Casino Customer Service

Casinos interested in having an outside company review their internal operations for areas of improvement should not overlook an evaluation of the property’s new employee orientation.  A casino’s ultimate success all starts with what they tell their new hires in orientation.  Are new employees encouraged to give guests great service?  Are they pumped up so they are excited about their jobs?  Or are new employees bludgeoned with the 10,000 ways they can get fired?  Are they overwhelmed with rules and regulations?  Discouraged employees are more likely to quit not long after they start.  Cornell University research shows that it costs $5,000 to replace the average hospitality worker.

Martin R. Baird
Robinson & Associates, Inc.
mbaird@casinocustomerservice.com
www.casinocustomerservice.com
480-991-6420

I’m not sure if you watch “What Not To Wear” on TLC, but the premise is very simple.  The program takes average people who think they have good looks and style and shows them why their choices may not be working.  Participants get a whole new perspective of themselves and learn how to get it right.

One of the tools they use on the show is a 360-degree mirror that allows people to see how they look from all angles.  It’s funny to watch their reaction as they get a good gander at themselves.

Here’s my point.  In a casino, you have a number of operational areas that you don’t or can’t see very well.  You use anecdotal information as real data and believe you know what is happening.  For example, people show up for your latest promotion, so your marketing must be working.  Employees tell the GM they had fun at the guest service training session, so it must have been successful.

It takes perspective to truly understand your casino and that information often comes from afar, meaning a third party that has no vested interest in your property.  It’s very difficult for most people to do their own post-mortem.  We see two critical areas of your casino that should be fully evaluated by fresh eyes.  The first is marketing and the second is your guest service improvement.

Steve Karoul, president and CEO of Euro-Asia Casino Consulting, is an expert in casino marketing and player development.  His company has developed a “Casino Marketing Tune Up.”  It’s a great program that brings Steve’s years of experience and perspective to your casino to look at what is working and what could be improved in your marketing.  Yes, I know you have an ad agency that you pay big bucks to every month, but do you really think they can do an unbiased analysis?

Marketing is a critical part of a casino’s long-term success.  If the marketing is off target or off message, it’s a huge waste of money, much as a poorly running car gobbles gas at an alarming rate.  Investing in a 360-degree evaluation of your marketing is money well spent.  It helps you see what you may be missing and provides recommendations on how to make your marketing better.  After all, looking in a mirror doesn’t give someone the information they need to dress better.  It’s helpful to know you have a style problem, but you also need advice on what to do about it.

We suggest you launch your evaluation process with marketing because that’s where business starts.  Marketing makes a promise to your guests and prospective guests.  It could be that they will win, be excited, have fun or even meet beautiful new friends.  The promise isn’t as critical to us as the actual delivery of it.  We think that if a casino is going to improve its guest experience, it should start by matching the promise to the reality of the casino floor.

I often laugh when I visit a casino for the first time.  Before I arrive, I browse their Web site or look at their ads in local magazines so I know what to expect.  Yeah right!  I have walked into some casinos and thought I was in the wrong place.  The marketing people took some creative license, if you know what I mean.

Now let’s shine the not-always-flattering light of perspective on guest service.

Before I go on, I want to make it clear that I think the training managers and trainers at most casinos are great people who give 110 percent each and every time they take employees under their wing.  The work they do often goes unnoticed and under-appreciated.  It’s not easy teaching people new and better ways of doing things, especially with employees who have been in their jobs for years and know they are doing it right because they “get good tips.”  (The operative word here is “get.”  I hear it all the time.  Casino employees must realize they “earn” tips from the service they provide.)

Here is a challenge we often see.  A casino develops a guest service training program and is very proud of it.  The property does more than invest a significant amount of time in the program.  It pours its heart into it.  The training is the best the casino has ever created.  This is a wonderful accomplishment that should not be taken lightly.  But that doesn’t mean the training couldn’t be better if experts with the right perspective reviewed the information and presentation. 

A guest service improvement assessment has three critical areas:  employee orientation, guest service training and the employee reward/incentive program. 

It all starts with what you tell your new hires.  Cornell University research shows that it costs $5,000 to replace the average hospitality worker.  That’s $5,000 PER employee!  This means orientation is critical.  Don’t just bludgeon your new staff members with the 10,000 ways they can get fired.  They need a realist job preview and a solid understanding of management expectations.

