The Compleat Casino Loyalty Program

Whether facilitated by information technology or not, rewards programs for casino patrons bear two essential elements: compelling premiums (the prizes or freebies) and a tier system that motivates gamers to do more to earn more comps.

At core, a casino patron is motivated by more than simple avarice. The pragmatic gamer aspires for a lifestyle that, if not exactly at par with "The Rich and Famous", is at least a little more opulent and privileged. This is why the choice of premiums and incentives for a casino loyalty program deserves serious thought. If nothing else, the items and rewards must fit the lifestyle, attitudes, and interests of gamers who need to be persuaded to spend more on any given visit and to return as frequently as possible.

Consequently, the hardest-working loyalty programs have evolved into campaigns far more sophisticated than the higher-profile efforts of airlines and credit card issuers.

The premiums or incentives still include comp rooms, food and drink. After all, what could be more appealing than a free stay with meals in Vegas, Macao, New Orleans or London? The difference is that loyalty programs allow gamers to upgrade their meals to something memorable and pricey like dinner at Antonio's, Fiore, or Buzio's, all at the Rio All-Suite Hotel-Casino, rather than the mundane coffee shop buffet that run-of-the-mill players get.

Other perquisites help convince loyalty card holders that they are special. Invitations to events such as the World Series of Poker and slots tournaments are known to be exclusive. And yet, the casino has to hand out or sell available seats anyway so why not to rewards club members?

Consistent with the trappings of luxury and decadence a casino embodies, players can win themselves a trip on a private jet to anywhere they choose or get a horse race named for them.

Then there are the incentives that hook into the propensity to include gaming in personal or family vacation plans. Since immersing one's self in the riotous New Orleans Mardi Gras is the quintessential change-of-pace vacation for many Americans, why not offer a ride on the local casino float, for instance?

Envy and acquisitiveness are at play when casinos themselves get into the mail-order catalog business. Amass enough rewards credits and a casino patron could put in for a First-Class ticket to any city where the chain had a casino, lifestyle gear such as a Sony 8" Portable DVD Player, a Movado watch, a $1,000 gift card redeemable at Macy's; the list is endless

Like the different classes of credit card, casino rewards cards come in Gold, Platinum and Diamond versions. These tiers are, of course, based on spending rate. Entry-level Gold card holders get no more than the usual food-and-drink comps and a token 10% discount in retail establishments within the casino complex. On the other hand, only Platinum and Diamond members receive invitations to semi-annual slots tournaments, 500 bonus rewards points each month

To keep things exciting (and give casinos a plausible reason for periodic direct mailer blasts), administrators augment their programs at least once yearly. The latest flier issued by a very large chain, for instance, announced new privileges: an "exclusive gift" if a member renewed their privilege card, another on one's birthday, discounts of 50% off show tickets, and the designation of special dates (doubtless off-peak periods) when a player could earn extra reward points.

At the end of the day, experience suggests that a complete and effective gamer loyalty program requires not only highly attractive promotions but also a scheme that promotes patrons to greater privileges when they bet more or return more often.