20 PUBLIC GAMING INTERNATIONAL • JULY/AUGUST 2022 Swapping, Not Stopping Guest expert Owain Service, CEO of CogCo, joined Nedunuri on stage to interpret the players’ words through the lens of behavioral science. In his professional work, Service has studied what motivates people to do everything from paying their taxes on time to getting vaccinated during the pandemic. He explained how people respond to challenging circumstances, and how this affects their choices and decision making. Service noted that behavioral scientists who’ve studied lottery game designs have found that while people’s focus tends to be drawn more to the size of a prize than a complex cost/benefit analysis of the payout, it is smaller, more regular rewards that sustain player engagement over time. “But what’s especially compelling about lotteries, from a psychological perspective, is the variability of the reward. Humans find these rewards, delivered apparently at random, much more compelling than rewards that get unlocked at regular, pre-set intervals.” This was reinforced in the Vox Pop interviews as players talked about why instant games “are like surprises,” and how they “really like unexpected bonuses.” Behavioral scientists are deeply interested in human routines. When pandemic-related restrictions were introduced, they studied how daily routines were interrupted, and are doing so again now that those restrictions are tapering off. “What’s interesting is that when routines get disrupted, we often end up developing new practices,” said Service. “We start buying our shopping online for the first time, for example. And we find that people are much more willing to try new things when these disruptive moments change our existing practices.” Service believes the same tendency will apply in these current, changeable times. “One thing that I think previous recessions have taught us is that people will still be seeking out little treats during economic downturns. But behavioral science teaches us that most people think about choices in relative, not absolute terms. A Nespresso pod, for example, is an expensive way to make coffee relative to a bag of ground coffee. But it’s really cheap compared to going to a big-name coffee shop.” He emphasized that when consumers are thinking about whether to buy a lottery ticket or card, it’s not just a calculation about the absolute cost of that ticket, be it $1 or $10. It’s about what kind of value they derive relative to alternatives. As one of the players in the Vox Pop interviews expressed, this didn’t mean stopping play of instant games. It just meant switching to one that the player felt was relatively more affordable. Across the board, the insights from Players Project Live are potentially encouraging for the industry as lotteries navigate the current economic climate. Q Given these findings, what opportunities present themselves to lotteries to attract, engage, and retain players? A companion article by IGT’s Srini Nedunuri in this issue of PGRI looks at how lotteries can give players the entertainment value they seek today, as well as the characteristics of a high-engagement game portfolio to win players’ attention. To check out IGT’s iLottery Showcase, visit: igtilottery.com Joining IGT’s Players Project Live! event at EL Industry Days was Owain Service, CEO of the company CogCo (at left, on stage with Srini Nedunuri, IGT Vice President Global iLottery). Service specializes in the application of behavioral science research. An Honorary Professor of Behavioral Science at Warwick University in the UK, he also co-founded the UK Government’s Nudge Unit, which applies behavioral science to a wide range of public policy areas. KEY TAKEAWAYS • Since the beginning of the pandemic, consumers have increasingly wanted to reward themselves in small ways, even when larger expenditures must be curtailed • Consumers continue to engage in light entertainment such as lottery to get a break from their daily routine, treat themselves, and bring fun and optimism to their day • They look forward to easy, “bite-sized” forms of fun that fit into their budget • Players may swap to a lower-priced game as an alternative, but they’ll do that rather than stop playing lottery games • Players want entertainment and value for their money via interesting games with fun features and bonus play, which make them feel like they have gotten some kind of win each time they play
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