Advanced Visit Analysis The Recency Frequency Quartal
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1 Advanced Visit Analysis EIGHTH EDITION A VIZEXPLORER WHITE PAPER By Andrew Cardno and Mukesh Gordhan
2 Advanced Visit Analysis A V I Z E X P L O R E R W H I T E P A P E R See all your patrons in one picture. See how often they visit. See which patrons are overdue for a visit. See the value of all patrons, including those that are overdue for a visit. See hundreds of thousands of related data points. Identify meaningful relationships and gain new insights; in as little as a few minutes to comprehend. FREQUENCY High MTBT (Patrons who visit less often) Ranked by Mean Time Between Trips (MTBT) (Split by Theo Win) Low MTBT (Patrons who visit more often) Heatmap shown is: Customer count Low Number of Trips Owed RECENCY Ranked by Trips Owed (Split by Theo Win) High Number of Trips Owed 0. Top left: On Time Infrequent Players - Patrons who visit infrequently and have a low number of trips owed. 1. Top right: Overdue Infrequent Players - Patrons who visit infrequently and have high number of trips owed (i.e., have not been in for a while). 2. Bottom left: On Time Regular Players - Patrons who visit often and have a low number of trips owed. 3. Bottom right: Overdue Regular Players - Patrons who visit often and have a high number of trips owed (i.e., have not been in for a while). Figure 1 -. Introduction Today s business environment drives an unprecedented need to understand, analyze, and take action on ever-increasing mountains of business data. In response, VizExplorer has created Super Graphics, which represent a new generation of Business Intelligence (BI) tools for strategic, operational, and analytical users of business data. The VizExplorer Super Graphics data visualization toolset enables users to understand and take action on their data in a new way. ContentS page Introduction...2 Advanced Visit Analysis...2 Recency Frequency Quartal Super Graphic...3 Other Functionality with Advanced Visit Analysis...6 Key Points Summary...7 Users can see a multitude of data points simultaneously to understand patterns, identify meaningful relationships, and gain new insights which were not previously possible. The paper describes how the VizExplorer Recency Frequency Quartal Super Graphic can be used for Advanced Visit Analysis (AVA), (Figure 1). This approach represents a completely new way of analyzing patron behavior and identifying opportunities to generate additional revenue and profits. Advanced Visit Analysis A key driver of casino revenue is the number of patron visits and their spend per visit (or spend per trip). What is particularly useful is to know how often a patron visits. This then lets you identify those patrons who visit more often, and those patrons who visit less often. Similarly, it is also useful to identify those patrons who are overdue for a trip based on their past visit behavior. Knowing which patrons are overdue allows special marketing offers to be made to those patrons to encourage their return. 2
3 Advanced Visit Analysis A V I Z E X P L O R E R W H I T E P A P E R The numbers shown on the Recency Frequency Quartal Super Graphic for example are: Quadrant 1 Trips Owed 5 Mean Time Between Trips 38 Theo Win $28.607m Customer Count 130,902 In this example, this quandrant represents 130,902 Patrons who spent a total of $28.607m, visit on average every 38 days but owe us 5 trips (i.e., they have not been in for over 190 days (38 MTBT x 5 trips owed) ,607,115 77, ,606,563 24, ,607, , ,607,130 24,536 Heatmap shown is: Customer count Figure 2 - with Business Performance Drivers. Recency Frequency Quartal Super Graphic The power of the Quartal Super Graphic allows a casino operator to see his/her customers essentially in one single picture (Figure 2). The Quartal Super Graphic allows hundreds of thousands of related data points (frequency, recency, theo win, etc.) to be visually depicted, allowing a casino operator to quickly uncover improvement opportunities nuggets and gems in their data, which would otherwise not be obvious. In terms of the Recency Frequency Quartal Super Graphic, (Figure 1) all patrons who played in a given period are allocated across the Quartal. On the vertical axis (y-axis), patrons are ranked by their mean time between trips (MTBT), such that those patrons who play more frequently (i.e., visit more often) are grouped at the bottom of the y-axis and those patrons who play the least frequently (i.e., visit less often) are grouped at the top of the y-axis. On the horizontal axis (x-axis), patrons are then sorted by whether they are overdue a trip or not, based on their last trip date. If the days since their last trip is less than their MTBT, then the patrons are not overdue a trip. If the days since their last trip is greater than their MTBT, then the patrons are overdue a trip. A patron can be overdue a multiple number of trips. For example, if a patrons MTBT is 7 (i.e., they visit every 7 days, and the patron has not been in for 22 days, then this patron owes three trips on day 7, day 14 and day 21). In Figure 2, the Recency Frequency Quartal has been divided into four quadrants. The Quartal Super Graphic allows the user to continue to divide the number of patrons down to a very low level of 1,024 cells. Therefore, a casino s patrons can be easily divided into anywhere from 4 clusters to 1,024 clusters based on their recencyfrequency behavior. This drill-down process is shown in Figure 3, (next page). The importance of this approach is that it allows a casino operator to drill-down and cluster patrons into meaningful buckets that can be actioned to generate more revenue and profit. This process of selecting buckets of patrons and then running a special marketing program to them is shown diagrammatically in Figure 2, (next page). In Figure 2, the heatmap shown is customer count. The hot or red areas signify a higher customer count whereas the cold or blue areas signify a lower customer count. The Business Performance Drivers shown in (Figure 2) are: Trips Owed Mean Time Between Trips (MTBT) Theo Win Customer Count By multiplying the MTBT by the number of trips owed, the number of days that the patron is overdue can be calculated. 3
