Casino Customer Service

Casinos interested in third-party reviews of their internal operations should be sure their employee reward and recognition program is given a thorough evaluation.  All too often, an employee reward and recognition program is an entitlement program that happens the same way year after year for no other reason than that is how the casino has always done it.  But this program is an important follow-up step to employee guest service training.  Employees who actively demonstrate the lessons learned in training should be recognized and rewarded for doing so.  This gives employees the incentive to continue to do their best.  Thus, the reward and recognition program should be evaluated to be certain it is an effective one.

Martin R. Baird
Robinson & Associates, Inc.
mbaird@casinocustomerservice.com
www.casinocustomerservice.com
480-991-6420

Launching of a casino guest service program does not have to be tied to the beginning of a new year and the planning process leading up to it.  It’s never too late to start a guest service program and reap the rewards.  Fall is just around the corner and now is as good a time as any for casinos to get their service plans in motion.

Following are five steps to starting, implementing and maintaining a guest service plan.

Number 1:  Review and revise your standards.  Focus first on your existing service standards and be sure to take a hard look at guests’ standards.  You need to know where your standards are today and where your guests want them to be.  Set standards that meet or exceed guests’ needs.

Number 2:  Get management to buy in.  Outstanding service must start at the top with a commitment and a pledge of support from management.  This attitude must spread to all staff members and management must visibly support the execution of a guest service plan on a daily basis.

Number 3:  Give staff members the necessary skills.  Few people naturally excel at providing good service.  Your employees will need training to learn these new service skills.

Number 4:  Reward, reward, reward.  Once the staff has the necessary skills, they need a reason to use them.  Create and launch a reward and incentive program.  Focus on the positive and let employees know they’re doing a good job.

Number 5:  Make service an ongoing commitment.   No one will buy into a guest service program if they think it’s just the management idea de jour.  Keep the program going and make it the backbone of your casino.

Martin R. Baird
Robinson & Associates, Inc.
www.advocatedevelopmentsystem.com
www.casinocustomerservice.com
mbaird@casinocustomerservice.com
480-991-6420

In this article, I’m not hypothesizing about what is happening in the world.  I’m TELLING you there are some scary facts available to those who pay attention.  These facts can no longer be ignored or discounted if you want your casino to have long-term success.

Fact:  The United States is in a recession.  This is not a downturn or bursting of a bubble.  We’re flat out in a recession and that is serious business!  This is not my simple opinion.  This statement comes from Larry Kudlow.  Kudlow was educated at the University of Rochester and Princeton University.  He started his career as an economist for the Federal Reserve Bank of New York and has consulted with presidents on the economy from Ronald Reagan to George W. Bush.

In April, Kudlow wrote an article for National Review magazine titled “The Therapeutic Power of Recessions.”  A subhead under the title stated, “Economic excesses occur in free-market economies, and from time to time they must be cleansed.”  When I read that thing about cleansing, it gave me a not-so-good feeling in my stomach.  Ludlow is not a politician or stock market jockey trying to get your money.  He is a highly regarded economist telling all who will listen that they need to get ready to be cleaned out.

You may be thinking that I’m extreme and fixating on only bad news.  Perhaps, but  I’m hearing too much information from too many people to not take this recession seriously.  You may also be thinking that gaming is countercyclical.  Basically, this means that when the economy goes down, the casino business goes up.  I believed that for a long time, too, until I couldn’t find research to support it. 

The casino world today is unlike anything it has ever been.  Competition is at a level that could never have been imagined.  And now a recession is competing for the dollars that guests have so willingly spent at casinos in years past.  This is not a good combination.

Think of the Sacramento and bay area markets.  In the past, people in those areas only had Reno or Tahoe for gaming choices.  Then some innovative people opened Cache Creek Bingo nearby.  Fast forward to today and Cache Creek has an amazing casino, resort, spa, golf course and restaurants that rival the best of the best.  In the interim, a casino opened on the other side of Sacramento, and this year an additional property will be available.

In the old days, Americans went primarily to Atlantic City, Las Vegas and Reno to gamble.  Now gaming is considered entertainment, and casino patrons have hundreds of brick-and-mortar properties to choose from.  And don’t forget online gaming.  This model didn’t exist in the past.  The gaming world has changed, competition is in the stratosphere and our economy is hurting.  Each of you reading this column needs to take action NOW to be prepared for the cleansing!

