Case Study: Database Builds Loyalty for Casino

Today's direct marketing case study comes to us from Equifax. Since we enjoy reading about how technology (in this case a marketing database) impacts overall performance, we thought we'd share. For those who are grappling with the decision as to whether to build your marketing database in-house, or use a service bureau, you should continue reading.

Client Profile
A leading gaming and entertainment company, operating riverboat and hotel casino complexes across the U.S.

Challenge
To increase customer loyalty and drive repeat visits to their casinos, the client targeted direct marketing programs to their existing customers. They were using their operational database and very basic tools to generate direct marketing programs. To enhance campaign effectiveness, they wanted to conduct more testing and better target their direct mail and e-mail campaigns, but did not have the infrastructure to address the challenge.

Solution
The client engaged Equifax to conduct a requirements and feasibility study. Their goal was to build an in-house database solution, versus a service provider solution. The feasibility study was a collaborative effort with the client's IT. Equifax built a comprehensive test database parallel to the client's current system--with the added challenge of a changing operations system.

Equifax delivered a database solution that exceeded the client's expectations. The project that began with a feasibility study evolved into a comprehensive service that provides a "single view" of the customer across several properties. The service includes daily updates of customer, transactional, demographic, hotel and promotion history data into an open relational database utilizing best-of-breed business intelligence and campaign management tools. The solution supports daily, trigger-based, multi-channel campaign executions, enabling more convenient, relevant offers to patrons. The client's solution has expanded to include data mining and analysis, using predictive analytics and modeling tools and techniques to enrich their direct and e-mail marketing strategies.

Results
Equifax delivered a powerful marketing database solution, on-time and on-budget. The solution provides direct marketing expertise and support comparable to a more costly, yet less effective in-house solution. In addition, the database features a Quality Control element that ensures the clients meets industry regulatory requirements. The flexible, robust infrastructure facilitates a more "enabling environment." As a result, the client is experiencing greater success in marketing across all segments of the business.

• Average spend per customer increased 20%. More timely and better matched offers to patrons--with emphasis on event-triggered opportunities--has increased patron's visits and play, resulting in a more satisfied customer base and better ROI for the client.
• Dramatically shortened timelines enable the client to deliver more frequent mailings to patrons. Direct mail campaigns that used to take two days per property to execute now take two to three days for all six properties.
• Through increased efficiency, the client can quickly, aggressively pursue multiple marketing tactics simultaneously. In addition, the marketing team can "put good direct marketing strategies to work."
• Improved, timely business reporting allows the client to apply key learning for the implementation of more effective marketing strategies.

Equifax has proven to be a valuable resource in this client's quest to optimize customer relationships. As a database provider, Equifax has helped the client learn more about their customers in order to increase their visits, build loyalty and, ultimately, boost revenue.

Online Shopping Behavior Changing Due to Identity Theft Concerns

Yesterday, we reported on the new proposed legislation regarding the use of social security numbers and the protection of consumer data. From a direct marketing perspective, we mentioned that this is an area where we need to be very proactive as an industry to protect our customers (and their consumers) from identity theft and other consumer privacy concerns.

We have a unique opportunity to impact this before consumers are impacted -- or heaven forbid -- they change their buying behavior. If we don't figure out a positive way to impact this problem, our customers will react -- and their reaction will definitely mean a negative effect on our bottom line.

Case in point . . . DM News reports today that "in the wake of recent massive data breaches at businesses, educational institutions and medical facilities, consumers are growing more concerned about identity theft and, as a result, changing their buying behavior . . ." In fact, the article goes on to report that "thirty-six percent of respondents said they would not use their credit or debit cards to make a purchase with a Web merchant they do not know. The study also shows that 62 percent of respondents have been notified that their confidential data have been lost, and 84 percent of those reported increased concern or anxiety because of data-loss events."

This is not good news. Online purchasing behavior is changing due to these heightened security concerns -- and let's face it -- it's changing for good reason. If any of you have ever gone through trying to clear things up after your identity has been stolen, you know what a painful and time-consuming process this can be.

As an industry, it is imperative that we attack this issue head-on. As discussed yesterday, we do have the tools and technology to help protect our clients with sound data management and data security techniques. Companies like Experian, Acxiom/TransUnion and Equifax have full suites of tools developed specifically to combat identity theft. I realize that it is difficult to stay in front of identity thieves but it is incumbent upon us to anticipate their next move and squash it. Of course, there are definitely some steps that consumers can take on their own in order to protect their identity. However, as direct marketers, the best course of direction is to share best practices with one another as we come up with creative ways to ensure that our customer databases remain secure.

If you have a success story or best practice that you'd like to share, please comment so that we can post it here. At the end of the day, it behooves every single direct marketer to attack this issue to protect our valuable clients and stop those thieves in their tracks!