Chunli Ji takes a look at the important role of VIP hosts and how they are vital to building loyalty among VIP guests.
VIP customers have traditionally been one of the key customer segments for casino resort operators, with Macau’s casino resorts having built their early successes around their VIP guests.
VIP baccarat revenue once comfortably exceeded 70% of Macau’s gaming revenues, and despite the crackdown in recent years still contributes more than 20% according to DICJ figures. Therefore, whether they be introduced by agents or acquired via direct VIP marketing, VIP customers still have a role to play in the development of Macau’s casino resorts.
To better attract and retain VIP clients, casino resorts typically hire VIP hosts as a key strategy to cater to VIP guests and foster customer loyalty. This strategy is widely adopted in renowned gaming destinations worldwide, including Las Vegas, Macau, Singapore and Australia.
The VIP hosts at casino resorts coordinate all activities for VIP customers. For example, SAHARA Las Vegas promises on its corporate website, “Our experienced team is here to assist with your Las Vegas trip and make your gaming experience at SAHARA Las Vegas the best it can be. Let our casino host team assist with all of your needs – stay, dine and play with us. You enjoy the excitement and action, let your team take care of the rest.”
The company also clearly lists the services that hosts can provide including “Personalized attention; Helping you experience the best of SAHARA Las Vegas; Taking care of all of your requests; Connecting you to all Las Vegas has to offer”.
The host services provided to VIP customers at Macau’s integrated resorts are widely acknowledged as being among the very best in the world, however winning the trust of VIP customers and maintaining relationships with them is not as simple as fulfilling these responsibilities. Merely completing expected tasks does not guarantee the favor of VIP guests.
A recent study I led at Macau Polytechnic University indicates that in casino resorts, the strength of the relationship between VIP guests and the resort can be measured by their loyalty. This loyalty is demonstrated in two ways: loyalty to the host that serves them, and loyalty to the casino resort itself. Typically, since the host is the “key person” interacting with the VIP customer, the customer first forms loyalty towards the host, which then extends to the casino resort.
So, how can we foster the loyalty of VIP customers? The study reveals that building trust with VIP customers is crucial. This trust is categorized into three types: Cognitive Trust, Affective Trust and Relational Trust.
Cognitive Trust is established when a VIP customer accumulates knowledge and information that enables them to evaluate the competence and reliability of the host. In contrast, Affective Trust is developed when positive feelings arise from the care and concern expressed towards the VIP customer. Relational Trust is developed through repeated interactions with the host when there is a strong belief in the benevolence, integrity and sincere efforts of that host to reduce risk by constructing a close relationship between themselves and the VIP customer. From another perspective, Cognitive Trust is merely a “thin trust” which is not stable and has strong substitutability.
Conversely, Affective Trust and Relational Trust belong to “thick trust”. Once a VIP guest and the host establish thick trust, they form a very stable relationship, thereby cultivating a loyalty that can withstand the test.
Some hosts’ behaviors related to Cognitive Trust include the host serving the VIP with professionalism and dedication, and the VIP customer’s trust in the host’s competence to provide service; the host provides meticulous service during the process of contacting the VIP guests. Behaviors related to Affective Trust include the host’s ability to make VIP guests feel a sense of personal connection with the host; the VIP guests feeling that the host always shows a warm and caring attitude toward the VIP guests, and the VIP guests feeling that the host is always concerned about the VIP guests. Behaviors related to Relational Trust include the VIP guests feeling that the host can be relied upon for the attitude and behavior of the relationship, the VIP guests believing that the host would not try to take advantage of their relationship, the host being straightforward and honest in the relationship with the VIP guests even though the host’s self-interests are involved, and the VIP guests believing that the host would not tell a lie even if the host could gain by it.
From the perspective of the casino resort, excellent public relations have become an indispensable key resource for maintaining a loyal relationship with VIP customers. At the same time, the casino resort must invest resources and energy to train and improve the ability of the host team, enabling them to establish the above three types of trust with VIP customers.
