Friday, January 20, 2012

Can You Fix Your Casino With The Same Tool? Not Likely!

I have a friend who often reminds me that if I create a problem with my hammer while woodworking, I can rarely fix it with the same tool.  Similarly, if I cut a piece of wood that’s too short, it’s difficult to use the same saw to cut it again and make it longer.  Don’t ask me why, but this is so true.

Unfortunately, I believe this theory applies only too well in gaming.  After working with properties from coast to coast, it’s very clear to me that casino management needs to learn that the same people and processes they used to create a problem won’t fix it.

You may be wondering what I mean by this and let me see if a couple of examples will make it more clear. 

If a property has poor morale and employees don’t support each other, I can often look at the leadership and see a similar pattern.  For example, I’m amazed at the number of executives who look me in the eye completely devoid of any facial expression and tell me that they are disappointed because the people on the floor just don’t smile. 

That’s a real shocker!  Employees fail to smile because they don’t have a role model to follow.  Or put a different way, they don’t have a leader who sets an example that they can pattern.  The role model or leader simply doesn’t understand that they are part of the problem and, for that reason, they aren’t likely to fix it, either.

Training offers another example.  When we do training at a property, the first line of resistance we face is the casino’s training department.  It’s often staffed with very talented people who are not given the tools to do their job in the most effective way.  But some casino managers believe they don’t need to bring in expensive outsiders to do training if the property already has a department for that.  After all, if the on-site trainers are doing their job, they don’t need us, right?

This is simply not true if you really want to fix the problem.  I have an associate degree in computer science and wanted to be a computer geek many years ago.  But when we have a technology glitch at work, I’m the first one to call a geek to get us up and running again.  Yes, we spend what could appear to be a significant amount per hour but it’s a better investment to have the expert do it once versus learning as we go.

Why do properties think they can fix issues that they have created with their own team?

One reason is because of people’s insecurity.  It’s true that at all levels of a property’s hierarchy, you have people who do a very good job but who also are insecure in their position.  This could be because management has made it clear that they could be terminated at a moment’s notice.  Another reason is the wonderful world of fiefdoms. Balkanization always gets in the way of progress.

Then there’s the tendency to fix a complex problem with a simple answer.  I know a property that has self-run “management retreats” to strategize and come up with ways to fix what ails it.  Why would driving somewhere away from work make the solutions magically appear?

I think I’ve made my point.  Now it’s time for some constructive suggestions.

Let’s focus on the retreat.  I’m not against getting away from the day-to-day humdrum for a different perspective, but to make the most of the scenery you may need a new bus driver or at least a guide.  Having an “outsider” as part of the meeting can provide several advantages.  This person can be the lightning rod to start the discussion that the group has been in fear of having.  An outsider often isn’t looking for a long-term career with the property.  It’s easy for him or her to ask the tough questions and if they’re good facilitators, that’s exactly what they will do.

Next, the outsider often is ignorant of the behind-the-scenes drama at the property and that’s a good thing.  The outsider comes from a more objective position and can see areas for improvement that some on the team would rather hide.  Sorry, but it’s true.

I’m not suggesting that consultants are the solution to all of a property’s problems. They are a resource that, when used properly, can help solve some of the difficulties that have been created by others. 

I understand the mindset that leads a property to try to fix problems with the very people or processes that caused them.  When I create a problem with a hammer in my shop, I will often hit it one more time with more force to see if that will fix it.  It never has to this day.  Maybe casino leaders now can see it may take some new tools to fix a problem or make the most of opportunities.

To read other articles by Martin Baird, go to www.casinocustomerservice.com/post.htm

Martin R. Baird
Robinson & Associates, Inc.
mbaird@casinocustomerservice.com
www.casinocustomerservice.com
www.advocatedevelopmentsystem.com
208-991-2037

Posted by Marty in 20:18:06 | Permalink | No Comments »

Friday, January 6, 2012

Gaming Review and Outlook: Disbelief, Trepidation and Hope

Note:  Following is an article I wrote for Infinity Gaming Magazine.  It appeared in the  December 2011 issue.

As 2011 quickly comes to a close, I look back on the gaming industry with disbelief.  I peer forward to 2012 with both trepidation and hope.

This year has been an interesting one at best for casinos because they are no longer recession proof and insulted from the world at large.  Casinos were affected by:  unemployment in the U.S. holding near 9 percent, gold trading at more than $1,600 an ounce and the economic crises in Greece and Italy.  And how could anyone forget the Arab Spring and general world unrest?

Even so, it’s astonishing that 2011 has not been a bad year for gaming.  Many operators smartened up.  They worked hard to reach the proper staffing levels without making huge cuts.  They developed projects that fit their market’s demand without clinging to the old mentality of “build it and they will come.”  They finally understood that pouring billions into construction of glitzy new buildings is no longer the answer to a decline in customers.

Narrowing my focus, I have to say 2011 was an up-and-down year for Nevada gaming.  There were a few months that were great but then the numbers dropped off.  For the second quarter, the Wall Street Journal reported that “the Las Vegas Strip’s dominant casinos and resorts are signaling that after years in the dumps, the heart of Las Vegas tourism is showing a slow recovery,” with Caesars’ Las Vegas revenues increasing 10.3 percent from the year-earlier period and spending per trip growing 9.2 percent.  Then in November, the Las Vegas Review-Journal reported that Nevada casinos saw their take from customers decline almost 6 percent in September to $863.9 million, the second consecutive monthly revenue drop.  With increased competition coming from across the U.S. and the rest of the globe, it has not been an easy year for Las Vegas.

