Points-based loyalty and reward programmes: what’s the point?
With how competitive the iGaming industry is today, companies are still searching for approaches to expand customer loyalty and heighten profitability. One of the popular methods is the points-based reward and loyalty programme. Despite some scepticism regarding customer rewards as short-term gimmickry, the programmes have continually stood the test of time. More companies are adopting these methods, with an awareness of their capability to establish long-term relationships and revenue growth.
The value of loyalty
Despite being touted by many in the business sector as a passing trend, rewards programmes have been around for over a decade. Companies within and without the industry have all included various reward systems, investing millions in their development. In spite of the scepticism, statistics demonstrate that customer loyalty created by such programmes can bring significant profit growth.
Maha Otu, Director of Betwinner Affiliates told SiGMA News that “Operators have significantly evolved their approach to loyalty and reward programmes. While monetary incentives were once the primary driver, today’s players seek more meaningful, personalised experiences. They want to feel valued, not just as revenue sources.
In response, operators are integrating CSR initiatives and youth-focused programmes to build deeper emotional connections and foster trust. This shift reflects growing awareness of responsible gaming and sustainability. Loyalty is no longer just about bonuses, it’s about creating lasting value, community engagement, and aligning with players’ values. The focus is now on long-term relationships rather than short-term gains”
Loyal customers are typically more profitable for businesses, as they generate fewer servicing costs over time. As customers move through the loyalty life cycle, they begin to purchase more, pay more, and even become brand advocates by bringing in new customers. Therefore, the question is no longer if companies should offer a points-based programme but rather how companies can effectively do this to create customer loyalty and drive long-term success.
“The most apparent benefit of point-based loyalty and rewards programmes is encouraging customers to continue making any type of transactions upon which revenues are generated.
An industry expert remarked, ” When transactions are made, loyalty points are accrued, and the customer is thus motivated to make another transaction and redeem their loyalty points if needed or continue building them up. “
Effective reward programmes
A common myth that often leads to flawed designs that fail to build customer loyalty is that reward programmes are only short-term sales incentives. While such programmes can drive first-time engagement, achieving substantial loyalty takes a more strategic effort. Companies must treat loyalty as a key element of an overall customer relationship management strategy.
To expedite the loyalty life cycle, it is crucial to build a points-based reward scheme by design. This creation entails teaching customers about the benefits of their loyalty and encouraging them with proportionate value sharing. That is, the loyalty programme needs to be proportional to the value each customer brings to the company. The more interaction a customer has with the brand, the more rewards they stand to gain.
Companies also encounter challenges where customer relationships tend to get impersonalised, especially when they expand. With high rates of employee turnover in sales and customer service departments, there can be less personal interaction, diminishing the efficiency of loyalty programmes. To mitigate this issue, companies must implement data-driven marketing strategies that can efficiently identify and target their best customers.
Principles of successful value sharing.
A factor that will help a loyalty programme be successful is understanding that not all customers are created equal. One should invest in providing more value to the most valuable customers—those with the highest margin of profitability. This satisfies the customer and reinforces higher loyalty, thereby producing a positive feedback loop.
In this fast-evolving industry, loyalty programmes have emerged as essential components. As players continue to look for engagement and enjoyment, these programmes have the potential to convert casual players to long-term loyal advocates of the brand. Even minor modifications, such as personalised rewards, can significantly affect retention rates.
An increment in customer retention guarantees an increase in profits. Existing players are simpler to retain compared to new players, who require intense marketing and incentives. Personalisation and gamification features in games are more likely to retain players, encouraging repeated plays and consequently driving revenue.
The future of loyalty programmes in iGaming
The expected growth in the market—from $13.31 billion in 2024 to $41.21 billion by 2032—highlights the need for loyalty management. The expected compound annual growth rate of 15.2% highlights the increasing need for organisations to have proper loyalty and rewards programmes in place.
Maha advices that, “To keep loyalty and reward programmes relevant in the African market, operators need to be more intentional and locally aware. What works in Europe or Asia won’t always click here. Players want more than just bonuses, they want to feel understood. Rewards should reflect real value, like mobile-first offers, flexible options, and programmes that actually speak to their everyday lives.”
Operators looking to maximise profitability must customise their loyalty programmes to fit their specific brand and player base. Using tiered structures, personalised rewards, and in-depth analytics, operators can create more engaging experiences for their players. Responsible gaming and transparency will also enhance their reputation and earn their customers’ trust.
Points-based reward and loyalty programmes are central to contemporary business strategy as fundamental drivers of customer engagement and retention. Executed with pinpoint care, these programmes have the potential to optimise player satisfaction and in turn create profitability. By emphasising value sharing and gaining insight into their customer base, companies are able to unleash the full potential of loyalty programmes and thereby guarantee long-term success within a competitive environment.
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