›
Increase same-store sales from existing retailers.
In many
chains, dedicated terminals help service regular and loyal
players, while in-lane systems attract new, light, and lapsed
players. This is especially true in periods of high jackpots:
An example from Denmark shows that in-lane sales growth
peaked at 100% higher than the normal level of sales,
while growth from terminal sales peaked at 50% higher. In-
lane solutions also significantly increase a lottery’s sales
capacity during “jackpot mania” periods. Lottery Inside
sales on average accounts for 5–30% of total lottery sales.
Comparisons of sales trends between Lottery Inside and
non-Lottery Inside stores suggest that
all Lottery Inside
sales are incremental.
›
Defend and grow brick and mortar sales:
Momentum
is building in the U.S. marketplace for integrated POS
solutions in several jurisdictions and retail chains. Many
lotteries consider the increased convenience of in-lane
solutions a must to help defend and grow brick and mortar
sales in the future.
›
Expand player base and lottery awareness.
With more
and different retailers, lotteries can expand their reach to
consumers across a larger demographic, making lottery
products more accessible and improving the perception of
lottery as an integral part of the fabric of the community.
IN DENMARK, RESEARCH SHOWED THAT 25% OF NON-
PLAYERS WOULD MAYBE/LIKELY/DEFINITELY PLAY IN-
LANE. IN THE U.S., 61% OF LOTTERY PLAYERS SURVEYED
SAID THEY WOULD BUY LOTTERY TICKETS MORE OFTEN
IF IN-LANE PURCHASING WAS AN OPTION.
THE RIGHT MIX: ESSENTIAL SALES AND
MARKETING CONSIDERATIONS
Sales and marketing strategies are crucial components of
in-lane implementations. Years of operating experience
and feedback from huge retail chains, including Carrefour
and TESCO (U.K.), the second- and third-largest retailers
in the world, have provided GTECH and the lotteries it
services with insights into:
›
The optimum number and mix of game offerings and
price points: Current in-lane deployments offer from
three to six games in a variety of price points, depending
upon such factors as demographics and the space
retailer allots for lottery.
›
Quick Pick card size and design: Often lotteries will go
through several iterations to find the most effective
performer for their market.
›
Dispenser design and placement: In some cases, a
variety of dispensers should be designed to fit individual
in-lane environments to ensure optimal impact and
shopper appeal.
›
Advertising and customer awareness: Some lotteries
incorporate jackpot awareness into their in-store
digital signage; in one case (Carrefour in Belgium), the
lottery has introduced dedicated jackpot signs at every
checkout with great success. Asking for the sale is
another important sales driver.
Belgium’s Loterie Nationale offers a variety of games, price points, and dispensers
Innovative card dispensers attract attention and sales in New Zealand
Real (Poland) and Carrefour (Belgium) use in-lane signage to grab consumers’ attention
35
July/August 2014 • Public Gaming International