16 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2023 are slowly updating their technology,” he said. “But until this technology is in place, we work to acquire new players through ‘old-fashioned’ promotions and marketing outreach. I’ve had discussions about helping our policymakers understand the importance of modernizing lottery systems to put us on the same footing as other consumer products. Not all lotteries are equal when it comes to the tools available to reach current and potential players, but our hope is that we’re on the road to offering the same type of technology to our players that they see in other industries.” Ryan Mindell of the Texas Lottery is in a similar boat as Nebraska. “We have little data on our players as we are very limited in what we can offer digitally,” he said. “Without this information, we make sure we don’t treat any segment of the player base as monolithic. We create diversified product offerings using different price points, prize structures, playstyles and second-chance promotions that are appealing to a wide range of players. We have sufficient product in the market to appeal to diverse preferences and also make it available at locations accessible to as many people as possible.” Gretchen turned the conversation to the use of marketing and promotions to attract customers. “Traditionally, our primary mission in the lottery industry has been to create great games, make sure the consumer knows about these games through effective marketing and promotion campaigns and then provide easy access to the games,” she said. “But if the past three-plus years have shown us anything, it is that the business of acquiring and retaining customers has changed, probably for good. People’s purchasing habits and even lifestyles have changed, where they work has evolved, and these changes are reshaping shopping behaviors. Let’s explore that.” Jessica rightly pointed out that the past three years have seemed like a lifetime for the lottery industry and change has accelerated. “Suddenly, there’s more focus on self-service, on ‘touchless’ purchase of lottery products,” she said. “For iLottery jurisdictions, the primary changes have been using predictive analysis more than previously. An example is how we identify players before they lapse so the lottery can more easily keep them as active customers. The metrics we are provided by their online activities can help us create personalized marketing campaigns for different segments, with the end result being a stronger relationship with players.” As more lotteries build out their digital footprint, Andrea said there will be additional opportunities to communicate with them and entice them to play a variety of games. “More lotteries are adding multivertical portals which feature a variety of lottery content,” she said. “Some even offer sports betting and casinos. It’s important to communicate with all these players. For iLottery, how do we ensure that our technology allows us to cross-sell different price-points and different play-types? If someone is on a site to place a sports bet, you want to have the capability to send them a message about a sports-related lottery game. And then we have collected data that says this player is a sports fan and we can use that for future promotions.” On the subject of launching promotions, Brian was pragmatic. “Whatever we can afford,” he said, only somewhat kidding. “We try and develop partnerships with recognizable brands, we support tourism in the state, and we stretch to get our message into the community. Without a strong digital platform, we don’t know how much these programs attract new players, but our feeling is that we are able to reach different groups of customers and non-customers. We do a lot of segmentation research so we know what interests certain types of players. This then informs our promotions. But many of these promotions are designed to marry lottery with brands that are going to attract consumers to the lottery.” Pollard has found great success with the Frogger brand, and Jennifer said that taking a page from the video game industry could be useful to lotteries. “Many lotteries have games available through a variety of devices,” she said. “The younger player is also playing video games and our colleagues in the eInstant studio tell me that games have to load in six seconds or less or we lose the players. This type of information is critical for the lottery industry to understand as we seek out new players and create gaming experiences for players who are also video game players. Not surprisingly, our data confirms that we lose players if they don’t have an enjoyable experience, and that includes the opportunity to win money. If we marry our lottery knowledge with the experiences players have with video games, we can better develop games and promotions for current and future lottery players.” The panel discussion wrapped up with the topic of actionable items or, as Gretchen put it, “where the rubber hits the road.” “All of us are looking for pioneering new directions in which to take lottery to connect with our players and new consumer groups,” she said. “New promotions, relationships with key brands, point of sale material, distribution strategies. Consumers can be fickle. We have many consumers who are committed to our products but others who are a little harder to reach. For those, what are the best strategies to attract and retain them?” Ryan provided the example of the Texas Lottery’s long-time relationship with the Dallas Cowboys. “The Cowboys were ‘America’s Team’ because they were the best in branding for so many years,” he said. “Our relationship with the Cowboys has provided us with a major boost, particularly considering how little we can spend on advertising. It starts with our second chance program and the incredible experiential prizes we offer. Players can win the opportunity to be in the draft room with (Cowboys owner, president and general manager) Jerry Jones, and that is something even non-lottery players have told us they want to win. We’re tapping into the passion of Texas residents, whether they have played lottery or not. And that’s how you attract new players. “We have offered a $100 ticket for a number of years and it has really created a buzz among a certain segment of players,” Ryan continued. “We know there are players who only buy that particular ticket because of the value proposition. Having these diverse options allows you to attract players from across the spectrum. My advice to lotteries is to not be afraid to try something new because you just might be surprised by how your players are going to react. We need to stay relevant in a changing environment, making sure we’re out there trying new things to get in front of as many people as possible. The players will tell you what they like. If you’re responsive to their feedback, you’ll see the results in new players and, we all hope, increased sales.” Jennifer said that while much attention is being paid to digital, it is at retail where most of the new players will be created. “Most of the challenges we face at retail are Continued on page 33
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