Last year casinos in the USA generated over $65 billion in revenue. However, casino operators have concerns that markets are changing as their core Baby Boomer demographic is shrinking and now the Gen-Y and Millennial generations are coming into their own, with a very different sense of gaming than their predecessors.
All is not lost, however, as today’s casino owners are finding new and improved ways to boost revenue and energize customer engagement with these younger generations. It’s all about mobile apps, which are now providing new ways for casinos to generate revenue and engage consumers. Let’s take a look at some of the ways mobile apps offer new avenues for casinos to meet the needs of today’s emerging market.
Mobile Casino Games
Mobile casino game revenue is skyrocketing and is a major attractor of the Gen-Y and Millennial demographics. The current top 4 mobile casino games generate over $645,000,000 annually and the numbers grow weekly. Many casinos have realized that adding casino games to their mobile app is a substantial source of new revenue. Because of the revenue generation many casinos are quickly breaking even on the cost of app development, earning significant net revenue and essentially getting the app for free.
Most successful casinos today do offer loyalty programs through mobile apps. When players win chips through mobile casino games they can redeem them at the casino’s restaurants, nightclubs, spas, hotels and golf courses. This model drives traffic back to the physical locations where consumers spend more. The Gen-Y and Millennial demographics spend more money on non-gambling activities than any other demographic group, but with mobile casino games embedded in mobile apps, they are becoming familiar with casino games at a faster rate. Encouraging game play and driving traffic to the casinos for more purchases and engagements is proving a sound and lucrative model.
Learning Players’ Behaviors and Actions
Mobile apps are able to track a player’s usage and history, and this allows businesses to send customized offers to individual players. Mobile apps enable the best kind of relationship marketing: by creating meaningful connections with each individual. The use of GPS and iBeacons literally allows the casino to know where a player goes, how often they stay and how they got from point A to point B inside the casino. This kind of data is priceless and not only allows casinos to craft meaningful messages and offers to individual players, but it allows a casino to design promotions and layouts to meet the needs of traffic flow and revenues on the gaming floor.
Keeping Players Updated
Mobile apps allow casinos to send the right message at the right time to the right player. What other marketing tool allows any business to engage with their customers in real time this way? Managing messages and offers through push notifications, local notifications, geo-fencing and iBeacons is a powerful tactic to stay close and engage the player without overwhelming them with unwelcome messages.
So there you have it. A new mobile app strategy for casinos to target the Gen-Y and Millennial generations that will:
• Generate revenue through the mobile app that offsets development costs and generates new net profit.
• Offer non-gambling rewards that they crave.
• Provide a way to track purchases and analytics in real time.
• Allow a casino to hyper target and engage with each player in the right place at the right time.
Companies like PromoGroup provide platforms that casinos can use to create apps with games that achieve all these objectives. Even better, if the casino already has an app, PromoGroup’s games and loyalty system can be easily integrated through a Software Development Kit (SDK).