Thrive Now Case Studies

Challenge:
A center strip casino with over 2,100 rooms in Las Vegas was on the verge of filing for bankruptcy and was suffering from several executive team turnovers after each group failed to drive revenue and profit. New ownership and a new executive team were brought in to turn around the property. Much of the community had lost hope in the possibility that the property could turn a profit. Casino business models are highly reliant on the quality of their consumer analytics and data-driven marketing strategy to drive revenue but the new executive team lacked expertise in this area. Thrive Now was brought in to mitigate this challenge and boost financials through analytics and marketing.

Solution:
An analysis was conducted to determine the revenue potential of the property’s consumer database. A KPI package was created to examine the performance of existing marketing programs and consumer behavior. Monetizable patterns in the data were identified. Existing consumer revenue and profit algorithms were evaluated and found to be inaccurate. New, accurate algorithms were created and a data-driven marketing strategy was developed and executed based on the insights gained.

Results:
An increase in analytics marketing program revenue by 19% and increase profit by 26% with an overall revenue boost of 12%. The property turned a profit at month seven of the takeover – five months ahead of projections.

Challenge:
A large Las Vegas casino property with over 3,000 rooms was in a substandard market position and unable to make a large investment for an upgrade to get its product in alignment with its competitors. Response rates from the existing consumer analytics marketing program were significantly below industry standard, and revenue and profit driven by these campaigns were low. A high volume of the consumer database was inactive. Property systems and technology were archaic and limited with a minimal financial ability to invest in an upgrade.

Solution:
An inexpensive systems solution was put into place that allowed the ability to leverage maximum data for minimal cost. The RFM model for the property’s loyalty program and marketing program was evaluated. A competitive market analysis was conducted. A new RFM formula was developed that offered slightly more than competing properties to compensate for the lower product quality offered. Customers were re-segmented using multiple variables. An audit of offer tracking accuracy and breakage was conducted. An aggressive turnaround data-driven marketing strategy was developed that included improved results tracking methods and procedures to minimize offer breakage as well as consumer reactivation tactics.

Results:
A boost in analytics marketing revenue of 57% with a profit margin of 49%. An increase in overall casino revenue by 18%.

Challenge:
A Native American casino in the Northwest was losing market share to a competing property – in large part due to being over an hour further away from the feeder city population compared to their primary competitor. The casino had several failed customer acquisition attempts that were costly and ineffective. Identifying prospects with a risk-taking personality profile and a propensity to game was a particular challenge.

Solution:
The casino’s database was analyzed and segmented using multiple variables. The highest revenue and profit yielding customers were identified and psychographic data points were appended to their records. Correlations between lifestyle characteristics and customer value were identified and prospects were profiled and acquired by leveraging this data. Predictive modeling techniques were used to develop customized offer sets that would provide the highest response and revenue. The customer acquisition campaign was tested and launched with control groups held.

Results:
Customer acquisition campaign response rate was 9x higher than previous campaigns and generated 42% more revenue than their previous highest performing acquisition campaign. In addition, insights gained from psychographic profiling allowed the property to pull out of expensive publication advertising and invest in less costly, niche publications resulting in a 27% decrease in advertising spend with no negative revenue impact.

Challenge:
A large luxury brand mega-resort and casino in the Bahamas was slated to open within five months and had only small customer database to leverage – there was no corporate resource to pull from. Acquiring a responsive database with a large volume of ultra-high net worth (UHNW) and high net worth (HNW) prospects was identified as being the crucial linchpin needed to meet target occupancy rates and revenue goals. Luxury brands, notorious for being decidedly protective of their databases, were thought to be a remarkably unlikely source for customer acquisition. The budget available for expenses associated with customer acquisition campaigns was minimal. In addition, there was no overarching CRM strategy in place for the property and customer services levels for incoming reservations was suffering as a result.

Solution:
A CRM strategy was developed for the property that entailed multi-system integration for one customer view to allow for exceedingly customized and high-quality guest service. A database acquisition strategy was developed and executed that focused on targeting luxury brands in including Cartier, Saks 5th Avenue, Tiffany & Co. and Alexander Yachts as well as multiple private yacht and country clubs. Successful acquisition deals were brokered with brands that never previously released their databases for cross marketing.

Results:
Exceeded ultra-high net worth (UHNW) and high net worth (HNW) consumer record acquisition thresholds by 38%. Positive customer satisfaction ratings increased by 23%.

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