As the amusement industry grows so does the choice available to consumers, meaning operators have to keep on their toes in order to attract new players and keep existing ones playing. Helen Fletcher looks at the factors that are important when it comes to loyalty and the initiatives available to operators to make sure they get a slice of the disposable income pie

WHEN it comes to the operation of amusement and gaming machines, staying in business is all about customer loyalty. “Everything we do is built around keeping our customers for a very long time,” said Chris Cotty of US operator Family Fun Centers. “There is an old saying in business - anyone can get a customer once, the trick is getting them to comeback again and again."

Recent research, carried out on behalf of UK operator Gamestec, has also revealed that player loyalty is extremely important to the gaming industry as 63 per cent of non or lapsed players said they were not interested in trying out a machine - in short, once a player has stopped they are extremely unlikely to take it up again.

One of the most off-putting factors appeared to be that the 70 per cent of lapsed or nonplayers surveyed saw fruit or quiz machines as gambling. However, at the same time, these attitudes were confused as although only 13 per cent of respondents said they had gambled in the last month, 55 per cent said they had bought a lottery ticket.

According to the research, which surveyed 4,500 adults in the UK, lapsed players offer a more fruitful market than non-players as 49 per cent of lapsed players of both fruit and quiz machines said they would play again in the coming year.

Occasional fruit machine players are, apparently, more likely to go to restaurants than frequent players, suggesting there could be a market in the UK and other countries for placing machines in restaurants like in the US.

Enticing idea

There are a number of initiatives that operators can introduce to try and entice the player back, such as tournaments and reward programmes, but there are also a number of other factors that can affect whether a customer returns to a location or not.

“Repeat business is very important to us,” said Cory Haynes of US operator Dave and Buster’s. “Most of our players are always looking for the next opportunity to redeem in our Winner’s Circle and therefore tend to come in frequently. We do try to bring in new customers as well though by offering a meal and Power Card deal.”

According to Haynes, when it comes to amusements the mix of games an operator chooses to fill their location with is critical. “If you don’t have variety, you don’t have something to offer everyone in the group when it comes time to make a decision on where to go when groups of friends and families decide to go out,” he said.

The importance of repeat business is reiterated by Gary Walker of New Zealand based operator Coin Cascade, who said: “Existing customers account for upwards of 75 per cent of our business. If we didn’t keep our existing customers, we would have no business at all.

“Saying that, if we didn’t continually market to new customers we wouldn’t have a business either. Our main focus is to bring new customers to our centres then give them entertainment which they perceive as value for money."

And according to Adrian Ah-Chin-Kow of Gamestec, there are a number of factors that can discourage gamers from using machines and these need to be addressed.

“At Gamestec we have produced a list of top tips for maximising revenue to help the pub industry make the most of its gaming machines,” he said. “This is because it’s not just a case of plugging a gaming machine in and waiting for it to generate revenue."

In the same way as the mix of machines in a location has an influence on the player’s loyalty, so can the game content in a machine, as Ah-Chin-Kow explained: “Enjoyment and the challenge have been identified as the main reasons for playing quiz machines. The research showed that the majority of quiz machine players are aged between 20-30 and have a higher than average interest in computer games, sport and the internet. Therefore, we are ensuring that well-known developers come on board to produce the kind of games that this generation enjoy. The future video game will look as slick as an Xbox and offer the same quality gaming experience."

So the right mix and the quality of games is a key factor when it comes to attracting players time and time again - but what else can influence repeat visits?

“Operators need to make sure the game is working correctly so the players’ first experience is a good one,” said John Farrington of UK distributor Cosmic Video. “Then they need to make the display and environment appealing - don’t think you can just plug and play.”

Chris Black, of jukebox manufacturer, Sound Leisure, adds to this, saying: “Any machine is a shop front for the operator; it needs updating, keeping clean and operational and probably most importantly put in the correct position. It is amazing how many pubs I go into and see machines stuck around the corner where no one can see them. Or I will go to a site with an operator who tells me how pleased he is with his eight-year-old digital box - that is still one of their best taking machines. This should be moved down the line and the new machines that have all the latest features should be in the top sites."

With jukeboxes the biggest draw to users is to have the very latest music available for selection. Millions of tracks can be added to a machine but 90 per cent of all plays are from the current charts.

First impressions count

However, it is not just down to where the machine or game is sited in a location that can have an affect on customer loyalty to it. The initial appeal of a game has a lot to do with the look of the game - its design - its cabinet.

Games Warehouse’s Nick Hardy told InterGame: “We have introduced seven terminal designs in five years and are convinced that this policy of refreshment has been a major component in our success. The cabinet is the first thing visitors to a location see - before a screener a game itself - so presenting them witheye-catching designs and updating these designs regularly makes perfect sense.

“However, players are loyal to games, not machines,” Hardy continued. “Research has long since proven that they can’t recall the names of manufacturers or even cabinet brands - their recollection is for games only.

