30 PUBLIC GAMING INTERNATIONAL • JULY/AUGUST 2024 In fulfilling their mission to generate funds for beneficiaries, lotteries know there is always an opportunity to take a fresh look at strategies to increase player satisfaction and drive sustainable growth. Self-service optimization is immediately actionable for most lotteries and holds enormous potential upside for lotteries, retailers, and players. As discussed in Part 1 of this article (PGRI May/June), data analysis by IGT shows that retail locations with an LVM to complement the sales-counter offering consistently outperform those without an LVM. Based on RMI data for sites that report vending sales, the average weekly lottery sales for retailers with lottery vending is $11,866, versus $7,405 for those without — amounting to more than 60% greater sales. Jurisdictions with fully optimized LVM networks provide roughly one vending machine per 1,000 inhabitants, with a ratio of vending to retail points of sale of about 70%. While the optimal target will vary by state — based, in part, on the trade-style mix — a view across the U.S. lottery market by retailer type reveals the extent of the untapped opportunity to add vending (see orange on graph). Once you’ve made a commitment to offer selfservice, how do you make the most of it? The mix of instant games stocked is critical. “This is why we support our customers by first working to optimize the portfolio and product mix before they add or move machines,” says Nat Worley, IGT Vice President North American Sales Development. Additional points of sale can only perform best when they offer the games players want to buy. And even when the game mix is right, another important piece of the puzzle is ensuring that LVM bins remain properly stocked to avoid player disappointment and, over time, potential disengagement. Optimizingvia Space-to-SalesAnalysis Space-to-sales analysis of instant games by price point helps lotteries maintain a balanced What makes self-service a win for players, and how can effective execution make a difference?
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