This past weekend I was at Atlantic City, New Jersey.  As I was walking around I realized that there is no better example of customer loyalty programs than in casinos.  These programs have such monikers as “Diamond Club”, “7 Star Club”, and so on.  Regardless of which casino’s program it is, they are all based on identifying customer’s usage and tracking over time.

Casinos do love their whales, however they are few and far between, especially in this recession.  They have increased the loyalty member universe by creating new tiers based on lower usage.  And obviously the rewards are also scaled back proportionately.

This provoked questions in me which I will pose to you.

  • Are you able to identify your high value customers?
  • Can you measure and track them over time?
  • Are you able to calculate a value to these segments?
  • Are you equipped to test different loyalty offerings and measure the result?

If you answered No, then it sounds like you are engaging in a one size fits all loyalty program.

Remember the first step to any marketing, acquisition or retention is to use data to make informed decisions.  The loyalty programs are no different.  Rock solid data will tell you who to target and how much you can reward them and still hit your profitability goals.