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Reflecting on the Right KPIs for Slot Optimization

Jul 18, 2023

Throughout my 20+ years in the gaming industry, I've often pondered whether we are truly measuring game performance using the most relevant key performance indicators (KPIs). In table games, the focus has traditionally been on metrics like Hold Percentage and Win per Unit per Day, while Floor Average or Zone Average take center stage in the world of slots.

Interestingly, when it comes to slots leases, there is a common expectation that game performance should be a multiplier of the floor or 'house' average, whereas this concept is rarely discussed in relation to table games.

Recently, I had the privilege of attending and speaking at the GameOn Conference where I engaged in numerous thought-provoking conversations. What struck me the most was the recurring emphasis on these same KPIs. It made me contemplate the difficulty of changing the measurement of success or failure once it has become tied to a specific KPI.

However, I can't help but question whether an index of the floor average is truly the best metric to measure game performance. While it provides a snapshot of revenue generation, it fails to capture other crucial factors. To gain a comprehensive understanding, we should consider metrics that encompass actual performance, loyalty to the games, and peak utilization.

As a die hard Phillies fan, let's dive into a concrete example to examine how player statistics can influence our decision making. Take Kyle Schwarber, currently hitting 20 home runs, which ranks him 4th in the NL. In comparison, the second-highest home run count on the Phillies sits at 8. This leads us to the question: Should we add more Kyle Schwarbers to the team?

However, evaluating a player's value goes beyond a single statistic. In Schwarber's case, we find that he also has the most strikeouts, standing at 90, and the second-lowest batting average of .191. So, should we bench Kyle Schwarber solely based on these numbers?

By assessing the right set of KPIs, we can make informed decisions to build the best team on the field or the most engaging and profitable casino floor. It's about finding the right balance and understanding how different metrics contribute to the overall success.

Similarly, I don't think we should rely solely on the performance index of a slot machine relative to the rest of the floor as the only measure of success. We must consider the actual financial performance and revenue drivers such as average wager and utilization, while also taking player behavior and loyalty into account. 

By reevaluating our current metrics and adopting a more holistic approach to measuring game performance, we can make informed decisions to drive profitability and enhance player satisfaction. Or maybe there is an inherent belief that players will play no-matter what - if they can’t find their game of choice, they will play the next available game. I beg to differ.

I would greatly appreciate hearing your thoughts on this matter. Perhaps it's time to delve deeper into this topic through a captivating podcast.

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Author(s)

Ari Mizrachi

As SVP and Head of North America Business, Ari brings over 15 years of operations experience across multiple jurisdictions in North America including Las Vegas, Atlantic City, Florida, Pennsylvania, and Connecticut. Ari oversees Tangam’s global client base and helps operators adopt yield management best practices.

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President and General Manager at Mohegan Sun

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Sycuan Casino Resort

"Sycuan is dedicated to providing an enhanced gaming experience for our patrons. By deploying powerful prescriptive analytics tools such as TYM and SODA, our operations and analytics teams are able to get data-driven insights at the right times to drive value to our business."

Douglas Vogelei

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Senior Vice President of Casino Operations

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The Star - Sydney

“Due to our ongoing success with Tangam at Sydney, we’re able to deliver the right product at the right time, leading to improvements in efficiency, transparency, decision-making and our bottom line.”

David Croft

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General Manager Product & Strategy

View Press Release

The Star - Sydney

“Due to our ongoing success with Tangam at Sydney, we’re able to deliver the right product at the right time, leading to improvements in efficiency, transparency, decision-making and our bottom line.”

David Croft

,

General Manager Product & Strategy

View Press Release

Mohegan Sun

“We’d like to thank the exceptional team at Tangam Systems for what has been a very successful implementation that we undertook together. We immediately saw positive returns and an improved guest experience. Our team is very much looking forward to continue leveraging Tangam and all it has to offer from a floor optimization standpoint.”

Kevin Lowry

,

Vice President and CFO

View Press Release
Read All Testimonials

What Clients Say About Us

Caesars Entertainment

“[Tangam’s] real-time data gives us a deeper insight that allows us to quickly adjust to customer needs, while also establishing new business goals and tracking the success of our strategy.”

Melissa Price

,

SVP of Corporate Gaming

View Press Release

Mohegan Sun

“Reporting alone doesn't provide answers. We chose SODA for its highly differentiated offering that provides a clear set of actionable recommendations, which maximize gaming performance and the guest experience.”

Jeff Hamilton

,

President and General Manager

View Press Release

Sycuan Casino Resort

“During our initial trial, it was amazing to see how quickly we were able to get to the answers in our data through the lens of SODA. This truly made analytics available to anyone - with intelligent recommendations, intuitive visualizations and seamless drill-downs. We are equally excited about the product roadmap over the coming months.”

Sierra Weyer

,

Director of Enterprise Analytics

View Press Release

Mohegan Sun

"Extending our partnership with Tangam to our full gaming operation, including tables and slots, was a no-brainer given Tangam's proven track record of business support."

Jeff Hamilton

,

President and General Manager at Mohegan Sun

View Press Release

Sycuan Casino Resort

"Sycuan is dedicated to providing an enhanced gaming experience for our patrons. By deploying powerful prescriptive analytics tools such as TYM and SODA, our operations and analytics teams are able to get data-driven insights at the right times to drive value to our business."

Douglas Vogelei

,

Senior Vice President of Casino Operations

View Press Release

The Star - Sydney

“Due to our ongoing success with Tangam at Sydney, we’re able to deliver the right product at the right time, leading to improvements in efficiency, transparency, decision-making and our bottom line.”

David Croft

,

General Manager Product & Strategy

View Press Release

Mohegan Sun

“We’d like to thank the exceptional team at Tangam Systems for what has been a very successful implementation that we undertook together. We immediately saw positive returns and an improved guest experience. Our team is very much looking forward to continue leveraging Tangam and all it has to offer from a floor optimization standpoint.”

Kevin Lowry

,

Vice President and CFO

View Press Release
Read All Testimonials