GPWA Times Magazine - Issue 26 - October 2013

Using loyalty programs to increase player conversion and retention By Jeremy Enke A s the online gambling industry has matured, the importance of incen- tivizing players not only to sign up and play at a specific gaming site, but also to remain a loyal customer has increased in importance. As a result, loyalty programs are becoming paramount in the success or failure of both online poker sites and on- line casinos. There is no doubt that since Black Friday and the overall global recession, player pools in many jurisdictions have signifi- cantly decreased. With regulation loom- ing in the U.S., many existing operators are taking a closer look at their loyalty programs. With the brick-and-mortar ca- sinos entering the U.S. market, you can bet that they will bring with them their exceptional loyalty programs, including a distinct advantage: They can use their brick-and-mortar properties to leverage their loyalty programs. Loyalty programs at online gaming des- tinations offer players either rewards or bonuses for playing. Similar to how land- based casinos offer free meals or stays for a certain amount of player points, online operators offer their own form of loyalty schemes. The difference with online loy- alty schemes, however, is that no two are ever the same. Some common loyalty schemes include deposit bonuses, cash-back, rakeback and VIP programs, and some even have stores where players can cash in their player’s points for tangible products. The most standard loyalty program, however, is a simple cash-back program utilizing some form of players’ points system. Loyalty programs can play a very impor- tant role in where players decide to gamble, and even more so in the world of high-limit gaming, where gamblers are undoubtedly looking to get as much value as possible. So let’s take a closer look at some of these popular loyalty programs and break down the good, the bad and the ugly. Using loyalty programs to increase player conversion and retention