Lottery Purchasing Behaviors

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Lottery Ticket Purchasing Behavior

Lottery games are trending in Canada; two in every three Canadians is expected to purchase a lottery game in the next six months. According to a recent market survey ticket costs and the prize money figures are also having a significant impact on the purchasing behaviors of consumers in the lottery market.

Methodology

We began our research by searching for factors that impact purchasing behaviors and drive loyalty among consumers buying lottery tickets in Canada. For this, we combed through some credible industry databases, reports, articles and market research papers from sources like Ontario Lottery and Gaming Corporation, Issuu Inc., and Dochub. We have included some key factors that impact purchasing behaviors and drive loyalty among consumers buying lottery tickets in Canada. We have also presented the reasons for adding them to this research.

We have found some hard data and stats which collaboratively state that game types, prize amounts, the ease of purchase are some crucial factors that impact the purchasing behaviors of consumers however the risk factor has been chosen upon an assumption; like gambling, people are also very much concerned about the risk factor involved in a lottery game. The factors and the other requested details about them have been presented below.

Key factors that impact the purchasing behaviors and drive loyalty among consumers buying lottery tickets in Canada

Type of Game

There are specific game types which are preferred by a large chunk of the consumer base and is also one of the key factors that impact purchasing behavior. For instance, draw-based games attract more consumers than sports games. 50% of people in Canada chose draw-based games over sports games. According to statistics, 7% of consumers purchased instant win based games while only 4% of consumers bought sports games.

The Amount of Prize

Like every other thing lottery also attracts consumers based on the amount of benefit they can receive from a lottery ticket. In a recently published report from Issuu, people play lottery games with an intent to win a life-changing amount of money. For instance a prize level of $1,000 per day for life is much more preferred to a $7 million lump-sum win.

Ease of Purchase

Consumers prefer the ease of purchasing lottery tickets either through the online channel or through the stores which have a separate section for lottery tickets. Statistics represent that 52% of consumers enjoy the ease of receiving notifications about lottery tickets and prefer purchasing a ticket online. Also, more than half of the lottery ticket purchasers population in Canada reported that they are more likely to purchase a lottery ticket if it was sold at a separate section in the front-end checkout lane of a grocery store.

Risk FACTOR

Canadian lottery ticket purchases fall under the same purchasing demands of global gambling purchasing habits. These habits consider the risk and the price of the lottery ticket to be directly proportional to attract high consumer demand. If a ticket is priced too high and the price reward they would receive is not high enough then the risk is not worth it, and the purchaser will move along or choose another lottery ticket with a better risk reward.
Part
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Part
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Lottery Loyalty Best Practices

The three best practices for driving loyalty among consumers who purchase lottery tickets are as follows:
1. Offering the Loyalty and VIP Prizes
2. Offering the Group Play option
3. Running promotions
More information on the topic has been presented below along with the research methodology.

Methodology

We started the research by looking for general information on how Canadian lottery companies drive loyalty. As we did not get any useful information through this search, we performed a more specific search and looked for lottery loyalty programs in Canada. We did not find any articles or industry reports on the topic. However, we found that the lottery companies in Canada provide their own products that intuitively drive loyalty to the companies. Some products such as the Loyalty Prize and VIP Prize seemed to target the companies' loyal customers. We have used these as one of the best practices because they offer more opportunities for the customers to win the lottery by purchasing the tickets early on. This fact falls in line with the suggestion by Forbes that businesses should improve experiences to create loyal customers. The Loyalty Prize and VIP Prize offer a more significant experience for customers by giving them the excitement of having a higher chance of winning the lottery. We dived deeper to find any metrics around the prizes; however, we did not find any metrics for the Heart and Stroke Loyalty Prize and VIP Prize ticket holders.
Thereafter, we found information on the Group Play option from a lottery company. The option also drives a better experience for the company's customers. It also increases the chances of winning the lottery. Therefore, the Group Play option drives loyalty among the customers who purchase lottery tickets. We looked for any metrics around the Group Play option. However, we were not able to find the required information. Then, we found information on promotions from another lottery company's website. We found that a company called IGT uses promotions to drive loyalty among its customers. We did not find any metrics for the promotions as well. IGT mentioned in their report that it is hard to measure the success of a promotion. In this way, the research process was conducted.

VIP AND LOYALTY PRIZES

The Heart and Stroke Lottery offers Loyalty and VIP Prizes. The prizes are only available for tickets purchased before 11:59 pm on a particular data. For example, the Loyalty prizes were applied to the tickets purchased before 11:59 pm on October 19, 2018. The customers had chances of winning one of five CAD$10,000 cash prizes, and their tickets were entered into the grand prize and bonus draws. Similarly, the VIP prizes were applied to the tickets purchased before 11:59 pm on November 16, 2019.

This is one of the best practices because when the chances of winning a lottery are increased, the customers are encouraged to come back for more of these offers. Therefore, this practice drives loyalty among consumers who purchase lottery tickets as the ticket prices do not change per prize. All that the customers have to do is buy the tickets before the deadline. Forbes notes that customer experience is very important for driving loyalty. These prizes drive the experience of customers by giving them the option to purchase more tickets and opportunities to test their chances.

GROUP PLAY

Ontario Lottery and Gaming Corporation (OLG) offers the Group Play option. It is a different way to play the lottery. In Group Play, there is a Group Play Captain who coordinates the members of the group, pools the money, and validates the tickets. Group Play, according to OLG, is a fun way to play the lottery with coworkers. This is a new type of experience that can be enjoyed as it is a social way to play the lottery. Many customers return to the lottery company because of the increased chances of winning that the Group Play option provides. People also come back for socializing. Group Play is one of the best practices because it encourages current customers to return for socializing and bring in more customers.

PROMOTIONS

PlayNow offers promotions to its customers for driving loyalty among them. Their promotions include a subscription that allows people to purchase future draws. Customers can choose the draws that they want to play. They can also select the "Never Miss a Draw" option that allows them to continue their subscription.
Daily Grand is the lottery promotion used by PlayNow. The promotion offers five chances to the customers to win CAD$25,000 a year for the rest of their lives. According to the company, this promotion will only be available for a limited amount of time.

According to IGT, promotions are one of the best practices because they help in building long-term benefits such as "brand loyalty, awareness, player engagement, and satisfaction." If a promotion is designed well, it can promote a winning experience for the customers along with a perception of better value. As a result, customers keep playing the lottery.


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