Making Lottery Align with Consumer Trends

Tom Fender surveys over 12 million shoppers to gather insights and to inform his retailer clients on how consumer preferences are evolving. The main take-away: There are far more similarities than differences in the preferences of consumers all around the world!

Credit Card Reading Device Attached To Digital Tablet

Top-off shopping: 80% of the world’s population is shopping more often, more frequently, and making smaller purchases. 25% say they are shopping much more frequently. 1 in 7 shoppers ‘top-off’ shop every single day! 14% of people say they top-off regularly for the very purpose of buying lottery tickets. This vital fact reflects the role of Lottery as a driver of increased frequency of top-off shoppers. How can Lottery contribute even further to this consumer behavior, and further capitalize on it? The notion that Lottery is an impulse purchase may not be entirely misguided. BUT much more interesting than that notion is that for a significant minority, the purchase of a lottery ticket is actually a driver of shopping behavior. And of course, from the retailer point of view, that is a tremendously powerful idea, making lottery players a very valuable target market.

Motivations for consumers to shop at neighborhood stores include the desire to support local businesses. They don’t want their local merchants to go out of business. They want to support local suppliers, local product, local economies in general, local everything. This is an important trend that speaks to underlying values which are becoming more and more a primary driver for consumer behavior. Lottery should increase its affiliation with local economies and stores.

Of course, convenience is the biggest driver. Consumers know they might pay a little more. Though interestingly, it is not clear whether they do view convenience stores as more expensive. Fully 20% of survey respondents said they shop at Convenience Stores to save money! No parking problems and much less time to shop means that the consumer is saving on the precious commodity which is their time.

Too, 1 in 3 products bought in super stores are thrown away! 43% of survey respondents said they shop at Convenience Stores to reduce this waste and have fresher food. As consumers, we are noticing that fact and that further justifies the proposition of paying a little more to buy products that will not be wasted. This calculus is steering us away from superstores to local merchants.

Convenience Retail is all about the experience, not the transaction or acquisition of a product. Think about how Starbucks totally reinvented the experience of buying a cup of coffee, creating an experience that consumers are happy to pay extra for. How can lottery enhance the theatre of how it is presented in the convenience store? Retail stores want Lottery to help them enhance the theatre and drama of in-store shopping because it is what drives footfall and increases dwell-time in store.

Retailers are evolving to become experiential and reflective of the values of their clientele. Stores are getting rid of cigarettes which are a key driver of footfalls. That means that Lottery’s role of driving footfall and dwell-time is increasingly valuable to retailers. Food service is becoming the big footfall driver for convenience stores. We may think that consumers at convenience stores value least expense more highly than other attributes. Not true anymore. The segment that is quite willing to pay more for premium offers and convenience is increasing.

25% of the world’s population leave home in the morning without eating breakfast. Some of them do not eat breakfast at all, but the market for those that do is huge – and “breakfast-to-go” is increasing. This is a high margin and traffic-driving category for convenience stores. How could Lottery take advantage of this scenario?
People are so busy – 51% of people do not know what they are going to do for dinner before Noon! Think about that. This fact points at why people’s life-style is pushing them more and more into the world of Convenience stores.

Consumers are increasingly looking for businesses that reflect their values. Design agencies are paid to think of things in a more complicated way. But simple is often better. In his opening talk, Ray Bates showed a slide of happy children and an ice cream cone with a simple statement of “3 euro”. That’s all that was needed to tap into the demand at this particular venue of a fairground where parents are struggling to manage their restless children. One selling benefit – 3 euro to make your kids happy!

