimation of spend but the figures could not be relied upon other than as a guide. Other important details such as people visiting different clubs was also captured. However, this would have limited value until the size and make-up of the global customer base was understood. Until this situation was resolved, centralised marketing or even qualified local marketing was not possible.

Solution

A centralised marketing database or single customer view (SCV) was created and marketing intelligence reported back to the business. This resulted in the identification of deficiencies in the data such as email addresses, communication permissions and indeed the quality of the address data due to its age (registration data was rarely updated).

Analysis of the data revealed very clear visit patterns and it was relatively easy to identify ‘sensitive’ periods when people lapsed. A direct mail programme was initiated to update the base data and to amend the permission status for the use of the data. A re-activation communication programme was established to trigger return visits to clubs based on last visit date. An initiative was established in the business to capture email and SMS data in order that this trigger activity could be migrated to lower cost media. Once sufficient email data was captured the clubs were able to commence local marketing using MIG’s iNews email newsletter software.

Success

Visit levels improved and sales improved also. The target of 10% growth was surpassed. New clubs were opened and others moved to better sites where direct mail was the primary means of communication to invite past and present members to visit the clubs. The plc business was successfully sold by Lord Steinberg to Genting at a significant premium.

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