Casino Customer Service

In this article, I’m not hypothesizing about what is happening in the world.  I’m TELLING you there are some scary facts available to those who pay attention.  These facts can no longer be ignored or discounted if you want your casino to have long-term success.

Fact:  The United States is in a recession.  This is not a downturn or bursting of a bubble.  We’re flat out in a recession and that is serious business!  This is not my simple opinion.  This statement comes from Larry Kudlow.  Kudlow was educated at the University of Rochester and Princeton University.  He started his career as an economist for the Federal Reserve Bank of New York and has consulted with presidents on the economy from Ronald Reagan to George W. Bush.

In April, Kudlow wrote an article for National Review magazine titled “The Therapeutic Power of Recessions.”  A subhead under the title stated, “Economic excesses occur in free-market economies, and from time to time they must be cleansed.”  When I read that thing about cleansing, it gave me a not-so-good feeling in my stomach.  Ludlow is not a politician or stock market jockey trying to get your money.  He is a highly regarded economist telling all who will listen that they need to get ready to be cleaned out.

You may be thinking that I’m extreme and fixating on only bad news.  Perhaps, but  I’m hearing too much information from too many people to not take this recession seriously.  You may also be thinking that gaming is countercyclical.  Basically, this means that when the economy goes down, the casino business goes up.  I believed that for a long time, too, until I couldn’t find research to support it. 

The casino world today is unlike anything it has ever been.  Competition is at a level that could never have been imagined.  And now a recession is competing for the dollars that guests have so willingly spent at casinos in years past.  This is not a good combination.

Think of the Sacramento and bay area markets.  In the past, people in those areas only had Reno or Tahoe for gaming choices.  Then some innovative people opened Cache Creek Bingo nearby.  Fast forward to today and Cache Creek has an amazing casino, resort, spa, golf course and restaurants that rival the best of the best.  In the interim, a casino opened on the other side of Sacramento, and this year an additional property will be available.

In the old days, Americans went primarily to Atlantic City, Las Vegas and Reno to gamble.  Now gaming is considered entertainment, and casino patrons have hundreds of brick-and-mortar properties to choose from.  And don’t forget online gaming.  This model didn’t exist in the past.  The gaming world has changed, competition is in the stratosphere and our economy is hurting.  Each of you reading this column needs to take action NOW to be prepared for the cleansing!

Now is the time to make decisions and take action.  Some people will hide and hope.  This is often referred to as the ostrich principal.  Some will worry about what is happening.  And there’s the group of people I’m addressing in this article – you see the real issue and take action to make life better for your guests and employees.  Will you be proactive and make the cleansing a positive situation? 

This is not the time to cut and run.  It’s hard to invest when cash flow is down, but that is exactly what you need to do.  Investing in your product today will make your drop in business less serious and your return to growth faster.  Investing today could mean your casino’s business is flat over the next 12 to 18 months and that could be an important success to celebrate.  This is not easy to read when many of you are used to amazing growth rates and skyrocketing profits that crush the previous year’s results.

Please read this column again and call the team together to plan your attack.  Your plan must start with your guests and creating an amazing gaming experience for them so they come as often as they can and look forward to their visits.  Your plan also needs to touch your valued employees because many of them are also affected by the economy.  They may have family members who have lost jobs.  Their gasoline and food bills are climbing.  All of this makes it difficult to be motivated at work because just having a job isn’t always a real motivator.  So invest in your employees to keep them focused and driven.  They are the key to providing the gaming experience that keeps your guests happy.

I know you will make it through the recession.  Economic tumbles come and go.  I am challenging you to do what must be done now to make your casino’s dip as small as possible.  That will not only help you today, it will set the stage for the future when your property makes a rebound that is faster than the rest of the market.

This article originally appeared in Casino Connection.

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

If casinos want guests to stay and play longer, they should offer outstanding service to give them a reason to do just that.  Good service results in longer and more frequent casino visits.  The length and frequency of these visits are directly proportional to revenue.  Longer and more frequent visits translate into more gratuities for employees.  Staff members can earn as much as 20 percent more in tips.  The collateral benefit of improved gratuities is improved morale and employee retention as well as lower employee turnover.  Casino management that rewards its employees for excellence achieved on a daily basis will realize fiscal benefits quickly.

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

Casinos that offer special deals to lure guests during these slow economic times are making the mistake of renting players instead of emphasizing superior guest service that can generate repeat and new business.

Casinos may attract guests with specials, but those people will fade away once the specials are gone.  That’s the same thing as renting guests and that does not create future growth.  Only stellar service can help a casino cope with today’s economy and lay the foundation for future success.

Following are some tips on how casinos can keep guests playing today and tomorrow.

Think of Players As Guests.  Try to think of the people who play at the casino as guests rather than customers.  A customer is someone who buys a good or a service.  A guest is a person who receives hospitality or is entertained.  In the gaming business, your goal is to have guests.  It’s important that you think of people who walk through your door as guests.  If it helps, think of them as people who are coming into your home.

Make Guests Happy.  Everyone wants to be happy and casino guests are no different.  Sometimes you have to go above and beyond to make them happy, but that’s not necessarily difficult.  Above and beyond is simply remembering a guest likes two olives in their drink or that they prefer a specific game.

Make Guests Welcome.  All guests should feel welcome so they can enjoy themselves.  Every guest is welcome to play, eat, stay in the hotel and swing their clubs on the golf course.  They should feel welcome, not out of place or uncomfortable.  Your job is to monitor your attitude and actions so you don’t give the impression that guests are a bother.

There Are No Exceptions to Providing Service.  Casino employees cannot get away with failing to provide great service to everyone.  Players who sit at nickel slots for an entire evening are not an exception to the rule of offering good guest service.  They deserve a great experience as much as guests who play tens of thousands of dollars per hand.  Every guest deserves a great gaming experience each time they visit your casino.  No exceptions!

Be Knowledgeable.  It is critical for casino employees to be knowledgeable about their job responsibilities and how they can better serve guests.  You also want to be knowledgeable about what’s happening around your property so you can help guests when they have questions.  Knowledge gives you the power to make things better for your property, your guests and yourself.  The more you know, the better.

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