First, let’s be clear: this article will not address Internet gambling; there has been enough written on it and there is surely more to come. What will be talked about are other uses for the Internet and the gaming industry. Most casinos and gaming corporations have Web sites that provide general information about their properties, entertainment schedules, hotel rooms, dining, and retail. Some Web sites even provide free gaming (no cash awards) and contests to win prizes. But we are just scratching the tip of the iceberg with what we can learn and provide via the Internet.

MARKETING

There are two types of marketing on the Internet, “push” and “pull.” The “push” is when things are delivered to you. For example, receiving an e-mail with a room offer from a casino. The “pull” for example, is when you are visiting a Web site about golf courses and there is a banner advertisement for a casino with a golf course, and it tells you to click for more information, which actually takes you directly to the casino’s Web site. Another example of “push” technology is advertising on some news service screen savers that also have links to Web sites.

YOU’VE GOT MAIL

Many casino databases are starting to capture e-mail addresses from their patrons via profile applications patrons complete while on site or while visiting the casino’s Web site. However, very few casinos are executing extensive marketing campaigns via e-mail. There are some distinct advantages to be had here, but it requires some technology and marketing strategy.

The cost and time savings alone are considerable motivators to use e-mail more often. Think about reaching thousands of customers at a fraction of your direct mail costs. Also, because e-mail is almost instant — but only as fast as a customer checks his or her e-mail — think about how you could use e-mail to fill last minute room vacancies or tournament spots.

However, to be successful you still need a marketing system that will identify the customers that are appropriate to invite and likely to receive and react to the e-mail.

YOUR WEB SITE

Casino Web sites can be viewed in various generation phases. The first generation was very basic information with little or no interaction with the customer. The second generation (where we are now) is allowing customers to make room reservations, buy logo items on-line, and request additional information. The third generation is to allow look-up and review of comp points, redemption for rooms, sign-up for tournaments, and select entertainment tickets.

Imagine a Web site that allows customers to enter their player club card number and a PIN code and then gain access to their account. What they perceive as access, however, is actually marketing by the casino. The casino can evaluate the customer’s profit/loss profile — taking into account the actual value of the customer to the property — and determine which promotions to offer the customer — and how many of each. For example, one customer may be invited to five tournaments, but can only choose one.

While other customers may be invited to the same five, but can choose three. The same goes for any promotion, including rooms, dining, special events, parties, or entertainment. And think of the cost savings of a reduced marketing staff and better customer service.

Here is something else to think about: What if casinos started to negotiate deals with major manufactures to offer gifts and prizes such as electronics, household items, CDs, or books for comp points?

YOUR AD HERE

The next step is to understand what Web sites your Internet savvy customers visit most often and put your advertisement (Web link) on that Web site. There are many ways to gather this information, such as gateways and portals (for instance, Yahoo!, Alta Vista, Metacrawler). Just like advertising in the real world, advertising in the virtual world has become very creative, expensive, and competitive.

E-COMMERCE

The next revolution of the business world in gaming will probably come via the Internet and that will probably be marketing related. However, there is a major movement on the supply chain side that just might be first. Using the Internet to purchase items from business-to-business will certainly change the way the gaming industry (and the world at large) does business. There are already Web sites that allow casinos to bid for supplies, and companies that provide Web-based purchasing applications.

In this scenario, the purchasing requisitions will come directly from the department, be compiled briefly for bulk purchase discounts, and delivered all without the interaction of the purchasing director. This is a big step and a big role change for the purchasing director. Instead of approving individual purchase orders, the director will approve suppliers and perhaps big-ticket items over a certain dollar amount.

We are certainly at the beginning of this new era, but rest assured, it will be upon us quickly. The people that create Web-based content amusingly refer to Web years being measured in days. Think about how your own personal use of e-mail and the Internet has changed. And if you don’t have e-mail or surf the Web, you are one of about three people still waiting for access.