If there is one thing that unites consumers more than anything else, it is the fact that we all love getting a good deal.
Many of us experience a genuine feeling of delight when we get something for cheaper than the market price or even have the chance to sample a new product or service for free. Such occurrences not only brighten your day but also make you feel valued by the very organizations that you buy from. A whole host of businesses make use of promotions every week, but it could be argued that few sectors recognize the power and potential of special offers like the highly competitive world of the online casino industry.
A warm welcome
It is fairly well-documented that the sector is doing very well at the moment. Earlier this year, Grand View Research published a study which found that the global online gambling market was worth more than $53 billion in 2019. In fact, revenues are forecast to reach $127.3 billion by 2027.
While the report stated that high internet penetration and the growing use of mobile phones for gaming are driving the market, the welcome bonuses offered by many sites may well be playing their part too. Such deals are often very generous and tend to include a couple of different elements, with brands generally offering a bonus on deposits and also free spins on specific slot titles.
Welcome promotions have become such an integral part of the sector that they are now regarded as a key aspect that players should consider when seeking a good gambling platform online. As this guide to online gambling in 2020 explains, savvy players tend to assess available bonuses alongside other elements such as security, payment methods and customer support as they look to determine whether a site is worth their time or not.
What comes next?
Online casino sites seem to go all out as they look to entice people into signing up to their services, but what comes next? What happens when the introductory offer comes to an end and the honeymoon period is well and truly over?
Well, many offer further promotions for their existing players, although they perhaps do not often reach the same levels of generosity when compared to welcome deals. Such bonuses can come in different forms, with some sites opting to go down the route of daily promotions which reward players for taking a specific action on a certain day.
Others take the step of operating so-called VIP or loyalty schemes as well, where members get access to exclusive perks or promotions as a reward for regular play. Furthermore, they might be given their own dedicated account manager, while some brands are also known to offer invites to exclusive events.
The benefits of retention
While the latter schemes are undoubtedly intriguing, it could be argued that they are aimed at more dedicated casino gamers for whom gambling has become a core part of daily life. So, what about more casual or occasional players? Could online casinos be doing more for them?
Like many sectors, it could be suggested that the online casino industry is facing the age-old debate related to customer acquisition versus retention. Generous welcome bonuses appear to put the focus on the former, but the benefits of investing in the latter should not be downplayed.
According to information compiled on an infographic by Invespcro, it can cost businesses five times as much to attract a new customer than to keep an existing one. In addition, the likelihood of selling to existing customers is around 60 to 70 percent, while the probability of selling to a prospect is between 5 and 20 percent. The data also suggests existing customers are pretty open-minded, as they are more likely to try and spend more on new products when compared to more recent recruits.
However, while that may well be the case, does investing in customer retention really matter considering the state of the sector at the moment? There are so many different brands operating in the space at present, with new names also popping up all of the time. With all of this competition, it could be argued that there are customers who take advantage of the opportunity to hop from one site to another once their introductory deals come to an end. If that does indeed happen, it could be suggested that investing in retention may not have much impact. But, at the same time, there's a finite number of reliable enough online casino operators any customer is likely to try - sooner or later, they'll have to make their choice and largely stick with it.
Plenty of discussion to be had
All in all, it is clear that there is plenty of discussion to be had about how online casinos use promotions and whether more emphasis could be placed on using bonuses as a means of customer retention.
Considering how bright the future looks for the sector at present, it would perhaps be a surprise to see any major changes to how things are currently operating. However, the industry is one that rarely sits still, so it will be intriguing to see how matters develop on customer acquisition and retention going forward.
Furthermore, we believe that the casino platform that does manage to shake up the loyalty/VIP scheme model will gain a considerable advantage over its competitors.
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