Related Articles

View all

Synopsis

Français
Aligner la loterie sur les tendances de consommation. Tom Fender a interrogé plus de 12 millions de consommateurs pour recueillir des idées et pour informer sa clientèle dans le commerce de détail sur l’évolution des préférences du consommateur. Les conclusions principales sont les suivantes : Il existe bien plus de similitudes que de différences dans les préférences des consommateurs du monde entier. Achat d’impulsion : 80 % de la population mondiale fait des courses plus souvent et en faisant de plus petits achats. 25% déclare faire des courses bien plus fréquemment. 1 consommateur sur 7 fait un achat d’impulsion par jour ! 14% des gens déclarent faire régulièrement un achat d’impulsion spécifiquement pour acheter des billets de loterie. Ceci traduit le rôle de la loterie comme moteur de la fréquence des acheteurs impulsifs. Comment la loterie peut-elle favoriser encore plus ce comportement du consommateur et miser encore plus sur ce dernier ? Parmi les éléments favorisant la fréquentation des boutiques de proximité, on trouve l’envie d’encourager les entreprises locales. La loterie devrait augmenter son affiliation avec les boutiques et l’économie locales. 43 % des personnes interrogées déclarent faire leurs achats dans les commerces de quartier pour réduire le gaspillage et avoir des aliments plus frais. Ce calcul nous éloigne des grandes surfaces et nous rapproche des commerçants de quartier. Le commerce de détail de commodité est une question d’expérience et non de transaction ou d’acquisition d’un produit. Regardez comment Starbucks a entièrement réinventé l’expérience d’achat d’une tasse de café, créant une expérience pour laquelle le consommateur est prêt à payer plus. Les commerces de détail attendent de la loterie qu’elle rende plus théâtrale les achats en magasins, car c’est ce qui permet d’augmenter la fréquentation et le temps de présence sur le point de vente. Les gens sont vraiment occupés. 51 % d’entre eux ne savent pas avant midi ce qu’ils feront au dîner ! Cela donne à réfléchir. Ce fait met en avant la raison pour laquelle le mode de vie des gens les pousse de plus en plus vers les commerces de quartier.
Español
Alinear la lotería con las tendencias del consumidor. Tom Fender entrevistó a más de 12 millones de compradores para recopilar información. Gracias a estos conocimientos, sus clientes comerciantes pueden saber cómo están evolucionando las preferencias del consumidor. El principal aporte: Existen muchas más similitudes que diferencias en las preferencias de los consumidores de todo el mundo. Compra por capricho: El 80 % de la población mundial compra más a menudo, con más frecuencia y realiza compras más pequeñas. Un 25 % dice que compra con mucha más frecuencia. ¡Uno de cada siete compradores realiza compras por capricho cada día! Un 14 % dice que compra por capricho con regularidad, y ello incluye la compra de participaciones de lotería. Esto refleja el papel de la lotería como impulsor del incremento de la frecuencia de los compradores impulsivos. ¿Cómo puede la lotería contribuir más a este comportamiento del consumidor y sacar provecho de ello? Los motivos para que los consumidores compren en el comercio de proximidad incluyen el deseo de apoyar los negocios locales. La lotería debería incrementar su afiliación con las tiendas y las economías locales. Un 43 % de los encuestados afirmó que compra en las tiendas de proximidad para reducir desechos y contar con comida más fresca. Este cálculo nos está alejando de las grandes superficies para acercarnos al comercio local.  