October 28, 2024
iGaming VIP programmes began life as an after-thought, a simple ‘add-on’ for the lucky few that operators deemed worthy. Over the years, it became clear that VIP programmes offered just as much, if not more, to operators as they did to players. As such, these rewarding schemes transformed into highly complex initiatives with segmented targeting aimed at maximising ROI.
So, how can operators use VIP programmes to their advantage, and what can they expect in return? Take a moment to consider VIP players; what differentiates them from the average, run-of-the-mill players? Usually, it’s the high investment values they bring, as higher lifetime value (LTV) players tend to deposit more significant sums of money more frequently, staying active longer.
The second most valuable asset of VIP players is increased player retention. When operators make VIPs feel valued and appreciated, they are more likely to stay loyal to the brand, reducing churn.
Operators can also use their VIP programmes to share their uniqueness. Benefits outside the norm or sought-after rewards create a sense of intrigue. While many operators may offer free spins or bets, unusual rewards could do more to pique a player’s interest.
Alongside rewards, the exclusivity itself is attractive. Tailored rewards available to a select few with access to a personal account manager make players feel valued. After all, everyone likes to feel special, and while operators collect data from VIP actions, players like the tailored, personalised offers, rewards, and promotions the data enables.
In summary, operators who reward VIPs for their loyalty get rewarded in return for their efforts.
VIP programmes usually have a tier-based structure, where players progress through levels based on their engagement, deposits, and bets. Tiered rewards increase in value as players move up the tiers. Baseline tiers tend to have entry-level rewards, such as free spins, while elite-level tiers could offer more exclusive benefits. Each operator will have their own reward structure depending on conditions such as regulations, markets, and number of players active on the site.
However, tiered rewards offer little to VIPs if they’re not correctly targeted. Segmentation is vital to ensuring rewards are valued by each individual. Access to personalised services such as tailored promotions and dedicated support also boosts VIP engagement. Don’t reward a slot fan with a free bet or a sports bettor with an exclusive live casino game. Of course, many interests cross over, but often they don’t
VIP rewards come in all shapes and sizes. Often, there’s a balanced mix of incentives, some with monetary value and some without. The most common rewards include cashback, deposit bonuses, free spins, and exclusive games. Higher-tier VIPs might receive anything from all-expenses-paid holidays, the latest gadgets, or even exclusive event invitations.
However, overzealous operators beware. It is imperative to strike a balance between rewards offered and player expectations. Rewards should be generous and appealing yet sustainable and realistic. Over-hyping the possibilities with unrealistic and outlandish claims could drive players away, put off by rewards that seem impossible to obtain.
Let’s examine how a typical tiered iGaming VIP system might work.
Each tier offers a progressively more exclusive set of rewards that reflect the increasing value and importance of the players to the operator. Of course, this is just an example and unrealistic for most online casinos that couldn’t provide the higher levels of rewards demonstrated here. Tiered grading and rewards depend on many factors, such as the size of the brand, its market, regulations, the number of players who frequent the site, and so on.
Remember, VIP programmes must align with business goals and appeal to players. As an operator, your VIP programme should work for you.
Personalisation and localisation are at the heart of every successful iGaming venture; this is especially true for VIP programmes. A personalised VIP experience is more likely to engage and resonate with players. Tailored experiences and rewards make VIPs feel valued. Personalising rewards based on past gaming behaviour, such as bespoke tournaments or even customised gifts, has more meaning and tells a player you value their custom.
Part of the dedicated VIP service should include dedicated account managers for their top-tier players, offering a more personal touch. If VIPs can easily reach out to their VIP manager and form a personal bond with them and the brand, they’re more likely to continue to engage and bring value to a business.
Ultimately, the key is to remember that VIP stands for Very Important Person, and that’s precisely how your VIP players should feel.
Bespoke tailoring is not limited to individual player preference, either. Operators should also consider the broader realms of segmentation and demographics. For instance, millennials may prefer tech rewards, such as exclusive apps, while older players might value more traditional forms of recognition, like exclusive tournament invitations.
Operators must always keep market-specific regulations in mind. Many regulated markets have stringent regulations when it comes to marketing, problem gambling, and incentivising high-value players. For example, the Gambling Commission has clear-cut rules on the UK's acceptable and unacceptable operator behaviour, as seen in their High Value Customers: Industry guidance. It is vital operators balance player incentives with player protection measures.
Effective and responsible VIP management goes beyond rewards. Operators must provide highly-trained, responsive customer support for VIP players that addresses their queries and concerns quickly and effectively in a responsible manner. VIP managers have an essential role in retaining high-value players who can enjoy their iGaming experience in a protected and safe way.
Promoting responsible gaming within a VIP programme is vital. VIP players are at a higher risk of developing problematic behaviour due to their high levels of engagement and potential financial loss. Operators must monitor player behaviours and implement safeguards to mitigate risk and reduce harm. Employing tools like deposit limits and self-exclusion options is critical for both the player and the operator.
VIP programmes drive operator success. Well-structured, personalised, and sustainable VIP programmes can help retain high-value players and enhance player loyalty and ROI. Tailored rewards, used alongside proactive, responsible gaming practices, are an effective strategy for iGaming success.
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