Well, for a long time now, businesses have been using bonuses for various reasons. But are they still very necessary for online casinos? Well, if you have such or related questions about the importance of these features, you have just arrived in the right place. Here, we will look at this subject in depth while uncovering numerous facts that will leave you informed, and that’s why you may want to stay around.
The casino sector has become very competitive, and you may need to do a lot to stand out. In fact, recent studies by Grand View Research claim that it has already surpassed the $17.13 billion mark, a figure that’s expected to increase rapidly within the next few years. And, of course, bonuses can help operators stay ahead of this competition. Read on to discover how this is possible.
Improving customer retention
Do you actually know that, according to Invesp, you may need up to five times more resources to acquire new players than retain existing ones? We have already hinted at how this sector has become competitive; therefore, you’ll want to take advantage of every available opportunity to increase customer retention.
According to Firework, close to eight in ten millennials will likely remain loyal if they find great loyalty programs on a platform, which could only be a reflection of a broader trend. And this could be one of the reasons why operators in this sector have been using such perks to improve customer retention rates. For example, with a High 5 Casino promo code, players can purchase various items for their enjoyment, which may lead to them being more connected with the platform and encourage return visits.
On top of that, statistics show that you can actually improve retention by up to 5% by incorporating great loyalty programs. And do you know what? Although a five percent increase seems low, increasing retaining capacity by this level could result in returns of anywhere between 25% and 95%. Appreciating customers for things like repeat transactions and other actions can create a sense of value and appreciation, which encourages long-term customer connections.
This can come in handy when launching new games in the market. Experts suggest that loyal customers normally tend to welcome new products more easily than new customers. Actually, according to Business.com, they are 50% more likely to try new products than new buyers. Even more interesting is that returning consumers can spend 67% more than those who have never transacted with you. And that’s why you don’t want to ignore the power of bonuses when it comes to improving player retention.
What about customer engagement?
The idea of bonusing is not just about sending one or two coupons – you have to do everything correctly. That way, you’ll be sure to build stronger player relationships and even increase sales. In customer engagement, the goal is to understand players better so that you can offer them value more meaningfully – and the benefits can be mind-blowing.
For instance, a study showed that B2B brands that engage customers successfully reduce customer attrition by up to 63%. Remember, incentives are just well-thought-out ideas for encouraging players to act in a way that benefits both them and your company. The best part of this is that highly engaged customers can become your brand ambassadors.
And by the way, do you know that this can really be a great way of marketing yourself without spending a lot? Studies show that about 88% of consumers trust word-of-mouth recommendations more than they do other marketing channels. And surprisingly, this is not just a loved preference among customers only, as can be seen below:
- BCG research notes that word-of-mouth is 2-10 times more effective than paid advertisements
- 64% of marketing executives consider it the most effective marketing strategy
- According to Buypowa, more than 83% of consumers have referred to their friends more than once
- McKinsey & Co. claims that these recommendations primarily influence 20-50% of purchasing decisions.
Considering these statistics, it makes sense to see operators using bonuses to increase customer engagement. After all, why would you want to sideline strategies like bonusing, which can help you grow organically?
There are also employee benefits to reap
Besides helping to attract and retain customers, bonuses can also be a great tool for employee retention. Especially now that recruiting new employees is becoming very expensive, you want to use features like bonuses to improve worker retention.
Imagine that, according to Bravo Benefits, a brand can spend up to 20% to 30% of an employee’s salary just recruiting. What about if you’re doing a massive recruitment? And mark you: we haven’t even added the resources you’ll use for training, insurance and so on.
This statistic alone makes you want to retain employees more than hire new ones. Thankfully, bonuses have proven to be helpful in this. Efx.co.uk suggests increasing recognition perks could encourage loyalty in up to 79% of employees. And, of course, they will want to stay around because they feel more satisfied and fulfilled, which can magically increase productivity.
What is our final take?
It’s actually true that bonuses are an indispensable part of the casino industry, and if you want to stand out, you can’t ignore them. Their integration has become even more crucial because this sector seems to become more competitive every day.
Why would you want to miss out on the opportunity to increase customer engagement and retention just because you ignore the power of bonuses and promotions? As we have already highlighted, most players love them, and not integrating them is a no-go zone. Even in retaining employees, bonuses can come in really handy.
