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Stop rewarding loyalty Stop rewarding loyalty Will Lytle Will Lytle eGaming 2.0 eGaming 2.0 [email protected] [email protected] EIG Expo - Copenhagen EIG Expo - Copenhagen www.eigexpo.com/2009 www.eigexpo.com/2009 16th September, 2009 16th September, 2009

Stop Rewarding Loyalty

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Page 1: Stop Rewarding Loyalty

Stop rewarding loyaltyStop rewarding loyaltyWill LytleWill LytleeGaming 2.0eGaming 2.0

[email protected]@egaming20.comEIG Expo - CopenhagenEIG Expo - Copenhagen

www.eigexpo.com/2009www.eigexpo.com/2009

16th September, 200916th September, 2009

Page 2: Stop Rewarding Loyalty

Lifetime DistributionLifetime Distribution

Players are increasingly Players are increasingly difficult to hold on to, difficult to hold on to,

especially in a commoditised especially in a commoditised online market.online market.

Page 3: Stop Rewarding Loyalty

Revenue DistributionRevenue Distribution

Revenues are inversely Revenues are inversely distributed throughout distributed throughout

the player base the player base (Pareto)(Pareto)

Page 4: Stop Rewarding Loyalty

Rewards DistributionRewards Distribution

Maximise ROI by:Maximise ROI by:‣rewarding those who generate rewarding those who generate the most revenuethe most revenue‣rewarding those who stay the rewarding those who stay the longestlongest

Page 5: Stop Rewarding Loyalty

The current loyalty The current loyalty modelmodel

Tiered levels that increase rewards as Tiered levels that increase rewards as players gain ascension (e.g. Bronze, Silver, players gain ascension (e.g. Bronze, Silver, Gold, Diamond etc.)Gold, Diamond etc.)

Tiers are largely based on TIME with the Tiers are largely based on TIME with the business and revenues generated thus far.business and revenues generated thus far.

TIME centered models based on rewarding TIME centered models based on rewarding the customers that drive the bizthe customers that drive the biz

Page 6: Stop Rewarding Loyalty

Time limits ROITime limits ROI

Places emphasis on players with diminishing Places emphasis on players with diminishing return and higher likelihood to defectreturn and higher likelihood to defect

Does not create loyal behaviourDoes not create loyal behaviour

Leaves a large area for potential revenue Leaves a large area for potential revenue untappeduntapped

Players don’t commit (Commodity product, Players don’t commit (Commodity product, bonuses, “luck”, internet promiscuity)bonuses, “luck”, internet promiscuity)

Difficult to effectively test, measure, scaleDifficult to effectively test, measure, scale

Page 7: Stop Rewarding Loyalty

Proactive DevelopmentProactive DevelopmentGenerate significant revenues by identifying and Generate significant revenues by identifying and addressing high value players addressing high value players earlyearly

Create a criteria and process that facilitates real-Create a criteria and process that facilitates real-time actiontime action

ROI driven campaigns (1 more deposit, spin, etc)ROI driven campaigns (1 more deposit, spin, etc)

Service that is proactive, differentiated and Service that is proactive, differentiated and empowers your frontline teamempowers your frontline team

Player feedback driving development and strategyPlayer feedback driving development and strategy

Scale!Scale!

Page 8: Stop Rewarding Loyalty

AgileAgile CRM Cycle CRM Cycle

ReviewReviewReviewReview

PlanPlanPlanPlan

ActActActAct

Collection and Collection and adjustment of ongoing adjustment of ongoing

data mining effortsdata mining efforts

Automated Automated campaigns that are campaigns that are

managed by managed by intelligent process intelligent process and well integrated and well integrated

tools.tools.

Review results Review results real-time; real-time;

improve Data and improve Data and Campaign Campaign processesprocesses

Good judgement comes Good judgement comes from wisdom, but wisdom from wisdom, but wisdom

comes from bad comes from bad judgementjudgement

Page 9: Stop Rewarding Loyalty

Player development at Player development at Buzzluck.comBuzzluck.com

Holistic view of Player Experience, with the Holistic view of Player Experience, with the “dedicated host” positioned at the center. “dedicated host” positioned at the center.

CRM solution that supports player CRM solution that supports player development processdevelopment process

Online Reputation Management (ORM)Online Reputation Management (ORM)

KPI/Financial transparency, empowerment, and KPI/Financial transparency, empowerment, and results-based incentivesresults-based incentives

Bottom-to-Top Management StyleBottom-to-Top Management Style

Page 10: Stop Rewarding Loyalty

Thank youThank youWill LytleWill LytleeGaming 2.0eGaming 2.0

[email protected]@egaming20.comEIG Expo - CopenhagenEIG Expo - Copenhagen

www.eigexpo.com/2009www.eigexpo.com/2009

16th September, 200916th September, 2009