Question 1

What is 'Incremental Revenue'?

Accepted Answer

Incremental revenue is the additional revenue generated from a player *that is directly attributable to the promotion*. It's the revenue you wouldn't have received without the comp offer. This can be difficult to measure perfectly and often requires A/B testing or data analysis to estimate.

Question 2

Why use 'Cost per Comp' instead of its face value?

Accepted Answer

You should always use the casino's actual cost for the item, not the price on the menu. A buffet that costs a customer $40 might only cost the casino $12 in food and labor. Using the actual cost gives a true picture of the promotion's profitability.

Question 3

What is a good ROI for a comp program?

Accepted Answer

Anything over 0% is profitable. However, a 'good' ROI depends on your goals. A 20% ROI might be considered low for a pure revenue-driving campaign, but it could be excellent for a loyalty campaign aimed at retaining high-value players, where the long-term value is harder to measure.

Question 4

How do I estimate 'Incremental Revenue'?

Accepted Answer

The best way is through a control group. Send the offer to one group of players (the test group) and not to a similar group (the control group). The difference in spending between the two groups is your incremental revenue. If you can't run a control group, you can estimate it based on historical data, looking at the player's average spend before and after redeeming the offer.

Question 5

Should I include the theoretical value of the player in this calculation?

Accepted Answer

This calculator focuses on the direct ROI of a specific promotion. Advanced analysis often compares the promotional cost to the player's theoretical value (Theo). A common rule is that total comps for a player shouldn't exceed 30-40% of their Theo. This calculator helps you see if an individual offer is profitable on its own, which is a key part of that larger strategy.

Comp ROI Calculator

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Understanding Comp ROI

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