GPWA Times Magazine - Issue 26 - October 2013

Deposit bonus – One of the most popu- lar and straightforward loyalty programs in the industry, deposit bonuses are sim- ple for players to understand and easy for operators to implement. With a deposit bonus, players receive a bonus on top of their initial deposit. Some deposit bonus- es are awarded immediately, while others are released after the player has accrued a certain number of points. A standard de- posit bonus might look something like 100 percent up to $600. Some online casinos even offer no-deposit bonuses. Regardless of the deposit bonus, a certain amount of play-through is required before players can cash out the bonus money on top of their initial deposit. If properly implemented, there is really no downside to deposit bonuses. Even more important than the initial-deposit bonus is the reload bonus. Many operators rely on these types of bonuses to reactivate dor- mant players as well as to increase player retention. For players, it’s free money, usually without a great many stipulations. So it really is a win/win, which is why it’s a standard practice in the industry. Cash-back program – This loyalty scheme can come in many different or creative names and forms, but generally for every $1 wagered, a player can expect to receive between one and 10 players’ points. The number of points awarded can also vary from game to game. The great part about this type of loyalty pro- gram is that the more the players wager, the more they’re building up their point bank to redeem and play on free house money later. Typically though, players will need to accumulate a certain amount of points before they can cash them in for redemption. While these loyalty programs can be ex- tremely rewarding for both the player and gambling operator, they are also suscep- tible to abuse from both sides. Many play- ers quickly become disappointed when they’ve gone on a tremendous winning streak on so-called “free money,” only to find out they need to earn a bazillion – yeah, I said it – a bazillion more points before they can cash out any of their win- nings. Conversely, there are also unscru- pulous players who look for loyalty pro- grams that can easily be exploited to make money out of thin air. The moral of the story for this type of loy- alty program is that players should always read and fully understand the terms and conditions before finding themselves dis- appointed. Operators should be fair and realize that eventually a shady or mis- leading loyalty scheme is a one-way ticket to zero player retention and what many might call “lights out.” Rakeback – Primarily used only by the poker industry, rakeback allows players to receive a percentage of their contributed rake back into their accounts at the end of each month. Many professional poker players actually depend on rakeback to remain profitable each month. Whether offered by the online poker operator or in- dividual affiliates, rakeback can be amake- or-break loyalty scheme for many players. Rakeback can also be a great incentive to attract high-value poker players. When rakeback was introduced to the online poker market, it quickly spread like wildfire. Shortly thereafter, however, many operators began eliminating it from their loyalty schemes. In actuality, rake- back is great from a player’s perspective, but it really does not create a win/win for the operators or the industry as a whole. There are too many reasons to list exactly why most operators are fundamentally against rakeback, but the general consen- sus is that it is a dying loyalty scheme. VIP programs – These are some of my favorite types of loyalty programs, and I see them growing quite a bit in the future. Modeled more after brick-and-mortar ca- sino loyalty programs, a typical VIP pro- gram will tie in some sort of cash-back program with an added level of upgraded support and personal contact with a rep- resentative from the gaming property. These programs may sometimes be tiered so that players can reach additional lev- els, but most importantly, the players get treated like VIPs and are rewarded for their wagering. A good VIP program can be the key to increased conversions and retention. At the end of the day, most high-value play- ers know that they can get similar deposit bonuses or cash-back schemes at any reputable gaming property. What puts a quality VIP program on top of any other loyalty scheme is the personal contact and trust that are built between the operator and player. These are just a handful of the most popu- lar loyalty programs in the online gaming industry. Not every loyalty program is going to be right for each operator or for each player for that matter. With well- branded Las Vegas casinos soon entering the market, online operators may have to rely on phenomenal loyalty programs to attract new players. In my opinion, and the opinion of many others whom I queried for this article, PokerStars is leading the pack with its loyalty program. There is no question that conversion and retention rates are dramatically higher directly because of its VIP club. Whether it’s cash rewards, a VIP store with tangible goods or tournament tick- ets, the PokerStars loyalty program is very well received by players and has some- thing to offer for everyone. When it comes to retaining high-value players, nothing is more important than a world-class loyalty program. Operators who are taking a second look at their loy- alty programs right now stand a much better chance to succeed as regulation opens up new markets and opportunities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Jeremy Enke is the CEO of Poker Affiliate Listings. He has spent more than 10 years in the poker affiliate market, with an overall mission of helping affiliate marketers reach their full potential and become more successful. “With regulation looming in one of the largest markets, the U.S., many existing operators are taking a closer look at their loyalty programs.” 11 Using loyalty programs to increase player conversion and retention