What digital trends are emerging for the lottery sector?
In recent years, digitalization has become a major driver across all branches of business. This development is also affecting the lottery sector. In the past, a dedicated lottery player would personally visit a state lottery office in order to submit a winning ticket. This type of clientele is getting smaller and smaller, and today’s young people no longer enjoy playing the lottery like that. With technological standard-bearers like Amazon, Netflix and Airbnb, we’ve become used to a high level of digital service, convenience and user friendliness. Nowadays, lottery players are increasingly preferring to visit online portals like lotto.de. This shift has brought new wind to what had been a shrinking market.
Germany’s state lottery companies are currently regulated by a State Gambling Treaty that runs until 2020. According to media reports, the sixteen states are now negotiating a new joint agreement. It’s in this context that sum.cumo, as a technological driver and lottery expert, has been advocating further liberalization in discussions with policymakers, so that Germany’s state lotteries don’t lose their connection to the wider European market.
sum.como works with companies in the lottery sector to digitalize their business models. In order to offer the most innovative solutions, sum.cumo regularly conducts customer surveys and market analyses while closely monitoring market developments. Here, the following trends can be seen:
1: Updated offerings: the customer wants more entertainment
After having marketed the same offerings for years, the time is ripe for the lottery sector to update its product palette. Today’s new target group wants a more diversified experience, having become accustomed to greater variety.
2: The border between online and offline is disappearing
Technological developments are making the lottery experience much more available, as it is now offered in online form too. In the future, our lives will be defined by communication technologies and digital flows of information transcending all borders between different communication channels.
3: Bringing together multiple communication channels
In sectors like retail, we’ve become used to interfacing with companies through multiple channels, including email, phone, WhatsApp, etc. Lottery players will soon be expecting the same. Here, it’s important that they are given a consistent brand experience across all communication channels.
4: Mobile only
Today’s consumers are accustomed to realizing their plans and ideas wherever and whenever they want. This means that the offerings of lottery companies need to work in every situation, regardless of device. After the introduction of traditional native apps, the next logical step is progressive web apps, which are now becoming used more and more as a primary channel.
5: Gearing towards a younger audience
The latest products, offers and services are geared towards a younger target market. Lottery companies also need to update their market presence accordingly. It’s the only way to rejuvenate the lottery experience, making it more attractive.
6: Rigorously designing around the customer – increased individualization
Today, it’s the customer who sets the tone. This means that all products and service flows need to be rigorously designed around the customer.
7: Changing Germany’s State Gambling Treaty – enhancing competitiveness
With the potential updating of Germany’s State Gambling Treaty in 2020, there’s a chance to improve the competitiveness of German state lottery companies in the face of international competition. Lottery companies need to seize the opportunities resulting from this.
sum.cumo is embracing these trends and driving forward the digitalization of the lottery sector, both for its providers and their customers.