26 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2024 Lottery vending machine (LVM) optimization is a powerful strategy lotteries can use right now to increase player convenience and ensure the most appealing products are available, ultimately driving engagement and play. Parts 1 and 2 in this series explored a gamut of tools and approaches to help lotteries make the most of their LVM networks. As revealed in the following pages, there’s even more happening now in the realm of analytics. “By leveraging IGT’s Lottery Data Cloud, our internal, cloud-based, advanced analytics platform, and augmenting that with the skill of our data scientists and analysts, we have developed some new-to-the-industry tools and services specifically to support LVM optimization,” says Paul Riley, IGT Vice President Retail Innovation and Partnerships. “We’re excited to share a look at what’s available and what’s on the horizon for use by lotteries and retailers.“ Price Point Index: “National Report Card” IGT’s Price Point Index (PPI) can be thought of as a report card on how LVMs are stocked by price point. It aims to provide a national price-point average that lotteries and retailers can use for benchmarking. The Index originated when one U.S. lottery that is a leader in LVM penetration reached out to IGT seeking further ways to optimize its execution. In response, IGT analysts looked for a new key performance indicator (KPI), effectively “another way to measure how vending machines are managed — beyond sales and out-of-stocks — to help lotteries determine if they’re stocking the right price points,” explains Tim Kriger, IGT Manager, Data Analysis. Within a jurisdiction, analysts produce a “snapshot” of the price points stocked in each bin on IGT self-service equipment at a given moment in time — based on data sourced directly from the site — to calculate the average price point per bin (empty bins are excluded). This calculation differs from spaceto-sales, which typically looks at what percentage of sales are coming from the corresponding percentage of facings. “It’s another way to look at the picture, and it can complement space-to-sales analysis,” says Kriger. “The Index can also be useful when a lottery doesn’t have all LOTTO LOTTO LOTTO LOTTO LOTTO LOTTO LOTTO $ , Turning LVMs Into MVPs Part 3 Introducing new analytics tools to support vending optimization – plus, the case for cashless. In Case You Missed It Part 1 in this series explores how data and analysis from IGT’s national Retail Market Insights™ (RMI) database can be applied to drive LVM optimization, and how the company’s new Lottery Data Cloud brings more dimension to data for use by lotteries and retailers. (PGRI May/June 2024) Part 2 dives into optimizing the instant product and portfolio mix with space-tosales analysis, approaches to keeping LVMs full and available, and Walmart’s end-to-end efforts to reduce out-of-stocks. (PGRI July/Aug 2024)
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