Next is the guest service training you provide.  I know most casinos are proud of their training.  But most of the people on “What Not To Wear” think they look dazzling in some atrocious outfits.  It often takes a critical eye to see what needs to be improved and, just like with marketing, provide ways to do it better.

The last part is your employee reward program.  All too often, this is an entitlement program that happens the same way year after year for no other reason than that is how you have always done it.  It should be reviewed.

Borrowing from Steve’s, tune-up theme,  I remember seeing television ads as a child that promoted a particular brand of motor oil.  The ads encouraged people to get an oil change.  The mechanic said you could pay him now or pay him later.  An investment of a few dollars today could save thousands of dollars in major repairs tomorrow.

Getting a 360-degree view of your marketing and guest service today could be much smarter than waiting until you are losing market share.

This article originally appeared in Native American Casino.

Martin R. Baird
Robinson & Associates, Inc.
mbaird@casinocustomerservice.com
www.advocatedevelopmentsystem.com
www.casinocustomerservice.com
480-991-6420

There are many resources available today to help casinos improve their internal communication, but the best lessons are often learned from knowing what not to do.

Most casino executives would agree that effective internal communication is one of the most important factors in maintaining a sustainable competitive advantage.  Typically, casinos get help with learning how to polish their communication.  But much can be learned from knowing what to avoid.

I suggest casinos steer clear of the following communication pitfalls.

Do Not Say “Yes” to E-Mail.  E-mail is often perceived as a productive and convenient form of communication, although it may take five e-mails to complete the task of one five-minute phone call.  E-mail may be more comfortable for casino employees to use, but it often clouds the waters and creates confusion.  E-mail communication lacks the auditory and visual cues that help the recipient understand the message’s context.  E-mail also eliminates opportunities for feedback and idea sharing.  When you have a question, concern or comment, pick up the phone.

Mouth Says “Yes” but Eyes Say “No.”  Do not rely on words alone in communication.  Body language must be consistent with your message or you will undoubtedly give the wrong impression.  Body language, including facial expressions, helps clarify and create effective communication.  When you are discussing an issue with a colleague, meeting with your executive team or presenting at a gaming conference, relax, speak carefully and slowly and make eye contact to assure your message is understood.

Aren’t We On the Same Page?  Never assume that communication has happened.  It is vital that the speaker and listener ask questions and gain feedback to confirm mutual understanding.  Also, do not rely on jargon to highlight your communication.

The Department of Redundancy Department.  Redundant communication fails to produce desirable results.  It is not productive to state your message over and over.  Your listener will most assuredly become confused and have no idea what you’re trying to say.  Once it is said, put it to bed.  Listeners will thank you.

“Blamestorming.”  “Blamestorming” is a common occurrence that is completely ineffective.  A meeting is called and everyone knows it won’t be pretty.  Your casino’s guest feedback is negative and revenues are down,  no ideas will be shared and no strategies will be formed.  It is simply a gathering to discuss shortfalls.  “Blamestorming” creates hard feelings, discourages communication and damages employee morale.  Maintaining an environment of open communication, acceptance and active participation will lead your casino to greater success and give employees the motivation to excel.

Miscommunication is an unfortunate byproduct of common business practices that are inappropriate, overused or completely ineffective.  Whether it’s excessive use of e-mail, failure to gain feedback or perpetual use of meetings to spread negative energy, there are a remarkable number of lessons to be learned in observing communication strategies and learning what not to do.

Martin R. Baird
Robinson & Associates, Inc.
www.casinocustomerservice.com
mbaird@casinocustomerservice.com
480-991-6420

Casinos should have an outside third party review their operations to identify areas for improvement, and the review should start with the property’s marketing.  Begin with marketing because that’s where business starts.  Marketing makes a promise to your guests and prospective guests.  It could be that they will win, be excited, have fun or even meet beautiful new friends.  The promise isn’t as critical as the actual delivery of it.  If a casino is going to improve its guest experience, it should by matching the promise to the reality of the casino floor.