“Operators and even retailers have loyalty to machines and manufacturers but this is for business related reasons such as product reliability, service and pricing."

From a manufacturer’s point of view, operator loyalty is in some respect almost, if not just as, important as player loyalty. As Marco Borettaz of pool table manufacturer Roberto Sport explained: “Loyalty is related to the strength of the materials and the quality of the components used,” he said. “Reliability is also fundamental - we have products around, which were sold almost 30years ago that we keep on servicing, supplying spare parts for and maintain.”

But it is not only gaming machines that have to appeal to the eye, as any amusement game manufacturer will know. “The look of a cabinet absolutely has an effect on the appeal of the game,” said Caryn Mical of US video game manufacturer Global VR. “It has to look fresh, look fun and clearly communicate to each player what the game’s benefits are and has to be something that a player can only enjoy in an out-of-home location. If they can do it at home, why would they pay to do it somewhere else?"

Once the look of a game has captured the initial attention of a player, it is the game content that will really decide whether they become a loyal player or not.

“A game has to be compelling in its design and features and it’s those elements that form the basis of conception through to delivery of a game to encourage repeat play,” said Andrew Ludlow of Games Media. “High performing games are based around popular formats that have been cleverly designed to ensure end user familiarity and enjoyment that ultimately result in the games’ longevity in the market.

Entertainment is key

TAB Austria is another manufacturer that knows all too well how important it is to keep the players interested, but for this company, it is more about keeping the player loyal to the machine rather than the game and since 2002 the company has released new games every month.

"At TAB entertainment is the keyword - it attracts players and keeps them in the locations longer,” said Dietmar Straubinger of TAB. “After six to eight weeks a game becomesold. By releasing new games each month we ensure that customers will continue to play the terminals.

“Innovative product design and game concepts arouse a great deal of interest in the whole gaming market,” continued Straubinger. “To establish a well running product line you have to consider the demands of the market and through a groundbreaking product you are able to open up new markets that were not considered in the amusement scene before.”

There are, however, a number of features or incentives that both manufacturers and operators are beginning to incorporate into the machines to further encourage player loyalty and repeat business.

From a manufacturing point of view, products like jukeboxes provide the ideal cabinet to house additional features, as Black explained: “We are currently adding features to the machines such as ‘What’s On’, allowing the site manager to run calendar on the touchscreen of the machine. We have found that once the clientele know that the forthcoming events on site will be continuously displayed on the jukebox screen they will constantly visit to view this; obviously once they are there they can view the latest tracks on the machine and pay to play them.”

JayBox is another manufacturer that has seen the potential in digital jukeboxes for additional features and dual usability. The JayBox jukebox has a number of features designed to develop customer loyalty, most obviously is the personal playlist, which players can access with any magnetic strip swipe card and which is accessed and updated every time they log in.

“We also have a ‘Request’ button on thescreen which allows customers to type inthe name of a track and artist which theycannot find in our repertoire of over 60,000tracks,” said Richard Elsy of JayBox. “As they return to play over the next couple of weeks they can check the new list of music to see if their request has been included in the 200+ weekly updates.

“In addition to this, we have incorporated a bingo programme on the screen -designed to stimulate increased footfall on quiet nights. We will also soon be able to offer branded bingo tickets for this feature as well.” Machine features aside the most common types of loyalty programmes that both manufacturers and operators tend to introduce are specific reward schemes and tournaments.

Tournaments prove popular

According to Cotty, tournaments have been the salvation of his business. “They build customer loyalty and a strong brand identification,” he said. “We have been running tournaments for over 15 years -billiards, video games, dancing games and pinball every week. “Each tournament has its own group of attendees and keeps interest in the location every night of the week. We also have weekend long events such as the very popular ECC (East Coast Champions) tournament.

"This fighting game tournament attracts players from all over the world - at times as many as 400. It has run for 11years now and takes place over three days. We have several of these major events a year and it creates quite a bit of advertising on the web in the chat rooms, forums and blogs.”

Manufacturers can also encourage operators to hold these sort of tournaments by making it easier for them to set up and incorporate a tournament option in the machine itself. Incredible Technologies is one manufacturer that has had a phenomenal amount of success with its tournament/competition related products and Golden Tee Live is one game in particular that has a long history of tournament play.

“Player loyalty is an important factor,” said Gary Colabuono of Incredible Technologies. “But using cash as an incentive is also near the top of the list.” When asked why he thinks tournaments result in such loyalty from the players, Colabuono said: “The opportunity to leverage your skill and be rewarded for it is important to competitors. Golden Tee is a game of skill and hundreds of thousands of players during the past 12+ years have invested thousands of dollars and hours learning to play at a high level.

“Without a cash incentive,” he continued. “Many of these players would not have made the commitment in time and money to achieve that level of proficiency. Of course the operators and their locations have been prime beneficiaries of all that play.”

