Winning New Customers Without Losing Your Shirt!

 

If you have been following the business pages lately you cannot help being struck by the huge changes underfoot in the online gaming industry with mega-mergers between Betfair and PaddyPower and GVC beating 888 Holdings to acquire Betwin.

These gaming behemoths have sought scale as a response to spiralling customer acquisition costs, as well as increased tax and regulatory burdens. A profitable customer can often cost hundreds of dollars to acquire.  It is refreshing to see a leading online gaming business like Welton Holdings’ Fun88 take an innovative approach to reducing customer acquisition costs.

Quite simply, Welton Holdings' Fun88 has gone back to a basic fundamental of marketing: ‘Word of Mouth’. But the innovation is in that by adding the latest generation of innovative Invite-a-Friend marketing software it has ensured that, finally, referral marketing channel can now drive a significant percentage of new customer acquisition.

But first let’s take a quick look at the challenges facing online gaming:

PRESSURE FROM ONLINE MARKETING COSTS, REGULATION AND TAXES

Online gaming is a fiercely competitive industry where, as Tim Stocks reported in April 2015, marketing costs are typically one-third of the operator’s total cost base:

Image: Page 6 of 'Red Roses


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