Winning Back "Lost" Members

We've been excited to see how some venues are taking advantage of the detailed membership and loyalty information that can be accessed through the Astute BI Membership Module to run targeted promotions that work where other general promotions have missed the mark.

Read below how a venue was able to increase their annual profit by $160,000 by running a marketing campaign specifically targeting 550 members in 6 key suburbs that had decreased their average spend.

Situation

General Promotions Can’t Stop Decline in Profit
Despite the number of Members remaining the same and a 2% increase in gaming revenue, this metro Venue with 15-20,000 Members and 100-200 EGMs had noticed a small decline in overall profit. Their first response was to increase the number and volume of promotional activities. However, this had no noticeable impact on Venue turnover.

Solution

Understand the Member Problem Areas
Through the Astute BI Membership Module, the Venue identified the following Member insights:

• 80% of total revenue came from residents in 19 suburbs
• 6 of these suburbs had a significant decline in visitation and spend which meant that the promotional activities the Venue had undertaken was not motivating these residents to visit the Venue more. These suburbs were located equidistant to a competing Venue of a similar size.
• Within the 6 suburbs, there were 550 Members whose average spend per visit of $50 or more had declined 50% – this amounted to $35,000 in 'lost' revenue for the Venue and $19,000 in ‘lost’ profit
• The 550 Members were each individually segmented by preference to determine
  • Visitation and spending habits over the last 12 months
  • Response to promotional meal offers
  • Attendance at Venue events
  • Preferred choice of food and beverage items
  • Which day of the week & time of day they usually visited

These insights formed the strategy for a new customized promotion aimed at winning back these 'lost' Members.

Results

Targeted Promotions Increase Profit
Of the 550 Members targeted during the promotional activity, 380 Members (70%) visited the Venue and spent, on average, $75 each.

Over the following 3 months, the majority of those 380 Members returned to spending and visiting the Venue at around 85% of their previous patterns.

The annual profit of regaining these 'lost' Members amounted to approximately $160,000.