The Effectiveness of Casino Loyalty Programs - Their Influence on Satisfaction, Emotional Connections, Loyalty and Price Sensitivity

Jonathan Barsky, University of San Francisco
Todor Tzolov


Due to the rapid expansion in casinos and other gaming opportunities (e.g., web-based gaming, lotteries, racino, etc.), almost every casino is using loyalty programs and elite membership status as key components of their marketing strategies. However, the value of customer loyalty programs has been questioned in part because empirical research on the effects of loyalty schemes has been inconclusive. The purposes of this study are to aid understanding of the effectiveness of casino loyalty programs, to segment loyalty program members, and to compare these segments' characteristics including satisfaction with the casino experience, casino loyalty, emotional connection, perceived value, as well as other demographic, attitudinal and behavioral variables. In addition, this study identified and ranked casinos exhibiting the most effective loyalty and elite loyalty programs.