The effectiveness of the rewards programme at a leading casino in Durban.
Customer loyalty is critical to ensure the competitiveness and profitability of companies. Customer loyalty programmes have been created, as a customer relationship management tool, to encourage customer loyalty. These programmes operate by rewarding behaviour which results in repeat purchases. A company’s investment in a rewards programme can be significant and thus it is important for these programmes to be effective. The casino industry invests significant resources in customer loyalty programmes which are used to attract, develop and retain customers. Casino XXX, located in Durban, operates a tiered rewards programme that offers customers numerous benefits which increase as members move to higher tiers. Although loyalty programmes have been implemented in numerous companies and markets, resulting in an increase in customer participation, questions have been raised on the effectiveness of these programmes to encourage loyalty and retention. Furthermore, there is limited research on the effectiveness of customer loyalty programmes in the casino industry in Durban. An effective rewards programme provides insights on how to satisfy different customers, thereby enabling the company to segment its customers and implement appropriate marketing initiatives for these segments. This increases the company’s profitability and competitiveness. The aim of this study was to establish the effectiveness of the rewards programme in a leading casino in Durban. Using proportionate stratified random sampling, a sample of rewards programme members, who indicated that Casino XXX could communicate with them through emails, was selected across all three tiers. A total number of 522 respondents completed the electronic questionnaire. Both descriptive and inferential statistics were used to analyse the data collected. The main findings were that the rewards programme members were highly motivated to attain higher tiers; that the Casino XXX rewards programme meets the expectation of members; and that member would recommend the programme. Further, rewards programme members are members of other casino loyalty programmes and considered the loyalty programmes similar. The findings provide a valuable tool which can be used to improve the effectiveness of the Casino XXX rewards programme and for future research purposes.
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