Toying Around with Better Patron Relations
by Martin R. Baird

I’ve been reading recently about competition in the gaming industry. Apparently some states may sell their lotteries to private companies because competition from those companies is too great and the states don’t think they can succeed in the long term. I’ve read that casinos are experiencing an increase in competition from other entertainment venues.

Here’s the reality about competition. It won’t go away until the gaming industry has significant financial struggles and casino executives think they can make more money doing something else. When I think about competition in other industries, I zero in on retail. Wow, do they have challenges. Retail stores get the same products from the same companies and they try to sell them for at least a little profit while a competitor down the street charges a penny less.

Why am I bringing this to your attention? Because, as you read on, you will come to understand that casinos sometimes forget that their rules and regulations concerning customer service could give competitors an amazing advantage. Casinos sometimes all but beg competitors to crush them like a bug.

To illustrate, I will return to the retail sector and describe a personal experience. As you read, I want you to think about your customers and how you treat them. I believe you will acknowledge I had good reason to get so frustrated that I may not shop at this store again. Is that what you want your guests to think as they storm out the door, that they probably won’t come back?

Gamesmanship?

My unpleasant customer service experience occurred at a big-box toy store that shall remain unnamed. I went to the store to return a gift my son received for his birthday. I took the item brand new in the box with the store’s price sticker still on the outside. I walked up to the customer service counter and explained why I was there. Immediately, the young lady at the counter asked if I had the receipt. I explained that I didn’t because it was a gift. I said a store credit would be fine because, with two boys, it would be easy to spend the money.

Alas, I didn’t live up to the store’s standards and I hope you don’t expect your guests to meet certain minimum requirements to play at your property. The clerk said it was their policy not to accept returns without a receipt. I was stunned. I spend time and money at Home Depot and never have problems getting store credit for any returned item.

I decided I should talk with the toy store’s manager. Maybe the manager didn’t realize this retailer was in a competitive industry and struggling for market share. The manager was pleasant, but he firmly adhered to the corporate policy. I explained that Wal-Mart and Home Depot take items back even if the package is open. In an attempt to give him a marketing lesson, I said these other retailers want people to have a positive buying experience and they know if people can return items, they are likely to buy more. It was a waste of my breath. Surely you don’t treat your guests that way.

I asked for the customer service phone number. I called as I stood at the counter in the store because I just knew someone would see the error in this concept. After all, I could buy the same thing at Wal-Mart for less money. The customer service representative on the phone was nice but firm on the policy. So I asked who at the company would understand the foolishness of the way they do business. She nicely said that would be corporate customer service. But when I asked to be transferred, she told me that department didn’t take phone calls. She suggested I mail a letter. I gave up.

When I returned home, I e-mailed customer service and received a reply within 12 hours that said my concerns would be forwarded to corporate. Please put the crack pipe down. If you force me, your customer, to jump through this many hoops just to return an item and buy a new one for my child, there will be NO future experiences with your company.

A bad example

Now let’s turn to the gaming industry for another example. My wife and I were in Reno this past winter. We had booked two rooms at a casino-hotel – one for us and one for an associate. The morning we arrived, our associate could not fly in because of bad weather. � When we checked in, we were told “our policy is…” and were held responsible for the second room. Please help me with this. You want me to come to your property and eat in your restaurants and play at your machines, but when I check in, you smack me in the face with this rule? Do you think this will make me an advocate for your property?

If each and every employee at your casino is aware of the big picture and that they have competition, they would be more likely to make better decisions. For the Reno casino that made me so unhappy, I suggest some alternatives to spouting corporate policy. Waive the charge for the second room and ask if we would like to spend a little more on an upgraded room. Or offer us a free one-night, mid-week stay on our next visit. Or just understand our situation and say, “That’s OK, don’t worry about the second room. We’re glad you made it here and that you’re staying with us.”

Yes, the casino industry has stiff competition. But perhaps the real threat is losing sight of what is important – giving guests such an amazing experience they can’t wait to come back and they won’t even consider spending a dime at any other entertainment choice. Maybe the real threat is casinos that create anti-advocate rules and regulations.

Was I satisfied with my stay in Reno? Yes. Am I an advocate of that property? No.

Martin R. Baird is chief executive officer of Robinson & Associates, Inc., a?customer service consulting firm that works with casinos around the world. He is creator of the company’s Advocate Development System, author of Advocate Index: An Operational Tool and may be reached via his Web sites at www.advocatedevelopmentsystem.com and www.casinocustomerservice.com