CPG Sponsored Tickets Will Attract New Players & Create Loyalty With Existing Players
Art Kiuttu, SVP Lottery & Gaming Solutions at Lazlo326, has worked in the lottery industry for over three decades. He has never seen a solution like Lazlo 326 that bridges the gap between lottery, retail and player and integrates consumer package goods (CPGs) into lottery purchases. His interview with La Fleur’s Magazine follows below:
La Fleur’s: What does Lazlo 326 do?
Art Kiuttu: From a technical perspective, Lazlo technology converts and encrypts any picture, video or audio file into a highly secure transferable and claimable instrument. In other words, we create a world where consumers can use their mobile phone, that is always with them, to buy lottery tickets at the register or in-lane and allows players to store their tickets and coupons on their phone the way they do photos, airline tickets and shopping lists. Imagine the opportunities from delivering a lottery ticket or coupon with a branded video embedded. What’s really exciting is tickets are delivered anonymously (meaning the consumers do not need to register) which is really important in the lottery space
La Fleur’s: How does the Lazlo 326 solution simplify the lottery purchase?
Art Kiuttu: The lottery purchase process is identical to the process followed to purchase goods on PC and mobile phones now. Players can select the game(s) they want to play before visiting the retailer. When the games selections are complete, they games are moved into the player’s shopping cart. Once at the retailer, the player selects ‘checkout’ and the phone generates a single barcode for the retailer to scan. When the retailer scans the barcode through their POS, the lottery purchase is included on the player’s total purchase, and the digital ticket(s) are automatically downloaded to the player’s mobile device. Unlike other apps, players do not have to register or provide personal and financial information to play because Lazlo communicates directly with the players’ phone’s unique identifier.
La Fleur’s: How does it help retailers?
Art Kiuttu: Retailers benefit because Lazlo builds on their existing digital and loyalty offerings and retailers receive full reimbursement for product coupons that are featured. We can also integrate into retailer POS systems and integrate directly into the lottery’s gaming system providing a true single-scan transaction for retailers. Now, lottery can be treated just like any other product in their stores.
La Fleur’s: Will it help lotteries grow player frequency, revenue and repeat play?
Art Kiuttu: For decades, lotteries have provided promotions to incent consumers to play. But once the incentives end, players go back to their regular purchase habits. Lazlo has partnered with CPG companies that provide products you find in all convenience and grocery stores. For the first time ever, we have enabled lotteries, retailers and consumers to cross market their respective products, together. For example, CPG-sponsored lottery tickets can provide free products, discounts or valuable coupons for products consumers select. When the player completes their lottery purchase, they receive a product offer that can be equal to the ticket price. Retailers are incented to ‘ask for the sale’ because they not only receive the sales commission for the lottery sale, but also receive full retail reimbursement for the products provided to the player. Lotteries win because they now have a vehicle to attract new players, reward players who currently play, and to generate repeat play—all at no cost to the lottery!
La Fleur’s: Do you think what makes the Lazlo 326 solution unique is in how it rewards players?
Art Kiuttu: Never before has the lottery offered a consumer program that rewards players for playing, every time they play. Reward programs are very flexible, and lotteries can customize rewards to drive sales for higher profit products, help introduce new products, introduce products that are designed for younger audiences, offer rewards when players purchase higher priced tickets or when multiple game purchases are bundled.
La Fleur’s: How can CPGs be brought into the equation as a new partner for lotteries and their technology solution with Lazlo?
Art Kiuttu: One of the tremendous values Lazlo 326 brings to the lottery is access to promotional and advertising dollars. In our discussions with our CPG partners, they have told us that for years they have tried to cross-promote with lotteries but have not had the right platform—until now. Additionally, many CPG partners develop exceptional video content for their customers’ entertainment that Lazlo 326 can bring to life by embedding winning numbers and allow players to reveal their numbers in an engaging and entertaining way.
La Fleur’s: What types of CPG companies could be potential partners?
Art Kiuttu: Really, the CPG opportunity is enormous and can not only include fresh foods, beverages, snacks and energy drinks, but nearly any category retailers carry, including gas. The opportunities are endless, especially when you consider our solution integrates with the retailers of all trade styles! Imagine the product selection for cross-promoting lottery games within chain drug, variety, dollar or specialty stores using CPG offers like beauty and cosmetics, health products, household products or promotional merchandise.
There are advantages to lotteries to broaden their player base and offer engaging games so desperately needed using mobile. Additionally, CPG companies and retailers will advertise and promote lottery because there is a tremendous benefit to them.
