This article begins in the '60s.
John Romero
was the sales promotion manager for the Sahara Hotel, "The Strip", Las Vegas,
Nevada. I was doing direct mail and sales promotion projects for the Riviera Hotel - a
short walk away.
After a while
my business trips to Las Vegas became regular, ...up in the morning - back in the evening.
On one of these tours to the "first" gambling city in America, I met John. Some
where, some time, at some event long ago forgotten - we met.
Yet, we never
worked together. I was totally unsuccessful in selling John anything. Except friendship.
We became business friendly, and have stayed that way 3+ decades later. At best we see
each other once a year - usually at some Direct Marketing event.
Recently a
publishing client asked my help in getting introduced to the gaming industry. Casinos.
John was my first thought. Why? 'Cause John Romero is THE premier direct mail copywriter
in the gambling industry in America. No one can hold a candle to John's accomplishments.
Much happened
to make this a fact. One is John is still in great physical shape. He was a
marathon and long distance runner. As a promotion for the Sahara, he began a relay race
from Las Vegas to Los Angeles...a 300 mile run. Of course he participated in his own
event, and got introduced to southern California. He liked it.
Once he became
tired of living in Las Vegas and decided to move to that part of California known as
"the southland", he went looking for something to do. That "something"
was - and is! - using his casino marketing knowledge and background and selling it to
casinos around the globe.
Thus, John Romero Direct Marketing was
born.
For the last
dozen years plus John has been marketing columnist for International Gaming &
Wagering Business Magazine. Something casinos everywhere read.
This writing
began a collection of articles. Which turned into a book...Casino Marketing (in
the United States you can order his book by calling toll-free 1-800-223-9638. Worldwide,
reach John by e-mail at RomeroMkt@aol.com.
John is
modest. It is sometimes difficult to get to know him. He doesn't talk about himself. He
DOES talk about his clients. Let me share with you a story he shared with me about one of
his Reno, Nevada clients:
"One of my clients has a problem and I went to Reno. Such a
terrific guy I couldn't let him down. Reno is an ultra-tough market these days. You really
have to roll around in the dirt with the competition to make a buck.
"My pal there has been a client for years and, thanks to building
his database, he's holding his own. He owns a nice chuck of a second casino that's in real
trouble because they went in the opposite direction -- poured a ton of money into
general advertising and got nothing back.
"Now he's been asked to step in and run BOTH casinos because they
think he's a marketing genius."
There are 2
messages here: The first is John "loves" his clients. He always speaks well of
his clients. And second, John really believes in Direct. His dig at general advertising is
obvious.
The name of
the author of Acres of Diamonds escapes me - the concept does not. In fact,
Database Marketing is the same topic. They both talk about using the knowledge you have
about your customers and prospects, and gaining more business.
The Tropicana
Hotel in Las Vegas is a long time John Romero client. They have a Database...thanks to
John. Here is a letter from a customer of the Tropicana, sent to the General Manager of
the hotel:
"My husband and I have been making trips to Las Vegas, 2-4
times a year, for the past 12 years. We have stayed in many of the major hotels, some
several times. None has ever followed up our stay with a "thank-you", an
invitation to come back, nor information on upcoming events as the Tropicana has done
these past few months."
Well, it doesn't take a marketing genius to
see the value in continuing communication with your customers. Hotels, casinos...all of
us...will benefit when we "talk" with our customers.
While on
hotels, let me insert a question / thought. In much of Europe, Asia and South America,
hotels ask their guests, as they check-in, for their birthday. Part of the registration
process includes a question about "date of birth".
My
international travels began in 1972. I have been in 159 countries on 7 continents. Many
countries many times. There are years I spend more nights in hotel beds than my own in
Roll, Arizona. I have been asked the birthday question scores of times.
Yet, I have NEVER received
a birthday card or other "wish"
from a single hotel.
Not one.
Sometimes when
I'm feeling "mean" (usually late at night, checking in after a loooong flight) I
ask reception why they ask the birthday question. The answer is always 1 of 2: It's
policy," or "I don't know," which is the same answer!
