Who Should Own the VIP Function?

The iGaming industry has become ever more competitive, where the VIP function stands at the crossroads of revenue generation and brand loyalty. High-value players, or VIPs, often represent the majority of an operator’s revenue despite comprising only a small percentage of the player base.

This elite group demands bespoke service, timely attention, and exclusive experiences that set them apart from the wider player pool. This raises a crucial question for operators:?Who should own the VIP function?

The answer isn’t as simple as it may seem.

Different operators have taken varied approaches to VIP program ownership, each driven by their organisational structure, resources, and long-term strategy. While the marketing or CRM department often takes the reins in smaller or leaner operations, more prominent organisations prefer a dedicated VIP team or a hybrid model.

Each approach has its benefits and drawbacks, and getting it right can be the difference between a well-executed VIP program and elevated retention or player development strategy.

In this article, we will explore the different function ownership models, exploring the pros, cons, and critical considerations for operators aiming to create unique and exceptional VIP experiences.

Marketing Department Ownership: An Acquisition and Retention Focus

The marketing department is traditionally responsible for acquiring and retaining players. It manages promotions, bonuses, and player communications, making it a natural default home for VIP programs.

Operators who place the VIP function under marketing usually focus on campaigns' scalability and aligning VIP strategies with the company’s broader promotional or marketing efforts.

Pros

• Integrated Player Lifecycle Management: The marketing team is skilled in player segmentation and targeted cohort management. If exposed to VIP best practices, their understanding of segmentation could make identifying VIP players and understanding their lifecycle needs straightforward. This allows for the seamless integration of VIP-specific promotions, campaigns, and rewards with standard player strategies. Marketing teams can use data to create targeted campaigns that resonate with VIPs and their spending habits.
• Data-Driven Decision-Making: Marketing departments generally have a strong handle on data analytics. By continuously analysing VIP player behaviours, they can adopt strategies to personalise offers and enhance retention tactics and re-engagement efforts. From tracking deposit trends to evaluating game preferences, marketing-led VIP programs can make decisions grounded in complex data.
• Promotional Synergy: VIPs thrive on promotions and added value propositions. Marketing teams are already adept at crafting bonus offers, event invitations, and loyalty systems, meaning the VIP function can tap into this expertise to create higher-value and exclusive offers for top players. The synergy between promotions for VIPs and the broader player base ensures a consistent brand tone and experience. Remember that this differs if the VIP program is positioned as a sub-brand.

Cons

• Overemphasis on Bonuses Over Relationships: While marketing functions excel in attracting players, VIPs demand more than just promotions. They expect a personal, tailored relationship. A marketing-led VIP function risks focusing too heavily on acquisition and promotions, neglecting the personalised and relevant one-on-one engagement that VIPs value most.

• Lack of Dedicated Attention: Marketing departments typically handle the entire player base, and resources can be stretched thin. Without a dedicated team focusing solely on VIPs, high-value players may not receive the attention they require and expect, especially during peak promotional periods.

Considerations

Operators that house the VIP function within marketing must ensure that dedicated resources are allocated specifically to VIP management. A specialised team or a focused manager can help bridge the gap between broad-scale marketing efforts and the highly personalised touch required to retain VIPs.

Operations Department Ownership: Efficiency and Structure

Some operators place the VIP function within the operations department, emphasising efficiency, data precision, and logistical excellence. Operations departments typically oversee player support, payouts, and technical processes, making them well-equipped to handle the demands of VIP service delivery.

Pros

• Operational Efficiency: VIPs expect immediate responses, fast payouts, and exceptional service. An operations-led VIP program can ensure that VIP players are prioritised regarding withdrawals, issue resolution, and service requests. Operations teams excel at streamlining processes and ensuring that VIP services are efficient and consistent.

• Strong Focus on Data and Automation: Operations teams are highly data-driven, which can be invaluable when managing VIP players. They can automate high-priority tasks without sacrificing accuracy, such as faster withdrawals or tailored promotions. Focusing on data can also allow operators to better predict VIP behaviours and preferences, ensuring proactive rather than reactive service.

Cons

• Limited Personalisation: While operations teams excel at efficiency, they are less attuned to player management's emotional or psychological aspects. VIPs are looking for more than just fast service. They crave personalisation and a sense of exclusivity. An operations-led VIP program might become too process-driven, sacrificing the "human touch" that VIP players expect. Remember that this is subject to the business structures that make up the operation.
• Disconnect from Marketing and Player Engagement: VIPs require a strategic balance between operational efficiency and emotional engagement. If the VIP function sits solely in operations, there’s a risk of limiting the service aspect from broader engagement strategies, like personalised promotions or experiential rewards that typically come from marketing.

Considerations

If the VIP function is part of operations, ensuring collaboration between Operations, Marketing, Risk, Fraud, Payments and Customer Experience teams is imperative. This will allow operators to balance efficiency with the personalisation required to keep VIP players feeling valued.

