2007 was a bellwether year for business innovation and content creation. Smartphones were introduced with the launch of the revolutionary iPhone, Microsoft introduced their now flagship Surface product and the Big Bang Theory premiered to make smart fashionable to millions of viewers. Within the lottery industry, a team of seasoned marketing professionals launched Alchemy3 to reinvent themselves and design unique programs. Fifteen successful years later, that team continues to evolve and deliver smart gaming solutions for lotteries across North America.
“From the very beginning, we adopted a unique approach to the delivery of branded games and integrated marketing programs to clients. No two lotteries are alike, so each and every game or program developed by A3 has been designed specifically to meet the unique needs of that customer,” said Paul Guziel, Alchemy3, CEO. Deep research and tailored customization are baked into everything they do.
This attention to detail and dedication to “beyond the box” thinking was evident with the first branded game introduction, The Mummy, designed to leverage the cinematic release starring Brendan Fraser. More strategic partnerships followed with the addition of popular, iconic brands like Bass Pro Shops and The Home Depot to the company’s growing portfolio.
Over the next few years, Alchemy3 struck partnerships that resulted in some of the most successful and frequently launched brands in the industry. Games developed for Skee-Ball and The Addams Family have enjoyed tremendous success and partnerships with companies like Royal Caribbean Cruise Lines have facilitated two of the most successful multi-jurisdiction integrated marketing programs in the Power Cruise and Power Cruise 2 promotions.
But Alchemy3 prides itself on being much more than an industry leader in the delivery of branded games. Over 15 years, this team of highly experienced lottery professionals has cultivated a thoroughly holistic approach to client services.
Helping Lotteries Adapt to a Changing Landscape
Many North American lotteries have seen marketing and advertising budgets slashed in recent years, making it harder than ever to reach players and prospective players with relevant information. As the industry’s marketers are faced with dwindling resources to vie for players’ share of wallet, they must figure out other ways to grab the attention of their customers. That’s where Alchemy3 comes in.
“Many times, our lottery customers are unable to provide important advertising funds for featured games or programs. So, by rethinking how we use our licenses’ assets, we can create solutions that help fill that gap. We work with those customers to develop new acquisition and engagement strategies that leverage the equity in our brands and generate buzz and excitement organically,” said Jeffrey Schweig, President, Alchemy3.
For the past 15 years, Alchemy3 has brought a unique approach to branded game content. They’ve identified the latent potential in non-obvious brands such as Omaha Steaks and brought them to life in exciting ways. “With a brand like Omaha Steaks for example, the value proposition for consumers can’t be just winning packages of meat,” Schweig laughed. “We’ve got to figure out how to make it fun for the players, so, we transformed it into the ‘Grills Gone Wild’ program and paired the brand to backyard makeovers, grilling paraphernalia and wild amounts of cash, and the game has been a hit for seven states.”
It is this kind of approach that lotteries require to remain relevant in a more competitive marketplace. Alchemy3 programs find the perfect balance between attracting new players and delighting the core audience. This past year, all of their programs featured custom elements that helped partners stand out via new advertising opportunities, local partnerships, digital engagement technology, new channels, or experiential prizes.
Advertising & Experiential Prizing Solutions
Early this year, the Tri-State Lottery group launched “Big Country Cash,’ an Alchemy3 program that featured a ‘money-can’t-buy’ experience where winners get to ‘go on tour’ with country music superstar Lee Brice. The Tri-State Lottery group created outstanding content to support the game and were delighted to discover how Alchemy3 was able to leverage their relationship with the licensor to deliver Lee Brice personalized content, adding even more value to the program.
“We know Lee Brice records his music. So, we asked Alchemy3, would you ask him to record some short copy to support the sale of the tickets?” asked Maura McCann, Director of Marketing, New Hampshire Lottery. “Something like ‘hey country music fans! Join me, Lee Brice, on the road.’”
Alchemy3 took the request to Lee Brice and returned with news that he was willing to do even more. Lee recorded audio for radio and TV spots and even provided B-Roll for digital and broadcast production. This surprise helped produce a premium quality spot using a significantly reduced budget.
Through consistent delivery of unique and attractive experiential prizing, along with creative solutions for the marketing challenges faced by its customers over the past 15 years, Alchemy3 has built a reputation as one of the industry’s best.
Promotions
Over the years, several lotteries have tapped Alchemy3’s ability to create smart gaming solutions through the integration of brands within the lottery’s in-state partnerships. Some notable examples include the Iowa Lottery’s “Explore Iowa” game, designed in partnership with the state’s tourism group, and Idaho Lottery’s “Cabela’s Cash Cooler”.
The Iowa Lottery designed “Explore Iowa,” a $5 instant ticket launched in May. The game encouraged players to ‘go outside and see everything Iowa has to offer’. Alchemy3 and the Iowa Lottery worked together to add the Polaris brand to the game, giving it an important prizing component that proved popular with players. “We asked people to ‘Think Outside,'” Larry Loss, the now retired Executive VP & COO, Iowa Lottery, said, referencing the Polaris brand tagline. “Everything we’re promoting is tied to outside activities, which ties in naturally with Polaris.”
