Public Gaming November/December 2020

33 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2020 Global analytics and trends agency, the Foresight Factory, IGT’s longtime re- search partner (see sidebar), has found that many of the retail and consumer trends impacting lottery prior to the pandemic remain highly relevant. And some familiar ones − such as the move to a “convenience culture” and a cash- less society − have rapidly accelerated with corresponding health and hygiene concerns related to COVID-19. The following findings from Foresight Factory research point the way to strate- gies that lottery operators can use to harness consumer preferences and help ensure sustainable performance and transfers in the coming years. The Rise of Presence- Free Living Pre-pandemic, the concept of “Pres- ence-Free Living” was already trend- ing upward, along with the growing acknowledgement that in a connected world, a physical presence is no longer necessary or desired for many transac- tions and experiences. Consumers have become more aware of the associated costs of in-person experiences, whether in time, energy, money, or environmen- tal considerations. And the widespread encouragement to socially distance and find alternatives has only boosted this trend. The Continuing Shift to Online Shopping Unsurprisingly, weekly online shop- ping has doubled in the U.S. and the U.K. since the start of the pandemic, including a dramatic increase in online shopping for the 65+ age group. The Foresight Factory found that the shift within this age group went from 19% pre-pandemic to 49% post-pandemic, highlighting the impact of the coronavi- rus on the behaviors of those who were reluctant converts to the digital age. When the pandemic recedes, these figures may drop slightly, however, The Foresight Factory expects the overall trend towards more online shopping to continue. Favoring the In-Store Experience Despite of the rising trends noted above, the research also shows that many U.S. and U.K. consumers continue to prefer the in-store experience to shopping online. Approximately 50% of consum- ers surveyed in these markets say that, post-pandemic, they will shop in store the same amount as before. And, in the U.S., close to 30% say they will do it more than before. This is good news for the lottery industry, which can take advantage of multiple opportunities to improve the player experience at retail. A Surge in New Activities The crisis has also produced a surge of new activities, with 75% of consumers surveyed stating that they have tried a new shopping behavior. A full 36% of those surveyed by Foresight Fac- tory reported trying a new brand since the start of the pandemic, calling into question the concept of brand loyalty, and 73% of these respondents say they intend to continue incorporating new brands in the future. The beneficia- ries of this shift include big, “trusted” brands that are seeing 50% growth during the crisis — including major digital and brick-and-mortar retailers. Many lotteries operate in monopoly or pseudo-monopoly markets, but brand loyalty is important if lottery players switch away from the retail brands where they currently buy lottery. Trends like these give the industry an opportunity to leapfrog on the path to modernization and initiate the changes that are most relevant to consumers now. What’s more, lotteries are moving forward from a position of strength: In North America, many lotteries expe- rienced record-breaking sales and transfers to good causes in early 2020, a trend that is continuing through the latter half of the year. This is an amaz- ing accomplishment in the middle of a pandemic and a testament to the resil- ience of lottery, the strength of lotteries’ operations, and their hard work and partnership efforts with vendors. Along with substantial investments in global player studies and new product-category research, IGT works with a range of independent research firms. IGT’s longstanding partnership with the consumer analytics and trends agency Foresight Factory provides access to: • Multiple data sources to understand consumers worldwide • Insights drawn from data collected from 50,000 consumers in 27 markets • A team o f 500 trend spotters in 80 markets to analyze and add local perspectives • A process of innovation- scanning to uncover disruptive and best-in class examples across technology, products, services, branding, and other communications • Social media analysis to measure the volume, key topics, and tone of emerging themes This established partnership with Foresight Factory allows IGT to provide lotteries with more research-based consumer insights and devise tactics and solutions to help customers address industry challenges. Foresight Informs Future Growth