Now is the time to make decisions and take action.  Some people will hide and hope.  This is often referred to as the ostrich principal.  Some will worry about what is happening.  And there’s the group of people I’m addressing in this article – you see the real issue and take action to make life better for your guests and employees.  Will you be proactive and make the cleansing a positive situation? 

This is not the time to cut and run.  It’s hard to invest when cash flow is down, but that is exactly what you need to do.  Investing in your product today will make your drop in business less serious and your return to growth faster.  Investing today could mean your casino’s business is flat over the next 12 to 18 months and that could be an important success to celebrate.  This is not easy to read when many of you are used to amazing growth rates and skyrocketing profits that crush the previous year’s results.

Please read this column again and call the team together to plan your attack.  Your plan must start with your guests and creating an amazing gaming experience for them so they come as often as they can and look forward to their visits.  Your plan also needs to touch your valued employees because many of them are also affected by the economy.  They may have family members who have lost jobs.  Their gasoline and food bills are climbing.  All of this makes it difficult to be motivated at work because just having a job isn’t always a real motivator.  So invest in your employees to keep them focused and driven.  They are the key to providing the gaming experience that keeps your guests happy.

I know you will make it through the recession.  Economic tumbles come and go.  I am challenging you to do what must be done now to make your casino’s dip as small as possible.  That will not only help you today, it will set the stage for the future when your property makes a rebound that is faster than the rest of the market.

This article originally appeared in Casino Connection.

Martin R. Baird
Robinson & Associates, Inc.
mbaird@casinocustomerservice.com
www.advocatedevelopmentsystem.com
www.casinocustomerservice.com
480-991-6420

If casinos want guests to stay and play longer, they should offer outstanding service to give them a reason to do just that.  Good service results in longer and more frequent casino visits.  The length and frequency of these visits are directly proportional to revenue.  Longer and more frequent visits translate into more gratuities for employees.  Staff members can earn as much as 20 percent more in tips.  The collateral benefit of improved gratuities is improved morale and employee retention as well as lower employee turnover.  Casino management that rewards its employees for excellence achieved on a daily basis will realize fiscal benefits quickly.

Martin R. Baird
Robinson & Associates, Inc.
mbaird@casinocustomerservice.com
www.casinocustomerservice.com
480-991-6420

Casinos that offer special deals to lure guests during these slow economic times are making the mistake of renting players instead of emphasizing superior guest service that can generate repeat and new business.

Casinos may attract guests with specials, but those people will fade away once the specials are gone.  That’s the same thing as renting guests and that does not create future growth.  Only stellar service can help a casino cope with today’s economy and lay the foundation for future success.

Following are some tips on how casinos can keep guests playing today and tomorrow.

Think of Players As Guests.  Try to think of the people who play at the casino as guests rather than customers.  A customer is someone who buys a good or a service.  A guest is a person who receives hospitality or is entertained.  In the gaming business, your goal is to have guests.  It’s important that you think of people who walk through your door as guests.  If it helps, think of them as people who are coming into your home.

Make Guests Happy.  Everyone wants to be happy and casino guests are no different.  Sometimes you have to go above and beyond to make them happy, but that’s not necessarily difficult.  Above and beyond is simply remembering a guest likes two olives in their drink or that they prefer a specific game.

Make Guests Welcome.  All guests should feel welcome so they can enjoy themselves.  Every guest is welcome to play, eat, stay in the hotel and swing their clubs on the golf course.  They should feel welcome, not out of place or uncomfortable.  Your job is to monitor your attitude and actions so you don’t give the impression that guests are a bother.

There Are No Exceptions to Providing Service.  Casino employees cannot get away with failing to provide great service to everyone.  Players who sit at nickel slots for an entire evening are not an exception to the rule of offering good guest service.  They deserve a great experience as much as guests who play tens of thousands of dollars per hand.  Every guest deserves a great gaming experience each time they visit your casino.  No exceptions!

Be Knowledgeable.  It is critical for casino employees to be knowledgeable about their job responsibilities and how they can better serve guests.  You also want to be knowledgeable about what’s happening around your property so you can help guests when they have questions.  Knowledge gives you the power to make things better for your property, your guests and yourself.  The more you know, the better.

