From the Casinos' Perspective
Taking a Stroll on the Casino Floor
The Tribal Gaming Scene
Insights from the Indian Gaming Tradeshow
Casino Loyalty Programs Evolve: Examining Key Developmental Points and Successful Methods
In the lively atmosphere of the Indian Gaming Tradeshow & Convention in San Diego, panelists came together to share their insights on casino loyalty programs. The discussion, led by Chad Germann, CEO of Red Circle Agency, dove deep into strategies that are working now, those that are on the horizon, and what the panelists would prioritize if they were casino owners.
What's Hot Right Now
Andy Parnell, president of LT (formerly LaneTerralever), stressed that while loyalty tools have evolved, the core guest experience remains indispensable. He pointed out that a good customer experience is what helps smaller casinos outshine larger ones, a fact backed by 79% of all players. Focusing on training and ensuring everyone understands the brand and expectations goes a long way in enhancing the guest experience.
Parnell also highlighted the importance of an omnichannel approach, as different generations consume information in varying ways. He urged properties to be present on every channel, understanding that older longtime guests might still prefer talking to a host, while younger demographics are increasingly relying on digital tools.
Mary Kilmer, VP of client services at Red Circle, observed that many properties don't offer enough milestones within a tier. She suggested that instead of having a gap between tiers as wide as 100,000 points, it would be more effective to create steps at 60,000, 70,000, and 80,000 points, providing players with more opportunities to progress and enjoy rewards.
Kilmer also emphasized the notion of time as a factor in engagement. She suggested that promising time-saving perks, such as skipping grocery shopping with a take-and-bake option, can significantly enhance the player experience.
Joe Kustelski, co-founder of Chalkline Sports, called attention to the value of localized digital promotions. By focusing on regional events like the first Thursday of the popular March Madness tournament, casinos can capitalize on increased player engagement. He also noted that players who engage with digital promotions are six times more valuable than those who do not.
The Future Awaits
Kustelski believes that casino loyalty programs should begin before a guest arrives. He envisions a future where booking a room allows guests to sign up for the loyalty program and start earning points immediately. Parnell backed this vision with data, revealing that 76% of executives plan to increase their budget in digital platforms over the next two years, with a significant portion allocated to portals, apps, email, SMS, and social media.
The panelists agreed that artificial intelligence would play a growing role, especially for smaller operators. They encouraged smaller casinos to start experimenting with AI, emphasizing the advantage of being more agile and quick to adapt compared to larger competitors who might be hesitant to embrace new technology.
One interesting example given was a casino that implemented a conversational AI bot named Vicki. Just one hour after launch, Vicki reached 70,000 players and saw a revenue increase in the upper 20 to 30 percent range within the first month.
If They Ruled the Casinos
When asked what they would do if they were running a casino, Kilmer suggested setting clear, measurable goals. She noted that while the goal of getting players to visit three times is frequently mentioned, incentivizing the second visit right after the first is crucial to maintain momentum.
Kustelski added that every promotion should be designed to drive the next visit. He reiterated that if a promotion does not achieve this, it should be rethought.
Parnell indicated that he would focus on expanding non-gaming amenities. As 91% of people visit a casino with at least one friend, providing options for everyone beyond the gambler would help casinos appeal to a broader audience.
From loyalty tiers to digital innovation, the panelists emphasized that success lies in consistent delivery, localized strategy, and a willingness to experiment and adapt.
- The panelists, deliberating on casino loyalty programs, highlighted the need for casinos to prioritize an omnichannel approach, catering to various age groups and their preferred channels of interaction.
- If they were heading a casino, Joe Kustelski and Andy Parnell would emphasize on digital innovation, implementing strategies such as signing up for loyalty programs during room booking and investing in digital platforms like portals, apps, email, SMS, and social media.
- Mary Kilmer, reflecting on her hypothetical role as a casino owner, expressed the importance of setting clear, measurable goals, especially focusing on incentivizing the second visit immediately after the first, to maintain player engagement.
