Casino Talks

Posted by: Got2Bet at February 9, 2002, 4:23 am

Topic: more Crazy Vegas..... Forum: Winner Online

What DRCM is espousing is what other casino managers have been ignoring for a few years now - and he is right on the money.

In the couple of years since I have been in the industry, I have had numerous casino owners ask me what needs to be done to increase customer retention.

Firstly, one needs a higher return to customers. Doesn't necessarily matter whether that return is fixed on total amount wagered (current average 0.1-0.3%) or percentage of losses returned (haven't seen this with casinos but sportsbooks often give back 10% of losses at the end of a given period).

Secondly, their marketing - even bonus marketing - should be targeted at RETURN customers, not necessarily new customers. The industry retention rate is around 15% over a six month period - that is, 85% of customers stop playing at a casino sometime within the first six months.

This is because of two things - the number of casinos offering new player bonuses, and the LACK of casinos offering their return players reasonable incentives.

Good business sense dictates that 80% of your business comes from 20% of your customers. But today's casinos are only interested in new blood - like Dracula not wanting to bite the same person twice. As long as there's fresh blood out there, they'll prefer that anyday.

The trouble is... there isn't that much fresh blood out there anymore, at least as far as North America is concerned. Dr. Ho, fortunately, targets a market few others can crack - Asia. But I guarantee you they know that the Chinese alue trust and integrity above all else. Treat them well and they will always come back. They aren't going to care about little bonuses offered by other casinos - they want to be treated like royalty.

So no matter what Dr. Ho's group does, they will always have business. Bad software, few bonuses - none of this matters. Only good support, a trustworthy name and incentives designed for existing players mean anything to them.

Now I want to point out something here - Crazy Vegas gives you a bonus on EVERY deposit if you should so choose. I'm not certain if a 20x playthrough applies on every deposit because I haven't checked - but like DRCM says, it's in the T&C and it's your choice. But the concept is right - rewarding their existing players - rather than only offering bonuses for new accounts.

With regard to "MoneyBackCasino", there's definitely some merit to this - except that someone who plays and expects to win will know that he/she will never get any money back from this casino Instead, they can get bonuses elsewhere, play strictly according to the book and play for long periods - and earn more money this way.

"MoneyBackCasino", unfortunately, implies that you will lose. But I bet with a little imagination, and careful planning, this idea could be a winner.

I think the best possible method is to increase the comp rate to about 1% - casinos reduce income this way but give players more incentive to keep coming back - so they will get the money in the long run. A birthday bonus on top, perhaps a Christmas bonus - and that should be it.

BTW, giving the 25% back to customers instead of webmasters has one inherent flaw - you have to become known first. And affiliate programs will always be the fastest way to spread the word for most casinos. Kind of chicken before egg situation if you ask me.

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Spearmaster
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