The online age has changed the way a lot of businesses operate. The digital world is notoriously fierce, and it has led to a heavy focus on offers and promotions as a way to attract customers. Offers are more abundant in highly competitive sectors with saturated markets.
In the iGaming industry, for instance, the business model is centered on using free play promotions as a way to tussle for the attention of players. Online businesses need to make sure they are thinking of promotions to bring in new customers, but should also use bonuses as a way to retain their existing customers.
The Importance Of Discounts And Offers For Online Businesses
Discounts and offers serve numerous purposes for online businesses. They can be used as a way to outshine the competition, but also as a method of keeping customers happy. The modern consumer has come to expect bonuses and promotions and is more likely to look elsewhere if a company isn’t offering something for free.
There has been a lot of research into how offers work, and the statistics paint a compelling picture of today’s consumer. 69 percent of shoppers search for deals and coupons online, and 60 percent of people surveyed said they felt special when they found a better deal.
Studies have shown that promotions increase engaged conversion rates in every industry, highlighting how imperative it is for businesses to run promotions if they want to increase profits. It isn’t just a case of doing it to boost revenue, though. Because so many other companies are providing their customers with offers and deals, those that don’t will simply not be able to compete.
There are two groups of people that business owners need to think about targeting with their promotions. They have to try and entice new customers who are looking into the product or service for the first time. These people are trying to work out what makes one company better than another, and a lot of the time, it comes down to which one is offering more money-saving opportunities.
After earning a customer, companies then have to keep them coming back and stop them from moving to a competitor. This is done through other forms of offers and promotions, which can change regularly. With this in mind, promotions can usually be broken down into welcome offers and loyalty schemes.
Targeting New And Existing Customers
Welcome bonuses are the best way to bring in new customers. This is the first thing that a prospective customer will see, and could entice them to the site. Some customers may be unsure as to whether they want to use a certain company. But if they have a free way to explore the site, it could help. Once they have clicked on the page, the company can use other marketing techniques to keep them there.
If a company is in a highly competitive sector, potential customers may use comparison sites to help them choose. If you were to see a list of businesses all offering a similar product or service, would you choose the one which has a welcome bonus or the one that offered nothing to new customers?
This is a no brainer, and in sectors where offers are ubiquitous, all the businesses need to get on board with them. Customer retention is one of the most important things for a business, as repeat custom makes up around 50 percent of revenue.
It has also been found that repeat customers spend more on each purchase and spend at key times. They are easier to sell to because the business has already hooked them in at one point in time. For this reason, high repeat custom turns into higher revenues for the company.
While a lot of welcome offers may look the same in a particular industry, the offers for existing customers allow for more originality. This can be a right way for a brand to stand out from the crowd.
When it comes to thinking of offers to retain customers, businesses that come up with unique names for the bonuses and VIP programs are memorable. And if the offer is related to the company name in some way, it can help reinforce the brand in the customers’ memory.
What Are Some Real-Life Examples?
To see how some companies put these ideas into practice, it is a good idea to look at a couple of case studies. As mentioned earlier, the iGaming industry is highly competitive, and offers are extremely important. Wink Bingo has numerous bingo promotions for new players and returning ones. For example, the site offers new players the Wink Welcome Offer of £40 in bonuses to play on bingo and slots.
In addition to that, the site has ongoing bonuses for returning players such as Wink’s Happy Hour and the Mystery Jackpot. It should also be noted that the original names of these promotions fit with the brand and help to make it more distinctive.
The food delivery industry is seeing a rise in offers and promotions as well. Deliveroo is one of the most essential food delivery services in the UK, providing everything from fast food to gourmet cuisine. The company has used offers and promotions as a way to make it to the top.
New customers can get discount codes on their first purchases while existing customers are often rewarded with coupons to spend on certain things. In addition to that, the delivery service usually runs promotions with particular restaurants, which come in the form of discounts on the food.
Other companies that want to tussle with Deliveroo for supremacy also need to provide their customers with such money-saving offers. Offers and promotions are crucial for online businesses, but business owners need to make sure they are targeting two groups of people. They need to have welcome offers to attract new customers, but they also need to use promotions as a way of retaining their existing ones.
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