Dedicated VIP Department: The Personal Touch

For many operators, especially those with an established VIP segment, establishing a dedicated VIP department is the most effective solution. This team is exclusively responsible for managing VIP player relationships, crafting personalised offers, and delivering a service experience tailored to individual high-value players. This model represents a significant investment, but one that often pays off in terms of long-term player loyalty.

Pros

• High-Level Personalisation: A dedicated VIP team can offer hyper-targeted service to each player, from curated bonuses to bespoke events. The relationship between the VIP Account Manager and the player becomes the core of the VIP experience, leading to greater loyalty and higher LTV.
• Rapid Response Times: Regarding direct communication channels, dedicated VIP contact lines, and enhanced SLAs, VIP players often expect immediate attention, whether facing a technical issue or requesting a payout. A dedicated VIP team can prioritise these players, ensuring that no request goes unanswered. This level of responsiveness is key to maintaining VIP satisfaction.

• Relationship Building: A strong relationship with a VIP Account Manager is often the key differentiator between retaining a player and losing them to a competitor. A dedicated team allows for regular communication, fostering trust and a deeper emotional connection between players and the brand.

Cons

• High Cost: Running a dedicated VIP team requires significant resources. From hiring experienced Account Managers to organising exclusive VIP events, the costs can quickly add up. This may not be a viable option for smaller operators or those with a limited VIP player base.
• Risk of Over-Specialisation: While a dedicated VIP team provides excellent service to high-value players, there’s a risk of siloing this function from the rest of the business. If the VIP team operates in isolation from other departments like Marketing, Product Development, or Compliance, it could miss opportunities for broader business alignment or shared insights.

Considerations

A dedicated VIP department is best suited to operators with a substantial number of VIP players, where the investment in bespoke service is justified by the revenue these players generate. However, ensuring that the VIP team is well-integrated with other departments is essential to avoid siloing and missed opportunities for cross-functional collaboration and knowledge transfer.

Hybrid Approach: Collaboration Across Departments

Many operators adopt a hybrid approach, integrating input from multiple departments to create a more well-rounded VIP program. In this model, the VIP function is driven by a collaborative approach between Marketing, Operations, and a dedicated VIP team, ensuring a balance between promotional innovation, efficiency, and personalisation.

Pros

• Cross-Departmental Strength: A hybrid approach leverages the strengths of each department, Marketing’s promotional expertise, Operation’s process efficiency and data-led approach, and the VIP team’s relationship-building and personalisation skills. This creates a more dynamic and responsive VIP program that adapts to player needs and market conditions.
• Holistic Player Understanding: Operators can form a more complete picture of their VIP players by working across departments. Marketing data informs the promotions offered, Operations ensure seamless service, and the VIP team provides the personal touch, leveraging soft facts and a bespoke approach to engagement. This results in a more cohesive and consistent experience for VIP players across all interactions and touchpoints.

Cons

• Complexity and Coordination Challenges: Managing a VIP program across multiple departments requires clear communication, defined processes and roles, and a strong sense of ownership. Without these, it can quickly lead to confusion, duplicated efforts, or gaps in service. Coordinating between departments to maintain a unified VIP strategy can be a significant logistical challenge. Ego is a VIP success killer!
• Potential for Role Overlap: When multiple teams are responsible for the VIP function, there’s a risk of blurred lines. If it’s not clear who is responsible for each aspect of the VIP player experience, there can be inefficiencies or missed opportunities, leading to dissatisfaction among VIPs. Conflicting interests and contradictory KPIs can further complicate the cross-departmental approach.

Considerations

The success of a hybrid approach hinges on coordination. Clear roles, shared goals, and robust communication channels between departments are essential to ensure that VIP players experience seamless and exceptional service across all touchpoints. Complementary KPIs and clearly defined responsibilities are critical to a hybrid VIP program's success.

Conclusion: Choosing the Right Ownership Model

So, who should own the VIP function? The answer is multifaceted.

It depends on operators' structures, resources, and strategic goals.

Marketing-led VIP functions offer promotional synergy and scalability but risk lacking the personal touch. Operations-led programs excel at efficiency and structure but may fall short on relationship-building expertise. Dedicated VIP departments offer bespoke service at a higher cost, while hybrid models require strong coordination to succeed.

Ultimately, the key to a successful VIP program is not just where this sits within the organisation but how it operates. VIP players need to feel valued, understood, and catered to in a way that enhances their loyalty. Whether through Marketing, Operations, a dedicated VIP team, or a hybrid approach, the VIP function must remain agile, data-driven, and, above all, player-centric.

The goal is simple: create an experience so exclusive, personal, memorable, and rewarding that VIP players can’t imagine going anywhere else.

Disclaimer: The VIP Topics, Opinions, and Insights presented in this post are intended to encourage discussion and possible debate. It is important to note that each post is not intended as professional advice. It is highly recommended to consult with qualified experts or VIP professionals who can provide guidance tailored to your specific needs and circumstances before attempting to launch a VIP Player Management strategy or program.