4 Advanced Visit Analysis Level 0-1 cell Level 1-4 cells Level 2-16 cells Level 3-64 cells Level cells The drill-down process reveals smaller and smaller clusters of customers. A VIZEXPLORER WHITE PAPER Level 5-1,024 cells Each quadrant of the Quartal Super Graphic can be sub-divided into successively smaller quarters, and so on, such that each successive quartering distributes the third variable (i.e., theo win in Figure 2) evenly across the quartal segments. Figure 3 The Layers within the Receny Frequency Quartal allow users to zoom up and down the data. Figure 4 Users can select a specific customer group (cluster) that is overdue and then send a special promotion to that group to encourage them to return to the casino. 4
5 Advanced Visit Analysis A V I Z E X P L O R E R W H I T E P A P E R Figure 5 The vizexplorer User Interface provides an extremely rich user interactive experience. The Quartal algorithm (which is used to create the Quartal Super Graphic) ranks customers by two variables (x,y). In Figure 2 (page 3), it was noted that this could be frequency (y) and recency (x). However, users can change the variables used in the Quartal Super Graphic. This ability to change what is displayed on the x and y axis of the Quartal picture, along with being able to change the heatmap, makes the Quartal Super Graphic a powerful and intuitive customer segmentation, selection and analytical tool. Each quadrant of the Quartal Super Graphic can be sub-divided into successively smaller quarters, and so on, such that each successive quartering distributes the third variable (i.e., theo win in Figure 2 evenly across the quartal segments. The total theo win represented in Figure 2 is $114.4 million. By dividing this into quarters as per Figure 2, the theo win per each quarter (as customers are allocated based on getting an approximate even allocation of theo win), is approximately $28.6 million per quarter. If we divide this by another quarter, then the amount per subquadrant is a further one quarter (see example in Figure 5), and so on. Figure 5 shows a selection of components from the extremely rich user interface of the vizexplorer system. The items shown in Figure 5 include the data grid, the hover and the tree map. Providing this form of combination of the Quartal Super Graphic, the underlying data and the tree map, significantly enhances the user experience and enables the user to get the maximum value from the vizexplorer toolset. Multiplying the MTBT by the number of trips owed provides the total number of days that the patron is overdue. We are very impressed with gameviz s state-of-the-art technology as it provides us the means to really dig deeper and more easily understand what is happening on the gaming floor and with our customers. That all helps drive revenue, profitability and better service our customers. Gregg Solomon, CEO, MotorCity Casino Hotel 5
6 Advanced Visit Analysis A VIZEXPLORER WHITE PAPER Other Functionality with Advanced Visit Analysis When related data is displayed in VizExplorer s Super Graphics, new discoveries are possible by turning the data into actionable information. Super Graphics allow the brain to discover meaningful relationships that may be used to prioritize a business plan and actualize objectives. In addition to the Recency Frequency Quartal Super Graphic, users can analyze their data in a number of ways, including the following highly-innovative, user friendly and interactive ways. Data Grid View the underlying hard numbers that make up the Super Graphic. 6 Pivot Table Target List Manager View the data in graphical chart form (bar charts, line charts, etc.). Create and view a list of data relating to specific data points within the Super Graphic (e.g., a list of customers).
7 Advanced Visit Analysis A V I Z E X P L O R E R W H I T E P A P E R Statistics View statistical values associated with the Super Graphic data. Hierarchical Super Graphic The Hierarchical Super Graphic (a hierarchy-based Tree Map ) uses size and color to show relative value of the chosen metrics being displayed. Its drill-down capability allows users to deeply explore key patterns and areas of interest in the data. Key Points Summary The VizExplorer Recency Frequency Quartal Super Graphic can be used for Advanced Visit Analysis (AVA). This approach represents a completely new way of analyzing patron behavior and identifying opportunities to generate additional revenue and profits. Super Graphic allows all patrons to be viewed in one single picture, whilst identifying the frequency of each patron (how often they visit) and their recency, how long ago did they visit compared to when they were supposed to visit (i.e., which patrons are overdue ). By identifying overdue patrons, these patrons can be selected for a special marketing campaign with the objective of encouraging them to return to the casino. 7
8 2015 Jan v 7.2 This document contains proprietary information and may not be used, reproduced or disclosed without explicit written permission from VizExplorer. This document may also describe current and proposed product features intended to be released depending on development and market demands. Accordingly, the end product may not contain all product features shown in this document. VizExplorer, vizmaker and other VizExplorer company, product or service names are trademarks of VizExplorer. Other brand and product names are trademarks of their respective companies. VizExplorer comprises WME BI, LLC and its subsidiaries. Private & Confidential. Copyright 2015 NEW BIS SAFE LUXCO S.Á.R.L. All Rights Reserved. For more information, please contact us: Web: sales@vizexplorer.com Phone: Americas (U.S. Toll Free) Americas (International) Asia Pacific +64 (0)
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