Monday, February 02, 2009

Harrah's Hits the Jackpot with Intuitive Personalization Program

Here's a problem many museums would like to solve: How do you design an intuitive way to give visitors unique IDs so that visitors can receive personalized content and feedback and institutions can receive real-time data tracking on visitor behavior?

It's not a new problem. The Tech Museum of Innovation has had a personal ID "Tech Tag" system in place since 2003, available initially via RFID bracelets and currently via barcodes on the tickets. There are several interactive exhibits throughout the museum where you can swipe your ticket, and save the photo/digital creation produced onsite to a website for later viewing. The Ontario Science Centre features a similar barcode-based IDea experience for visitors who create their own stop-motion animations onsite. The Sony Wonder Technology Lab in NYC has an involved Digital Profile system which personalizes every interactive to your name, voice, and image based on an initial registration. And in 2002, the Museum of Science and Industry in Chicago opened Networld, an exhibit in which visitors can purchase a Netpass/RFID card that tracks their progress through the exhibit via a digital avatar who evolves as you complete various interactives.

These projects are good attempts, but they have some fundamental problems. They can be clunky and hard to use. They are rarely deployed across all exhibits, so visitor need to learn how to identify exhibits that involve them (in addition to learning how to activate them). They limit engagement with interactives to a "single-player" mode, despite the fact that most people visit in groups. At places like Sony Wonder Technology Lab, the simple registration for the digital profile takes time at a dedicated kiosk and creates a problematic flow blockage at the beginning of the museum experience. The unique IDs are rarely saved--people throw away their tickets or lose the RFID cards--and the systems are not built to accommodate a growing personal profile over time. But most problematically, these systems require visitors to do an additional, unintuitive behavior (swiping a card, flashing an RFID chip) each time they approach or use a new exhibit. There is a significant learning curve to operating the systems, and the result is confused visitors who don't see the value of the unique IDs.

I recently learned about a program at Harrah's casinos, the Total Rewards loyalty card program, which is the most extensive, well-integrated use of unique user IDs I've ever seen. Harrah's is one of the "big four" and while it is less flashy than its competitors, they have turned personalized customer service into a science that induces people to play longer and spend more money. How do they do this? By creating an intuitive technology that is tightly tied to their core business goals.

The loyalty cards function like bank cards; users swipe them at the slot machines to play, and the cards register wins and losses. They have been used for years to give customers "points" for playing that can be redeemed for various gifts. But there's a new pilot program that goes even further in tracking and responding to individual user behavior. The casino maintains real-time data on the actions of every card-holder and uses the data to determine individuals’ financial “pain point” – i.e. how much money they are willing to spend before leaving the casino. The casino uses that pain point to stage strategic interventions during real-time play. When a player comes close to her limit, a staff member on the casino floor receives an alert from a dispatcher, greets the player, and offers her a free meal, a drink, or a bonus gift of money added to the loyalty card. By mitigating the bad experience of losing at the right moment with a gift, Harrah’s extends people beyond their pain points and they stay and play longer. Harrah's isn't just running a simple membership loyalty program; they have created a response engine that allows them to immediately intervene and turn bad experiences into good ones.

Harrah's loyalty card program is an elegant example of virtual-to-real design. There are four steps to virtual-to-real design: defining a core technology concept that aligns to your mission, defining the inputs and outputs of the familiar user experience, finding and eliminating any behavior changes required for users, and then designing any remaining behavior changes to be as simple and painless as possible. Here's the detail on how Harrah's accomplishes each of these steps compared to the museum systems.

Step 1. Define the core technology that aligns to your mission.

The technology that drives the loyalty cards’ success is unique, trackable IDs. For Harrah’s, unique user IDs enhances the casino’s understanding of user behavior and ability to use that information to encourage longer playing (and spending) time. That’s how unique user IDs relates to the casino’s bottom line: it enhances their ability to make money.

This step is essential no matter what technology we're talking about. The more I work on and learn about museum technology projects, the more strongly I feel that mission alignment is the number one necessity for success--both in getting projects funded and delivering quality experiences. You should be able to explicitly demonstrate how any technology idea relates to your institution's core mission/bottom line. You should be able to write a sentence in this form:
“We should try to integrate X into our exhibition/program/initiative/institution because it will enable us to carry out Y aspect of our mission by Z.”
This sentence will help you talk about the project with decision-makers across your institution. It will demonstrate that technology projects can be mission-driven and should be motivated by an opportunity to improve the visitor experience, not an opportunity to use some cool gadget.

