Casinos missing Internet marketing chances

David Strow

Wednesday, Oct. 17, 2001 | 9:27 a.m.

When it comes to the marketing potential of the Internet, Saverio Scheri III believes only a few casino companies truly "get it."

Harrah's Entertainment Inc. is one, he said. Station Casinos Inc. is another.

And that's about it, Scheri said.

"Several years ago, I thought we would have made more progress by now than we have," Scheri, managing director of Whitesand Consulting of West Atlantic City, N.J., said. "I think that's an opportunity for every casino out there. We need to get this to the point where this becomes another channel for our marketing."

Scheri spoke Tuesday at the opening day of the World Gaming Congress and Expo, which will run through Friday at the Sands Expo and Convention Center.

Many websites, often operated by smaller independent casinos, don't even come close to offering customers the information they need about the casino.

"I've been on some websites where I can't even find out what entertainment they offer," Scheri said.

Major casino companies have made progress on their websites, Scheri said, and most offer a good supply of information, as well as the ability to get rate quotes and reserve hotel rooms over the Internet.

But the true potential of the website in casino marketing lies in more than allowing guests to book hotel rooms through the Internet, Scheri believes.

The true potential of the Internet for a casino, he said, lies in making the website a personalized information source for every visitor by using the data casinos keep on each customer. On Harrah's and Station's sites, for example, players can check the point balances on their cards and promotions they qualify for. Mandalay Bay's website is moving in this direction, Scheri said, by creating a website experience personalized to every visitor.

"Without the web, one-on-one marketing is extremely costly and very difficult to do," Scheri said. "You need to give (customers) an experience that is very personalized, tailored to their personal activity."

So why haven't more companies done this yet?

"People just don't get it, and therefore they don't allocate enough budget toward it," Scheri said. "(But) if you look at the cost of a call center ... clearly, volume to volume, you can see the price savings can be enormous."

There is risk to offering such personalized services on the Internet, Scheri noted. The biggest risk is security -- the risk of hackers, identity theft and fraud.

"There are going to be times when people try to take advantage of these offers," Scheri said. "We'll be challenged more than ever (with Internet security) so our customers will feel comfortable using our websites."

Casino websites should also offer more services to customers, Scheri believes. Rather than just offering customers the ability to book hotel rooms, offer customers the ability to make restaurant and show reservations as well. Rather than simply offering customers a rundown of your own show, give them information on activities going on around town.

"Why not let them know what's happening in town? They're going to find out anyway," Scheri said.

By offering "one-stop shopping" on the Internet, "you will start building brand loyalty," Scheri said. "Once you start building that loyalty, it will be that much harder for your competitors to erode your market share."

Several companies, particularly MGM MIRAGE, are making progress in establishing themselves on the Internet in another way -- the world of Internet gambling. While not legal in Nevada yet, the Nevada Gaming Commission has been authorized by the state legislature to legalize and regulate Internet casinos at its discretion.

By offering a comprehensive "for-fun" Internet gaming site, MGM MIRAGE is positioning itself to capture Internet gambling business from an entirely new market -- its current visitors, who before wouldn't have dreamed of gambling over the Internet.

"What this is doing is getting customers used to playing casino games on the Internet," Scheri said. "Once the business moves forward, they're ready to go."