Customer relationship management and customer loyalty in the casino industry: A quantitative correlational study

The examination of secondary data from a local or regional casino to determine if relationships existed among direct mail CRM programs and casino loyalty within the commercial casino industry was researched in the study. The research questions asked if there was any correlation between the mailing or the redemption of a direct mail CRM piece and customer loyalty as defined as frequency of customer visits and as the average amount spent per customer visit. Study results may provide casino executives with insight into the effectiveness of the current direct mail CRM program in an effort to decrease costs and increase revenues. The researcher used a sample of secondary data comprised of 9,568 customers who met the criteria for study. Data analysis, showing a statistically significant increase in visits, supported a relationship between the mailing of a direct mail piece and the redemption of a direct mail piece and customer frequency of visitation. Data analysis also showed a statically significant increase in customer value, supporting a relationship between the redemption of a direct mail piece and an increased average amount spent per visit, but did not support a relationship between the mailing of a direct mail piece and an increased average amount spent per visit. While a relationship was reported, only slight growth and weak correlations were reflected in the analysis. Study results imply that the correlation, although weak, should be further explored within the casino industry to further understand the relationships.