Loyalty programs and VIP systems (with or without gamification) have long been a tried and tested means of motivating customers in online gaming. A few weeks ago, an industry insider gave the international trade press an insight into how operators can use them particularly effectively to increase player loyalty. This is interesting in that such features are slowly but surely returning to the German market. Users who know how it works play more consciously and ultimately more safely!

When the new State Treaty on Gambling (GlüStV) came into force in 2021, loyalty programs and VIP systems initially disappeared completely from the regulated market for online casinos in Germany. The first licensed platforms were generally very reluctant to offer bonuses. Uncertainty characterized the initial phase: what is allowed, what is not? Operators and players were cautious in their approach. The whitelist has recently been interactively modernized.

In the meantime, the picture has changed. Promotion areas of German providers are filling up noticeably - some operators are once again regularly offering a double-digit number of deals.

Even more remarkable: VIP programs and loyalty systems are also gradually making a comeback. This development is not without controversy, as such customer loyalty features are in direct conflict with the objectives of the Interstate Treaty on Gambling, in particular the protection of players, due to their strong incentives for intensive gambling.

This makes it all the more important to understand the relevant mechanisms and their psychological effects. Even conventional bonuses have very specific effects on the brain.

A few weeks ago, the CEO of a leading software developer for casino customer loyalty tools provided exciting insights into the latest international trends. These developments are also important for Germany, as they show how online casino loyalty programs and online casino VIP systems are currently designed and used. We take this as an opportunity to take a closer look at the complex ways in which they work. Last but not least, we want to clarify where they can be found in Germany.

This is why loyalty programs and gamification are a particularly interesting mix for online casinos

According to Dobromir Mitev, founder and CEO of Dench eGaming Solutions, the key to the success of modern online casinos lies in personalized and gamified loyalty programs that deliver real added value to customers.

Dench eGaming Solutions is one of the leading B2B software developers in the iGaming industry. It offers a comprehensive platform for gaming operators that specializes in customer loyalty and marketing automation.

In an increasingly saturated market with an enormous number of options for the world's players and constantly new bonuses, operators face a huge challenge according to Mitev: it is more difficult than ever to stand out from the crowd in order to effectively promote customer engagement and secure their loyalty (which is crucial for success) with confidence.

  • Mitev emphasizes that many new operators are rushing to invest in user acquisition without having the necessary technological infrastructure in place to manage the game effectively. This often leads to newly registered customers dropping out quickly after their first depositor due to disappointing experiences.
  • Dissatisfied players generate low turnover and ultimately leave. The resulting small win is reinvested in campaigns with "one-size-fits-all" offers, which almost always only drives up costs and is hardly worthwhile. Long-term profitability cannot be achieved in this way. Incidentally, an industry expert recently reported that he is calling for the regulation of bonus conditions.

According to Mitev, VIP systems or loyalty programs with gamification elements can be an effective solution to this major problem.

They often work along the following lines:

  1. Missions and challenges: Players complete tasks precisely adapted to the casino theme that reward them for their commitment. They often move forward on a special map within a gamification system. To complete the missions, players have to play certain games, take part in ranking tournaments and do other things. The whole thing can be accompanied by animations, clips and other visual impressions.
  2. Points systems: Players collect points for certain actions such as depositors and bets, which can ultimately be exchanged for benefits. The rewards are listed in an extra VIP area of the respective account and/or communicated via direct messages.
  3. Integrated stores: Collected points can sometimes also be used in special stores to purchase various rewards. The procedure is similar to that of classic points systems. However, a store is a visually more refined environment that can usually be viewed by every member and in which users often have more options to choose from.
  4. Fixed benefits: Players receive permanent benefits or status upgrades by reaching certain milestones. This variant is the most common worldwide. Here, too, points are usually collected, which are then used to reach certain levels and thus adjusted limits, special bonuses, individual support or other benefits.

These mechanisms aim to retain players in the long term through regular rewards. Gamifications provide an even greater incentive. They offer additional excitement as to what will happen next (more on this below).

Dobromir Mitev points out that data plays a crucial role in this structure:

  • Real-time access: systems are continually ingesting user information that can be enriched with transactional and aggregated customer data. This enables operators to launch automated and very precise bonus campaigns, make adjustments precisely in line with players' needs and measure results effectively.
  • Company-wide data availability: If all departments have access to the same usable data and use it extensively, more authentic and personalized gaming experiences can ultimately be created - even far beyond loyalty programs or VIP systems.

Mitev summarizes that these measures are steps towards creating a more immersive gaming experience in which customers can dive deep. Logically, this has a high benefit for the operators. However, such intensive connections are of course also quite critical in terms of a responsible gaming environment. According to a recently published study, gambling addiction is even more dangerous than previously assumed.