I believe 2011 has been a once-in-a-lifetime year for gaming.  In some respects, perhaps it’s okay that many of us may never see such a year again in our lives.  But it hasn’t been all bad.

As I look forward to 2012, I have significant concerns but also optimism.  First the concerns.

Forrester Research,  an independent research company that provides forward-thinking advice to global leaders in business, states that we have entered the “age of the customer” and that “empowered buyers demand a new level of obsession.”  WOW!  Forrester is looking beyond better service or customer focus.  It’s saying customers will demand even more.  They will expect obsession.

And I think this could be true.  Customers have access to more information than ever before.  They have the gargantuan amount of information available on the Internet, but they also have something even more powerful – social media commentary.  From blogs to Yelp to Facebook to TripAdvisor, customers are well aware of what casinos are doing to lure them and they are reading about what does and doesn’t work. 

Casino guests believe advertising less than ever and online customer comments more than ever.  This is revolutionary because social media empowers customers like nothing that came before it.  Social media is 24/7 in real time.  Imagine a player posting his own Yelp review about your property while he is still on the casino floor.  That is customer feedback gone real time!

This means that in tough economic times, the customer holds all the aces.  Customers decide who they will reward with their entertainment dollars.  Forrester is right.  Casino operators must now obsess over their guests.  For years, casinos have paid lip service to customer service, being customer centric and improving the guest’s gaming experience.  Those that have taken action and invested in customer-related improvements over the last three to five years will be rewarded.  Those that just talked about it may not survive.

As if that wasn’t enough, there’s also a new kind of competition emerging from our economic ruins.  With sales tax and property tax revenues plunging in the U.S., states need new revenue streams for schools and social services.  Sin taxes are an easy target.  Almost daily, I receive emails about state legislatures looking at ways to implement gaming taxes or increase the casino tax revenues they already receive. 

The day I wrote this column, my inbox had news about Kentucky looking at taxing casinos.  Casinos that dot the Indiana-and-Kentucky state line better get ready now if they want to survive.  Florida is looking at mega casinos.  What will that do to the Biloxi area?  Will Texas decide to dip into casino revenues in 2012?  It doesn’t matter whether a casino is in the U.S. or Europe.  Government coffers everywhere need replenishing.  And let’s not forget about online gaming.  If Internet-based gaming becomes legal in the U.S., will states tax it?

I’ve dwelled enough on the dark side.  Now I want to say something positive.  There will be opportunities for gaming in 2012. 

Creative ideas often bubble up during tough times as people look for better ways of doing things.  In 2012, I think casinos will become more creative.  Because they know they all have the same games and tables, they understand that they have to be creative to stand out and attract guests. They will look for ways to get players to visit more than once.  Only time will tell what they do, but they will do it because they must.  Customers may not have as much to spend these days, but that’s okay if they have fun and come back.

I believe 2012 will be an amazing year for the industry.  Casinos that are customer focused and meet or exceed customer expectations (in other words, customer obsessed) will have a good year.  Please note I did not say an easy year.  I don’t think it will be easy for most casinos.

Wishing you and your team an amazing 2012 full of opportunities, success and fun!

To read other articles by Martin Baird, go to www.casinocustomerservice.com/post.htm

Martin R. Baird
Robinson & Associates, Inc.
mbaird@casinocustomerservice.com
www.casinocustomerservice.com
www.advocatedevelopmentsystem.com
208-991-2037

Posted by Marty in 19:54:14 | Permalink | No Comments »

Friday, December 16, 2011

No Thanks, But I’ll Buy the Brownie

Casino managers and employees who work together to create an exceptional gaming experience for guests can actually contribute to the bottom line and that should make them proud.

My wife, Lydia, and I came across an example of this in – of all places – an airport gift shop.  As a frequent traveler visiting casinos from coast to coast, it seems to me that many airport employees either don’t have the skills or have not had the training to provide the flying public with a good experience.  Some of the people are rude but most simply could care less.

But good things happen when managers make sure employees are trained so they have the skills they need to do their jobs.  Employees take care of the rest.  That’s a great team effort that creates profit.  We saw this concept in action at the gift shop.  Here’s what happened.

Lydia realized she had used the last of her hair spray and needed more.  We had a few minutes, so we went into the gift shop to buy some.  Lydia was pleasantly surprised when a gift shop employee approached her and asked if she could find what she was looking for.  (Casino employees should always be as helpful as possible for their guests and managers must be sure this simple concept is understood.)  Hair spray wasn’t in plain sight, so my wife let this person help her.  The employee didn’t just point and make a guttural sound as so often happens to me.  She actually walked over and picked up a can of hair spray for my wife.

After that, she asked if Lydia would like some gum or candy.  Then she explained that if she purchased a Coke, they would give her a free brownie or chocolate chip cookie.  What an anomaly!  This airport employee was amazingly helpful and caring.  From my point of view, the most significant fact was that she knew about the promotion they were running.  (Casino employees need to be aware of everything happening at their property – from promotions to specials at the buffet.  Managers should emphasize the benefits of being well informed.)

My wife said no thanks and proceeded to the cash register.  At the register, a different employee greeted her and asked if she would like any gum or candy.  She also explained about the Coke promotion.

