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Retain your gamblers: A study of behavioural loyalty in a market with low switching costs
Luleå University of Technology, Department of Business Administration, Technology and Social Sciences.
Luleå University of Technology, Department of Business Administration, Technology and Social Sciences.
2017 (English)Independent thesis Basic level (degree of Bachelor), 10 credits / 15 HE creditsStudent thesis
Abstract [en]

The iGaming industry has exploded the last decade. With more competitors on the market with low switching costs, retention of players is an issue not yet resolved. Attracting players through offers has made the iGaming industry less lucrative due to its high competition, where a “bonus war” has taken over. This survey aims to find out how iGaming companies can decrease their churn rate through CRM and loyalty programs to increase revenue and thereby creating a long-term relationship with the player. Based on theory of switching costs and loyalty programs, this thesis investigates how different factors influence customer retention. Interviews with four competing casinos were made to see how they are working progressively towards decreased churn rate.

The information provided concluded that management sometimes lacked the understanding of how to utilize consumer information and way of communication to increase their revenue. Loyalty programs were used to somewhat extent and correlates partly to what Berman (2006) describes as an important strategy for customer retention in a competitive, homogenous market. Further research is recommended from a legal, ethical and marketing cost perspective. 

Abstract [sv]

IGaming-industrin har exploderat det senaste decenniet. Med en marknad med låga bytesbarriärer och fler konkurrerande företag än någonsin är problemet med att behålla kunder ännu inte löst. Att locka spelare genom erbjudanden har gjort iGaming-industrin mindre lukrativ på grund av den höga konkurrensen och ett "bonuskrig" har tagit över. Denna undersökning syftar till att ta reda på hur iGaming-företag kan minska antalet avhoppande spelare genom CRM och lojalitetsprogram för att öka intäkterna och därmed skapa ett långsiktigt förhållande till kunden. Baserat på teorin om byteskostnader och lojalitetsprogram undersöker denna avhandling hur olika faktorer påverkar kundretentionen. Intervjuer med fyra konkurrerande casinon gjordes för att se hur de arbetar gradvis mot en ökad behållningsgrad av kunder.

Den information som tillhandahålls leder till slutsatsen att ledningen ibland saknade förståelse för hur man använder konsumentinformation och olika sätt att kommunicera för att öka sina intäkter. Lojalitetsprogram användes i viss utsträckning och överensstämmer delvis med vad Berman (2006) beskriver som en viktig strategi för kundretention på en konkurrenskraftig och homogen marknad. Ytterligare forskning rekommenderas ur ett juridiskt, etiskt och marknadsföringskostnadsperspektiv.

Place, publisher, year, edition, pages
2017. , 36 p.
Keyword [en]
Loyalty program, Switching costs, Online casino, Video slots, Churn rate
National Category
Economics and Business
Identifiers
URN: urn:nbn:se:ltu:diva-64868OAI: oai:DiVA.org:ltu-64868DiVA: diva2:1125684
Educational program
Business Administration, bachelor's level
Supervisors
Examiners
Available from: 2017-08-10 Created: 2017-07-13 Last updated: 2017-08-10Bibliographically approved

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CiteExportLink to record
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