Saturday, September 14, 2013

Lose Big at the Casino? Big Data Helps Draw Customers Back to the Casino after Losses

Casinos specialise in customer service, they seek to provide the best environment and experience for you to spend money on tables, slot machines, entertainment and hotels. To provide the best customer services requires differentiation of service. This commonly relies on Parento’s rule where, “for many events, roughly 80% of the effects come from 20% of the causes” (Wikipedia 2013). Meaning it pays to look after the highest value customers.

The journey of differentiation of customer service started with the collection of data through customer loyalty programs. These programs have been around since the 1990s, and collect data on preferences, personal data and importantly payment transactions. Big data goes a step further to combine customer loyalty data with hotel booking data, restaurant bookings and even CCTV footage on the preferences and choices of bets. 

Caesars Entertainment is leading the curve in the adoption of these big data practices to provide tailored services to different customer groups. Tariq Shaubkat, Chief Marketing Officer of Caesars Entertainment explains in this short video how if you lose too quickly, Caesars will often intervene to offer to buy you dinner or tickets to a Celine Dion concert in order to improve your customer experience and stop customers defecting to a competitor’s casino.

Interestingly, the Flamingo Hotel (part of Ceasars Entertainment) employs 200 Data Scientists alone to analyse, manage and make decisions about the insights! This hot new job title coined by DJ Patil and Jeff Hammerbacher, is part of a growing profession in the field of big data. 

So next time you are at the casino, look out, as big  data ‘brother’ will be watching your every move.

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