Explore Iowa was the cornerstone of the Iowa Lottery’s summer marketing campaign, conducted in partnership with other state agencies. With an assist from Alchemy3 the Lottery’s marketing team worked with a local Polaris dealership to generate excitement for the new game. Local Polaris dealerships agreed to transport various vehicles to three high-profile events at no cost.
“How can we use the equity we’re buying with the Polaris brand in more than one dimension?” Loss asked rhetorically. “We can promote our products together. It is a win-win for both of us. They were excited to do it.”
When the popular outdoor sports retailer Cabela’s kicked off their annual Spring Fishing Classic on March 10th of this year, Alchemy3 and the Idaho Lottery worked with the three state Cabela’s stores to create high-profile in-store activations. Each store hosted Idaho Lottery events during the month. When the Cash Cooler ticket launched, the Lottery became a pop-up retailer selling Cabela’s tickets at all three stores.
Collect ‘N Win
Every lottery works to understand its players better through the collection and analysis of relevant data. Second chance programs, and loyalty clubs encourage players to interact directly with lotteries to provide valuable behavioral insights. Alchemy3 has repeatedly developed exciting programs that both increase player engagement and collect valuable information. Central to this capability is Alchemy’s Collect ‘N Win platform.
First introduced in 2012 via a collaboration between Alchemy3 and the D.C. Lottery, Collect ‘N Win (CNW) is a nimble, turn-key platform. The system has been tailored to the needs of the lottery to support a single game or promotion, delivered as both a microsite and native iOS and Android applications. It can also act as a more robust, full spectrum platform for player engagement. To date Alchemy3 has deployed CNW in various forms for 23 different jurisdictions.
When the New Mexico Lottery launched their My Lottery Dream Home ticket with Alchemy3 this spring, the Lottery crossed a huge milestone. It was the first time Lottery players could win up to $1 million in a second-chance promotion for a game only sold in New Mexico.
Since My Lottery Dream Home was the Lottery’s most important game of the year, the team wanted to ensure player entries for the games’ second chance component were as easy as possible. The New Mexico Lottery chose Alchemy3’s Collect ‘N Win technology for their solution. All players needed to do was scan a code on the back of the ticket and their entry was complete.
“Players didn’t even have to download an app. We didn’t know we could do that before working with Alchemy3. We thought it would be complicated, but this was totally turn-key and just works through a mobile browser,” said Carolyn Cabell, COO, New Mexico Lottery.
The game indexed at 193 in its first week and sold out after 16 weeks. In the first 74 days, the ticket already had the 6th most second chance entries of any New Mexico Lottery game. Clearly, players enjoyed the ease of entering the second chance promotion. “We’ve had no calls or questions about it. They totally get it. Alchemy3 did our customer service for us and responded to all the players’ questions quite well,” said Karla Wilkinson, Director of Gaming Products, New Mexico Lottery.
“We feel we have a very special game with My Lottery Dream Home. The promotional and prizing opportunities we’ve included add up to something never before offered. Plus, we’re honored to have worked with Alchemy3 to be the first to introduce a game featuring this lottery-centric licensed brand!” said David Barden, New Mexico Lottery CEO.
Omni-Channel Solutions
One of the fastest growing, most effective trends in the lottery industry is the expansion of a game’s presence across multiple sales channels. The advantages of this strategy are clear, as the presence of a familiar game across two or even three different sales channels strongly encourages player trial, often within channels they might never have tried. Over the past several years, several lotteries have expanded availability of select games beyond traditional scratch to eInstants, instant terminal games like Fast Play, or even to help draw attention and trial to games like Keno. And the strategic use of branded game content has a strong influence on player propensity to purchase across multiple channels. Alchemy3 is at the forefront of this trend and works with customers to strategically insert some of its most iconic brands into omni-channel programs.
Most recently, the Virginia and Pennsylvania Lotteries introduced the ‘The Addams Family’ across multiple channels. Virginia launched the brand as both an eInstant and Keno skin, and Pennsylvania across scratch, fast play, keno and iLottery. “A focus of our iLottery program is new player acquisition, and licensed property games are an important part of that strategy,” said Scott Kenyon, Strategic Games Manager, Virginia Lottery. “We see good results from licensed property games for acquisition purposes.”
Looking Ahead
The lottery industry has seen remarkable innovation and dealt with difficult hurdles over the past 15 years. In that time, Alchemy3 has delivered cutting edge solutions that have both opened new avenues for sales and buffered the impact of generational challenge. When asked what might be next as Alchemy3 looks ahead, Jeffrey Schweig glanced up with a smile and responded, “Well, we’ve delivered money-can’t-buy experiences on land and sea, so now we’re working on an amazing new program that’s truly ‘out of this world.’ The sky’s no longer the limit!”