Casinos' Lessons in Analytics

Three strong stories are available on the different uses of analytics by casinos.

  • Competing on Analytics - The article was mentioned in MKTG2000 but worth a read for anyone looking for an application of marketing analytics.
  • Foxwoods Is Fighting for Its Life - This article applies gravitational theory of location to argue why casinos are losing customers. Also looks at how casinos attempt to create foot traffic and improve conversion rates. Casinos, however, do not fit our definition of a retailer despite relying on many of the same concepts as a retailer.
  • The Man Who Broke Atlantic City - By understanding how a casino builds foot traffic through promotions and analytics, Don Johnson won $15 million playing blackjack at three Atlantic City casinos.

In these three instances, the casinos are using information to modify their promotion efforts to attract customers. To the broader point, these stories illustrate how a firm uses generates and responds to market intelligence to improve its competitive advantage, and, ultimately achieve superior financial performance.