Research shows that more than half of start-ups never see their fifth year. What might be the reason behind this?
Most business owners have a great vision and products. However, they still fail to make the cut and end up thrown out of the market after failing to break even.
The gambling industry has been growing at an alarming speed over the last century. What do the players in this sector do differently from others? We were lucky to come across Martim Nabeiro, a casino investor and he shared with us the following business lessons.
Invest in welcome promotions
Humans are programmed to love free things, and this is not changing any time soon. Having endless promotions is one of the best casino marketing strategies that continues commendable results in this competitive world. You will see most casinos having welcome bonuses that definitely attract new sign-ups. These promotions vary from one casino to the next.
For instance, you can find a no-deposit bonus. This bonus gives ‘free’ money to the users after signing up. However, the casino can have some terms that must be met for this bonus to become active. You can also find bonuses which only become active after the user deposits some money. They can range from 25-100% of the deposit amount.
As a business owner, you can as well invest in such welcome promotions. The nature of promotions you will display will depend on the type of business you are in. For instance, you can have a free service for every new customer who buys a premium service if you are in the service industry.
The idea behind this approach is to attract more sign-ups which will ultimately increase conversion rates. However, the promotions you run should make economic sense and not drain your profits. You should also invest in strategies to retain the users once the promotion is over and make them your paying customers.
Mobile phones are taking over
No one ever thought that mobile phones could have multiple uses when Martin Cooper, Motorola employee, created the first mobile phone in 1973. However, mobile phones have now become mini-computers that are aiding people to do daily chores at the comfort of their homes. Mobile phones are no longer gadgets limited to making calls and sending text messages.
The casino industry has invested a lot in mobile gaming as they realise that it has lots of potential. A simple visit to CasinoPortugal will highlight how casinos have optimised their sites for mobile phones. You will also get many casinos with downloadable apps that people can use to access these sites.
The current smartphone penetration rate stands at almost 45.4%. Thus, it means that 4 out of 10 people have access to a smartphone. Business owners should pay close attention to these numbers as they have an impact on the number of clients they can get.
Optimising your site for mobile is the first step towards tapping into this market. You can also borrow from big eCommerce platforms that have invested in mobile apps that make it easy to shop. Having links to download the app on your website makes it easy to reach new heights.
Diverse payment methods
Casinos are known to have the highest number of payment options that users can choose from. It is one of the best casino customer acquisition strategy that has worked for years. Such businesses understand that people have different money sources and thus aim at serving everyone. We also have a new breed of casinos that accept crypto payments.
Some businesses lose potential customers simply because they do not have favourable payment options. You need to analyse where your target customers are and then incorporate payment options that favour them. You also need to assure these customers that their private data is in safe hands, in a world where cyber-crime has become the order of the day.
The ideal payment methods are those that do not charge customers to make payments on your platform. The payment options also need to be simple as potential customers are likely to leave your site when they come across complicated processes. You also need to ensure that the payment options you choose do not take ages to reflect the balance after deposits. Be on the lookout for new payment options and incorporate them to your platform.
Product variation and expansion
Casinos are the kings when it comes to product variation. For instance, you will find a game like roulette that has more than 4 variations. You will find American Roulette, European Roulette, Multi-Wheel Roulette and Double-Ball Roulette, just to mention a few.
A business owner can as well use product variations to tap into new markets. The modern potential customers are looking for products that ‘target’ them and not the entire populace. You can also have supporting products to make it easy for customers to have a complete batch.
Production variation and expansion gives the potential customers a one-stop-shop for all their needs. Be on the lookout for new products that are likely to bring new customers to your venture. Analyse what your competitors are offering and then come up with products that might beat them hands down. However, ensure that you have core products that define your venture.
Marketing never ends
It is hard to browse on the internet and fail to come across a casino ad. Marketing plays an important role when you want to attract new customers as well as retain the existing ones. Offering bonuses has been an awesome casino marketing strategy to keep the existing customer on their toes.
You need to realise that creating great products is not enough. You need to get out there and let people know who you are and what you stand for. Come up with a marketing strategy and create a budget. The nature of your marketing plan will depend on the type of business that you run.
Investing in promotions, marketing, product variation, and the mobile market are the key business lessons we can learn from the gambling market. Ensure that you have a business plan and realistic goals that you can check periodically. Be on the lookout for new trends to learn what potential customers want.