It is a common misconception that the introduction of interactive
and mobile channels to the lottery industry will have devastating
effects on traditional retail gaming. In fact, the opposite is true—in-
teractive and mobile gaming, if done well as part of an integrated
strategy, can increase sales at retail. Interactive options give lotteries
the opportunity to leverage sales across several channels and attract
new players.
The key to leveraging this cross-over success is through omni-
channel retailing—a flexible, customer-driven approach that pro-
vides a seamless experience specifically tailored to each sales chan-
nel, including traditional bricks and mortar, web, mobile, television,
and social media. Omni-channel consumers have consistently prov-
en to be amongst the most valuable of all consumers segments by
many of those that have already implemented this retail model—
spending more than those who simply engage through retail.
Expanding Options—from Retail to the ‘Space
Between’ and Beyond
Due to a growing range of technological advancements, consumer
expectations have evolved, and people expect to be able to inter-
act and access information whenever, wherever, and however they
choose. Research shows that approximately 75% of consumers are
willing to embrace digital channels during the shopping process
1
,
and multi-device users are increasingly common. As lotteries con-
tinue to develop a more in-depth understanding of this behavior, that
knowledge can be leveraged to implement personalized marketing
strategies that educate, engage, and optimize the player experience.
Pollard Banknote, one of the world’s leading full-service lottery
vendors, helps clients redefine the instant ticket marketplace through
the development of the ‘Space Between’ channel. The ‘Space Be-
tween’ refers to the space in the market that exists between bricks
and mortar retail activity and the purchase of lottery products over
the internet. The ‘Space Between’ is an important and growing
channel within the omni-channel ecosystem that can and should be
fully leveraged to optimize sales. Pollard Banknote has introduced
a number of interactive and technology-enabled products that have
been very successful to date, particularly when adding an interactive
component to a known instant ticket brand. For example, Pollard
Banknote’s popular WebPlay™Crossword and Bingo games deliver
an opportunity to extend the life of a traditional instant ticket by pro-
viding related play on a lottery’s website or through a mobile app.
Creating and operating interactive mobile and web channels will
help lotteries to grow their player base, optimize player engagement
and retention, and build their brand by cross-promoting across all
channels. Engaging players through interactive and technology-en-
abled products gives lotteries the opportunity to introduce players to
their brand, particularly a younger and more tech-savvy demograph-
ic. This approach significantly increases the likelihood of those play-
ers then purchasing games in-store, especially as traditional lottery
product offerings are expanding to include more interactive features
that blur the lines between these channels.
One key to successful interactive initiatives is ensuring that re-
tail partners are part of the evolution. It is vital to demonstrate that
these new products actually help support and grow retail. We have
seen in a number of jurisdictions around the world that retail sales
keep growing—typically at a faster rate—even as lotteries introduce
digital offerings, both ‘Space Between’ products and internet sales.
The Michigan Lottery has recently announced that it is expanding
its interactive presence with the launch of online gaming, provided
by Pollard Banknote and NeoGames. As it prepares to launch its on-
line gaming platform, the Lottery is leveraging the knowledge it has
gained through a number of successful ‘Space Between’ products to
develop targeted and highly-personalized marketing campaigns that
successfully cross-promote other products and channels. The Lot-
tery has already established and retained a strong and loyal player
base by offering a diverse range of products through a wide selec-
tion of channels. From a number of successful mobile apps to the
Lottery’s robust, high-traffic website that includes an active Players
Club to several interactive games, each channel engages players and
enriches the overall experience while serving to gather information
about player preferences.
Recently, Pollard Banknote partnered with NeoGames, a leading
global internet lottery provider with strong expertise in online and
mobile products, to launch NeoPollard Interactive. NeoPollard In-
teractive will provide lotteries with customized interactive solutions
that span the range of the category—from interactive games, second
chance drawings and apps, to a fully operational online gaming plat-
form and suite of games.
Omni-Channel Retailing in Action
The advantages offered by omni-channel retailing reach be-
yond the lottery industry with proven strategies being launched
by some of the most widely-recognized and successful retailers in
the world. Walgreens, the largest drug-retailing chain in the United
States, has embraced the concept by recognizing the importance
of this approach and has effectively adopted cross-channel tactics
that ensure the complex pathway to purchase is made simple and
convenient. Research done by Walgreens shows that omni-channel
consumers—those that purchase products in-store, online, and
through mobile smart phones—spend up to six times more than
those that buy exclusively at bricks and mortar, supporting the the-
ory that omni-channel customers are amongst the most valuable of
all consumer segments.
Lottery’s Evolution into
Omni-Channel Retailing
33
July/August 2014 • Public Gaming International
1) Toshiba Global Commerce Solutions white paper, “Omni-Channel Vision, Cross-channel Reality: Meeting the Consumer Where They Want to Buy”
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