Martin R. Baird
Robinson & Associates, Inc.
www.advocatedevelopmentsystem.com
www.casinocustomerservice.com
mbaird@casinocustomerservice.com
480-991-6420

Casinos interested in having an outside company review their internal operations for areas of improvement should not overlook an evaluation of the property’s new employee orientation.  A casino’s ultimate success all starts with what they tell their new hires in orientation.  Are new employees encouraged to give guests great service?  Are they pumped up so they are excited about their jobs?  Or are new employees bludgeoned with the 10,000 ways they can get fired?  Are they overwhelmed with rules and regulations?  Discouraged employees are more likely to quit not long after they start.  Cornell University research shows that it costs $5,000 to replace the average hospitality worker.

Martin R. Baird
Robinson & Associates, Inc.
mbaird@casinocustomerservice.com
www.casinocustomerservice.com
480-991-6420

I’m not sure if you watch “What Not To Wear” on TLC, but the premise is very simple.  The program takes average people who think they have good looks and style and shows them why their choices may not be working.  Participants get a whole new perspective of themselves and learn how to get it right.

One of the tools they use on the show is a 360-degree mirror that allows people to see how they look from all angles.  It’s funny to watch their reaction as they get a good gander at themselves.

Here’s my point.  In a casino, you have a number of operational areas that you don’t or can’t see very well.  You use anecdotal information as real data and believe you know what is happening.  For example, people show up for your latest promotion, so your marketing must be working.  Employees tell the GM they had fun at the guest service training session, so it must have been successful.

It takes perspective to truly understand your casino and that information often comes from afar, meaning a third party that has no vested interest in your property.  It’s very difficult for most people to do their own post-mortem.  We see two critical areas of your casino that should be fully evaluated by fresh eyes.  The first is marketing and the second is your guest service improvement.

Steve Karoul, president and CEO of Euro-Asia Casino Consulting, is an expert in casino marketing and player development.  His company has developed a “Casino Marketing Tune Up.”  It’s a great program that brings Steve’s years of experience and perspective to your casino to look at what is working and what could be improved in your marketing.  Yes, I know you have an ad agency that you pay big bucks to every month, but do you really think they can do an unbiased analysis?

Marketing is a critical part of a casino’s long-term success.  If the marketing is off target or off message, it’s a huge waste of money, much as a poorly running car gobbles gas at an alarming rate.  Investing in a 360-degree evaluation of your marketing is money well spent.  It helps you see what you may be missing and provides recommendations on how to make your marketing better.  After all, looking in a mirror doesn’t give someone the information they need to dress better.  It’s helpful to know you have a style problem, but you also need advice on what to do about it.

We suggest you launch your evaluation process with marketing because that’s where business starts.  Marketing makes a promise to your guests and prospective guests.  It could be that they will win, be excited, have fun or even meet beautiful new friends.  The promise isn’t as critical to us as the actual delivery of it.  We think that if a casino is going to improve its guest experience, it should start by matching the promise to the reality of the casino floor.

I often laugh when I visit a casino for the first time.  Before I arrive, I browse their Web site or look at their ads in local magazines so I know what to expect.  Yeah right!  I have walked into some casinos and thought I was in the wrong place.  The marketing people took some creative license, if you know what I mean.

Now let’s shine the not-always-flattering light of perspective on guest service.

Before I go on, I want to make it clear that I think the training managers and trainers at most casinos are great people who give 110 percent each and every time they take employees under their wing.  The work they do often goes unnoticed and under-appreciated.  It’s not easy teaching people new and better ways of doing things, especially with employees who have been in their jobs for years and know they are doing it right because they “get good tips.”  (The operative word here is “get.”  I hear it all the time.  Casino employees must realize they “earn” tips from the service they provide.)

Here is a challenge we often see.  A casino develops a guest service training program and is very proud of it.  The property does more than invest a significant amount of time in the program.  It pours its heart into it.  The training is the best the casino has ever created.  This is a wonderful accomplishment that should not be taken lightly.  But that doesn’t mean the training couldn’t be better if experts with the right perspective reviewed the information and presentation. 

A guest service improvement assessment has three critical areas:  employee orientation, guest service training and the employee reward/incentive program. 