Funworld, based in Austria, probably has one of the most successful online tournaments in Europe, which has created a very loyal following for the Photo Play branded terminals.

“Tournaments and the accompanying qualifications and championships are an effective instrument for creating player loyalty,” said Josef Öhlinger of Funworld. “In Photo Play Masters players can match themselves with one another. The coherent league ranking system characterises individual performances correspondingly. By climbing or dropping in the ranking list players are encouraged to continue playing; they are thereby repeatedly challenged and made loyal in the long-term.

“Player loyalty programmes such as tournaments are enormously important for the future of the coin-op industry,” Öhlinger continued. “As the individual machines and games are increasingly becoming more and more of similar quality and less differentiated from one another - it means all types of loyalty programmes are essential for them to stand out from competitors.”

The importance of tournament is reiterated by the operators, which, if not already running them, are keen to get involved - Gamestec being one of them. The operator currently holds SWP gaming tournaments, which have proved to boost profits with the retailers who implement them, suggesting that when competition is introduced alongside stakes, repeat play also goes up.

The tournaments are facilitated by a remote connection on each machine that sends data about the top scorers on that particular terminal to a database where the national leader board is compiled.

“We will soon be offering real time tournaments and are confident that the adrenalin rush of live competition will make these tournaments even more popular,” said Ah-Chin-Kow. “We are also considering running group tournaments and pub versus pub tournaments following feedback from the recent trial. Given that the research we commissioned suggests gamers are, on the whole, sociable people, these types of tournaments are likely to prove popular.”

One area of the amusement sector that has particularly reaped the benefits of tournaments is the electronic darts sector. According to Diana Marketing, in Spain, tournaments and championships have been essential to the sector and will continue to be in the future.

“The purchase of one or more of our machines enables entry into our worldwide network of league and championship play,” said Marisol Rodriguez. “This has been running and continuing to grow for the past20 years and is looked upon as essential to our business.”

When asked how operators can use darts to encourage loyalty to their locations, Rodriguez told InterGame: “They need to develop the social side - a good evening out and several hours of entertainment playing darts at a reasonable cost or expenditure. This coupled with the enjoyment of competitive interaction makes the player satisfied and ensures loyalty.”

Reward your players

So, what about the reward schemes - how do they fare when it comes to attracting repeat customer visits? For Walker, the implementation of the Embed PowerCard system seven years ago has really enabled the company to target and keep customers coming back.

“The Powercard system operates on a cashless basis where customers load their cards at the POS before using the value on their cards to swipe and play a game,” he said. “Using preset accumulated spending values we can ensure regular and high spending customers get better pricing, free games, free credit on their cards and entry to exclusive Powercard events.

“We also find the newer dedicated arcade ‘memory card’ games are attracting return customers on a regular basis due to the repeat nature of the memory cards - enticing the players to improve their ratings and retaining game play history,” Walker continued.

This idea of using memory cards is one that video game manufacturer Global VR has taken on board in the form of Plus Points, which are awarded to Team Challenge players who complete ‘worldtour’ or play in certain game modes on the EA Sports PGA Tour Golf video machine.

According to Mical, Plus Points accumulate in a player’s account and can be redeemed online for gift certificates that are good for purchase of products at hundreds of online retailers.

The coin-op amusement and gaming sector has, for some time now, been battling against the home entertainment sector for both the consumer’s hard earned cash and time. If the sector is to win back some of these customers, both operators and manufacturers need to work together to ensure the player’s experience is more inviting and embracing.

“The general public’s disposable income is being squeezed as much as it has been for at least a decade and the signs are that it may get worse,” said Hardy. “The marketplace is fiercely competitive and we are competing against so many things -from bookmakers to Blockbusters or takeaway food to tennis club membership.”

Although there are some in the industry who would like to think they see and understand what the future holds, for Mical, in reality it is anyone’s guess. “There are, and have been, loyalty programmes and tournaments for many years,” she said. “Great products have been designed, developed and manufactured. But creating a unique entertainment experience that is exclusive to out-of-home locations is very difficult.

“Operators are reluctant to buy new products thereby limiting the revenue potential for coin-op,” Mical continued. “This affects all parties but mostly the manufacturers as the number of new games developed and ultimately purchased and installed is far fewer than in years past. If this industry is going to survive and ultimately prosper we need to invest in ourselves by supporting all manufacturers and their development efforts. Think about how to make coin-op the successful industry it once was - innovation, risk and an astute business mind.”

So could player loyalty schemes such as tournaments and point schemes provide a helping hand in keeping the future customers coming back time and time again? Well for Ludlow there is no doubt that they will have an effect in securing repeat play from core players as well as the transition of new players into more occasional players.

“They will no doubt form part of the future for the coin-op industry in one shape or form but they are not the be all and end all,” he said. “Machine players are changing, it’s not just a core player anymore, operators need to understand this and target their offer accordingly to appeal to all types of player and secure repeat play.”