Case Study: Leading Entertainment Company boosts marketing ROI with Mu Sigma

Improved marketing spend effectiveness for a large entertainment company

Leading Entertainment Company, a large casino entertainment provider, wanted to improve the ROI of its marketing spend and player reinvestment program. Its existing approach to estimating Average Daily Worth (ADW) relied heavily on prior trip spend, which led to sub-optimal customer targeting, lower ROI, and rewards being directed to the wrong customers. Mu Sigma helped address this with a data-driven customer understanding framework.

Mu Sigma developed a customer segmentation and scoring solution that redefined customer trips, grouped customers by spend potential and volatility, and built predictive models to estimate future spend buckets. The solution also used zip-code-based reclassification and an operational scoring framework. As a result, accuracy improved by more than 10%, about 14% of the gaming population received revised reinvestment decisions, and the client realized an estimated $10MM in cost savings and $20MM in additional annual revenue.