Step 2. Define the inputs and outputs of the familiar user experience.

For Harrah's, the input is when the player sits down at a slot machine and puts in his money. This is an activity the player is already familiar with and knows he must do in order to play. The output is more subtle: it occurs anytime the player receives rewards. Traditionally, players receive rewards when they win at the slots. Lights flash, coins emerge. And while the loyalty card registers these types of wins, they also regulate the delivery of a secondary reward—free drinks, tickets to the show, and other perks. Traditionally, distribution of these secondary rewards was semi-random, based on the psychological judgment of casino floor managers as to players’ emotional states. But the loyalty cards created a system by which these secondary rewards became deliberate and strategic. They were an underutilized output that became a core part of the new system.

The museum unique ID projects often suffer at this step: we have not found reliable inputs and outputs for the highly non-linear museum visitor experience. The RFID and barcode systems force visitors into a linear operation of exhibits that can be problematic if they choose not to complete the exhibit or want to engage as a family. In the casino, no one walks away before the slot machine has stopped spinning. But museums have different constraints and opportunities when it comes to defining inputs and outputs.

Step 3. Define required behavior changes.

For Harrah’s, the fact that the loyalty card replaced the use of cash at the slot machines was an easy way to switch technologies with minimal behavior change. Once a player has a loyalty card, it’s actually easier for her to play the slots, because she doesn’t have to worry about how many dollars or tokens she has on hand. She can just swipe and play. And the output—receiving rewards—has not changed from the player’s perspective. The more significant behavior change in Harrah’s situation was the adoption of loyalty cards. The casino had to get the cards into people’s hands, which required a new behavior at the input when players first enter the casino.

Many museum technology projects fail because they are too ambitious about changing visitor behavior by introducing new, non-intuitive modes of engagement. It's fine to be ambitious, but you will be most successful if you can align your project with the familiar visitor experience and provide added value on top of activities they already know and like. For this reason, I think it was a positive that The Tech switched from RFID bracelets to printed barcodes on tickets. The RFID bracelets introduced a new item for visitors to integrate into their visit, whereas tickets are a familiar element that visitors associate with a specific input (entering the museum).

You should be able to detail exactly how any new technology fits into the familiar visitor experience and where it deviates. What additional things will people need to do to make use of it, both on the input side (visitor engages in experience) and the output side (visitor and institution receive value)? Make a list, and map as many things to familiar actions as possible. If the leftover list of items that require behavior change has more than five entries, throw away your idea. The technology should enter the visitor experience via a scalpel, not a hacksaw.

Step 4. Make any behavior changes as simple as possible.

Try as you might to elegantly match your technology to a familiar visitor experience, there will always be some minor behavior change required. In those cases, you need to make that change as easy and painless as possible. At Harrah’s, the behavior change requires players to sign up for a loyalty card before playing. No one wants to go sign up for a card when they enter a casino, so instead of trying to cleverly streamline sign-up into play, the casino does the next best thing: they offer a perk. What’s the best perk to give in a casino? The cards come preloaded with a few dollars. “Everyone wants to sign up for that card,” says Gary Loveman, Harrah’s CEO. “It’s free money.”

Museum unique ID programs often try to mitigate the pain of behavior change with a consistent experience multiplied across the institution. Visitors are "trained" to swipe the card or ticket or bracelet at every kiosk with a particular design. But our real goal should be to find a way to do this that requires no training.

If the first requirement of a museum technology project is that it be mission-driven, the second requirement is that it be integrated intuitively into the visitor experience. That is the brilliance of Harrah’s implementation. The casino knows that every player must insert money to play at a slot machine, and they already track the real-time usage of every machine. But to reach players personally on an emotional level, the casino needed to know who was using which machines when. A clunky, more obvious solution could have required players to “sign in” to slot machines with a username. But by combining the action players already do (inserting money) with the desired new action (identifying themselves), the loyalty cards achieve the new desired goal with no additional action by users. In fact, the players prefer to play with the loyalty cards because they receive perks for doing so. Players get an easier way to play and receive rewards, and the casino gets unique, trackable data on every player in the room.

Comparably, the problem of how to enable social exchanges in a museum setting is primarily a problem of understanding how the new behavior can best be integrated into familiar user behavior. More globally, any metaphorical design extension—from virtual to real, from casino to museum—is fundamentally based on the designer’s ability to creatively map the desired behavior to behaviors and experiences already in place.