Wonderful!  The first employee wasn’t an anomaly after all.  I don’t know if this promotion was a companywide initiative or just something for this one location, but my wife was very impressed and I was equally stunned when she told me about it.  I know that for a series of employees to convey a similar message, it takes training and coaching.  Judging from the consistency of the message, these gift shop employees knew exactly what was going on. Their managers made sure of it.  (Casino managers should help ALL their employees stay informed.)

Were there incentives motivating these gift shop employees to perform the desired behavior?  Did they just want to be friendly and helpful?  I don’t know the answer to either of these questions but I do know one thing.  A business puts energy, time and money into a program like this because there is profit to be made if it’s done properly.  (I know casinos don’t sell candy on the floor, but a team effort to provide stellar guest service will translate into dollars down the line.)

Now back to the brownie.  My wife entered the store with a single focus – hair spray.  She needed it.  But she became intrigued with the Coke promotion because of the message she repeatedly received from a variety people working in the gift shop.  She actually compared the cost of a Coke with the cost of a brownie.

Lydia is not a Coke fan, so she passed on the offer.  But she did buy the brownie and that store made a profit on the sale.  It was almost pure profit because it didn’t require extra staff members or store space.  It just took some teamwork, training and commitment.

To read other articles by Martin Baird, go to www.casinocustomerservice.com/post.htm

Martin R. Baird
Robinson & Associates, Inc.
mbaird@casinocustomerservice.com
www.casinocustomerservice.com
www.advocatedevelopmentsystem.com
208-991-2037

Posted by Marty in 22:54:11 | Permalink | No Comments »

Friday, December 2, 2011

Casinos Should Just Ask for Help

Every now and then, while doing something completely mundane, an idea hits me like a bolt out of the blue.  That happened recently while I was watching an episode of “Restaurant Impossible” on the Food Channel.

As I watched a team of experts try to revive a struggling restaurant, the thought came through loud and clear – casinos serious about improving themselves to survive this nasty economic slowdown should bring in a small group of experts to give it a once-over and make recommendations.  All they have to do is ask for help.

How does this work?  On “Restaurant Impossible,” struggling restaurants ask chef Robert Irvine to rescue them.  He assembles and oversees a team of professionals in all aspects of running a restaurant.  They have $10,000 and 48 hours to fix the restaurant’s problems.  Everything is explored, from the decor to the menu to food preparation.  The restaurant closes for the two-day period and then reopens.  In addition to the makeover, the restaurant gets amazing national television exposure.  All of this doesn’t cost the restaurant a dime. 

Inc. magazine does something similar for struggling small businesses.  It’s called “Case Study.”  Business owners interested in breathing new life into their enterprise are reviewed by a panel of small business experts.  The experts write up their recommendations.  Then the magazine publishes a profile on the business, along with the experts’ suggestions.  Talk about major media placement!  Again, the advice and exposure don’t cost the business anything.

These are just two high-profile examples of how this process works.  Now, I’m not suggesting that casinos tell the world about their problems through the media.  What I am suggesting is they might want to give serious thought to asking for help.  There’s no shame in that.  What’s wrong with bringing in a small group of experts on different aspects of operating a casino and letting them take an unbiased look at your operations?  What’s wrong with having them draft suggestions and then having a sit-down to go over them?  The answer to both questions is a resounding “absolutely nothing!’

There are two ways to go about this:  paying for the advice or getting it for free.  Casinos could pay a group of sharp people to come in and do a tough, fast review.  It would need to happen in a timely manner to keep costs down.  And, frankly, if they’re being paid, the experts should feel a responsibility to do the best they can. 

But there could be other resources right in the casino’s community and they might be free (or inexpensive) and just as valuable.  What about joining the local chamber of commerce and tapping its resources?  Yes, you pay dues but the chamber’s sole mission is to help businesses succeed.  And if you succeed, the chamber succeeds.  In other words, the chamber has a stake in the process.  What about university professors?  Might they jump at the opportunity to do some work in the business world?  They could recruit top students to help and that creates a learning experience for potential future employees for your casino.  Community colleges might be another source of help.  Small casinos might want to approach the U.S. Small Business Administration.

You get the idea.  One way or another, help can be found.

And now my final thoughts on what areas of your casino you should have reviewed.  From my point of view, casinos need to take a look at their employee orientation, customer service, employee customer service training and the reward system they use to encourage employees to do a better job. 

Does your employee orientation get new hires charged up or does it make them want to make a mad dash for the parking lot?  Often, orientation scares the heck out of people.  Gaming is heavily regulated and there seem to be endless ways to mess up.  Don’t lay out how easy it is to get fired.  Instead, give employees a realistic overview of the casino and clearly explain what management expects of them.  In other words, set them up to succeed.

I can hear it now – you know all about your customer service and don’t need help in that area.  But what is the source of your information on the quality of your service?  If the general manager strolls the floor and sees happy employees having fun with guests, then service must be great.  But what happens on the floor when the GM isn’t hanging out?  You need a complete review of your service that includes input from management, employees and customers.  You likely will need additional help to get customer feedback.  For example, mystery shoppers might be in order.

No matter how wonderful a casino’s guest service may be, it can always be better.  Employees get set in their ways and it can be very difficult to change their habits.  And good service habits lead to an excellent gaming experience that keeps guests coming back.  This is where training enters the picture.  You need an honest review of your training program and honest input on how it can be improved.