John works
closely with his casino clients so they DO something with the knowledge they gain about
their customers.
Another Romero story comes from a client who
started their conversation with "Gotta have new business". The response was
"What's wrong with old business?". As John says, "You'd be amazed how many
carefully laid plans I've screwed up with that innocent question".
Finding
"new business" from "old business" is what this is all about. Most
call these "old" inactives. John says; "Name it anything you like but
remember this -- it's the best "new business" you can find, and it's right there
in your own files, waiting."
This
philosophy created Romero's 7 Rules for Repositioning and Reactivation. Since I
believe these same rules apply to every business, not just casinos, here they are:
Put somebody in charge. Someone must believe - and be
responsible.
Yes, management must make a
commitment. Belief starts at the top. Yet, without a "hands-on do-it day-by-day"
person in charge, reposition and reactivate programs tend to die. Put somebody from
marketing in charge.
Track for effectiveness. That is, measure results.
Advertising gets attention.
Frequently advertising is only vaguely measurable. Direct Marketing is very
measurable. You need to keep careful records on inactive response rates, number of real
visits or buys, amount of spend, credit lines reopened.
And...John
recommends...motivate the executive in charge of the program, too. Base on measurable
objectives and bottom-line results.
Don't give up without a fight. Don't apologize for anything.
Every product is not blue
ribbon - Olympic gold. And every customer does not need (or want) "the best".
Many customers own a Rolex and a Timex. A Toyota and a Bentley. They eat at McDonalds and
a 5 star dinner house.
So, no matter your product or
service, it's condition or age or price point - you do bring benefits to the marketplace.
"Talk" with your audience. Invite them to return to you. Give them a reason.
Make a solid offer that stands the test.
Don't send an advertisement. Make your message personal.
Direct Mail is the best way to
communicate with your customers - current and old. A letter is personal. So, skip the urge
to pat yourself on the back with all the good "stuff". Like you might do in
print or television.
Instead, invite your inactives
to become active again. Let them know how you are going to take care of them 1:1.
With special service, an unlisted toll-free number for them alone, unique events or dates
or times or places. If it takes a brochure to do that - fine. Still, your "news"
must be personal to gain the most from your inactives.
Give 'em a tour. When the old return, welcome them
"home".
Don't just make an offer and
let it hang. When the old customer returns, issue a true and real welcome back.
A personal greeting. If you're
a casino or a retailer, a "tour" could be in order. A hotel might include a room
"surprise" gift of flowers or chocolates. A dress shop might double the offer
with an expenditure of X amount.
Afterwards, a
"thanks" and follow-up. Thanks for coming...a follow-up to make sure all was
well. And, of course, a second offer to continue the habit of YOU!
Put a deadline on your offer. Limited time offers work - use a L.T.O.
when talking with your inactives.
Open invitations give no
urgency. This is equally true for new business promotions to anyone!
Active customers, inactives, new and old customers.
So, limit your return
offer...your "come-back". The window can be a couple of weeks or a couple of
months. Depends on you, your product, your marketplace. Be certain to give the inactive
time to accept your offer.
Test before you commit big money. Be in a hurry...a hurry to do
it right!
No business has too much
business. Some just have too much business on Tuesday. Or the last week of the month. Or
the first quarter of the year. Or during a specific holiday season. Yet, every
business needs more business.
At the same time - any new
business effort will not necessarily perform to the max immediately. Or with a single try.
Repetition will build your reputation.
Your inactives are NOT waiting
for you. You may have to work them. Take your time and do it right. Then...roll your
successful offer to everyone.
These are John Romero's 7 Rules for
Repositioning and Reactivation. With my spin. Use these ideas for your next
"new" business campaign.
Ray Jutkins
International Professional Speaker
Marketing Consultant
Well known for his ...
"Spend a Day with Ray" seminars
Telephone: +1+928+785-9400
Facsimile: +1+810+815-2520
E-Mail: Ray@RayJutkins.com
Website: http://rayjutkins.com
Snail-Mail:
ROCKINGHAM*JUTKINS*marketing
Rockingham Ranch
Roll, Arizona 85347-7066 U.S.A.