It all starts with what you tell your new hires.  Cornell University research shows that it costs $5,000 to replace the average hospitality worker.  That’s $5,000 PER employee!  This means orientation is critical.  Don’t just bludgeon your new staff members with the 10,000 ways they can get fired.  They need a realist job preview and a solid understanding of management expectations.

Next is the guest service training you provide.  I know most casinos are proud of their training.  But most of the people on “What Not To Wear” think they look dazzling in some atrocious outfits.  It often takes a critical eye to see what needs to be improved and, just like with marketing, provide ways to do it better.

The last part is your employee reward program.  All too often, this is an entitlement program that happens the same way year after year for no other reason than that is how you have always done it.  It should be reviewed.

Borrowing from Steve’s, tune-up theme,  I remember seeing television ads as a child that promoted a particular brand of motor oil.  The ads encouraged people to get an oil change.  The mechanic said you could pay him now or pay him later.  An investment of a few dollars today could save thousands of dollars in major repairs tomorrow.

Getting a 360-degree view of your marketing and guest service today could be much smarter than waiting until you are losing market share.

This article originally appeared in Native American Casino.

Martin R. Baird
Robinson & Associates, Inc.
mbaird@casinocustomerservice.com
www.advocatedevelopmentsystem.com
www.casinocustomerservice.com
480-991-6420

There are many resources available today to help casinos improve their internal communication, but the best lessons are often learned from knowing what not to do.

Most casino executives would agree that effective internal communication is one of the most important factors in maintaining a sustainable competitive advantage.  Typically, casinos get help with learning how to polish their communication.  But much can be learned from knowing what to avoid.

I suggest casinos steer clear of the following communication pitfalls.

Do Not Say “Yes” to E-Mail.  E-mail is often perceived as a productive and convenient form of communication, although it may take five e-mails to complete the task of one five-minute phone call.  E-mail may be more comfortable for casino employees to use, but it often clouds the waters and creates confusion.  E-mail communication lacks the auditory and visual cues that help the recipient understand the message’s context.  E-mail also eliminates opportunities for feedback and idea sharing.  When you have a question, concern or comment, pick up the phone.

Mouth Says “Yes” but Eyes Say “No.”  Do not rely on words alone in communication.  Body language must be consistent with your message or you will undoubtedly give the wrong impression.  Body language, including facial expressions, helps clarify and create effective communication.  When you are discussing an issue with a colleague, meeting with your executive team or presenting at a gaming conference, relax, speak carefully and slowly and make eye contact to assure your message is understood.

Aren’t We On the Same Page?  Never assume that communication has happened.  It is vital that the speaker and listener ask questions and gain feedback to confirm mutual understanding.  Also, do not rely on jargon to highlight your communication.

The Department of Redundancy Department.  Redundant communication fails to produce desirable results.  It is not productive to state your message over and over.  Your listener will most assuredly become confused and have no idea what you’re trying to say.  Once it is said, put it to bed.  Listeners will thank you.

“Blamestorming.”  “Blamestorming” is a common occurrence that is completely ineffective.  A meeting is called and everyone knows it won’t be pretty.  Your casino’s guest feedback is negative and revenues are down,  no ideas will be shared and no strategies will be formed.  It is simply a gathering to discuss shortfalls.  “Blamestorming” creates hard feelings, discourages communication and damages employee morale.  Maintaining an environment of open communication, acceptance and active participation will lead your casino to greater success and give employees the motivation to excel.

Miscommunication is an unfortunate byproduct of common business practices that are inappropriate, overused or completely ineffective.  Whether it’s excessive use of e-mail, failure to gain feedback or perpetual use of meetings to spread negative energy, there are a remarkable number of lessons to be learned in observing communication strategies and learning what not to do.

Martin R. Baird
Robinson & Associates, Inc.
www.casinocustomerservice.com
mbaird@casinocustomerservice.com
480-991-6420

Casinos should have an outside third party review their operations to identify areas for improvement, and the review should start with the property’s marketing.  Begin with marketing because that’s where business starts.  Marketing makes a promise to your guests and prospective guests.  It could be that they will win, be excited, have fun or even meet beautiful new friends.  The promise isn’t as critical as the actual delivery of it.  If a casino is going to improve its guest experience, it should by matching the promise to the reality of the casino floor.

