Designing a Tiered Player Rewards Program
As a casino matures and its database of active players grows, it is the natural tendency of casino leadership to consider the implementation of a tiered player rewards program (TPRP). This marketing initiative is driven by a number of factors, not the least of which is the realization that a small portion of the casino’s database is contributing an inordinately large share of gaming revenue. Thus a TPRP is implemented to offer the casino’s best customers higher levels of service and recognition. However, creating a tiered rewards program involves far more than the design, manufacture and distribution of various colored membership cards, distributing the appropriately colored cards to the right segments of the database and the planning of a few premium player parties. A TPRP, like any marketing initiative, requires clearly defining attainable objectives, a strategy that will allow the casino to achieve those objectives and tactical plans that carry out that strategy.
The first question that must be answered is “what are the objectives of a TPRP program?” While fostering loyalty, providing higher levels of recognition and taking care of the casino’s best customers are all reasonable objectives, they are immeasurable and cannot be quantified. Rather, a casino must delineate measurable goals. These goals may include: increasing the number of “A” level club members, grow the “A” and “B” segments by 10% and 5% respectively or increase the median number
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