In the gambling world, those who bet big are called high rollers, and they are also colloquially referred to as whales. These are the individuals who are responsible for a large portion of casinos’ revenues, as they post sizeable chunks of the wagers made at physical venues and online. You may have heard of the Pareto principle, which has been nicknamed the 80/20 rule, and it is also valid in the gaming sphere, meaning that a small subset of players, around 20%, generate disproportionate value, or somewhere around 80% of revenue.
Hence, one high roller can produce more for an operator in a weekend than hordes of casual players do in the same period. That kind of concentration of value makes these individuals worth a lot more to gaming establishments and websites. They know this, and expect to get treated differently. That is where VIP casino programmes come in, designed to show appreciation for these gamblers’ loyalty, for their frequent play.
Today, these systems are commonplace, expected, and built on decades of behavioural science. They have been calibrated to extend customers’ lifetime value, and below, we get into why these schemes, clubs, programmes, or whatever you want to call them, resonate so much with those who have deep pockets.
The Illusion of Scarcity
Everyone wants something that seems exclusive, as that provides perceived value. In essence, these programmes tap into what psychologists have named the scarcity bias. What does that mean exactly? It points to the fact that most of us do not consider items to be of high value if we can easily get them. This has been proven by various research, including a 1975 study, which showed that when two identical jars hold a different number of cookies, people instinctively pick ones from the near-empty jar, despite all being identical.
Ladder systems, as well as special invites, make it so that not everyone can get access to the perks supplied, and this has the effect of making gamblers try to get them even more. They do this because reaching milestones and getting benefits deemed exclusive offers up a psychological effect that is a reward in and of itself. The monetary value gained is even irrelevant for some, as the rush they have from doing something of perceived importance is oftentimes more valuable than what they tangibly get in return.
Personalisation as Validation
Here is another angle of how scarcity creates desire. People like to feel special, and no one really feels special if they get generic perks. When benefits are tailored to meet individual needs, individuals feel recognized, they feel appreciated, and in marketing, this is a terrific tool to boost retention, which is why most businesses have loyalty cards/systems of some sort nowadays.
In gambling, personal account managers are extremely important, as they make high rollers feel that they are given a curated experience, that they get bespoke gaming entertainment that not just anyone is privy to. This is validation through attention. It taps into the human need to get noticed, understood, and valued. This goes a long way in producing continued engagement, and is something that is super valid for high rollers, because these are people that risk substantial amounts of money, and they often believe that this alone deserves recognition.
Also, when someone is given something, especially multiple times, most humans are hardwired to reciprocate; hence, gamblers are more likely to keep betting. This is more valid for land-based gaming, where interactions are more personal, and when gamblers are showered with perks, they feel an emotional debt to return the attention shown and stay loyal.
Progress Motivation
As noted above, most VIP programmes have multiple levels, tiers if you will. This is a gamification concept and is connected to the psychological need to display competence. People want to be seen as talented and skilled. By reaching a certain rank within a system, they get a measure of proven progress, an achievement they can flaunt, that will show others they are competent. Operators know this, and this is why they set defined targets within their loyalty systems that players strive to reach.
Moreover, this helps prevent the satiation that traditionally accompanies goal completion. Once one aim is hit, the programme has another challenge: keeping customers competitive and giving them a next goal to strive for. Attained statuses are prominently displayed to create a sense of hierarchy that amplifies so-called comparison dynamics.