Predict Your Casinos Growth,Profitability With Advocate Index
Many casinos conduct research to determine if they are on the right track for future growth but they dont realize they are using the wrong approach. If they think customer satisfaction and customer loyalty surveys will give them the data they need, they are wrong!
Today, I am introducing new methodology that will give casinos critical information for predicting growth and profitability the Advocate Index.
Research shows there is no correlation between customer satisfaction and future performance of any business. Even measuring customer loyalty is not good enough. Casinos need to know the degree to which they have guests who are willing to be advocates and Advocate Index, a management tool for predicting future growth, gives them that number. All they need is this one powerful number to chart their course for success.
Heres how I explain guest advocates: An advocate is someone who is willing to risk their reputation on a casinos behalf. If they are willing to be an advocate for a casino, they can be counted on to play at the casino again and frequently. That boosts profits and higher profits generate growth. Through a very simple survey, we can tell a casino the degree to which is has guests who are advocates. That is the casinos Net Advocate Index score. The higher the score the better because Advocate Index is a statistically proven method for predicting future growth.
Once casinos have their score, additional work likely will be needed to improve it. Most casinos will be shocked at how low their score is. Studies show that world-class companies have a score of 75 to 80 percent while the mean score for companies that do not use this methodology is 11 percent. Employees play a critical role in bringing the score up because they deliver the quality service that helps turn guests into advocates.
Through analysis of the data and implementation of our employee training programs, we can help a casino create more guest advocates and raise its score. The beauty of Advocate Index is that it is easy to implement and communicate internally. Management and employees simply focus on raising the score ever higher. They only need to know one number. That is about as simple as you can get!
Advocate Index is new to gaming but not to other industries. Companies such as Dell, Intuit, Enterprise Rent-A-car, Symantec and Harley Davidson use methodology similar to Advocate Index to chart their future growth and they are leaders in their industries. This methodology has been written up in Harvard Business Review and is the result of 10 years of research of more than 4,000 customers in 14 industries.
Advocate Index is completely new to gaming. It has never been done before. But if gaming executives want to improve their casinos and move them forward, they must look outside their own industry for fresh answers.
Gaming executives tend to be jaded. They look only within gaming for solutions because they believe theyve seen it all and done it all. But I was heartened by response to a presentation I gave on Advocate Index at the recent Global Gaming Expo in
Las Vegas. After my presentation, I was swamped by members of the audience. They were keenly interested and wanted to know more. Advocate Index struck a nerve. I honestly believe this methodology will revolutionize gaming.
For more information, visit our Advocate Index Web site at www.advocateindex.com. A white paper on Advocate Index may be obtained by calling 206-774-8856.
Martin R. Baird
Robinson & Associates, Inc.