  
Martin R. Baird

Robinson & Associates, Inc.
mbaird@casinocustomerservice.com
www.casinocustomerservice.com

480-991-6420

I’ve read the research that says gaming is countercyclical, that when the economy goes down, the amount of gaming play goes up.  The problem I have with this concept is that the gaming world has changed dramatically in the last 10 years.  I don’t think countercyclical necessarily applies anymore.  It would be foolish for casinos to count on it.

Ten years ago, the majority of gaming was in Las Vegas, Reno and Atlantic City.  The world flocked to those markets to play.  Thus, if the U.S. economy was struggling and other countries’ economies were strong, overseas players perceived America’s problem as their opportunity.  They read the weak U.S. economy as a signal to come and play to their heart’s content. 

But in today’s gaming environment, there are casinos in just about every country on the planet.  No matter where you live, the games with the latest bells and whistles will soon be at a casino near you, if they aren’t there already.  Why fly halfway around the world to the U.S. when you can hop in your car in Paris and drive half an hour to a nice casino?

Countercyclical doesn’t even apply anymore to American players.  In previous economic downturns, Americans took their cash reserves to places like Las Vegas with hopes of winning big so they could pay their bills.  With gaming’s amazing expansion, why would anyone in Detroit go to the expense of traveling to Vegas when they can drop by a local casino with the same hopes and dreams?  Las Vegas, Reno and Atlantic City shouldn’t expect countercyclical play on the home front.  On top of that, staying and playing in Detroit is not new money for Michigan properties.  Locals are already spending their dollars at those casinos and, with the way the economy is going, they just might spend less.

OK, enough said.  If countercyclical is now a fond memory, what can casinos do to keep their performance strong in a weakening American economy?  What should they avoid?

One step all casinos should take is a serious inventory of what they do well.  What do you do best that contributes to your success and how can you make sure you continue to do those things at the highest possible level?  You may need to peer into the past.  During times of rapid growth and great success, it’s easy to drift away from those things you do well.  What was it that got you where you are today?  Did you lose your focus in flush times and simply forget about it?  Perhaps senior management ordered a deliberate strategic shift that shoved those initial drivers of success aside.  This happens when people think they are smarter than the economy or local market.  If improvements are needed to ensure you continue to roll out those best business practices, then so be it!

The next step is simple but not easy.  You must move from a guest service focus to an emphasis on the gaming experience.  This is not for all casinos.  I still visit properties that need to work on their service because they have none.  They’re clueless about the most basic elements of service, such as smiling and eye contact.  But most casinos have the basics well under control.  The next step is to develop your employees so they move to the level of creating a wonderful guest experience.  Customer service is a fundamental part of what I’m suggesting and when you step it up a notch to mold an experience, you move the guest to an even higher level.  Most guests will not tell their friends about service, unless it’s horrible.  But they will tell them about their amazing gaming experience.

Of course, you have a business to run in the midst of all this.  So the third and final step is making intelligent business decisions during tough economic times while developing your people so they understand the importance of creating an amazing quest experience.  It all has to makes cents as well as sense.

One course of action I certainly don’t recommend is cutting back on spending.  I know the numbers people like to stash the checkbook in a secret vault during tough times.  The problem is I have never seen a company cut its way to growth.  Granted, I’m not an accountant, but when you cut budgets, you tend to slow or stop growth.  Sure, cuts are sometimes needed.  If cash flow doesn’t support the current business, something must give.  But that is not a strategy for growth.  That is a short-term solution for survival, and casinos are not struggling to stay alive.

With the years I have in and around the gaming industry, it’s obvious to me that it’s easier to generate an additional dollar in revenue than it is to cut that same dollar.  Give your guests a wonderful casino, outstanding service and tons of fun and they will be more than willing to reward you with additional revenue.  Notice I said reward.  You have no god-given right to your guests’ money.  The money they spend at your property is a reward for doing things better than your competitors.

Gaming has changed dramatically since the last economic downturn.  Casinos must understand that they can’t rely on past player behavior and the same old level of service.  They must do more this time around.

This article originally appeared in International Gaming & Wagering Business.

Martin R. Baird
Robinson & Associates, Inc.
mbaird@casinocustomerservice.com
www.casinocustomerservice.com
480-991-6420