Loyalty programs are a marketing strategy that rewards customers for maintaining patronage at an establishment. Casinos use loyalty programs to attract and retain customers, increase their share of wallet, and enhance the experience.
Casinos have been using customer loyalty programmes for decades. Increasingly, they’re using them to reach a wide audience and improve their offerings for slot players and nongaming guests.
Bonuses
Casino Customer Loyalty Programs are a great way to encourage players to remain loyal to a specific online casino. This is because, without loyalty programs, players would simply move on and claim their welcome bonuses once they had used them up.
These loyalty programs typically offer a variety of different bonuses, including cashbacks and free spins. These are generally more beneficial than standard bonuses and can be offered weekly or monthly depending on the terms and conditions of the loyalty program.
Another important aspect of these loyalty programs is the level system, which rewards gamblers for their regular play. The more points a player earns, the higher their tier will be.
These tiers are usually broken down into categories, such as Silver, Gold and Platinum. The higher a player’s tier, the more benefits they will receive, such as personalised bonuses, higher withdrawal limits and faster deposit and withdrawal times.
Rewards
Casino Customer Loyalty Programs offer a variety of rewards to customers. These may include free play, cash back bonuses, and invitations to special events.
The best casino loyalty programs are designed to stimulate repeat play by appealing to players of all levels and ages, and by offering rewards that appeal to their individual preferences. These programs are also custom-designed to meet key objectives, including keeping customers from defecting, winning a greater share of wallet, stimulating additional purchases, yielding insights into customer behavior and preferences, and turning a profit.
Most casino loyalty programs are divided into tiers based on historical play, and members move up through these tiers to receive higher-level benefits. This type of tier-based structure has been observed to increase attitudinal and behavioral loyalty among gamblers (Barsky & Tzolov, 2010; Wohl, 2018).
Taxes
Loyalty programs are a staple of B2C marketing and many casinos have their own. However, implementing one that is effective and pays for itself can be a challenge.
To be successful, a casino must know its customers and tailor the program to meet those specific needs. A well-designed loyalty program should offer members a wide variety of rewards and perks. These can range from branded merchandise and services to high limits for deposits and withdrawals, a VIP customer support team and personal account managers.
A casino must also ensure that the program is compliant with tax regulations. In particular, an often overlooked rule may offer a substantial benefit when it comes to the treatment of redemption costs associated with such programs.
Regulations
Loyalty programs are one of the most effective ways for casino operators to retain their current customers. These programs usually offer a range of benefits to customers and are an excellent way to entice new players.
In order to create a loyalty program, casinos typically need to know more about their customers and how they play. They can then use this information to create a loyalty program that will suit their unique players.
While some casinos have a set of tiers to their loyalty program, others have opted to create a more personalized program for their customers. This is done by naming the tiers and offering rewards that match the specific casino’s vision and positioning in the industry.
Ideally, a loyalty program will be designed to encourage frequent visitation and spend by customers who have favorable attitudes toward the casino and a positive attitude toward their own behavior. This would be represented by the top right quadrant of the matrix shown in Figure 2.