How do loyalty programs and gamifications affect players?

Loyalty programs and gamifications can actually have a strong psychological pull that not only motivates players, but often makes them dive deeper into the virtual casino world. These mechanisms are based on a combination of reward system stimuli, social competition and the appeal of the unexpected.

Central psychological effects at a glance

  • Rewardsystem: Collecting points or unlocking new levels activates the reward center in the brain. Players experience a motivation boost when they see progress or collect small goodies that spur them on to bigger tasks.
  • Sense of achievement: Missions and challenges give the feeling of actively working towards a goal. Reaching milestones gives players a sense of achievement, which in turn binds them emotionally to the platform.
  • Social dynamics: Ranking lists, challenges against other players or the comparison of progress provide an additional competitive factor. This aspect further promotes motivation and loyalty to the casino, as customers can not only compete against the bank, but also against others.
  • Curiosity and excitement: Gamifications often integrate elements of surprise, such as random bonus winnings or the discovery of new features. This unpredictability increases the appeal and keeps players active for longer.

The strengths of gamifications

Well-tuned gamifications take interaction with an online casino to a new level. Players feel less like consumers and more like participants in a playful, dynamic system. This creates an immersive experience that binds them more emotionally to the platform. Programs that regularly introduce new, easy-to-use content or missions to keep the fun fresh are particularly successful.

Critical consideration

As effective as the mechanisms of loyalty programs and VIP systems are for the operators, they also harbour dangers. The constant availability of challenges and benefits can trigger a kind of "reward addiction" in users, which in turn encourages gambling addiction. Gamifications are particularly problematic in this context, as they can have a very strong motivational effect. As such, they potentially contradict the goals of player protection.

Which German online casinos offer VIP programs?

The research for this article revealed that there are no VIP programs or loyalty systems with gamification in German online casinos. In principle, however, there are (surprisingly) many and extensive alternatives that reward customers for regular play.

1. Wildz: Get More and Loyalty+

Wildz has developed a creative reward system that is made up of several elements:

  1. Free spins through progress: players load up a progress bar through bets and receive certain quotas of free spins with each level reached - adapted to their preferred games.
  2. Spinback feature: Losses in the slots Sweet Bonanza and John Hunter and the Tomb of the Scarab Queen are compensated by free spins. The feature is activated automatically after five consecutive losing spins.
  3. Loyalty+: The most loyal players enjoy exclusive benefits - in particular up to 20 percent cashback, personal support and/or real money prizes.

2. Lapalingo: Rewards Shop

Lapalingo's loyalty program is based on a points system in combination with a store. The offer starts automatically, whereby only one condition has to be met:

  1. Automatic participation: players take part in the program as soon as they register and subscribe to the newsletter.
  2. Reward points: Real money sales generate points that can be exchanged for free spins or cash bonuses in a store.
  3. Reward levels: Players start as a guest and can advance to higher levels through their depositors, which unlocks exclusive offers. Levels are reviewed every 30 to 90 days.

3. Luna Slots: VIP system

Luna Slots offers a classic VIP system with several levels, from "Bronze" to the exclusive "Red Diamond" rank, which is by invitation only:

  1. VIP Points: Players earn points by placing bets on all games. The amount ultimately determines their VIP level, which is re-evaluated monthly.
  2. Exclusive benefits: The higher the level, the better the benefits. The benefits range from personal VIP support to invitations to exclusive events and customized promotions.
  3. Transparency: Players can view their score and current level at any time in the casino lobby or in the VIP area of the cashier.

Also interesting: BingBong and JackpotPiraten have recently introduced a premium membership option for frequent players.

Conclusion

Loyalty programs and gamification offer convincing advantages for both sides, i.e. players and online casinos. The former enjoy personalized rewards, a sense of achievement and varied challenges that make the experience more exciting and entertaining. For providers, the systems are an effective strategy for strengthening customer loyalty, promoting player activity and standing out in a highly competitive market.

Loyalty systems and similar offers are also on the rise again in Germany. Although they are often less extensive than international models, they use similar mechanisms and the resulting effects. However, the risks must not be ignored: The psychological appeal of such features can certainly lead to problematic behavior among susceptible users, as the processes are specifically designed to encourage intensive gaming.

Industry insider Dobromir Mitev is optimistic about the future: in his opinion, gamification and personalization will continue to influence user preferences and behaviour. He predicts that players will increasingly gravitate towards companies that offer more cross-game and gamification features.

More interesting insider knowledge can be found in the following articles:

Source of the image: https://pixabay.com/illustrations/bodyguard-man-vip-actors-cinema-6819540/

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