As technology has adapted to post-pandemic demands, so has the way we all work and play. But perhaps nothing has changed as much as the way we buy. Today’s consumers continue to rely on physical retail environments, but also increasingly look to other channels to serve their needs.
Based on findings in the 2019 Salesforce report, the State of the Connected Customer, 67% of customers use multiple channels to complete a transaction. This indicates businesses that do not offer multichannel engagement are not providing the best experience for these customers. For many consumers, an omnichannel approach is expected, as 40% say they will not do business with companies if their preferred channels cannot be utilized.
The shift in buying is not only driven by technology advances and pandemic adaptations, but also by the influence of a young demographic (including millennials, GenX and GenZ) that calls for greater and specific options for what and how they purchase. Consumers now demand a more personalized experience when shopping; and to achieve this, they employ a multi-device, omnichannel approach to purchasing that doesn’t blur boundaries among purchase categories and channels.
Omnichannel Approach
Retailers who understand these changes in buying behaviors realize the importance of the omnichannel approach and adapt their business models to connect the two worlds—physical and digital—and offer consumers a convenient and seamless experience. Omnichannel joins the online and retail experiences to connect with customers effectively and easily at every touchpoint of their buying process. Some of these touchpoints include:
- Access to product/game information in real time through personal devices (smart phones, tablets and other digital tools)
- Customer loyalty rewards based on personalized marketing data
- Multiple and easy payment options such as QR codes and tap-to-pay
- Hassle-free process that simplifies game-playing and betting
- Selections and options that deliver an enriched customer experience
- Automated purchase recommendations based on AI, IoT, and current trends
As with many retail products, these changes impact lottery and other digital games where customers want an immediate, expedient and often “touchless” experience. For example, customers who visit retail stores seek the convenient option of purchasing lottery tickets in various ways, including with the use of their mobile phones while they are in-store shopping. A mobile application enables players to select any type of lottery game, view betting markets and odds, and build their play slips digitally. This provides players with a quick and easy way to play as well as an opportunity for a cashless payment experience while in the store.
Lotteries are able to not only offer this type of experience to customers through diverse products and channels, but they are also able to transform the traditional retail environment by capturing valuable knowledge and insights on consumer patterns. Lotteries that provide digital solutions (are able to) collect data on trends of player participation, gaming options and spending habits, and utilize artificial intelligence (AI) capabilities to enact successful predictive analysis and data-driven decisions. Both consumers and retailers benefit from the lotteries’ ability to identify the needs and preferences of players and offer them relevant products and services.
The ability to collect data on purchasing trends and generate with it predictive information that supports informed decisions is directly related to customer retention. In addition to offering an omnichannel approach to satisfy current purchasing trends, retailers and lotteries alike are concerned with retaining customers. It is said that a new customer costs up to seven times more than keeping an existing one. In today’s rapidly shifting retail environment that demands various and multiple ways for customers to buy, some of the more traditional methods of retaining customers are no longer applicable or effective. So, what are lotteries to do to retain customers and ensure a healthy customer base?
360-Degree Experience
Many Lotteries depend on loyalty or player’s clubs/programs that reward customers for continued business. INTRALOT’s digital products offer solutions that address customer expectations and create a 360-degree experience for players. Player loyalty is captured across all touchpoints in the consumer’s profile and preferences that translate to a rich, customized retail and digital experience. INTRALOT’s iLottery solution is a fully configurable solution that presents streamlined registration, gamification, and various membership levels. INTRALOT’s full suite of products (including retail and self-service terminals, and digital products) fully supports the omnichannel approach and aligns with the way consumers now play in retail environments.
The relationship between retail and lottery is secure and their futures are intertwined. The path to success for both retailers and lotteries is based on the flexibility and allure of omnichannel purchasing, and ability to engage customer loyalty by offering personalized shopping and gaming experiences. The full 360-degree lottery purchase and payment experience allows us to truly engage at every possible touch point of an existing and potential lottery consumer. Customers have come to expect this experience and lotteries will only benefit by providing the complete solution.