Customer Loyalty Programs were first introduced in the airline industry in the early 1980s by American Airlines. These programs expanded to other industries quickly, and the first casino loyalty program was introduced by Harrah’s in 1998.
From 2000 to 2006, total customer loyalty program enrollments in the US across all industries increased 35.5% to 1.5 billion. Building loyalty is extremely important to the success of a casino. Experts estimate that if businesses can keep 5% more of their customer base, their profits can increase by almost 100%!
Casino loyalty programs are growing rapidly with a 70% increase in membership between 2006 and 2010.
- 2006 – 78 million members
- 2008 – 106 million members
- 2010 – 133 million members
Latest membership data from 2010 shows that more than 133 million people are currently members of casino loyalty programs.
Players want Rewards!
3,000 casino loyalty rewards program members were polled about what they value most in a rewards program. Not surprisingly, free play coupons, dining discounts and comped rooms were all high on the list. More surprising were the number of respondents who valued lower-profile rewards such as free parking, early check-in and late check-out.
The following are the most common rewards that were considered important to the respondents:
- Amount of free play offered
- Dining discounts
- Complimentary rooms
- Free self-parking
- Complimentary access to casino events
- Early check-in / late check-out
- Exclusive tier-based rewards
Loyalty Members are Loyal!
Numerous studies have been conducted to determine if casino loyalty programs create more customer loyalty. As is expected, these programs do, in fact, build a more loyal customer base that not only visits their loyalty club casino more often, but also spends more time at the casino on each visit.
- Loyalty Members travel to Casinos more often
- Members frequent local casinos more often
- Members spend over twice as long at the casino
Loyalty Kiosks are the Key!
Studies have shown that loyalty programs are most successful when they are presented with sophistication, serve a consistent message, are easily accessible, and they are accompanied by a high level of customer service.
Interactive gaming and casino loyalty kiosks can be the key to an effective loyalty program as they provide the customer with access to everything from an easy touchscreen signup to direct dispensing of rewards coupons and vouchers. A few of the key features of
interactive loyalty kiosks are:
- Advertise and promote the loyalty program by allowing non-enrolled customers to browse rewards
- Quick and easy touchscreen enrollment into the loyalty program
- Dispense loyalty program cards
- View current point status and browse available rewards
- Redeem rewards points
- Dispense tickets for free play coupons, event admission tickets, and free meal vouchers