How loyal are you to your own Player Loyalty System?

With the evolution and recent growth of internet gambling venues are now looking for different strategies to capture and maintain the recreational dollar from patrons. Customer loyalty is not that common with the typical gaming patron, choosing to spend their dollar through a multiple amount of venues.

In order to keep players within venues, more and more are turning towards Player Loyalty Systems to reward our patrons. In setting up a reward system there are many facets that unless delivered precisely and effectively will lead to a diminished return.


What Is Loyalty?

In some cases, customers continue to do business because they have no other alternatives or exit barriers are too high. It’s important not to confuse these “trapped” customers, with “truly loyal” customers, who have a positive attitude about the business relationship and will give recommendations to friends and colleagues. Think “free marketing”.


Drivers of Loyalty and Defection

In customer loyalty, there’s no substitute for good research and planning. No matter the size or type of your business, you must start by understanding why customers stay and why they leave. Taking this customer-centric view will enlighten management on why customers behave the way they do so that you can create a profit-generating loyalty strategy.

It is, of course, possible to acquire and retain unprofitable customers. Some companies make this mistake by constantly acquiring new customers with price promotions and then wondering why these same customers flit to the next deal offered by a competitor. The resulting high-churn, low-margin customer base is unlikely to ever be profitable. Keeping the right customers is crucial to effective Customer Relationship Management (CRM).


It’s the Service

 Monopolies aside, the odds are that today’s customers can acquire similar products at similar prices, from an array of local competitors. Emotion plays a much higher role than quality and price in the decision to defect and poor customer service is the most likely culprit in creating negative feelings that will motivate a customer to bolt.

Most people leave a company because they feel they’re not treated well. They feel that, for some reason, they have been ignored or not treated properly. Management usually thinks the reason for leaving is price, and of course, that’s true in some cases. But it’s usually because they feel that they’ve been neglected or somehow abused. They write a letter, and no one answers the letter. They send an email, and no one answers the email. They telephone the company, and they’re put on hold for two hours. Or worse, they are among the majority and don’t say anything at all!

Retaining the right customers or winning back defecting customers can be accomplished by following these steps:

  • Identify potential defectors
  • Communicate with customers
  • Listen to front-line people
  • Treat valuable customers well
  • Use exit barriers, carefully
  • Train front-line staff to be aware
  • Win the right customers back

When you’re determining how to retain customers, you also want to determine which customers to focus on: Which ones are the most valuable for your business and would be the most costly to lose?

Using a risk/revenue matrix to determine which customers businesses should care about most is one of the key steps, this will be defined in two key steps;

  1. Determine the lifetime value of your customers and divide them into high, medium and low lifetime value segments, then
  2. Determine the likelihood that they will leave you and divide the customers into three defection classes.

Impact of Leaving

 Lifetime Value   High Medium Low
High Priority A Priority B Priority C
Medium Priority B Priority B Priority C
Low Priority C Priority C Priority C

Quite often we tend to spend most of our time on the lower return patrons whilst the more regular and profitable patrons are left unattended. Put simply we spend 80% of our time on 20% of our revenue stream.


So, What’s Next?

question markWhen was the last time you actually dedicated time into looking at your loyalty programs from the customers perspective? It’s time to get loyal to your own loyalty systems.

Dickson Wohlsen Strategies can create loyalty programs from scratch or reinvigorate your existing programs.

Recognising the importance of your brand and communicating the right message to engage your patrons, we will also work with you to produce the right mix of creative promotional materials to support your program. Investing in your loyalty program is about investing in your best customers and your relationship with them.

For a no-obligation chat about your loyalty program, contact DWS Consultant Danny Nixon-Smith on (07) 3878 9355 or