For MGM Resorts International's M life Rewards program, should we prioritize easier point accumulation or more exclusive high-tier perks?

Introduction

The trade-off we're examining for MGM Resorts International's M life Rewards program is whether to prioritize easier point accumulation or more exclusive high-tier perks. This decision impacts customer acquisition, retention, and overall program value. I'll analyze this trade-off by considering user segments, business goals, and long-term strategy implications.

Step 1

Clarifying Questions (3 minutes)

• Context: I'm thinking about the current competitive landscape in the hospitality industry. Could you share insights on how our M life Rewards program compares to competitors' loyalty programs?

Why it matters: Helps position our strategy relative to market standards Expected answer: We're mid-tier in terms of point accumulation ease, but our high-tier perks are industry-leading Impact: Would influence whether we need to catch up on point accumulation or double down on exclusive perks

• Business Context: Based on our revenue model, I assume a significant portion comes from high-rollers. Is this accurate, and how does it align with our current business priorities?

Why it matters: Determines the balance between broad appeal and VIP focus Expected answer: High-rollers contribute disproportionately to revenue, but we're looking to expand our customer base Impact: Would guide whether to focus on easier point accumulation for mass appeal or enhancing high-tier perks

• User Impact: I'm curious about our user segmentation. What percentage of our users are in each tier, and how does their behavior differ?

Why it matters: Helps understand the potential impact of changes on different user groups Expected answer: Pyramid structure with a small percentage in top tiers, but they drive significant revenue Impact: Would influence how we balance changes to benefit different segments

• Technical Feasibility: Considering our current systems, how complex would it be to implement changes to point accumulation rules versus adding new high-tier perks?

Why it matters: Assesses the technical effort required for each option Expected answer: Point system changes are more complex due to legacy systems, new perks are easier to add Impact: Could affect the timeline and resources needed for implementation

• Timeline: Given our current roadmap, what's the urgency for making this decision, and are there any upcoming events or seasons we should consider?

Why it matters: Helps prioritize this decision against other initiatives Expected answer: Decision needed within next quarter to impact high season Impact: Would influence the depth of analysis and experimentation we can conduct