Finally, there’s the matter of rewarding employees for a job well done.  This is also known as positive reinforcement.  You don’t need a doctorate in psychology to understand that people respond to praise.  In fact, research shows that praise ranks higher than money as a motivator.  If you have a formal reward and recognition program, you need someone to take a hard look at it.  Trust me, many casinos get it wrong and that’s worse than having no program at all.  Have an expert take a look and make suggestions.

To read other articles by Martin Baird, go to www.casinocustomerservice.com/post.htm

Martin R. Baird
Robinson & Associates, Inc.
mbaird@casinocustomerservice.com
www.casinocustomerservice.com
www.advocatedevelopmentsystem.com
208-991-2037

Posted by Marty in 00:17:24 | Permalink | No Comments »

Saturday, November 19, 2011

Now Hear This Casino Employees! Do Your Job and Do It Right!

Gaming is becoming more competitive by the second.  States that said they would never have gaming are now thinking about it.  States that vowed to never let gaming expand are wondering if it could be a great way to make up for tax shortfalls.  Other states are allowing additional forms of gaming that they didn’t a few months ago.

So what does this mean to the average casino general manger or human resources executive?  The answer is simple.  It means that the people they hire will need to do more with fewer skills.  The days of rising through the ranks at casinos is long gone.  Fierce competition doesn’t allow the luxury of taking one’s time.  If you know how to do a job and show up for work most days, some other casino opening across town or across the country needs you.

People are being tapped for promotions with limited skills.  This scares me.  Casinos are asking people to do things that they may not be trained to do.

Let’s say you’re a good table games dealer at casino A.  Casino B comes to town and they need people, so they may ask if you want a promotion with higher pay.  I don’t know too many people who will turn down a promotion and even fewer who will say no thanks to a pay raise.

But an increase in responsibilities always comes with the promotion.  These new duties may require skills that a person is not born with.

One area where casinos increasingly need help is Presentation Skills 101.  The newly promoted employee who was great on the front line has no idea how to share information, ideas and concepts with the people who report to him or her.  As a matter of fact, some would rather not share the information at all and avoid the fear of making a presentation to their peers.

If people don’t know how to communicate and are not comfortable with sharing ideas with their direct reports and peers, they will find themselves in a no-win situation.  That can’t be good for them or the casino.  There’s an old saying that goes something like this:  “When you squeeze a lemon, what comes out?  Whatever is inside.”  The same is true with people doing presentations.  They will often see it as extreme pressure and what ends up coming out is often not what they or management wants.

So why do we expect a person who is great at dealing cards to be equally skilled at clearly and comfortably sharing ideas with people?  That doesn’t sound reasonable to me.

How do you know when a person needs these skills?  After you identify the need, how do you help them improve and learn?  Identifying is the easier of the two questions.

One clue is what a supervisor’s employees do or don’t know.  For example, if one department or one shift of a particular department is always out of the loop, that could be a sign that someone is not sharing or not communicating information clearly.

Observation is another good technique.  Ask some of your managers if you can attend their team meetings.  If the response is that they don’t have team meetings or that they are very infrequent, that could be a red flag that they are not comfortable sharing ideas and concepts.  If they do have them, simply watch and listen.  You will be amazed at what people say in team meetings if you just quietly sit in the back of the room.  Some people will impress you and you will be shocked at how poorly others communicate to a group.  It’s important to note that just because a person is wonderful one on one doesn’t mean they do well with a crowd.

Please don’t be disappointed or frustrated at how poorly some people present.  They just don’t know how to do it.  We have had people who really struggled on day one of presentation training, but they had great improvement as soon as they learned some of the tricks and techniques.

When it comes to helping your employees acquire the presentation skills they need, the first point to remember is that they must feel comfortable and safe during the training.  This can be a very emotional process because people often have some deep seated fears about speaking to groups.  Also, you will need to overcome the problem that there may be different rankings of people in the room.  We stress leaving your titles at the door because in our presentation skills sessions, it’s all about improving and learning, not who is who.

A couple of final thoughts on presentation skills.  Numerous studies show that people are rewarded with promotions and higher pay if they are able to clearly communicate ideas and concepts to groups.  Supervisors who can present to their people will be on the fast track to success.

Finally, if you want people to succeed in your business, they must have the necessary skills.  Presenting to a group is a skill that very few of us are born with.  If you want them to succeed, you need to help them and make it easy to succeed.

The headline for this article says, “Now Hear This!”  That’s a common saying in the military.  They tell people to listen and do as they’re told.  The challenge in today’s gaming industry is that you can’t just tell people what to do and expect miracles.  You need to work as a team and the way information is presented can have a huge impact on the overall success of a program or idea.

The days of barking out orders are over.  Presenting information in a palatable and perhaps even fun way will get far better results.

So please hear this.  With the increase in competition, presentation skills are not an option.  They are a necessity for the success of the casino and all its employees.
                                                                      
To read other articles by Martin Baird, go to www.casinocustomerservice.com/post.htm

Martin R. Baird
Robinson & Associates, Inc.
mbaird@casinocustomerservice.com
www.casinocustomerservice.com
www.advocatedevelopmentsystem.com
208-991-2037

Posted by Marty in 20:01:54 | Permalink | Comments Off

Friday, November 4, 2011

Want Great Casino Guest Service? Then Call in the Reinforcements!

I recently read a book about changing behaviors.  One important point in the book is that wanting to change is not enough to actually make it happen.

Many of us want to make a positive change in our lives – lose weight, stop smoking, have a better relationship with our family – but we don’t do it.  According to this book, the challenge does not revolve around the desire to change.

