E-commerce can be a brutal yet rewarding industry. Online gambling is one of them and has been reported to generate millions of dollars each year. This factor alone stands to be the biggest motivator for online casino establishments.
However, the online gaming market is still one of the most difficult sectors to crack, more than any other regulated and established industry. Studies show that at least 85 percent of startups fail in the first two years. In this write-up, we tell you why most of them fail and how you can be the industry leader.
Acquiring a B2C Business Model
Before the launch of a startup, most casino operators fail to factor in customer acquisition costs. You must begin by working into this plan before starting your online business.
Understand that if the cost of attracting and retaining a player exceeds that of the revenue generated, you may end up losing your money. Every online bookie must accurately model their customer acquisition metrics.
You must exploit an unfair house advantage to attract new players. Figure out how to attract and retain them at a lower cost than your competitors. Even with the low cost, you need to determine how you will financially benefit from each client.
In this highly regulated and competitive industry, online casino startups must get their product designs right, build a technology platform that operates each product at scale, and get it right in the market to survive. Spend enough time finding a stable technology partner who can guard your vision. There is a wide variety of online casino operators out there, study, learn and come up with a solid brand.
Most online casinos fail because they ignore the need to complete all required checks and balances. Any ambitious undertaking such as the start of a new casino must focus on wowing the crowds. It means that you need to have sufficient cash to create the perfect gambling environment.
A startup must invest to ensure that it sustains itself through the establishment and growth phases. Seed capital and other financing can be acquired in many ways. One of the most effective ways of earning revenue for a startup is through affiliate marketing.
Be sure to have a staggered investment regimen to ensure that your startup navigates tough times and stays profitable.
Adapting to the Market Needs
How well you satisfy your customers will translate to the performance of your startup. Begin by performing careful market analysis on player preferences to stand a better chance of success.
Offer an extensive range of different games, including bingo games, baccarat, poker, progressive slots, video slots, blackjack games, among others. In the planning stages, delve into the possible entry points to understand the opportunities and demand.
You can only build a unique and robust brand by giving exclusive offers. This can be actualized through the implementation of technology for scalability and compliance with your business model. Setting yourself apart from the crowd means constant improvement and innovation.
Every bookmaker and iGaming operator must adopt certain strategies to stay unique. As long as your product is unique, you can still venture into the saturated market and succeed.
Need for Customer Support
A unique selling proposition (USP) defines your uniqueness in the market. In that case, most bookies present themselves as “the haven of slots”, “home for the biggest bonus”, among others, to be heard more than their competitors.
Although these are key differentiators, understand that there is a variety in almost every casino. Your software provider should determine your games and jackpots. Note; even with the advent of browser-based portals which present a greater variety, you will still need to give proprietary software to be heard over your competition.
Design and usability are highly crucial, but there is more to retention and conversion than just acquisition. The reason most iGaming sites fail is because they overlook customer support. A bookie can only act as an acquisition tool by offering stable customer support services.
Doing so can create a positive reputation, increase value, win over more players, and boost the retention rate. Going the extra mile of giving quick responses, responding clearly, and having friendly staff can give you good publicity.
As the online gaming industry continues to expand, startups need to offer more to stay longer in the market. The betting environment is rapidly evolving, especially due to the advancements of technology.
This is a move which has led to battles against betting companies looking to win the bigger share of the market. In 2020, anyone taking advantage of technology and offering unique gaming services can expect a great return in their investment.