32 PUBLIC GAMING INTERNATIONAL • JULY/AUGUST 2024 “There are a number of ways you can take action on that data,” says Danielle Davis, IGT Director of Product Management, Retailer Management and Optimization. “One, am I selling the best games within each of my price points? Two, if a lottery is trying to get retailers to follow a planogram, sales reps can look at the data to see if a retailer is out of compliance, and the suggestions from the tool can guide them to planogram compliance. A third way you can use it is to support bin expansion. For example, if $X games have fewer facings, yet their overall sales are strong — showing they can support more bins — you could increase those facings. Or you could do a simple swap in/out with another price point.” The Space-to-Sales screen in Sales Wizard graphically presents analysis of each retailer’s instant game mix and recommendations to optimize (see figure). It also shows the sales per facing by price point, as well as the overall average sales per facing for each retailer. This information has been successfully used by lotteries to help their retailers efficiently rightsize their display by optimizing their pricepoint mix and increasing their ticket facings. Minimizing Out of Stocks (OOS) Keeping all LVM bins full directly correlates with optimal sales by providing game choices to players. A successful method for boosting self-service sales by addressing empty LVM bins was implemented in recent years by IGT Indiana, responsible for Hoosier Lottery marketing and sales support. The approach measures success through the Full and Available percentage (F&A%) metric, where 0% is ideal for OOS, 100% is the target for F&A. To achieve this, IGT Indiana implemented a series of strategic initiatives: • Integrating self-service revenue as a fundamental pillar across the organization, while also incentivizing the sales team and retailers based on F&A% performance; • Leveraging an IGT terminal tool that alerted retailers when LVMs had OOS bins; • Prioritizing field-service support for LVM repairs and developing advanced reporting tools for better insights. Leveraging network connectivity, it obtained near-realtime data on machine performance and enhanced LVM features to provide retailers with actionable inventory information. • Targeting high-volume retail locations for support; • Collaborating closely with sales reps and analytics teams to optimize LVM placement and maximize capital investment. The efforts collectively resulted in significant improvements in self-service sales and operational efficiency for IGT Indiana and the Hoosier Lottery. Since IGT Indiana began tracking self-service data in FY14, its total selfservice scratch-offs sales has tripled, jumping from $74m to $222m in FY23, with self-service growing on a consistent basis every year. In FY16, self-service machines had an F&A% of 90.6%, which equated to more than $10m in potential sales lost to empty bins. FromFY16 to FY23, the average yearly Full andAvailable percentage has risen to a record 97.4%. For more on how lotteries are using leadingedge data and analytics for LVMoptimization, see Part 1 of this article inPGRIMay/June. For detail on two jurisdictions where lotteries have spent years perfecting the art of keeping LVMbins full, read a case study at: igt.com/products-and-services/ lottery/case-studies. To learn more about how IGT teams and tools can assist with LVM optimization, contact your IGT representative.
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