Page 54 - Public Gaming International September/October 2017
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“This new technology is transformative. From                                                                         “We  developed  this  technology  as  a  tool  for
          the  smallest  mom-and-pop  stores,  to  the                                                                         the  retailer,  to  significantly  improve  the  way

          largest  national  convenience  store  chains                                                                        they sell lottery instant games. It reduces the

          across multiple states, we sat down with them                                                                        time it takes to sell a game to a customer by
          and listened to their feedback about selling and                                                                     up to 70 percent.”
          managing lottery products. And we developed

          a real solution.”


                                                  Jeff Sinacori, VP, Retail Development,                                                                        Randall Lex, Director, Program Management,
                                                                        Scientific Games                                                                                                     Scientific Games




          player.  In  the  convenience  store  channel,  the  lottery  player  Another area of concern for retailers is shift accounting for   “Scientific Games’ technology has led the way for lottery insights   This makes it even more important to optimize the visibility of
          visits a location three times more per week than the average  instant games.                                         and loyalty programs in the U.S. Now we have innovated   instant games at retail, so the retailer knows what inventory
          consumer.  Customizing processes and making lottery easier to                                                        technology that provides real-time sales – a whole new set of   is accounted for and what is missing. And this security goes
          incorporate into their existing business has been a top priority  “There are some basic tools available on the market that allow   rich data that we’ve never had before,” says Lex. “This is sales data   beyond surveillance cameras.
          to Sinacori and Scientific Games.                       the retailer to account for instant games within a given shift;   as its happening. Retailers can see what lottery products are
                                                                  however, this is not a real solution to this very common pain   selling by specific game type, licensed brand and price point.   Scientific Games’ new technology reports to the retailer the
          “If we are focused on retailers, let’s optimize the retailer’s  point at nearly all lottery retailers across the globe. These tools,   This revolutionary technology creates a new layer of actionable   moment a ticket goes missing. The store manager or security
          operations,” says Lex. “We developed this technology as a tool  although a step in the right direction and better than doing   business intelligence for the retailer and state lottery.”  staff can receive a text or an email. The alerts can be customized
          for the retailer, to significantly improve the way they sell lottery  pen and paper math for each ticket, still require the clerk or                                         to a broad range of retailers, from owners who operate just one
          instant games. It reduces the time it takes to sell a game to a  manager’s time to scan tickets at the beginning and end of   This kind of information optimizes any predictive order so that   store, to regional chains with 100 stores, to large corporations
          customer by up to 70 percent. The solution we focused on for  every shift for every game on sale and every bin with a hand-  it is a real, valid order that works for the specific retailer, even to   with 10,000 stores or more.
          retailers is simple, sell more, do less.”               held scanner,” shares Sinacori.                              the point of merchandising the product. Instead of restrictive,
                                                                                                                               one-size-fits-all planograms for instant games, product displays   “Our system provides visibility into the products. If there’s a
          One  of  the most  time-consuming  aspects  of  selling  instant  Scientific  Games’  new  technology  not  only  provides  retailers   can be planned and designed based on actual sales data.  shortage, the retailer knows immediately – not at the end
          games  is  inventory  management.  Scientific  Games’  new  with the ability to easily track all the lottery products they sell, it                                          of the day, week or month,” explains Sinacori. “Most retailers
                                                                                                                                                                                       have  to  look  through  weeks  of  surveillance  camera  footage
          technology provides retailers with real-time insights into their  reduces a 15-to-30-minute process down to just a few seconds.   “If it sounds magical, it is. Retailers will know what games
          product inventory – not only what they need to stock displays  With most corporate chains running three shifts per day, it is a   they’re selling, how much they’re selling of a particular game,   to know if theft has occurred, which is a very reactive way to
          that  day,  but  in  the  coming  days.    The  system  effectively  huge savings in labor time and cost. Clerks can focus on selling   and when they’re selling it. This is an intelligent system that lets   secure  valuable  products.  Our  system  provides  them  with
          minimizes the opportunity for out-of-stocks.            and on keeping all of the store’s other products stocked and   them serve their customers, who in some cases are coming   proactive security.”
                                                                  available for their customers.                               in multiple times a week and buying lottery instant games,”
          “Out-of-stocks for many retailers can average 15 to 20 percent,                                                      explains Sinacori.                                      Marketing & Promotional
          and if you do the math it means they are missing out on  “Never before has a lottery or vendor actually customized lottery                                                   Opportunities
          thousands  of  dollars  if  not  hundreds  of  thousands  of  dollars  accounting procedures across an entire retail chain.  Currently,   Security                           The new system manages the entire ecosystem of the instant
          in sales and commissions depending on the size of the store  each corporate chain in each state operates in a silo with its own   As retailers well know, instant games are a prime target for theft   game, and has the capability to include data from all lottery
          or chain,” explains Lex. “Just imagine if you had a tool that  accounting procedures within a particular state or jurisdiction,”   whether displayed on top of the counter, beneath the counter,   touch points.  A major component is the ability to enhance
          forecasted what games you need, how many, and when you  says Sinacori. “Now, Scientific Games’ new system creates one   or behind the register.                              loyalty programs, as marketing and promotions are key to any
          will need them. In retail, being prepared with inventory for any  format for accounting procedures across their entire chain, the                                            successful loyalty program.
          product is crucial. Otherwise, it’s very reactionary. If a product is  same customized reports across state lines or lottery jurisdiction.  “Unfortunately, we have people in this world who will reach
          not available for sale, you can’t sell it.”                                                                          around displays, under the counter, or whenever they see
                                                                                                                                                                                                                Like ordering your favorite drink
                                                                  Insights                                                     instant games hanging out of a dispenser, and will grab as                       at Starbucks, consumers can buy
                                                                                                                               many games as they can and run out of the store.  Currently,
                                                                  In recent years, lottery analytics have improved. But the industry   the way the industry displays instant games at retail, clerks must      an instant game and just scan
                                                                  still does not have the level of analytics available to other   stand guard at all times at the ticket display. And then there is            their phone to get loyalty credit at
                                                                  consumer-packaged goods industries.  When Amazon sells       a small minority of clerks who commit theft                                     the point of purchase. The system
                                                                  a product, they know when they sold it down to the minute.   from the other side of the counter because                                      can accept draw games as well.
                                                                  They know where they shipped it, even to whom they sold      it’s tempting to play the games and not                                         This frictionless transaction process
                                                                  the product. Lotteries ship instant games to retailers, and even   pay for them,” says Lex. “It’s retail shrink,                            incentivizes  consumers to engage
                                                                  those with loyalty programs, don’t have this kind of real-time   and it happens everywhere.”                                                in loyalty programs.”
                                                                  information about how their products are being purchased.
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