The problem is the reinforcement.  Let’s say you’ve adhered to a particular behavior for years.  You know it feels great to eat a bowl of ice cream after dinner.  You feel full, complete and satisfied and you like that.  But you also have the desire to lose weight.

To get beyond mere desire and actually break the behavior pattern of eating dessert after dinner, you need  an equal or stronger positive feeling.  With that powerful reinforcement, you just may change desire into action.  Do you get that same feeling from exercise?  Do you feel complete and satisfied?  Energized instead of sated?  How long will it take for exercise to become anchored in your behavior pattern so you think of working out before you think of ice cream after dinner?  Changing a habit is not easy.

So what does this have to do with guest service and employee training?

The answer is simple.  Training is the first step in creating a new habit and that new behavior pattern is providing outstanding guest service.  Once training creates the desire to provide great service, strong and positive reinforcement is the catalyst for changing desire into action.

Casino employees get pumped up about stellar guest service when training shows them what’s expected of them and how to do it.  But time can erode the aspiration to focus on guest service.  As the training slowly becomes a fading memory, employees may start slipping back into their old behaviors.  They don’t have the long-range vision that’s needed to make the goal of great guest service a reality.  But management does and it has the responsibility of providing the reinforcement that keeps employees on track.

During a recent training program, I was asked how to keep the process going and my answer was simple and straightforward:  take responsibility for it and lead.

After ALL employees learn their new guest service skills, it’s time to kick things up a notch.  All managers and supervisors, all of management from the top down, must be trained on how to manage exceptional guest service.  Most managers function under the dictator approach.  Do it or get fired.  That isn’t a great way to motivate or to encourage a positive guest experience.

At some level, we all know we get more with praise than we do with fear, but do we practice it?  Most people don’t know how to manage from a position of positives and rewards.  Many of us have had less-than-great managers and, unfortunately, we use them as role models.  I wish we had more good examples to follow.

Managing for great service is a learned mindset and it requires a commitment to using a carrot rather than a stick.  Find people doing things right!  Look for that person who is smiling at guests and recognize them for that immediately.  Find the employee that has a great attitude and praise them in public so they know it was noticed.  This approach isn’t limited to a particular department.  Find people in any department of the property doing things the right way and recognize them.  Even employees who have no direct guest contact have an impact on service by the way they perform their jobs and support staff members who do.

Reinforcement of great guest service is not limited to front-line managers.  It needs to be done at all levels of management so it becomes part of the culture.

But managers can’t work 24 hours a day and observe all employees nonstop.  Employees know that the manager is only on the floor during certain times.  They also know that when they see a manager, they better smile like they just won the lottery or they won’t be rewarded.

A third-party system for rewarding the new behaviors also is needed.  This is an essential element of that ongoing motivation that people need to perform new, positive behaviors instead of the old ones that probably seem much easier.  For example, it’s easy to stand at a dead table and look like an angry statue.  It takes a reward to change that old, non-productive habit into one that benefits the dealer, the guest and the casino.

People don’t change for the fun of it!  It takes effort and when they’re asked to make that effort, management must create positive situations along the way to make it more fun.  This will also make the effort seem easier.

Use mystery shoppers to get unbiased, useful observations of employees on the job.  What they see is the real thing, not faked performance because a manager is nearby.  These shoppers look for specific behaviors that were covered in the training.  They then rate employees based on management’s criteria.

From this shopping, people have additional opportunities to be rewarded for doing the right thing.  The reward doesn’t need to be huge but it should happen as close as possible to the time the behavior occurred.

Management involvement in guest service and third-party shopping – this is the reinforcement I mentioned earlier.  It tells employees that the new behaviors are recognized and appreciated.  It could also give them that great feeling inside that so many people are looking for.  Ice cream is no longer top of mind.  Guest service is.

If you want your property’s guest service to be second to none, it’s time to send in the reinforcements for success.

To read other articles by Martin Baird, go to www.casinocustomerservice.com/post.htm

Martin R. Baird
Robinson & Associates, Inc.
mbaird@casinocustomerservice.com
www.casinocustomerservice.com
www.advocatedevelopmentsystem.com
208-991-2037

Posted by Marty in 20:49:07 | Permalink | Comments Off

Friday, October 21, 2011

Casino Customer Service Suffers At the Hands of Poofs and Poofism

I was at a training seminar one time and the presenter asked how many of the participants were “poofs.”  Many of us looked around puzzled thinking we must have missed that day in facilitator’s school.

He explained that poofs are the people who have been given a new job and – poof – they are now trainers or managers or supervisors!

After having worked in gaming for many years, I can say that poofs are alive and well.  When we contact casinos about their customer service needs, we often talk to the human resources manager or director and soon learn that he or she is, in fact, a poof.

Some are new to the industry.  Some are even new to human resources.  When we talk with people in the casino’s training department, the poof factor goes up exponentially.  Many of them did a good job training their staff so, poof, they must be a real trainer or, better yet, a training manager.

Poofism is not limited to this part of the business.  It’s in all areas of gaming at all levels.  If a person is a talented slot tech with good customer-service skills, they’re the logical choice as a slot manager or supervisor.

The problem with management by poofing is that when someone is good at one thing it doesn’t mean they have the skills to take it to the next level.

Think about sports for a moment.  Some of the people who are exceptional at the collegiate level flop in the pros.  They had the size, speed and drive to make it in college but they were not a good fit as a pro.  The same is true for managers.  Just because a person can fix a slot machine and be nice to the customer at the same time doesn’t mean they are trained or prepared to manage other people doing it.

