Why Does A Casino Offer Comps?
While casinos are in the business to earn a profit, they need to establish marketing strategies that help them recoup some of the expense incurred while running that business. This major marketing strategy being comps. These complimentarys are used to attract new players and reward existing players. Comps take a variety of forms, but the most common comps are free drinks on the casino floor while you are on your favorite slot or table game or buffet comps for those patrons who start to get recognized as a player who has higher potential. Casino players who have spent larger amounts of money within the casino usually start to receive higher forms of complimentary offers including rooms, food and beverages, show tickets and limo transportation to and from the casino. These strategies are in place to keep the players satisfied and to continue their patronage and loyalty to the casino.
This form of casino marketing strategy gives gamblers the feeling that they actually gained something from the casino as opposed to simply spending money. This also gives the casino a chance to show their appreciation towards their customers for their advocacy. However, these freebies and bonuses require some spending on the casinos part. This means that casinos need to carefully monitor the effect of said marketing strategies because it affects their finances. In order to reduce bonus abuse by gamblers, some casinos have attached a wagering requirement to casino promo chips.
Big picture: casinos want to attract new customers to accumulate profit. An increase in the number of patrons gambling and the utilization of the provided services means an increase in the likelihood that the casino will turn a larger profit. That is why it is important for casinos to establish these effective marketing strategies.
Understanding that casinos earn a majority of their revenue from the built-in house advantage on each of their casino games is important to understanding how a casino earns a profit. If these games perform as designed, casino management has the ability to elevate the quantity of dividends by exercising a specific marketing strategy that will entice players to spend at their casino and further increase possible revenue.