The keen competition within the gaming industry compels casinos to implement creative customer retention strategies. VIP membership programs that offer customized rewards and privileges are invaluable for breeding loyal patrons that deliver substantial revenue.
Tier Status Determines Customer Devotion
All major casinos, such as Stake, institute multi-tiered VIP programs that confer greater advantages upon members as they advance to higher echelons. The initial level bestows a modest selection of gaming freebies, discounts and invitations to special events. However climbing towards the top tiers allows access to elite giveaways such as free meals, show tickets and hotel suites.
The excitements of rising status and earning superior rewards fosters emotional ties between VIP members and host casinos. Additionally the concept of exclusivity taps into human psychological desires for achievement and social belonging. Hence, multi-tier programs psychologically anchor patrons while the luxury amenities retain them.
Offers Boost Visit Frequency
VIP hosts utilize player tracking data to dispatch personalized promotions aimed at their member's favorite games and facility amenities. Targeted match plays, free slot play and comps motivate members to utilize these perks through frequent visits.
Additionally, inviting VIPs to partake in exclusive tournaments and events also lifts visitation rates. For instance, High Limit slot tourneys with just 20-30 players foster camaraderie and deliver an intoxicating atmosphere unmatched by regular slot banks. Furthermore, VIPs gain opportunities to interact with celebrity guests at A-List parties and opening galas unavailable to the average guest.
The customized incentives and distinguished social events preserve engagement among VIP members which directly translates into repeat trips and lengthier stays.
VIP Events Lengthen Play Sessions
Special tournaments, parties and performances give VIPs tangible reasons to extend gaming sessions whether competing for coveted prizes or staying late mingling with other elites. Additionally, onsite VIP lounges serve premium beverages and snacks allowing members to refresh without wandering far from the gaming floor.
In 2016, Las Vegas Sands CEO Sheldon Adelson credited VIP rooms and amenities for increasing play duration by 45 minutes among mid to high tier members. Extended gaming sessions allow these valued customers extra time to inject more cash into slot machines and table games.
Table 1: Increase in Revenue from VIP Members
|
Casino Brand |
VIP Revenue 2018 |
VIP Revenue 2019 |
$ Difference |
% Change |
|
Wynn Las Vegas |
$600 million |
$750 million |
+ $150 million |
+ 25% |
|
Bellagio |
$550 million |
$625 million |
+ $75 million |
+ 14% |
|
Caesars Palace |
$475 million |
$525 million |
+ $50 million |
+ 11% |
Evidently, forward-thinking investments in VIP programing cultivates measurable jumps in gaming revenue from these premium players. Wynn Las Vegas realized a quarter billion dollar increase after adding new VIP amenities and benefits. Competitors soon followed suit to retain their coveted elite patrons.
Way Forward
VIP membership programs stimulate enduring patron loyalty via escalating rewards, personalized promotions, and exclusive events that collectively enhance the customer experience. This fosters emotional bonds and taps into psychological motivations to return frequently and remain on property longer during each visit.
The demonstrated revenue growth enjoyed by casinos actively improving their VIP offerings should compel lagging competitors to re-evaluate their high-end retention plans. Those unwilling to provide five-star treatment risk losing their whales to rivals presenting superior hospitality and gaming value. Hence, a world-class VIP program constitutes the key ingredient for baking long-term casino loyalty with premium players.
