41 PUBLIC GAMING INTERNATIONAL • JANUARY/FEBRUARY 2023 MOVING THE NEEDLE NOW: Maximizing short-term results continued from page 30 IGT). Together, the NJ Lottery and Northstar have created initiatives with both short- and long-term impacts. “Long term, we’re changing game structures which we think will make a difference,” he said. “The two biggest changes are with our in-state jackpot game – Pick Six, where we doubled the price and added a double play option. Our Numbers games – Pick Three and Pick Four – are moving from parimutuel to fixed prizes in November. These are all long-term initiatives. In the near term, we have engaged our Lottery Sales Representatives to distribute game coupons at more than 3,000 locations. We can follow how many of those coupons are used and the result of those purchases. These are easy-to-implement programs and I believe that this personal touch between the LSRs and retailers will have an immediate effect on sales. The retailers, who already have an economic incentive to promote lottery, can pass along offers to their customers and help further drive sales.” Of course, game changes aren’t the only methods for impacting short-term results. How lottery products are marketed to players has a direct result on activity at retail and on how players understand games and promotions. Front and center in this area is Carmanah Signs. “Making lottery more visible to consumers is a critical component of the sales process,” said Maxwell Goldstein. “As lotteries search for new sales locations, such as in-lane, the need to engage and educate customers becomes even more important. Clear messaging delivered through the latest digital signage technology is the most effective way to reach players. Technology has also allowed us to tell stories in much more engaging ways. Gone are the days of static images and infrequently updated content. Now we can pull information directly from an API, programmatically updating jackpot values, game information, winner information, and adding new games instantly. Different digital displays can be placed at different locations throughout retail, with content targeted for specific points in the player journey. The impact of these changes is real and measurable.” In Texas, Gary Grief has overseen an incredible increase in scratch ticket sales, starting even before the pandemic. Despite a limited advertising budget, he and his team have been able to break sales records each year over the past decade. “Managing your scratch ticket portfolio is the most efficient path to driving short-term revenue, year over year,” he said. “We focus the majority of our ad dollars on our big money makers and that’s our scratch ticket families. Our annual plan is to launch at least two families of tickets each fiscal year and the results speak for themselves. That is where we ‘make our living’ in Texas. We blanket the state with promotional billboards and use our social media platforms to spread the word on these tickets..” As important as it is to drive results in the short term, it is also critical for lotteries to make plans for the future. “With so many scratch tickets being planned and delivered to retail, it’s easy for lotteries to get distracted,” Ryan said. “Lotteries need to also plan for the lean times and the best time for that is when sales are strong. How we split that focus is a critical decision. Investing in the future should be a measured planning process that is taking all parts of the business into account.” Maxwell Goldstein said that staffing issues are a key factor driving the need for technology that provides players with automated lottery product information. “With the majority of lottery sales taking place at convenience stores, and those stores having some of the highest employee turnover in the retail industry, lotteries face both a challenge and an opportunity in how they reach their players,” he said. “Carmanah’s solution is to help lotteries build a digital communication platform at retail, delivering targeted content using technology such as Digital Menu Boards, Digital PlayStations, and small footprint displays at the point-of-sale. This enables lotteries to attract and engage all levels of players – from lapsed or light players to core players. Technology replaces the need to ask a clerk for information while also speeding up the checkout.” "Traditional retailers are picking up the pace of technology adoption, and there is a need to keep lottery products on a level playing field with other impulse purchases,” says Goldstein. “Advanced digital experiences assist retailers in serving their customers and are particularly beneficial for lottery.” In conjunction with their constant work on scratch tickets, the Texas Lottery is undertaking several initiatives that will strengthen the business into the future. “In-lane sales and our API project are two examples of programs which, when implemented, will strengthen the lottery for years to come,” Gary said. “But make no mistake, these projects take time and effort which can be in short supply when you’re dealing with the day-to-day workings of a lottery. As leaders, we have to determine the proper balance for our employees’ time. Everyone has a point of view on what is best – from the lottery to the retailers to the third-party vendors. Long-term plans that involve the retailer community can be difficult because many vendors are hesitant to invest resources into something that won’t show revenue right away. We try and convince them that this is an investment into the future of their business and will result in sustained revenue increases for many years to come.” Jim used the example of the horse racing industry, which has suffered attendance and wagering declines since he worked at a New Jersey track in the 1980s, to show why long-term planning is critical and why the lottery industry needs to avoid sitting on its laurels. “Our industry – and gaming overall – can change quickly and we must always be planning for the future,” he said. “For the lottery, this means taking steps into online sales and the new Jersey Lottery will start with draw games. We’ll work with our retailers to make sure their concerns are heard but it is important that we start having an online presence. If we want to survive as an industry we have to remain relevant which means building a digital presence like most other consumer products. Start the planning today so you’re not caught by surprise in five or ten years.” Pollard spends much time working with customers on programs which expand the player base. Brad said there are several ways to do this. “We ask our lottery customers, ‘how can you remain relevant to the younger players, what do you need to offer to stay top of mind to consumers?’” he said. “Not everyone can sell online but most lotteries can offer robust players clubs. Look at lotteries like Texas which constantly provides exciting promotions with its tickets. Now you have hundreds of thousands of engaged players in a data base and you can contact them with information that promotes sales. You can also improve at-retail sales by using technology to make the purchasing process seamless for all levels of players, particularly new players. Today’s customers want to find their product, pay and leave the store quickly when they are shopping. Let’s make
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