Insight LOTTERIES Gamevy
Helen Walton, Founder and Marketing Director, Gamevy
Helen Walton is co-founder of Gamevy, an employee-owned tech start-up with no bosses. Helen is a marketer and creative who has launched brands in make-up, skincare, fine art publishing, theatre and financial services among others. She is also a professional writer and presenter who has authored numerous books on Agile Software Management and presents at Q- Con, Culturevist and Spark. She is a regular contributor to InfoQ and other journals.
Lotteries - lifetime value and the power of cross-selling
No-one who has ever bought a burger can be unaware of the importance of cross and upselling. Would you like fries with that? Do you want to a large size? It is the key staple of modern retail… So how do online lotteries cross-sell and up-sell? Well, one answer is that many don’t.
A surprising number have a poor online offering with a lack of mobile products in particular. Tose that do have scratch cards and games, often rely on badly designed versions of their offline products or a wholesale import of standard casino slots. Which is crazy
We have good evidence that fully one third of lottery ticket purchasers are happy to spend more money on the site – as long that is, as operators can offer them something they are interested in.
WHAT TO OFFER? A lottery is a game. And a game is supposed to
be a playful experience, which is meant to offer a sense of fun and enjoyment. But just think about the experience you have when filling out a lottery ticket… In all honesty, it’s about as playful as a tax form – and given the fact that week after week the average experience is of paying money to consistently lose – it feels just like tax as well. Tere’s research from La Fleur’s that suggests small wins are not even recalled by players.
OVER 50 PER CENT OF CUSTOMERS CLAIM THEY HAVE NEVER WON ON A LOTTERY
By cross-selling other products, operators can change that experience. Instant wins are not only immediate, but they offer higher win rates and improved RTP, along with more entertainment. As well as raising immediate GGR, in the best case, they can actually encourage retention – keep people coming back to the site to experience an enjoyable few
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minutes of play – as well as the hope of a big lottery win. Tat’s not simply a case of customer experience, it also means raising money for the causes that matter to society – changing people’s lives in more ways than one.
Of course – it’s not as if lottery operators haven’t thought of this! But too often, the options they take aren’t ideal – far from increasing loyalty and lifetime value, they can lead to a lack of differentiation, or overwhelming customers with the wrong type of product. Many also sacrifice Life Time Value for short-term increases in GGR, leading to higher costs overall through the need to re-acquire lapsed customers. Such behaviour can even reduce the popularity of lotteries in the long term.
OPTION 1 – TURN ON CASINO Tere are plenty of casino and lottery-focused
platforms happy – eager even! – to switch on a host of games from top quality providers. With one quick integration, you could have hundreds of games available for your customers. Amongst so many, surely every player will find something to suit them… right? Wrong.
Te problem is that this is exactly what every other gambling operator does, from sportsbook to casino. Why should they come to you rather than anyone else? Suddenly your site looks hardcore and undifferentiated and carries with it a far higher risk of attracting problem gambling.
For ordinary players it becomes difficult to navigate their way through these games. For a lottery player, the choice is so overwhelming,
they may be unlikely to try even a single game.
OPTION 2 – CURATE YOUR OFFER Tis is a far smarter choice. Operators can hand- pick a few games that will appeal to a broader demographic.
BUILD BRAND. LEARN FROM RETAIL Familiarity is key to curated choice. Te
products that you offer should feel connected to your main product offering – in the case of lotteries, the most obvious genre is scratch.
Te temptation is simply to pick up what’s already on the market. Te issue is that in scratch, more than any other genre, many games copy what exists on paper with no adaption to the online format. Tis gives poor results. While hunting for dozens of symbols or numbers can be satisfying on paper, online it is simply confusing. Te ‘autoscratch’ button, while fast, soon kills a player’s interest and repeat play.
Lottoland’s newest scratch uses design elements from their brand as well as Chris Tarrant, from their advertising campaigns to create a product that feels familiar, but unique. Te National Lottery also uses its basic scratch to build a cheerful, friendly own-brand feel, which is extremely simple to play.
As in other retail environments, these products lend themselves to promotion and upselling. Players can buy bundles (lottery ticket plus 3 scratch) or 4 scratch for the price of 3 – it’s the perfect way to use promotions which are more familiar to a broad demographic of customers,
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