Determining the odds...

Several years ago, at a major gaming conference, a panel of research professionals delivered a presentation on the results of their nationwide gaming survey.  Their survey revealed that 50% of gaming patrons did not care to participate in frequent player programs and found them to be without value. During the ensuring Q & A, one of the participants asked the panel why casinos were investing so much in frequent player programs when half of the players didn't care about them. The response? "We don't know why; we wondered the same thing."

Unfortunately, the information provided by the research professionals was misleading because they didn't examine the data thoroughly enough. In actuality, the revenue generated by the two halves - the 50% that cares about frequent player programs and the 50% that doesn't - is not equal in value. In most casinos a mere 20% of the customer  base accounts for 80% of the revenue. This demonstrates the danger marketers face if they don't probe the data deeply enough. Unfortunately, on that day many of the attendees departed the workshop with some inaccurate information.