7 comments, add yours!:

Paul Orselli said...

Hi Nina,

You may have hit on how to increase museum attendance during dark economic times --- free drinks! ;-0

On a different note, Networld at MSI sends an (hopefully unintended) elitist message. Namely, you only get the "premium" exhibit experience if you can afford to and/or want to pay extra to get the "magic card."

Perhaps some museums are already taking away lessons from casinos!

James G. Leventhal said...

OMG, I wish I could be spending more time working on museum CRM.

It is essential...we were onto something back at the Met Museum at one point. (many moons ago. I left.) The Fine Arts Museums of SF has a great member swipe system.

Closing the loop is essential, esp. in tying it into the on-line experience as those communities continue to flourish

Interesting also to see what grocery stores are doing:

http://money.cnn.com/2007/11/21/magazines/fortune/boyle_datamining.fortune/index.htm?postversion=2007112711

and can be doing more of?

http://www.dunnhumby.com/

I see the potential for good, as very good. it's not draconian, it's more fairy-like, raining magic dust, information and learnin' down on people...(and mayeb they can send money more in time?....)

Susie Wilkening said...

Harrah's is brilliant. Evil. But brilliant.

Comments on gambling aside . . . back in my days as a development director (and in charge of marketing as well), I desperately wanted this kind of system for admissions (swipe to get in), shop purchases (swipe for discount), etc. so that I could target programmatic information to the right people. Used properly, you can figure out what exhibits are popular, what topics are popular, what interpretive methods are popular . . . and what buttons to push to attract donations.

Used properly, it is a huge boon. Used improperly, feels Big Brother-ish. The casino has no compunction about it . . . but where do we, in the field, choose to draw that line?

Interesting post . . . as usual!

Bodhibadger said...

The Pope John Paul II Cultural Center (now defunct) had a swipe card similar to some you describe in museums. On it, a visitor could record their interactions with various exhibit elements--record a testimony of faith, create a stained glass window, etc. They did introduce a social element by creating stations in the cafe that read and displayed the card contents, enabling groups to share experiences when they broke for lunch or a snack. However, as far as I know it had no continuity from visit to visit. (And I don't know what their repeat visitation was in any case.)

I think the biggest hurdle to applying this concept broadly to most museums is that it requires an overt, technological interaction when so much of the visitor experience is internal, and largely non-tech driven. The part I find particularly interesting, actually, is the challenge of detecting the point at which a visitor has reached their patience point and is ready to leave. How could museums do a better job recognizing that point and intervening (with a chair, a cold drink of water, a "inside tip" on what is going on. While it would be difficult to personalize the data, I bet you could do some pretty good training on recognizing more universal signs of "bored, tired, hungry" and train floor staff to step in.

Nina Simon said...

Susie,
I don't think the Big Brother implications are negative. As Bodhi points out, wouldn't it be lovely if staff knew the right moment to offer you a chair and a glass of water? It would seriously increase the incidence of visitors reporting that staff "care about them"--a statistic I know you care about!

I understand the potential privacy concerns, but if this kind of program created a set of "compulsive museum-goers" the way there are compulsive gamblers, that would be pretty freaking great.

Jennifer - Bay Area Discovery Museum said...

Oh yes, swipe cards. We have them - but do we do anything with them? Not yet! We're still stuck in the middle between implementation and actually doing something with the data that's somewhere in the backend...

Of course, from the marketing & development perspective, I want to be able to send donation request letters to those that visit every week! But I'm really intrigued - what could we do to affect the on-site experience? As a children's museum, we don't want to add overt technology to the site - but I can imagine a system where the card is swiped, and the ED is notified when certain people (big donors, prospects etc) are on site so that they can get a quick "hello" - something you'd want to happen anyway, but in practice, hard to implement without technology.

Could also imagine when the card is swiped at the entrance that certain perks are offered - discounts in the store, incentives to do xyz for certain types of visitors etc, without adding technology to the site experience...

chingy said...

I'm a 7stars player at Harrah's and they have decreased payouts and coupons dramatically. They never paid that old lady who hit $86K in AC and they don't offer good perks even to their best players. This is a big private conglomerate guys, they cheat and fix the payouts and no one is winning. Go to Delaware Park -- the chances of winning are much better.