La base fundamental del comercio de proximidad es la experiencia, no la transacción o adquisición de un producto. Piense en cómo Starbucks reinventó totalmente la experiencia de comprar una taza de café, creando una experiencia por la que el consumidor está encantado de pagar un extra. Las tiendas minoristas quieren que la lotería les ayude a mejorar el espectáculo y la experiencia de la compra en las tiendas, porque es lo que impulsa la presencia e incrementa el tiempo de permanencia en el establecimiento. La gente está muy ocupada: antes del mediodía, ¡un 51 % de las personas no sabe lo que va a preparar para cenar! Piense en eso. Este dato indica por qué el estilo de vida impulsa a la gente, cada vez más, hacia el mundo de las tiendas de proximidad.
Deutsch
Die Lotterie an Verbrauchertrends ausrichten. Tom Fender hat mehr als 12 Millionen Einkäufer befragt, um Einblicke zu erhalten und seinen Einzelhandelskunden Informationen darüber geben zu können, wie sich die Vorlieben der Verbraucher verändern. Die wichtigste Schlussfolgerung: Es gibt hinsichtlich der Vorlieben von Verbrauchern weltweit weit mehr Gemeinsamkeiten als Unterschiede. Einkaufen zum Aufstocken: 80 % der Weltbevölkerung bevorzugt häufige, regelmäßige und kleinere Einkäufe. 25 % gaben an, dass sie viel häufiger einkaufen gehen. Jeder 7. gab an, dass er oder sie jeden Tag einkauft, um „aufzustocken“! 14 % der Befragten sagen, dass sie regelmäßig „aufstocken“ mit dem Ziel, Lotterielose zu kaufen. Das unterstreicht die Rolle der Lotteriebranche als Motivation für die erhöhte Einkauffrequenz der Menschen, die einkaufen, um aufzustocken. Wie kann die Lotteriebranche noch weiter zu diesem Verbraucherverhalten beitragen und dieses gewinnbringend nutzen? Ein Grund dafür, warum Verbraucher in Nachbarschaftsläden einkaufen, ist der Wunsch, lokale Geschäfte zu unterstützen. Die Lotteriebranche sollte ihre Kooperationen mit der lokalen Wirtschaft und örtlichen Geschäften verstärken. 43 % der Befragten sagte, dass sie in Nachbarschaftsläden einkaufen, um Abfall zu reduzieren und frischere Lebensmittel zu haben. Dieser Ansatz bringt uns weg von Mega-Stores und hin zu lokalen Händlern. Im Nachbarschaftseinzelhandel geht es um die Erfahrung und nicht die Transaktion oder den Erwerb eines Produkts. Denken Sie daran, wie Starbucks den Kauf einer Tasse Kaffee komplett neu erfunden und ein Erlebnis geschaffen hat, für das die Verbraucher gerne mehr bezahlen. Der Einzelhandel möchte, dass die Lotteriebranche dazu beiträgt, den Einkauf in einem Geschäft stärker zu einem Erlebnis zu machen. Denn das erhöht die Anzahl an Kunden sowie die Dauer ihres Verbleibs im Laden. Menschen heutzutage sind viel beschäftigt – 51 % der Leute wissen vor Mittag nicht, was sie abends kochen werden! Lassen Sie sich das auf der Zunge zergehen. Das zeigt, wie der moderne Lebensstil die Menschen dazu bewegt, häufiger in Nachbarschaftsläden einkaufen zu gehen.