This is not a slam on casino management or human resources.  It is a fact of life in the gaming industry today.

With the meteoric rise in the number of casinos, it’s impossible to find trained and seasoned people all the time.  Back in the gaming dark ages, people were groomed for years and moved up through the ranks.  Now a casino opens across town and they hire the floor people from the competitor and make them all managers because they have experience.

This is not the way to grow a stable business.  It only makes things worse at places that are weak and will fall during tough times.

So what is the solution?  What can casinos do to have the management they need without hiring poofs?  The answer is to start a casino farm team just like they do in baseball.

Develop internal and external systems to help people learn the skills they need to be managers.  It’s important to note that if you don’t help them learn the skills you want or think are important, they will go their merry way on the job and do what they think is best.

For example, they might manage by intimidation or motivate with punishment because that’s what their supervisors and managers always did.  They could have some bad habits that you really don’t want at your property.

You need to educate them about what your property believes are the best ways to motivate and manage employees.  This can be done in a variety of ways.

One great way is through actual training.  That can be done in-house or through local colleges.  In Phoenix, Arizona, there is a casino management curriculum that people can go through and obtain a certificate of completion.  This is great for an area that has a number of casinos and is looking to help people have the skills they need to succeed.

Training is needed because people are not born managers.  They need to learn it like any new skill.  If you want people to be great managers that lead your property’s customer service message, they need to be trained on how to do that.

Another option is mentor programs.  It’s a great thing when people with stellar management skills show the ropes to new managers.  Those new to management ranks like to learn from people who lead by example and demonstrate the skills they aspire to have.

The challenge is that the mentors need to lead by example at ALL times.  It’s a problem when a new manager hears that their mentor – the very person who says praise is more effective than punishment – let one of their employers really have it.  It’s important to select mentors who not only know what to do but who show it each day.

I laugh because a casino that wouldn’t dream of putting a dealer on a live game without hours of training on game management and how to deal often will make someone a manager or supervisor in no more time than it takes to tell them they are now – poof – the manager.

If casinos want to provide customers with a consistently great gaming experience, it takes more than poofs, it takes well-trained professionals.

To read other articles by Martin Baird, go to www.casinocustomerservice.com/post.htm

Martin

R. Baird
Robinson & Associates, Inc.
mbaird@casinocustomerservice.com
www.casinocustomerservice.com
www.advocatedevelopmentsystem.com
208-991-2037

Posted by Marty in 19:45:33 | Permalink | Comments Off

Friday, October 7, 2011

Casinos Face Global Communications Challenge With Guests’ Experience

I’ve written before about the fact that casino guests are communicating via social networking about the casinos they love and hate.  But a recent article in Newsweek has shed a whole new light on this situation and it has to do with a world on fire with electronic communications.

Casinos need to pay attention because their reputation, their relationships with customers and their bottom line are at stake.  If you worry about what guests may be tweeting about your casino, well, hold onto your hat.  There’s a lot more going on out there than you realize.

Niall Ferguson wrote in Newsweek about how reactionary our world has become because “the human race is interconnected as never before.”  He blamed the Internet, pointed to recent economic and political instability and wondered where else people will exhibit “contrarian behavior” as they communicate instantly and frequently with others.  I wonder what the impact will be on gaming as all this chatter spreads like wildfire.

Ferguson wrote about the sheer volume of electronic human interaction these days.  He started with Moore’s Law, which “says that computing power will double every two years, implying a roughly 30-fold increase in 10 years.  This exponential trend has now continued for more than half a century and is expected by the techies to continue until at least 2015 or 2020.”

His article had other stunning statistics.  For example, the first e-mail was sent in 1965, the same year Gordon E. Moore proposed his law.  In 2006, people sent 50 billion emails, Ferguson wrote, noting that 300 billion emails were transmitted in 2010.  Yikes!  “The Internet was born in 1982,” Ferguson said.  “As recently as 1993, only 1 percent of two-way telecommunications went through it.  By 2000, it was 51 percent.  Now it’s 97 percent.”  Ferguson quoted Russian venture capitalist Yuri Milner when he wrote in his article that “data equivalent to the total volume of information created from the beginning of human civilization until 2003 can now be generated in the space of just two days.”  Good grief!

I don’t know about you, but my head is spinning.  People are caught up in a communications frenzy and they’re talking about anything and everything.  They often have a reaction to what they hear.  I guarantee some of this communication has to do with casinos.

Here’s a hypothetical that’s all too real.  Joe goes to XYZ Casino and – (a) he has a good time (b) he has a bad time (c) he doesn’t win, but he sure enjoys the outstanding  guest service (d) he doesn’t win and things are just made worse by the lousy service (e)  he loved the buffet or (d) the buffet was terrible.  As soon as Joe gets home, he emails, tweets or posts a Facebook status update to friends about his experience at XYZ.  Maybe he does all three.  One has to wonder if the experience was good or bad because his friends are likely to forward his email or retweet his tweet to others.  Those “others” do the same thing.  On and on it goes.  This is why electronic communications is exploding.

