VIP Customer Retention

Don't let your best customers
walk out the door!

NIGA Convention • April 2019

Andy Goldberg

VIPs drive casino success

  • Tell me something I don't know 🙄
  • In many businesses, "80/20 Rule" is applicable
  • However, casino revenue distribution is more skewed, and VIPs are more important

80/? and 90/?

Contribution by player decile


  • The continued success of your casino is reliant on consistent, repeat, loyal patronage by these VIPs
  • You're now responsible for maintaining these relationships and growing the pool of VIP players
  • When aggregate VIP stats are consistent or growing, it means my VIP players are generally reliable, loyal and stable. Right?

Stability is an illusion

  • Few players are stable or constant over extended periods, especially VIPs
  • Most VIP activity is volatile, growing or shrinking
  • There is always a percentage of VIP players whose contributions are declining significantly

Individual volatility

  • Among the top 10% in one year, in the next year:
  • 38%
    fell out of the top 10%
    reduced by
    at least
    dropped by half
    or more

Top 1% by visits and ADT

Top 1% → the next year

Example in dollars

  • $100 million casino revenue last year
  • VIPs: 85% or $85 million
  • 40% of those players will decline by 40% or more
  • $85M x 40% x 40% = min. $13.6M of lost revenue
    • Realistically, $22-26 million in play

The opportunity is clear

  • Reduce the number of ex-VIP decliners, inactives and defectors → recover a huge amount of play
  • These are players who are already visiting you, have relationships with your employees, (mostly) have had good experiences at your casino
    • Contrast this with the costs of finding, recruiting, and marketing to new customers
  • OK, but how... ?

5 steps to success

  • 1. Find the players (early)
    • Dedicated analytics searching entire player database
    • Avg daily? Focus on changes in avg monthly theo/worth
    • Like a doctor: early intervention → best chance to cure
  • 2. Observe the players
    • Graphical view of recent, and entire, gaming history
    • Check actual win/loss, not just theo
    • Correlate with marketing offers redeemed or skipped
    • Likely to be moving play to competitor?

5 steps to success

  • 3. Deploy host to (re-)build relationship
    • Goal is to pinpoint area of dissatisfaction, if any
    • Requires proactive mindset, may require training
  • 4. Craft personal marketing package
    • Few enough players, individual plans are feasible
    • Accept stretching of pre-set rules/standards (reinv. rate, etc)
  • 5. Keep at it
    • Takes patience, focus and dedication
    • Challenging but worth it

5+ steps to success

    0. Predict and prevent before a decline
    1. Find the players (early)
    2. Observe the players
    3. Deploy host to (re-)build relationship
    4. Craft personal marketing package
    5. Keep at it

Wrap up

  • Ex- and declining VIPs are a huge opportunity for revenue growth, without requiring up-front capital investment, yet it is often overlooked
  • Early intervention, deploying hosts to the most receptive prospects, and personalized marketing plans, are keys to regaining player loyalty and recovering revenue that would otherwise be lost, probably to competitors

Thank you!

please visit Booth 1012

Andy Goldberg

📧 andy @