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Casinos Love Their Research,
but What Is the Real Score?
By Martin R. Baird
Harvard University research shows that the average U.S. business has
approximately a net 11 percent of their customers that would recommend
them to other people. That is amazing! Last night, a television newscast
reported that the U.S. Congress has a 13 percent approval rating. Could
that mean that your casino has a lower approval rating than Congress?
I know some of you are puffing out your chest at this very moment and
saying that your latest guest satisfaction survey showed a top box score
of 78. For those of you who are not research geeks, the top box score
represents survey responses that usually fall only into the “excellent”
category. Some casinos look at the top two scores, often the 4 and 5,
for their so-called top box.
Here is the challenge. That score of 78 doesn’t mean that 78 percent of
your guests will come back. Being satisfied and actually returning to
play again are two different worlds. A guest could be satisfied with the
gaming experience at your casino, but if your competitor offers double
points or better parking, that same guest could switch without looking
back.
Do you really know what your score is and what it means? The point is
that you need to know what you are measuring and, more importantly, what
it means for your long-term success. Here are some real-world examples.
The other day, I purchased a couple of items in Sears. Truth be told, I
hadn’t been in Sears in a couple of years for anything other than to cut
through the store to get to the movie theater. I found the items and
took them to a register. I wasn’t in a good place to wait long in line
because I was with my sons. But I was the second person at the
check-out, so I figured I would be finished with my transaction quickly.
Then I heard the women in front of me talking and one said, “Now I see
why people just dump a pile of stuff and walk out.” That was not a good
sign from my perspective. I waited a little longer and decided there
must be more registers in the store. As I walked around, I found a young
woman in the jewelry section and she had no one waiting. I asked if she
could ring up my non-jewelry items. Her reply was a nod with a hint of a
shrug. As I waited, I couldn’t get over how slowly a person could scan
three items. She never spoke or smiled. After I paid, she told me I
could get $10 off my next purchase if I called the number on the receipt
and took a survey about the service she provided. I was shocked. First,
if I had told her how miserable her service was, would she have given me
the information about making the call? Second, did she really think she
was providing good or great service?
For those of you who think your top box score is 78, you need to realize
that the guests who fall in the middle of the survey won’t take the time
to call in. You need to know your net number. You must subtract the
people that are giving you low scores because they truly count against
you in the long run. They are important!
Let’s move on to the question of whether I was satisfied with the
products I bought at Sears. I would say yes and probably give them a 5
(on a scale of 0 to 5 with 5 being high). It’s critical that you
understand this question. I was satisfied with the products. So if Sears
had surveyed me on product quality satisfaction, some big dogs at the
company would be sitting around saying how great they are. In reality,
I’ll only go back if I need those particular items. Even more important,
if a friend asked me where to get 90 percent of the things you can buy
at Sears, I would recommend an alternate retailer. Other than a few
tools, Sears has very little that can be purchased only at its stores.
So what is the Sears score? Some people would take my 5 (excellent) for
the products and be delighted with that. But what is the real score from
either of these experiences? I have no idea and neither would Sears.
Here’s another survey situation to ponder. I recently received a call
from a research company that wanted to ask me questions about the
service I receive from my insurance agent. As they asked each question,
I shared my honest feelings. They often asked me to give my answer a
score on a scale of 1 to 10 and all of them were low. I have been with
my agent for three years and he has never talked to me. We even have
lunch at the same place sometimes and he has never said hello because I
don’t think he knows who I am.
At the end of the survey, I was asked if I would like my agent to call
me about my scores. I said no, if he hasn’t called me in three years,
why should he call me now? When the survey ended, I laughed. I knew I
would get a call from corporate because they would see from the data
that I’d be off that boat faster than a rat on a sinking ship. It’s been
almost three weeks as I write this column and I’ve had no calls or
letters from corporate or the agent. They know that not only am I
dissatisfied, I’m also not an advocate of the company because of the
agent.
So what was the agent’s score? Who knows, maybe I’m the one person in
his entire book of business that never gets a call. Maybe he is happy
with 50 percent of his clients giving him 5 or higher. After all, that
is much better than the way Americans feel about Congress. Or is it?
Casinos routinely do research on how happy or unhappy their guests are.
But all that hard work is pointless if you are measuring the wrong
thing. If you’re not on the right track, the data is useless as you
apply it to the future.
There’s another lesson in the examples I shared. In addition to doing
the correct research, you also need to have a system in place that will
help you understand the data, use it for improvement and determine the
return on investment. After all, research just gives you a number, a
score. Measuring the right thing is an important first step, but you’ll
make little progress if you stop before you create improvements for your
guests that drive your score ever higher.
Martin R. Baird is author of “Advocate Index™: An Operational Tool”
and chief executive officer of Robinson & Associates, Inc., a customer
service consulting firm for the gaming industry. Robinson & Associates
helps casinos determine their Advocate Index, a number that indicates
the extent to which properties have guests who are willing to be
advocates, and then implements its Advocate Development System to help
casinos create more guest advocates. The Advocate Development System
uses the proven methodology of Advocate Index in combination with best
business practices to chart a course for growth and profitability. More
information about the Advocate Development System and Robinson and
Associates is available at the company’s Web sites at
www.advocatedevelopmentsystem.com and
www.casinocustomerservice.com. A copy of “Advocate Index: An
Operational Tool” may be obtained by calling 206-774-8856. Robinson &
Associates may be reached by phone at 480-991-6420 or by e-mail at
mbaird@casinocustomerservice.com. Based in Annapolis, Maryland, Robinson
& Associates is a member of the Casino Management Association and an
associate member of the National Indian Gaming Association. |