driving handle - the formula

8/13/2019 Driving Handle - The Formula

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Joe ScurtoDriving HandleThe FormulaStrategies for getting people to the track and to the windows

very general manager and mar-keting director at every racetrackacross North America seems to be

looking for a hidden code or silver bul-let that will consistently increase on-trackhandle.

Not every venue has a brand-new fa-cility to promote, or top stakes racing tofeature, so 90 percent of the racetrackexecutives out there are constantly onthe lookout for the elusive formula for

increasing on-track handle.Most marketing departments

spend countless hours coming up withcreative promotions, and even moretime staging them. Some are winners,some are not, but even with a number

of winning promotions, overall handlejust doesnt advance.

The problem doesnt lie in whether thepromotion was good or bad, but ratherin the fact that the objectives are notclearly defined. There is a specific strate-gic formula that can deliver results, but ithas to be executed properly.

Lets begin by reinforcing our objective:

increase on-track handle. I have repeatedthis because it is the first question thatmust be asked when outlining any mar-keting initiative. Increasing on-track han-dle can be reached by focusing on twodistinct elements: Increase the number ofpeople wagering and increase the amount

wagered per person (per capita).Seems simple, right? If there are

more customers wagering at the race-

track than the year before, and eachof the customers is wagering morethan the year before, on-track handlewill increase. The challenge isnt withstrategy; it is whether the programsdevised will deliver as planned.

Remember, it is eight to 10times more expensive tocultivatea new customerthan to keep a current one.

60 HOOF BEATS FEBRUARY 2014

PHOTO COURTESY OF THE AUTHOR

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Increasing the number of people wa-gering at the racetrack can be accom-plished in two powerful ways: Increasecurrent customer visitation frequency

and create new customers.So much time is spent working to ac-

quire new customers, it is often forgottenthat tracks can increase handle by in-creasing current customer visits. One im-portant ingredient to increasing currentcustomer visits is to make sure customersarent lost. There will always be a certainattrition number, but there must be adedicated effort to keeping attrition low.Remember, it is eight to 10 times moreexpensive to cultivate a new customerthan to keep a current one.

There is really no excuse to lose a40-year-old customer. It is racetrackmanagements job to create marketingprograms that inspire customers to re-turn and come back more often. It is im-portant to communicate and involve the

operations department to buy into thenotion that customer experience is a

joint responsibility.Creating new customers is a given and

part of the formula, but it is often over-emphasized to the detriment of other ini-tiatives. Everyone understands it is, andwill continue to be, difficult and costly

to attract new customers in todays com-petitive gaming and entertainment arena.

Though important, it is one, and onlyone, of the strategies when looking to in-crease on-track handle.

The next ingredient is to begin to put a plan

together to increase the actual dollars

HOOF BEATS FEBRUARY 2014 61

Increase

on-track handle

Customerfrequency

Newcustomers Churn

Timeat venue

Wageringopportunities

The Authors Strategic Formula for Increasing 0n-track Handle

Increase

customervolume

Increase

per capitawagering

2014

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Yearling Nomination Payment ........... $100



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62 HOOF BEATS FEBRUARY 2014

on-track customers wager. This is oftenreferred to as per capita in the racingworld, or total ring in the food andbeverage world. The goal is to take a cus-tomer who wagered $100 a night and gethim to wager $120. If we did that witheveryone, we would have a 20-percentincrease in handle with just this strategyalone.

This objective can be tackled withthree strategies: Offer more wagering op-portunities, increase churn, and increasetime spent at the venue.

By offering more wagering opportuni-ties, we are putting more products on theshelf. There is a reason that Wal-Mart isnow offering groceries and why Amazonprofesses to want to sell everything to ev-erybody.

Increasing churn will also increasehandle. This is the number of times ahorseplayer puts their starting bankroll

through the windows. If I walk in with$100 and place one win bet on the firstrace and lose, my total handle was $100.If I win $50 on that first race and bet$100 back to win on the second race,my total handle was $200 and I still have$50 in my pocket. Churn can have a bigimpact on handle, and few marketingpeople even explore this strategy.

Finally, tracks need to develop pro-grams that increase the time your cus-tomers spend at their venue. Casinooperators understand the value of timeon machine or time on floor better thanany other group of marketers. Racetrackmarketers need to incorporate plans onhow to keep customers at their venue forthe maximum amount of time.

These strategies are not complex, butit is important that everything trackscreate can be tied back to each of thesestrategies. Before spending dollars onadvertising or promotions, tracks shouldalways ask if the investment will eitherincrease the number of people wagering

or increase the amount each customerwagers. Its never too late to formulatesuccess.

JOE SCURTOis president of Horseshoe

Marketing, a marketing agency located in

Naperville, Ill. y The views contained in this

column are that of the author alone, and do

not necessarily represent the opinions or

views of the United States Trotting Associa-

tion. y To comment on this story, e-mail us at

[email protected] .

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driving handle - the formula

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