Behind the scenes at the Idaho Lottery, winning big takes more than a bit of luck. A state-run organization dedicated to filling gaps in school budgets, ongoing customer engagement adds up to real payoffs for the future of education in Idaho. With revenue up, everything seemed on track, until we took a closer look at the numbers. Overall unit sales were down, especially in entry-level games. Together, the Lottery and CLM strategized that acquiring new players was needed for ongoing momentum and health.
A long-term strategic and media partner for the Idaho Lottery, CLM plays to win with our clients. And to do that, we start from scratch. To help develop this strategy together with the lottery, we sorted through primary gaming research, talked with other state lotteries, and had many strategy discussions. Working together with the Lottery’s CFO and Product Manager, we built an elasticity of demand model using sales information from past holiday games that had higher payouts than standard games. After a great deal of analysis, several rounds of model building, plus numerous discussions among the business and marketing strategy teams, we made it our mission to turn around the decline of the Lottery’s $1 scratch games and grow new players.
GAMEPLAN 1: Create new and improved $1 scratch games with more value.
GAMEPLAN 2: Execute a communication plan to make channel partners aware of and excited about the new scratch tickets.
GAMEPLAN 3: Launch a marketing program to spur non-players to try the new $1 games (main selling point: higher payouts, of course).
GAMEPLAN 4: For the first time, all $1 games provided players with a second chance to win by signing up to be a Lottery VIP Club member.
GAMEPLAN 5: Points of sale would prominently mark the new and improved $1 games.
“Wooh!” The results of this strategy can basically be summed up with that exclamatory catchword for the Idaho Lottery. In January, all $1 scratch games in the market were replaced with the new and improved versions. And though the COVID-19 outbreak in March derailed many of the marketing tactics, the measurement dashboard is green. The gameplan for phase 1, no matter what got in its way, delivered results. Phase II is now in development with the Lottery team and CLM. It’s slated to use marketing automation software, customized customer journeys, and relevant messages to help these new entry-level players become aware of other games, and even more importantly all the good the Lottery does for the state of Idaho. When tackling the most complicated of future-thinking marketing plays, the Idaho Lottery and CLM are a winning combination.