Oops, I forgot.  Joe doesn’t have to wait until he gets home.  He has a smartphone.  He can tell the world about his experience at the casino AS IT IS HAPPENING.  While he sips his poorly prepared cocktail and shakes his head at the dirty floor, Joe checks in at Foursquare so he can write a review that is less than glowing.  One of his friends, who just happens to be on the way to meet him at XYZ, sees the Foursquare post and sends Joe a text message suggesting that they meet up at ABC Casino instead.  Joe leaves and his friend makes a course correction.  Another guest at XYZ also sees Joe’s Foursquare comment and starts to have second thoughts about where she spends her entertainment dollars.

I bring all this to your attention because knowing whether your guests are having a good or bad gaming experience is more critical than ever.  The Internet has raised the bar into the stratosphere simply because guests have multiple avenues for letting thousands – even millions – of people know whether they like your casino and why.  I can’t imagine what those capabilities will be five years from now.  I assume the majority of online comments are negative because it’s a fact that people complain more than they praise.

You simply must have credible feedback from your guests.  Forget about customer surveys and comment cards.  Throw those things in the trash.  Most guests won’t take the time to fill out a survey, especially the ones I’ve seen some casinos hand out or email.  Comment cards are just a snapshot in time.  Joe could say on Saturday that he had a great time and say on Wednesday that he had a lousy time.  So is he a happy guest or not?  His comment cards probably didn’t say much about why his gaming experience was good or unsatisfactory.

Casinos need to know what guests want.  You need a turnkey system that tells you specifically what guests like and don’t like about your property.  If some guests play at your casino again and again, you need to know why so you can do more of what they like and create more repeat players.  You also need to know why other guests stop coming.  You never know, it could be easy to fix what turns them off.

In the meantime, billions of electronic messages are zipping around the world.  People are talking about you.  Your challenge is to make your casino’s gaming experience so incredibly wonderful that people can’t resist going online and saying good things about you.  Do that and you will reap the rewards.  You will also be prepared for communication breakthroughs of the future that will raise the customer feedback bar even higher.

To read other articles by Martin Baird, go to www.casinocustomerservice.com/post.htm

Martin R. Baird
Robinson & Associates, Inc.
mbaird@casinocustomerservice.com
www.casinocustomerservice.com
www.advocatedevelopmentsystem.com
208-991-2037

Posted by Marty in 16:11:23 | Permalink | Comments Off

Friday, September 23, 2011

Do You Hear the Flushing Sound? That’s Your Money Down the Drain

I was at a gaming conference recently and an industry marketing consultant talked about a publicly traded gaming company that spends 37 percent of its revenue on marketing.  I know of a property in a very competitive market that spends more than $1 million a month on marketing.

Why all this spending?  Casinos say they need to be seen to keep guests coming through the door so they can grow.  Their message simply must be seen, heard and read on TV, radio, outdoor displays, direct mail and, of course, print ads.

I understand this concept.  Unfortunately, much of this money is going right down the toilet.  Gaming properties are throwing away precious revenue.  The same property that spends millions on marketing balks at investing one or two percent of that marketing budget on training its people.  Or on putting together a meaningful reward and recognition program for employees to encourage them to give their guests an outstanding gaming experience.  They just can’t find the money.

There’s a better way.  How about devoting a sizeable chunk of money to retaining existing guests and spending less on trying to bring new ones in?  How about focusing on giving guests a reason to become repeat customers and worrying less about newcomers?

There’s a marketing adage that says it’s 10 times more expensive to get a new customer than it is to keep an existing one.  There’s a lot of truth to that.  So it makes good fiscal  sense to invest in employee guest-service training and a reward and recognition program to reinforce that training so your people are doing everything they can to keep guests happy.  Great guest service is critical to success.

If you could reduce your marketing expense and increase play, wouldn’t you be more profitable?  If your guests had a better time while they’re at your property, wouldn’t that lead to increased play?  Marketing and quality guest service each serve their own purpose and they can work hand in hand.  Marketing’s responsibility is to generate trial.  However, while it can set the expectations, it can’t control the guest’s experience.  If your marketing shows happy, smiling dealers and spectacular food, that is what guests will expect.  Now each person who works at the property must be trained to deliver that and more.

So if marketing is spending all this money on getting new people to visit your property, what is human resources investing to help your people have the skills they need to give guests great service?  Employees aren’t born with the amazing guest-service gene.  New behaviors must be encouraged and that takes training and setting standards.

Here are a few things to think about as you roll out training and reward and recognition programs.

If you want an employee to smile while assisting a guest – or demonstrate any other kind of service-oriented behavior –  it helps if they understand why they should do that.  It also helps if they know how this new guest-service behavior affects them directly.

Knowing that management wants them to smile is not enough to create change.  People need to know how it affects them so they will consider making the behavioral switch.  Employees need to know how improving guest service affects their wallet, not the company’s bottom line.  After all, people are more interested in themselves than others.

The human tendency to be self-centered makes it a challenge to improve guest service.   Employees have to start thinking less about themselves and more about the needs of others.  That makes guest-service training a priority because the people working at your property must see the guest as the most important person in your business.  Ray Kroc, the famous founder of McDonald’s, put the customer on a pedestal.  He knew that for McDonald’s to succeed, it needed to focus on the customer more than the burgers, milk shakes and fries.  He was right.

The same is true in gaming.  If more attention is placed on the guest, the property will be more successful.

So how do you get marketing and human resources to work together so that one of them doesn’t spend its gigantic budget bringing in new guests only to have them quickly leave because they didn’t win and get the level of service they expected?  It takes a team approach.  Both sides need to work together.  Just getting new customers isn’t enough.  You need to generate trail and then get them to stay because of the wonderful service they receive.

