Leading the game
Leading the game
August 29, 2012

Loyalty for lotteries

One of the major concerns of modern lottery operations is to achieve an intelligent dialogue with the customer in a business and social environment that constantly takes the opportunity to “broadcast” personal marketing messages. We need to seek, define and produce a distinguishing methodology that will make the lotteries stand out and make the difference, while achieving the valuable business objective of optimising the customer lifecycle.

 It’s all about customer loyalty and the techniques of responding to the customers’ needs while preserving elements that differentiate the lotteries in a marketplace. We need to focus on the games value and exploit their great potential for customer engagement through game-based marketing. We introduced the term ‘engament’ to encapsulate the desired engagement between the customer and the game as a strategic development of the loyalty for lotteries framework.

It is argued that in the future brands will use game mechanics to go beyond just getting a customer’s attention. Instead, they will make themselves a part of the rhythm of their customers’ lives. Games are a process, not a destination and the lotteries are best positioned to exploit their dynamics.

In the first phase of loyalty programmes, customers were given free items for buying a set amount of product. These are still the most common form of loyalty programmes, manifested in various models, notably the customary ‘free bonus’. But they needed to be combined with more interaction in order to achieve long-term effectiveness.

Then, customers were offered a ‘points-based rewards system’, accumulating reward points depending on customers’ activity. These systems create virtual currencies that can be traded on private markets for certain goods. Buying into a private economy creates a more lasting bond that goes beyond the sequential bonus schemes, therefore allowing for improved ROI.

Next came a ‘status-based system’, which conveys the value of a privilege that appeals in an alternative manner to various audiences since different people in different circumstances might assign different values to what a specific privilege means. However, this turns out to be a more powerful motivator as they promote customers into members of an exclusive club.

With ‘engament’ loyalty
, encompassing all forms above, the sense of accomplishment the player feels possesses real personal value. It is key to disseminate across all channels available for play (shops, internet, mobile, iTV) treating the customer as the same person in all interactions with the games and services. Players aim to amass virtual rewards that possess personal value. We move away from the transactional and linear model of exchanging rewards for goods, towards a cyclical model where a player sees progress towards a goal.

At the very heart of implementing these novel concepts for customer engagement with the lottery is enabling technology and the processes that aim towards this, letting the customer fully interact with the lottery. The introduction of the personalised player card gives unique benefits for participation to the lottery’s Player Club. From the lottery perspective, game marketing and loyalty campaign schemes rely on the knowledge of the players’ preferences and playing patterns. The Player Club is uniquely integrated with the INTRALOT Interactive Business Intelligence system that provides real time information on player history and pattern recognition.

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