Know When to Hold Them: Applying the Customer Lifetime Value Concept to Casino Table Gaming
نویسندگان
چکیده
This article considers the impact of relationship marketing in the casino gaming industry. It illustrates how ‘customer lifetime value’ (LTV)—the estimated profitability of a customer over the course of his or her entire relationship with a company—can be uniquely and successfully applied to improve casino profitability. Findings indicate that increasing customer retention rates for prime customers and upgrading middle-tier customers to higher-volume betting tiers can both significantly increase long-term casino profits. Implementation of such a strategy also reduces a casino’s reliance on the high-risk ‘junket’ segment for achieving targeted revenues
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