The Lottoland Australian website claims four million players. That number is extraordinary. It is audited by KPMG so I trust it.
What we don’t know is how many of the four million are regular players. That percentage would be interesting to know. Regardless, having 4 million players at any time over the course of their first year her is extraordinary.
As I have noted here previously when writing about Lottoland, they market well. here is part of an email I received from them yesterday – I am a registered customer having tested their product a while back.
This is a compelling offer compared to how Tatts promotes products products. Look at it. Buy six games and they give you another three free.
Because it’s all done online, they can push the offer out quickly, gauge engagement quickly and get people playing again who may have taken a break. Their whole approach is different as there is no store and I think that is what newsagents don;t get about this challenger, there is no store.
This is why the Lottoland TVCs target newsagents, because this is where they are weak. To play lottery games in a newsagency you have to go to the newsagency you have to be in the store with the parking lines, credit card fees and more points of friction. To play Lottoland you don’t have these points of friction.
It is a very different game, promoted in a different way.
The TVC is about attracting new shoppers while the email marketing is about driving engagement among their database of customers, four million customers.
Marketers say emails get a minimum response rate of 2%. That is 80,000. Imagine if 80,000 played the six Powerball games. The revenue soon adds up.
Now think about what it would take for the newsagent lottery outlet network to sell the 80,000 tickets. 80,000 transactions at around 30 seconds each plus stating in line and parking and more, the time cost of the purchase would be in the order of four thousand person hours – allowing three minutes per transaction walking and / or parking time plus shopping time. Compare that to something like 400 person hours for the seconds it would take each of the 80,000 to make the purchase online.
My point here is Lottoland is an extraordinary game changer. I don;t want it to be because I want newsagents to flourish. However, it is what it is, a game changer in my view.
Be informed. Play it, let your business planning be informed by that experience.
The message on the website has changed. It now says 4 million players worldwide.