The internet has unlocked many doors. Aside from making more things accessible to more people, the advent of digital technology has made it easier to get a better deal. In fact, it's made it easier in many ways.
From comparison websites to social media giveaways, there's always something on offer. For the majority of consumers, the best way to unlock extra value is sign-up rewards. Also known as welcome bonuses or promotions, these deals are basically a way of attracting new customers and, in turn, inspiring some sort of loyalty.
Added Value for Everyone
A common way for businesses to welcome new customers is with a mailing list promotion.
For example, a typical deal will give someone 10% off their first purchase when they sign up for a newsletter (i.e. email updates). This type of promotion is used by almost every mainstream business, from Zara and NME to premium clothing brand Timberland. In fact, it's so common that it's also used by third-party affiliate sites.
Use a platform such as Voucher Codes and you'll be able to sign up for exclusive offers via email and, in turn, unlock an extra discount. However, for a real insight into the power of promotions, we have to look at the betting and gaming industry. Online casino, bingo, poker, and sports betting sites are unrivalled when it comes to bonus offers.
As WDW Bingo points out "an eye-catching welcome bonus is uniquely critical to the success of a new online casino or bingo site. It is the single most powerful way to distinguish your product from the competition." The offers don't start and stop with welcome bonuses. All customers at sites like WDW Bingo can unlock a steady stream of added value through a combination of deposit bonuses, competitions, and loyalty rewards.
Consumers Love Companies that Go the Extra Mile
The reason for the almost unique prevalence of promotions in the betting and gaming industry is uncertainty.
Even with all the skills in the world, nothing is certain in this world. Therefore, as well as offering bonuses as a way to inspire loyalty, operators use them as a way for customers to offset uncertainty. That's an important concept to grasp.
It can be tough for a new business to convince customers they're legit when they haven't got a history of excellent service to fall back on. Offering promotions won't automatically make consumers think you're legit. However, it does show that you're willing to go above and beyond to offer a great service.
This, in turn, can help ease their sense of trepidation.
Image: Pixabay Of course, there's more to offering discounts and free credits than easing any notions of fear a consumer might have.
Although it's not an exact science, a study by Dr Paul J. Zak shows that coupons create a feeling of happiness. The Professor of Neuroeconomics at Claremont Graduate University measured a 38% increase in oxytocin levels and an 11% rise in "happiness" when participants received a discount coupon.
Promotions are also empirically good for businesses from a financial perspective. Statista data shows that 31 billion digital coupons were redeemed in 2019. In essence, people are bargain hunters.
So, if you're starting a business and looking to boost revenue, there's a lot of value in giving consumers more value.