Other Articles

View all

Successful EL/WLA seminar highlights value of responsibility

Hosted by EL Member Hrvaska Lutrija, this year’s successful seminar provided an excellent opportunity to hear from experts in RG and CSR, understand how other lotteries are implementing their progra......

Read more Synopsis: fr / es / de

EL publishes first-ever Annual Report

Looking back at a successful 2018, EL has presented its first ever Annual Report. The Annual Report provides an overview of activities from the past year, which would not have been achieved without the ongoing support of EL members. By continuing to provide best practices, content and enthusiasm, they pave the way for the work of the Association....

Read more Synopsis: fr / es / de

EL’s Responsible Gaming Certification continues to reap benefits for members

Peter Simoner, CEO of Loteria Kombetare received his Commitment certificate from EL President Hansjörg Höltkemeier Benefits of the Commitment Level Loteria Kombëtare in Albania was the first-eve......

Read more Synopsis: fr / es / de

European Standard on reporting in support of online gambling supervision notes considerable progress

On 12 and 13 September the CEN Working Group drafting the Standard held its two-day meeting in Brussels. The Standard is expected to be put for public comment and a vote by the end of November 2019....

Read more Synopsis: fr / es / de

European Commission Sport Unit Breakfast welcomes EL

At the fourth European Commission Sport Unit Breakfast EL was invited to present how lotteries are supporting and using sport. EL President Hansjörg Höltkemeier highlighted the importance of promoting the values of sport and the sustainable financing from national lotteries....

Read more Synopsis: fr / es / de

2020 EL Innovation Awards are now open for submission!

For EL lottery members only, the awards are another key initiative led by the EL Innovation Working Group (ELIG), which was set up to inspire, connect and engage the EL community in innovation. The aw......

Read more Synopsis: fr / es / de

EL organises Corporate University Modules for the second year running

The Induction Module, aimed at new entrants in the lottery world (up to 3 years experience), allowed for an extensive introduction to the sector and an insight into the many complex activities. Over t......

Read more Synopsis: fr / es / de

First-ever EL seminar on Instant Games

In 2017 the overall sales of Instant Games (or sometimes called Scratch Cards) in Europe was 25.9 billion EUR. This made Instant Games the second most important game in the portfolio of EL members. Th......

Read more Synopsis: fr / es / de

Upcoming EL Seminars & Events

8-10 October: EL/WLA Security & Integrity Seminar. 5-7 November: Innovation Seminar. 20-22 November: EL/WLA Sports Betting Seminar. 27-29 November: Legal and Regulatory Affairs....

Read more

New appointments for EL members

From left to right: Kerstin Kosanke, Managing Director, Lotto Brandenburg, Alexandru-Mircea Croitoru, General Manager, Loteria Romania, Bekir Yunus Uçar, General Director, Turkish National Lottery Administration & Gábor Czepek, CEO, Hungarian National Lottery...

Read more

IGT | Sustainability Strengthens the Social Contract

IGT recently released its 12th annual IGT Sustainability Report, “Ahead of the Game,” an externally audited document that validates IGT’s sustainability activities and data. The report highligh......

Read more Synopsis: fr / es / de

Scientific Games | Investing in growth with instant games

The global lottery industry faces new challenges from changing consumer and retail behaviours. Along with regulations and policy decisions, these changes place competitive and margin pressure on lotte......

Read more Synopsis: fr / es / de

INTRALOT | Trends and technologies that modernise the Lottery Industry

As it was stated during the 10th EL Congress in the CEO Panel discussion by Maria Stergiou, Group Chief Sales and Operations Officer of INTRALOT, all the above technological trends are creating sever......

Read more Synopsis: fr / es / de

Call for global action as Macolin Convention enters into force

The Convention entered into force thanks to its ratification by Italy, Moldova, Norway, Portugal, Switzerland and Ukraine. Another 32 countries, including Australia, have also signed it. Within 12 mon......

Read more Synopsis: fr / es / de

New Managing Director at Germany’s Lotto Brandenburg

Kerstin Kosanke, Managing Director of Land Brandenburg Lotto GmbH After finishing her law studies in Potsdam, Ms. Kosanke worked for 15 years as an independent lawyer with a focus on tax law and man......

Read more Synopsis: fr / es / de

Loteria Romania appoints new General Manager

Honoured in his new role Alexandru-Mircea Croitoru as General Manager, he will continue to work on the implementation of projects that will drive the development of the lottery. The Romanian Lottery is one of the oldest institutions in the country, established in 1906 in order to improve the health system, especially in rural areas....

Read more Synopsis: fr / es / de

Interview with Gábor Czepek, new CEO of the Hungarian National Lottery

Gábor Czepek, CEO, Hungarian National Lottery Szerencsejáték Zrt. is one of Hungary’s largest, dynamically developing state-owned enterprises: What were the most pressing tasks in this initial......

Read more Synopsis: fr / es / de

Introduction to new General Director at the Turkish National Lottery Administration

Following a career in journalism, Bekir Yunus Uçar spent over 20 years in public service. He worked in several roles at Türk Telekom before joining the Turkish National Lottery Administration. He was appointed General Director by the Minister of Treasury and Finance....

Read more Synopsis: fr / es / de