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According to reciprocity theory, if customers perceived the company was making an investment in them, they in turn made a similar investment in the company and those investments led to loyalty.
Therefore, customer loyalty programs should promote mutual investments of special resources with the most valuable customers. Online Casino companies need to make certain that their customers perceive the company is making an investment in them to make them feel special and want to make a similar investment with the casino company.
The casino company should make an exploratory study of casino customer Loyalty Programs. Customers of all levels feel this way and place an increased emphasis on their most valuable customers. Since a small proportion of the casino’s customers create a large portion of its revenues, casinos can afford to make larger investments in its most valuable customers.
Resource theory states, “when individuals invest intangible and particularistic resources in each other, they tend to be more satisfied with the relationship, tend to continue the relationship for a longer period, and tend to establish more intimate relationships”.
Consistent with resource theory, a study found that investments in love, status and information were more closely associated with loyalty than investments of money. Therefore, loyalty programs should invest intangible and particularistic resources in their most valuable customers instead of tangible and non-particularistic investments like money or free or discounted goods and services.
Casino companies have long been dependent on giving free drinks, food, play, and hotel stays to keep loyalty program customers satisfied; however, resource theory argues that free comps may not be enough to keep customers satisfied for the longterm and may actually be depriving the casino from creating more intimate relationships with customers.
Free or discounted goods and services can still be utilized to reward online casino customers; however, casino companies must starting looking at rewarding their most valuable customers with more intangible and particularistic investments like love, status and information.
There are two dimensions of customer loyalty: behavioral and attitudinal loyalty.
The majority of customer loyalty programs reward behavioral loyalty; however, repeat purchases do not necessarily signify true loyalty to a brand or firm. It is important that online casino companies analyze both aspects of customer loyalty to determine the nature of their customers’ loyalty and the effectiveness of their customer loyalty program.
Based on the two dimensions of customer loyalty, there are four levels of loyalty: true loyalty, latent loyalty, spurious loyalty, and low loyalty.
Truly loyal customers almost always patronize a particular brand and are least vulnerable to competitive offerings. A study on a Las Vegas casino slot club found truly loyal customers-
than customers of different loyalty levels.
Online Casino companies should strive to create truly loyal customers. Therefore, it is important for firms to make the distinction between behavioral and attitudinal loyalty in order to target specific loyalty segments.
While most casino firms reward behavioral loyalty, some argues casinos should reward attitudinal loyalty by seeking to reward truly loyal customers. The author goes on to argue it is important for casinos to an exploratory study of online casino customer loyalty programs develop attitudinal loyalty in an effort to convert spuriously loyal customers to truly loyal customers.
Online Casino companies can create attitudinal loyalty by delivering consistent, friendly, personalized service, building social relationships at employee levels, keeping promises made in promotional material, taking care of player requests, building high switching costs, enhancing customer experience, and creating a positive image of the casino by outperforming competitors.
The attractiveness of the customer loyalty program can increase share of wallet even with customers who have high attitudinal loyalty. In order to provide the customer service necessary to create attitudinal loyalty casino employees (customers support) must be educated, trained, and empowered on how to handle loyalty program customers and their requests.
Rewards can either be immediate or delayed and there is some debate over which reward timing is most effective.
Immediate rewards are “psychological, namely, a feeling of participation, the anticipation of future rewards, and a sense of belonging”.
There are also arguments that immediate rewards are more effective than delayed rewards in building a loyalty program’s value and immediate rewards are more effective when customers are dissatisfied with their experience.
“Delayed rewards” in a loyalty program have a significant impact on customer loyalty, whereas one-shot promotional features do not.
I believe delayed rewards work better than immediate rewards only if customers are satisfied with their experience.
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