A debatable game and questionable appeal at the end of the recent Indiana-Penn State football game created a disruption, not only for Penn State, which he lost overtime, but potentially for DraftKings, one of the biggest sports sites. To satisfy customers, DraftKings not only paid bettors who had selected Indiana, but also refunded bets placed on Penn State.
What might seem like a great gesture can also end up hurting DraftKings. By wondering the final results of a game through the official ones, DraftKings can also, in the end, do a skinny favor to its consumers and potentially undermine the product they offer.
Betting sites are giant companies, with an expected expansion of 13. 2% to $66. 7 billion internationally by 2020, up from $58. 9 billion. During the pandemic, its charm evolved among sports enthusiasts and the most experienced and avid entertainment gamblers. Because of Covid-19, sites have become more creative and offer bets on other events, such as chess.
In the midst of this growth, it is a harmful practice to replace the nature of betting by necessarily erasing the loss due to a controversy at the end of the game, even if it only happens once. any industry: making sure consumers are happy may end up inadvertently disillusioning them. Here are 3 reasons why moving DraftKing was a questionable practice for visitors.
1. A precedent
By refunding bets on those who lost in the Indiana-Penn State game, DraftKings replaced the very nature of the bet. The message they send is “not just betting on games; betting on our subjective interpretation of the game. “
This creates a misleading precedent that in the end leads to the question: what can the site do in the long run to avoid disappointing customers?Sports are full of unforeseen events that have nothing to do with the skill and skill of the players. Anything from a converter wind that suddenly sends baseballs out of the park to fan interference can replace a result. It’s a component of the game.
2. What if. . . does that make it exciting?
Questionable calls and controversies that communicate shows of warmth after the match are part of the sport, both for enthusiasts and gamblers. This leads to an investigation of the “what if” type that causes other people to communicate about a game for days and even weeks afterwards. “What if” is arbitration and arbitration, with officials who are not foolproof.
Even when calls are accurate, they can cause interruptions. Consider what happened to a gambler who was about to win $1 million in a DraftKings tournament, until officials corrected statistics for the Los Angeles football game. bears, which ended up costing the bettor a first place in the Fantasy tournament. Instead of earning $1 million, the bettor raised only $3,078. 94. But this is the threat of gambling and gambling.
3. A replacement in the product
For many other people, sports betting is not meant to be a reliable source of income, it’s an emotion. The average bettor needs to feel that he has “skin in the game” to make the viewer more exciting. When you place a bet, that’s what other people buy. They need uncertainty and emotion. By cutting the excitement of winning and stinging to lose, DraftKings broke the product they sell. Of course, bettors need to win, but whoever bets knows losses are inevitable. In fact, it is the losses that make the occasional victory a couple. sweeter.
Ups and downs
Keeping consumers satisfied and making sure they are right is admirable in theory, but has its limits in practice. As long as consumers necessarily buy an experience, there will be a threat of disappointment. It’s just not practical to check to eliminate those suboptimate experiences.
Imagine if the ski resorts were paying for lift tickets on days when the snow isn’t dusty enough, or if the wind suddenly rose and the temperature went down, or what if the audience were reimbursed for their tickets if an artist was only mediocre that night?
Of course, each and every skier needs the best days on the slopes, just like each and every guest at the theater needs to see the artists at their best, but to savor the highs, there will also have to be casualties. to mitigate the latter actually decreases the first. For DraftKings, this is a precautionary lesson when reviewing your future bet refund practices.
I am an associate clinical professor of knowledge research at northwestern University’s Kellogg School of Management. Organizations and business leaders generate
I am an associate clinical professor of knowledge research at northwestern University’s Kellogg School of Management. Organizations and business leaders generate truly extensive business prices through analytics, expand successful investments and analytics strategies, and evolve analytics expertise across the enterprise well. Analysis officer at Varicent, a sales functionality control software provider. My paintings have been presented nationally and globally through speeches, publications and quotations in leading journals, such as Harvard Business Review and Business Insider. I teach MBA and executive education, academics at Kellogg and master’s academics in analysis at the McCormick School of Engineering and Applied Sciences. I have a Ph. D. in policy research from Pardee RAND Graduate School, a JD from Northwestern University School of Law and a bachelor’s degree in physics from the University of Michigan.