The instant scratch games offered by state lottery organizations have long been popular choices among lottery enthusiasts. These games attract a diverse audience, from casual players seeking quick thrills to loyalists who regularly indulge in the excitement of scratching off potential winnings. To better understand and cater to this varied player base, the Andrew Resie team conducted a comprehensive study to optimize future spending and enhance customer satisfaction.
This blog examines the study's findings, focusing on the different customer personas that engage with instant scratch games, their preferences and spending habits, and the key factors that drive their continued engagement. By examining these insights, we can provide a clearer picture of what keeps customers coming back and how brands can tailor their offerings to meet their customers' evolving needs and desires.
The primary objective of the study was to conduct a choice-based conjoint analysis to examine prize outcomes and ticket price levels ($5, $10, $20, and $30). By understanding player preferences, consumption habits, and sentiment, the goal was to uncover what players like about the prizes, what they would change, and what motivates them to keep purchasing tickets.
The survey, conducted from February 28 to March 15, reached 40,000 players and resulted in 328 completed responses and 643 partial completions. The key findings and recommendations are intended to help the state lottery organization optimize its product offerings and improve customer experience.
Focus groups play a crucial role in gathering qualitative insights into player behaviors and preferences. These groups revealed that players want to feel that every ticket provides value, suggesting the implementation of a loyalty program that gives each ticket some future value. Notably, more than 60 percent of players reinvest their winnings into new tickets, indicating a strong loyalty to the games.
Key insights from the focus groups include:
Understanding consumer personas is a pivotal aspect of market research because it helps organizations tailor their products and marketing strategies to meet the specific needs and preferences of different segments of their audience. In the context of the state lottery organization, several distinct player personas were identified based on ticket purchasing behavior, demographics, and preferences.
Frequent players are the backbone of the lottery's customer base. They participate in instant games at least once a week and are highly engaged with the product. These players are split between those who prefer quick games and those who enjoy more complex, time-consuming games. Frequent players tend to reinvest their winnings into new tickets, demonstrating a cyclical pattern of play and reward. Additionally, many frequent players participate in second-chance promotions, which suggests that they are motivated by the possibility of winning additional prizes.
Infrequent players engage with instant games less regularly. They might buy tickets occasionally or when prompted by specific triggers, such as advertisements or seeing someone else win. This group is more susceptible to external influences and may not have a strong loyalty to the lottery games. Strategies to convert these infrequent players into more regular participants include targeted marketing campaigns and promotions that highlight the fun and excitement of playing and the tangible benefits of winning.
Players who prefer $5 tickets are typically driven by the entertainment value of the games rather than the size of the top prize. These players often favor games that offer a second chance and provide longer gameplay, which adds to their overall experience. The preference for longer games indicates a desire for prolonged engagement and entertainment. Marketing strategies for this group should emphasize the fun, leisurely aspect of the games and the added value of second-chance opportunities.
$10 players show a preference for traditional game types like Wild Time and Number Match. They are regular participants, often engaging with the games at least once a week. This group favors quick and easy games that do not require a significant time investment. Despite their preference for simplicity, $10 players are also highly engaged with second-chance promotions. Marketing efforts for this segment should focus on the ease and convenience of playing while also highlighting the potential for additional rewards through second-chance draws.
Players in the $20 category typically have higher income levels and show the highest loyalty among all player segments. Many of them play weekly and reinvest their winnings into new tickets. They prioritize the odds of winning and the top prize over the entertainment value of the game. This group is looking for a good return on their investment and is motivated by the potential for significant winnings. Marketing strategies should emphasize the favorable odds and substantial-top prizes associated with $20 tickets.
$30 players are less likely to participate in second-chance promotions, focusing instead on the odds of winning and the number of prizes remaining. They are less frequent players but tend to spend more per ticket. This group is typically more strategic in their approach, often checking online for the best-remaining chances to win. Marketing for this segment should highlight the premium nature of $30 tickets, the high odds of winning, and the large prize amounts.
Younger players are value-driven and seek games that provide more chances to win. They prefer long, leisurely games and are highly engaged with second-chance opportunities. This demographic is essential for the long-term sustainability of the lottery, as they represent the future customer base. Marketing efforts should focus on creating engaging, interactive experiences that appeal to younger audiences, highlighting the value and entertainment of the games.
The insights from this study provide a roadmap for optimizing the state lottery organization's instant scratch games. By understanding player preferences and behaviors, the organization can implement strategies that enhance player satisfaction and loyalty. Recommendations include promoting winners more often, increasing the availability of second-chance promotions, and tailoring game offerings to meet the diverse needs of different player personas.
Ultimately, the study highlights the importance of continuous engagement and feedback from customers to ensure that brand offerings remain appealing and relevant. By addressing customer preferences and improving the overall customer experience, companies can build a more loyal and satisfied customer base.
Additionally, detailed consumer personas allow organizations to create more targeted marketing strategies, design better product features, and ultimately increase consumer engagement and satisfaction. Focusing on understanding the distinct needs and motivations of different segments ensures that brands can offer a more personalized experience.
Interested in learning about how customer personas work and how much they can impact an organization’s future? Our team recently used in-depth persona work to differentiate a more than 100-year-old footwear client. Learn more about our work with customer personas by reading this footwear customer persona case study here.