14 PUBLIC GAMING INTERNATIONAL • MAY/JUNE 2024 Data-driven customer management is the future of national lottery companies Zsófia Bánhegyi, Chief Commercial Officer Szerencejáték Zrt., Hungary www.szerencsejatek.hu National lottery companies face numerous challenges due to rapid changes in industry trends and shifts in the market environment. The acceleration of digitization has led to altered player pathways, also endangering the sustainable growth of retail networks with a shift towards digital sales. The gaming preferences of the young adult generation are changing, favoring fast and exclusive gaming experiences. Similar to other industries, customer experience and personalized service take precedence, requiring significant development for lottery companies with millions of players. With the rapid spread of artificial intelligence and predictive marketing, the sector also needs to keep pace by formulating an appropriate corporate strategy. According to Accenture’s Personalization Pulse Check, 91% of consumers are more likely to shop with brands who recognize, remember, and provide relevant offers and recommendations. Similar global processes influence the future of the Hungarian National Lottery company as well. The 34-year-old Szerencsejáték Zrt. has achieved an average compound annual turnover growth rate (CAGR) of 15% over the past 12 years and currently demonstrates over 30% YoY growth due to robust digital expansion. The company boasts Hungary's largest sales network, comprising 7,500 points of sale, visited by 5 million unique players annually, with 1.3 million digital players on its online platforms. Besides draw-based and instant games, its broad portfolio includes significant segments of sports betting and virtual betting. However, sustainable growth is influenced by numerous factors that the Hungarian National Lottery must address in the long term within its commercial operations: • The Hungarian online sports betting market opened on January 1, 2023, ending the company’s monopoly position in this segment and intensifying competition. • A retail renaissance is observed post-Covid, with players returning to land-based networks. • Despite millions visiting lottery shops annually, the company lacked data on these players, rendering them an anonymous mass for decades. • A significant amount of Hungarian players now engage in omnichannel play, switching channels throughout their gaming journey, expecting a seamless customer experience at every touchpoint. Market dynamics and technological trends necessitate significant changes in Szerencsejáték Zrt.'s operations, requiring a substantial transformation of its commercial and marketing approaches and toolsets to maintain competitiveness. One of the most significant steps in this transformation was the launch of a four-year program in 2023, named the Optimus Program. Its primary goal is to enhance customer experience, profitability, and customer retention among identified players, utilizing data-driven tools in a partially competitive market. The name Optimus Program was chosen to signify the development of a robust, AI-driven system that reformulates the company's approach and develops the tools of modern integrated customer management. Continued on page 24
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