Why do online casinos offer VIP programs and what benefits do they offer?

Saheed

6 hours ago

Online casinos work hard to get customers through the door, and once they do, the focus turns to doing everything they can to ensure customers remain loyal. The more that a player puts into an online gambling site, the better the profit margins for the operator are going to be, especially when multiplied over tens of thousands of customers.

One strategic marketing tool that online casinos use for customer retention is VIP programs. VIP programs offer a variety of perks that players can work towards as rewards for their loyalty to a given platform. These incentive-based programs give something back to the player, as well as serve as a tool to boost engagement for the online casino operator. VIP programs are everywhere, but while they have some potential advantages, there are also limitations to be aware of.

What are VIP programs?

VIP programs are designed to reward players for having spent time and money at an online casino. They typically work on a points system, where a player earns points for gambling a certain amount in wagers, such as one VIP point for every rand wagered.

The player ascends to the next level of the VIP program when they have amassed sufficient points. VIP programs typically have several tiers. The higher up those tiers a player advances, the more valuable the rewards will be, with perks like personal account managers at the very top.

Regular players will more commonly see things like cashback on losses, free spin rewards and account reload bonuses. No two VIP programs are alike, so it’s important to check out how a particular loyalty program is set up1.

Two types

It is worth noting that there are typically two types of VIP programs found at online casinos. One is a general one that all players, regardless of whether they are a casual player or a high roller, can access. This is often called a loyalty program, and the other type is an exclusive invite-only program. Entry to the latter is granted to high rollers, and that’s where the very top perks will be found.

The standard tiered loyalty clubs found at online casinos are there for everyone. They probably aren’t as important to the average casual player due to the investment required to achieve and maintain the tiers.

In contrast, the invite-only VIP clubs have a much bigger purpose. They are there to lure the kind of player that will consistently be making large deposits and risking high stakes at blackjack, roulette or poker tables for big prize pots2. Casinos are very eager to keep these players happy.

How to join a VIP program

Simply registering an account will typically provide access to a loyalty program at the very base tier, which gives players the chance to start earning points immediately. Automatic entry is a smart marketing tool for an online casino, as it can help boost user engagement.

Players can see the perks offered at each tier and know just how many points they will need to get to the next one for better rewards. This may encourage more gambling as the chase for higher tiers through slot machine3 and table play becomes a game.

Players who already have a proven track record of making large deposits, and have good frequent account turnover, may be contacted by the casino with a VIP invite. Players who believe they are worthy of an invitation to the top tier can also contact the casino to state their case.

The benefits of a VIP program

The overarching benefit of a VIP program is the rewards that players can access. For VIP programs, it is not just about getting to a certain level, as consistent play must be maintained to retain the current level. Here are some of the main types of benefits that a player can receive from a loyalty program:

Free spins

This is a very common reward offered at the lower tiers of a loyalty club. Free spins are a low-risk bonus for online casinos to provide because they are usually no more than R0.10 each in value and the chance of a jackpot payout4 is infinitesimally small. Wagering requirements on winnings from free spins can also dial back the casino’s risk on them.

Birthday bonuses

Who doesn’t enjoy a birthday bonus? Most online casinos will hand out something to players on their birthday. Typically, this is free spins, but it can be more depending on the player’s VIP tier.

Cashback rewards

Cashback rewards at an online casino are a very popular form of bonus. This is where the casino will credit back a certain percentage of losses within a defined period, such as a week or a month. All casino players suffer losses, so reclaiming some of those funds feels like a good pick-me-up, especially when it’s paid as real cash rather than free bonuses which are subject to wagering requirements.

Faster payouts

Another bonus for players at higher tiers is that they can get their withdrawals processed much quicker than the standard. This is arguably one of the biggest VIP perks, as members can typically get their request handled in the space of a few hours, as opposed to days for regular players.

Exclusive promotions

Some bonuses are exclusive to players at certain VIP tiers. These can vary, but they can involve a higher percentage of cashback, lower wagering requirements on promotions or something like triple the value of a bonus amount compared to what a regular player is offered.

Higher limits

For a high roller, there will naturally be access to higher limits for deposits and wagering. This is awarded to players with a proven track record of betting big at the casino. Also in this category of perks is exclusive access to VIP tables and higher betting limits.

Personal account managers

Getting a personal account manager is seen as the ultimate symbol of VIP greatness. This is where players have a dedicated member of staff assigned to personally answer any questions and solve any problems with the player’s account or overall online casino experience.

Physical rewards

Some casinos offer physical rewards through their clubs as well. This could include exclusive branded merchandise and other luxury items that they will give away. It may sound costly for the casino, but they will have already offset the expense of such things with the funds the high roller has spent on the platform.

How people get to the higher levels

There is no way to achieve higher levels of VIP clubs other than by playing, and the same is true for standard loyalty programs. However, there are some simple guidelines to follow to ensure that you have the right VIP strategy in place:

Casino choice – When choosing a reputable online casino, take some time to compare the VIP programs to see which one suits you the best in terms of tiers and rewards.

Deposits – Status in VIP clubs is earned through regular, sizable deposits. High rollers should plan to make regular deposits to their account instead of depositing a huge lump sum every once in a while. Casinos want to see a steady influx of payments.

Play regularly – Along with deposits, regular gambling is required to earn and maintain VIP status. Again, the more consistency there is to dedicated playing time, the better it looks to the casino.

Track progress – Keep a constant eye on your points level. This will help you know what needs to be done to maintain your status.

What is in it for the casino?

Loyalty clubs can look like a casino is bearing the brunt of considerable expenses by giving away so many member promotions, but they are happy to do this as it is one of many strategies that they use to ensure that players keep coming back for more.

A good VIP program can differentiate an online casino from the crowd in what is a heavily saturated market5. The saturated market creates the need for casinos to develop high-end VIP programs for all players because customer retention is king.

VIP clubs primarily aim to attract high rollers — the type of player that is most important financially to an online casino. Getting the VIP program right is crucial for the operator because an unhappy player isn’t exactly short of options when it comes to finding another online casino site.

What are some limitations?

VIP programs are not without their limitations, and the main one is that they can promote unhealthy gambling behaviours due to people becoming so focused on chasing the rewards. If players are not automatically entered, then they may never bother opting in, which would mean a casino potentially misses out on boosts to their profit margins. Players should never gamble more than they can afford to meet the requirements of a rewards program. Ultimately, the rewards are not worth it for the wagers required just to stay at a certain tier or move up.