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| Internet casinos enhance land-based casino players� loyalty |
2/1/2001 Land-based casinos win customer loyalty through online casino branding As e-commerce grows, more and more casino players are logging onto their favorite land-based casino?s online versions not only to play, but also, and perhaps more importantly initially, to use other leisure and entertainment services. Marc Falcone, analyst at Bear, Stearns & Co., reveals that approximately 10-12 percent of Mandalay Resort Group rooms, about 10 percent of MGM Mirage's rooms, and about 5 percent of Park Place Entertainment's rooms are now booked through the Internet. According to analysts, land-based casinos' web sites that allow surfers to book rooms and play free games enhance customer loyalty that could translate into even more business if U.S. law eventually permits real online gaming. These web sites build brand recognition as well as establishing a customer database, that casinos can use to improve their customer relations both on- and offline. Says Falcone, "People playing these games and earning casino points and prizes encourages them to take a vacation to Las Vegas and stay at one of these properties so they can cash in the points for comped rooms and dinners.? Brian Egger, gaming analyst for Credit Suisse First Boston, concurs that encouraging and rewarding customers for using casino web sites for non-gambling purposes is important for gaining customer loyalty: "Customers need to be comfortable with the site before they start using it for interactive gambling." John Marz, senior vice president of marketing at Mandalay, agrees that web site traffic could help build a base of loyal customers who represent potential Internet gamblers, however, he emphasizes that is not the company's main cyberspace mission: ?Our motivation to expand our web site is to expose our product to more people so they purchase our product.? |
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