Are Loyalty Schemes Effective for the Online Casino Industry?

November 18, 2020 12:36 am19 commentsViews: 327

Loyalty schemes are an effective way of not just attracting customers, but of keeping them. Most people are in some kind of loyalty program – whether unofficially, such as a stamp card for a coffee shop, or officially through collecting points. As we move to a more digital way of life, the use of loyalty schemes works better as loyalty can be more efficiently measured digitally, especially when incorporating the latest in new technology. But how effective are loyalty schemes for online casino sites?

How Do Loyalty Schemes Work?

Loyalty schemes work by suggesting to players that should they sign up to a site and that they will be rewarded through actions taken on the site. The main pull is that on any site, players would likely enact these actions anyway – from setting up the account to playing the casino titles. The benefit and main draw for players are that they then get rewarded for these actions through points that eventually add up to prizes. If a player is going to be engaging with a slot game, for example, why not do so on a site where they get some extra points for it.

Are Loyalty Schemes the Most Effective Method of Attracting Customers?

Loyalty schemes don’t work alone. There are other methods that the site would use to entice customers. Some sites have chosen a niche in a specific aspect of an online casino or even sports betting and use their credibility as an expert in that field to draw customers to them. Others have a welcome bonus that gives benefits to customers when they sign up, thereby attracting new customers.

When it comes to crafting a casino bonus to attract new customers, some sites have implemented a two-pronged approach, including the actual welcome bonus and an incentive for the loyalty program. This method uses both the major tools in the arsenal and allows players to benefit in the short-term and the longer-term.

The online casino industry is growing, which means loyalty schemes could be more widespread. As people become regular users on sites, a loyalty scheme is more likely to keep them. If there is no benefit to staying with one site, customers could leave and try other ones. They may want to try different kinds of games or see what a different site has to offer. Being ahead in a loyalty scheme could deter this and may mean they stay with the site.

How Effective are Loyalty Schemes?

According to statistics compiled by Forbes, loyalty schemes are offered by around 90% of businesses. The US alone has 3.3 billion loyalty memberships, which reflects the 52% of American citizens who claim they would join the loyalty scheme of a brand they made frequent purchases from. Moreover, 84% of those who have used loyalty schemes have redeemed something from the scheme itself.

But while the average consumer may have 14.8 loyalty schemes, they only actively use 6.7 of them. So, it could be argued that loyalty schemes can be effective, but there are other factors that go into whether they are engaged with or considered important. For instance, too many conditions before redemption can see people give up. Fewer than 8% of people claim that rewards aren’t important at all – so it’s clear there is an appetite for loyalty schemes.

As the market for online casino sites grows more competitive, brands need to make every effort to impress to attract as many players as possible away from their rivals. Online loyalty schemes are just one example of how the latest in new technology can be employed. For those new to the industry who may not know which kinds of games to play or sites to engage with, it could come down to a well-placed offer or indeed a loyalty scheme. As such, loyalty schemes are effective.

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