Quote:
Originally Posted by FutureInsights
I sent that part in PM, since that doesn't show up on the VIP page. I would presume yes.
Not for Hero, they are earned at 20% instead of most other network sites at 65%.
Reasoning:
1. VIP points themselves can be exchanged at a 10% rakeback value without any RB, so with RB, its 6.5% on other sites, with Hero its 2%.
2. Your cumulative VIP points also are linked to the reward system; for a site which has basically no reward system except for a bonus when you reach x number of VIP points, giving out 6.5% additional is good because the additional 'in kind rakeback' would probably not be realized regularly, but in the case of Hero, the system was designed to stand alone without RB.
So over the range of a division you're looking at, on average including the divisional awards + tournament tickets- about 25% to 30% additional in kind RB. Thus, the amount returned at generating VIP points at 20% would be between 6%-8% which is basically the same.
The best analogy I can give is if you had both the FT rakeback at 27% and were on the Stars rewards program at 65%. Obviously everyone who love to have this kind of situation, but this would leave no margin to do any other type of player rewards or promotions. Coupled with need to do mass marketing, and work with affiliates, that would set up a break even situation at best.
But to break it down, even if I do have a rewards system, the other sites currently will have better value on RB than Hero by a few percentage points, but on Hero I would make up for that with other more targeted promotions, such as this 30k +30k freerolls.
I think ultimately, a rewards system is not there to acquire players, I mean, you don't fly a certain airline at first because it has a better rewards system than other. You fly because in the first place it was a better service or had the right route and right schedule that matches your initial expectations. But it will be the mileage plan that retains you.
To utilize a rewards system as a tool for acquisition, to me, is a lose/lose situation as, inevitably it will be compared to other such programs and you engage in cost cutting (i.e. best marginal deal) and your focus is distracted. As a casual regular depositor really gets little value from even 40% rakeback, when then end up only playing two tables and donking off their online balance in 10 played hands. The site and the player raked very little, but the other players obvious reaped the benefits there.
So in terms of an acquisition tool, again, if you are a reg and you want that extra 2-5% somewhere else, then I'd say go for it, but I wouldn't be able to operate my site properly for the long term by focusing on this as my main value point. And of course the main value point is directed to the more casual regular depositor because ultimately they are playing, enjoying poker as just a game/hobby and I think my own efforts are better spend on making them feel as though they are just not being abused, but rather find that they also can get rewarded in other ways.
This is very difficult to accomplish or focus on in a network environment as the regs would just go the reg's preferred skin and nibble from there on the casual players brought in from a network site with more my predisposition, but again, in the long run, our site will get a stronger mainstream brand and momentum and also appreciation from the network that may lead to some other benefits on more of a B2B level.