Is the world trying to tell us something? More specifically, is the world trying to tell casino employees and middle managers something?
 
It seems to me a number of things are coming together to get the attention of those who toil day in and day out at casinos.
 
In my column last November, I shared the results of a survey that showed that casino guests place a high degree of importance on receiving quality customer service while they play. They rate service higher in importance than golf courses, boxing, adult revue shows and child-care facilities. In my December column, I congratulated casino employees because their hard work had been validated by a Wall Street Journal article and an IBM white paper. The Journal reports that the public now prefers good service over low prices, and IBM research notes that innovative companies know they must build customers who are advocates for the company.
 
Now there is more news that clearly points out the need for exceptional casino guest service. In January, the New Jersey Casino Control Commission announced that, for the first time, Atlantic City casinos failed to increase their annual revenue. The commission reported that revenue from Atlantic City properties was down 5.7 percent in 2007. For nearly 30 years, these casinos consistently increased year-over-year revenue in the face of such challenges as economic slowdowns, inflation, expansion of gaming nationwide and the 9/11 terrorist attacks not that far away.
 
The final bit of news is something that I certainly don’t expect you to be aware of, but I’m bringing it to your attention. The week of Jan. 14, CNBC’s “Mad Money” host and stock market guru, Jim Cramer, blasted the gaming industry. The next week, he did it again, saying he was turning his back on gaming. Cramer should have caught casinos’ attention Jan. 24 when he said he has sold his shares in IGT, the world’s leading manufacturer of gaming machines. Cramer’s comments about gaming were blunt. Here’s what he said: “The wind is out of the sails on this gaming business. There are too many casinos. Macau is trading down. I think we have reached the outer limits of the gaming business and I am not going to endorse any of that group any more.”
 
Cramer used to be a big fan of gaming stocks, often suggesting strong “buy” recommendations for reasons that ranged from expanding markets to great management teams to properties in key gaming locations. Alas, no more. Regardless of what you may think of Cramer (some people think he’s a stock jockey amped up on caffeine and ego while others think he’s a guiding light for investing success), he said what he said and it’s out there.
 
I’m sensing a confluence of events that is important to casino employees and their managers. We have research and news articles that give a significant degree of credence to the importance of quality customer service, we have a major casino market that’s struggling (and Atlantic City isn’t the only gaming market that’s softening), and we have a high-profile observer of the stock market who says people should dump their investments in gaming companies because gaming is overbuilt.
Now don’t get me wrong. I don’t believe the gaming world is going up in flames. But I do believe that competition among casinos is more fierce than ever. I don’t know if Cramer is correct when he says there too many casinos, but there sure are a lot of them all over the globe with more under construction and on the verge of opening. Logic should tell you that competition is brutal and that it will stay that way.
 
Listen to what the experts are saying. When it comes to competing, customer service is important. But there’s more to it than that in gaming. From this moment on, every casino must look for an edge over its competitors. Casinos can no longer afford to give guest service and guest relations second-class status. Having stellar customer relationships is absolutely imperative.
 
The happy news is that casinos can do something about this. It’s within their power to provide service at a high level of competency. They also can take IBM’s recommendations to heart and turn guests into advocates.
 
It all comes down to employees and middle managers and the commitment they make to service. The world is delivering you a message, people. Within that message is a challenge. You have the answer.

Martin R. Baird is chief executive officer of Robinson & Associates, Inc., a customer service consulting firm that helps casinos worldwide determine their Advocate Index, a number that indicates the extent to which properties have guests who are willing to be advocates, and then implements its Advocate Development System to create more guest advocates and generate future growth and profitability. Robinson & Associates may be reached at mbaird@casinocustomerservice.com or 480-991-6420. The company Web sites are www.advocatedevelopmentsystem.com and www.casinocustomerservice.com.