Reflecting on the Right KPIs for Slot Optimization
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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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.