Tsogo Sun Gaming's new loyalty system, Club Festival, allows for a dual rewards strategy, according to group relationship marketing manager Margot Stephan. On the one hand, the member can earn points on the casino floor, but then he/she can equally earn Infinity CashBack (the open loop currency) at the complex merchants as well as other Infinity merchants nationwide. Commensurately, CashBack earned at Infinity merchants may be redeemed within the casino.
"Casinos around the world traditionally have closed loop points based loyalty programmes," adds Antoinette Bender, marketing manager for Tsogo Sun Gaming. "In other words, the benefits are localised to the casino complex only. Moreover, the majority of the programmes are designed to favour the high end gamers only. Until about a year ago, we operated our programme according to the same principles".
But the environment has changed substantially. Tsogo Sun Gaming's two predominant casinos - Montecasino in Fourways, Johannesburg, and Suncoast Casino and Entertainment World, Durban - have become far more than just casino destinations. They are equally prominent as leisure and entertainment destinations. Figures show that about 60% of visitors move onto the gaming floors. "That means we have at least 40% of visitors who were loyal to us, but who would not benefit from a gaming loyalty programme."
"We needed a way to reach a wider audience with our loyalty programme that would reward all our visitors," says Bender.
Extension
The successful launch and rollout of the Infinity system at Tsogo Sun's leading casinos has rapidly led to an extension of the partnership programme. "We realised it was important for us to get strategically involved with other Infinity partners, as well as non-Infinity 'like-minded' partners - and a dedicated group partner alliances manager - Debbie Costello - was appointed to run the programme," explains Bender.
The aim was to identify partners who are competing for the same share of time and wallet and pool resources to create a win-win situation, in terms of:
- Shared marketing spend - with, for instance, joint promotional activities.
- Shared databases - where, for instance, in return for a prize cruise, Tsogo Sun can publicise Starlight Cruises' offerings to its huge database.
- Shared media schedules
- Capitalising on benefits offered by all partners; adding value to the complete business and not, for instance, only the gaming area of the business.
- Driving of footfall , from partners to Tsogo Sun, and vice versa.
- Yield management - which involves managing unsold inventory, such as unsold seats or berths, with special offers and other promotions, providing the means to sell special deals at the last minute.
Adherence to these criteria is essential for Tsogo Sun to establish and maintain long-term partnerships, notes Costello. Partners with whom Tsogo Sun has established strategic relationships include Starlight Cruises, Southern Sun Hotel Group, Automobile Association, Nu-Metro, selected Spur outlets, LG, and Mugg and Bean.
The best international loyalty programmes are using technology to achieve a 360 degree view of the customer and so improve the lifetime value of the customer. "With the incorporation of an open loop element into the Club Festival programme, we are aiming to improve behavioural segmentation and communication, increase programme value, and foster customer affinity," concludes Stephan.