  
Martin R. Baird

480-991-6420

I’ve read the research that says gaming is countercyclical, that when the economy goes down, the amount of gaming play goes up.  The problem I have with this concept is that the gaming world has changed dramatically in the last 10 years.  I don’t think countercyclical necessarily applies anymore.  It would be foolish for casinos to count on it.

Ten years ago, the majority of gaming was in Las Vegas, Reno and Atlantic City.  The world flocked to those markets to play.  Thus, if the U.S. economy was struggling and other countries’ economies were strong, overseas players perceived America’s problem as their opportunity.  They read the weak U.S. economy as a signal to come and play to their heart’s content. 

But in today’s gaming environment, there are casinos in just about every country on the planet.  No matter where you live, the games with the latest bells and whistles will soon be at a casino near you, if they aren’t there already.  Why fly halfway around the world to the U.S. when you can hop in your car in Paris and drive half an hour to a nice casino?

Countercyclical doesn’t even apply anymore to American players.  In previous economic downturns, Americans took their cash reserves to places like Las Vegas with hopes of winning big so they could pay their bills.  With gaming’s amazing expansion, why would anyone in Detroit go to the expense of traveling to Vegas when they can drop by a local casino with the same hopes and dreams?  Las Vegas, Reno and Atlantic City shouldn’t expect countercyclical play on the home front.  On top of that, staying and playing in Detroit is not new money for Michigan properties.  Locals are already spending their dollars at those casinos and, with the way the economy is going, they just might spend less.

OK, enough said.  If countercyclical is now a fond memory, what can casinos do to keep their performance strong in a weakening American economy?  What should they avoid?

One step all casinos should take is a serious inventory of what they do well.  What do you do best that contributes to your success and how can you make sure you continue to do those things at the highest possible level?  You may need to peer into the past.  During times of rapid growth and great success, it’s easy to drift away from those things you do well.  What was it that got you where you are today?  Did you lose your focus in flush times and simply forget about it?  Perhaps senior management ordered a deliberate strategic shift that shoved those initial drivers of success aside.  This happens when people think they are smarter than the economy or local market.  If improvements are needed to ensure you continue to roll out those best business practices, then so be it!

The next step is simple but not easy.  You must move from a guest service focus to an emphasis on the gaming experience.  This is not for all casinos.  I still visit properties that need to work on their service because they have none.  They’re clueless about the most basic elements of service, such as smiling and eye contact.  But most casinos have the basics well under control.  The next step is to develop your employees so they move to the level of creating a wonderful guest experience.  Customer service is a fundamental part of what I’m suggesting and when you step it up a notch to mold an experience, you move the guest to an even higher level.  Most guests will not tell their friends about service, unless it’s horrible.  But they will tell them about their amazing gaming experience.

Of course, you have a business to run in the midst of all this.  So the third and final step is making intelligent business decisions during tough economic times while developing your people so they understand the importance of creating an amazing quest experience.  It all has to makes cents as well as sense.

One course of action I certainly don’t recommend is cutting back on spending.  I know the numbers people like to stash the checkbook in a secret vault during tough times.  The problem is I have never seen a company cut its way to growth.  Granted, I’m not an accountant, but when you cut budgets, you tend to slow or stop growth.  Sure, cuts are sometimes needed.  If cash flow doesn’t support the current business, something must give.  But that is not a strategy for growth.  That is a short-term solution for survival, and casinos are not struggling to stay alive.

With the years I have in and around the gaming industry, it’s obvious to me that it’s easier to generate an additional dollar in revenue than it is to cut that same dollar.  Give your guests a wonderful casino, outstanding service and tons of fun and they will be more than willing to reward you with additional revenue.  Notice I said reward.  You have no god-given right to your guests’ money.  The money they spend at your property is a reward for doing things better than your competitors.

Gaming has changed dramatically since the last economic downturn.  Casinos must understand that they can’t rely on past player behavior and the same old level of service.  They must do more this time around.

This article originally appeared in International Gaming & Wagering Business.

Martin R. Baird
Robinson & Associates, Inc.
mbaird@casinocustomerservice.com
www.casinocustomerservice.com
480-991-6420