If you can’t accomplish that, then you’re just flushing marketing dollars down the drain day after day.

To read other articles by Martin Baird, go to www.casinocustomerservice.com/post.htm

Martin

R. Baird
Robinson & Associates, Inc.
mbaird@casinocustomerservice.com
www.casinocustomerservice.com
www.advocatedevelopmentsystem.com
208-991-2037

Posted by Marty in 12:44:28 | Permalink | Comments Off

Monday, September 12, 2011

Catch Casino Ripple With Service

A friend recently e-mailed me a link to a Wall Street Journal article that had good things to say about casino business on the Las Vegas Strip.  My heart leaped with joy.  Any good news about gaming is great news.

“The Las Vegas Strip’s dominant casinos and resorts this week are signaling that after years in the dumps, the heart of Las Vegas tourism is showing a slow recovery,” the Journal said.  For example, the Journal reported that Caesars said its revenue in Las Vegas in the second quarter this year increased 10.3 percent from the year-earlier period while spending per trip grew 9.2 percent from last year.  “Executives said that the increases were seen at nearly all of the nine casinos the company owns in Las Vegas,” the Journal reported.

True, this was only one city among hundreds globally with casinos and worries about a possible double-dip recession in the U.S. hadn’t manifested yet on the Strip.  But let’s all break out in a collective smile, please.  Now let’s also get down to business.

Word coming out of Las Vegas may only be a ripple, but it could be a sign that there is a great opportunity brewing for gaming.  It’s fantastic that people are feeling confident enough about their finances to start playing at casinos again.  But that won’t mean much unless casinos give these people a darned good reason to come back again.  And again.  Turn these newly returned players into regulars!  That is the foundation of success going forward.

This requires quick action and the simplest and most effective way to grab these players’ attention is to bolster your guest service.  Stellar service really stands out.  Guests notice it.  They like it.  And it can give them a reason to come play again.

Following are 10 tips on how your casino can improve its guest service right now.  These tips are directed at your employees.  I suggest you print this article and post it where employees with direct customer contact can see it.

Number 1 – Look for Service Opportunities.  A lost guest is a great opportunity for a wonderful guest-service experience.  They may be looking for a restroom, the buffet or a way to get downstairs.  Whenever the guest is lost, you have a chance to lend a hand and make them feel special.  Instead of telling the guest where the restroom or buffet is located, take the extra minute and walk them to it.  This makes a lasting impression.

Number 2 – Clean It Up!  Take a lesson out of the Disney handbook:  cleanliness is an integral part of customer service.  If your guests have a good experience but the casino is dirty, it will be difficult to get them to come back.  No one gets up in the morning and says, “Let’s go over to that dirty casino.”  You want them to have positive thoughts about your property, not negative.

Number 3 – Be Proactive.  When you are proactive, you’re thinking for the guest so they don’t have to think for themselves.  Being proactive could be as simple as wiping up a spill or giving a guest the inside track on what’s great at the restaurant.  The assistance you provide will be appreciated.  Being proactive makes guests feel their welfare is always foremost in your mind as you go about your job.

Number 4 – Smile.  I know this is corny, but by simply smiling while you are at work, you are helping guests have a more enjoyable visit.  We all like to be around smiling, happy people.  They make us happy, too.  It’s a proven fact that people feel better when other people smile.  Smiles make a great first impression.  People want to stay and play at a happy, fun casino.

Number 5 – Look.  Make an impression by making eye contact with guests.  And be sure to have a cheerful look in your eye.  Make eye contact when guests talk to you.

Number 6 – Listen.  I can’t say enough about how important it is to listen to what guests have to say.  Slow down, stop, sit back and listen to your guest.  Listen to what they’re saying with words, body language and facial expressions.  If you really listen to what they have to say, you can usually find solutions to their problems and you might discover a new opportunity to provide excellent service.

Number 7 – Have Patience.  One of the most important elements of great service is patience.  For example, some guests are older and have special needs.  Patience is particularly important with them.  Most any casino guest can be trying at times.  Just be patient, smile and help them.

Number 8 – Spread the Kindness.  Kindness goes a long way.  It has a long shelf
life in people’s minds.  I’m talking about simple things like clearing off a dirty tray in a person’s area, saying please and saying thank you.  Simple kindness is something that people remember for years.  It’s also a hallmark of great service.

Number 9 – Recognize Guests.  Players want to be recognized.  They may not want you to yell their name across the casino floor or say hello to them in the grocery store.  They do want to be recognized at the property because it makes them feel important and special.  A nod of the head could be just the thing for one guest.  For another, it could be remembering their name.  Recognizing guests is one of those things that is greatly appreciated.

Number 10 – Be Consistent.  This is critical if you convince a player to return to your casino.  In your mind’s eye, put this word in capital letters and underline it because inconsistency is a killer.  People want a consistent experience.  Let’s say I come to your property and the valet greets me with a cheerful, “Good evening, Marty, how are you?”  I’ll expect the same treatment the next time I visit.  You and everyone else on the staff must have consistency in the exceptional service you provide.

To read other articles by Martin Baird, go to www.casinocustomerservice.com/post.htm

Martin

R. Baird
Robinson & Associates, Inc.
mbaird@casinocustomerservice.com
www.casinocustomerservice.com
www.advocatedevelopmentsystem.com
208-991-2037

Posted by Marty in 16:21:57 | Permalink | Comments Off