Do Macau and Singapore’s loyalty programs deliver bang for their buck?

  Loyalty programs have been in vogue in the casino industry for around thirty-five years, but are operators in Macau and Singapore getting the most from their offerings? Taking a leaf from grocery stores’ discount cards and the frequent flyer programs of airlines, the basic model of a “slot club” was implemented in 1980s. Then in 1997, Harrah’s (now Caesars) rolled out a loyalty card program called Total Rewards, which tracks customers’ gaming activity and gives them rewards to encourage them to spend more money at the slots and tables. In short order, Total Rewards became the gold standard of loyalty programs, with casino companies all over the world wanting to emulate and, if possible, replicate the revenue growth and increased profitability attributable to Harrah’s Total Rewards. Even today, though Caesars is going through bankruptcy, its Total Rewards program is valued at over $1 billion. The experience of other casino companies with regard...

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