Reward marketing is the use of rewards and reward-based programs to encourage desired behaviors from customers and potential customers. It can be used to attract new customers to online stores and has long been used in gaming where new players are rewarded with in-game currencies just for joining and can receive additional content if they sign up for a project early.
Gaming And Reward Marketing
Rewards are used heavily across the gaming industry as a means of attracting new players and retaining existing ones. Many live-service video games rely on the premise – they offer free content to players who sign up for season passes and ongoing subscriptions. Online casinos like tg.casino offer rewards like deposit match bonuses and free spins to players when they sign up for new accounts.
And it isn’t just the gaming industry that relies on rewards to boost customer acquisition rates. Customers can be rewarded with discounts or free gifts with their first shop or when they agree to sign up for marketing communications at e-commerce stores. Some B2B and B2C businesses offer similar benefits to new customers and prospects.
Types Of Customer Acquisition Programs
Customer acquisition is the act of attracting prospects and converting them to customers using any marketing channel and across all forms of media. The goal of this type of program is to develop a sustainable pipeline of new customers for a business.
Marketing Subscription Bonuses
Marketing emails can be a great way to bring new business or to attract existing customers to spend more. A common method of attracting new list members, for ecommerce and physical stores, is to offer a discount to members that sign up and provide their contact details for the list. It is common to see discounts like 10% or 25% off your first order when you subscribe to a mailing list.
First Purchase Bonuses
First deposit bonuses are common at online casinos and iGaming sites. When a player registers and deposits an amount of money, the casino matches or even multiplies the deposit amount. First purchase bonuses work similarly at e-commerce stores. When a customer registers and makes a first purchase, they receive some kind of bonus. The bonus can range from a free gift to a discount and varies from one business to the next.
Referral Marketing Programs
Referral marketing programs are beneficial to casinos and businesses. Referrals that come from existing customers and other sources tend to be cheaper than other new customers, and paying the third parties that sent the referrals over, or giving them some other kind of reward, can prove a financially beneficial means of attracting new business. Online casinos, major banks, and e-commerce stores are some of the businesses that offer referral bonus programs to their users.
Loyalty And VIP Programs
Loyalty and VIP programs are designed to encourage existing users to spend more money on websites and businesses. However, a lot of potential customers go looking for businesses that offer these programs in the first place, which means they can also work to entice new players and new customers. Loyalty programs are common at online and physical stores, as well as casinos, while VIP programs are those that are reserved for the highest rollers and biggest spenders.
Reward Types
Businesses have several types of rewards they can offer customers. It’s unusual to see straight cash rewards, but most do have some real monetary value.
Discounts
For customer acquisition marketing, discounts are generally offered to customers for use on their first purchases or as a reward for signing up for marketing communication. Discounts can vary and businesses need to ensure they don’t lose too much money as a result of a discount program, therefore, most will come with requirements and stipulations that must be met.
In-Game Currency
A lot of video games have introduced their own in-game currencies. Robux, COD points, and V-Bucks are just some examples. These are typically used to buy cosmetic items like skins and weapon skins, or they can be used to access new content or DLC packs. Offering free in-game currency is a good way to attract new players and it means that the game maker still raises the initial purchase price of the game.
Free Products
Free gifts were commonly given away with life insurance and other insurance policies, and, while many insurers have now started offering gift cards instead, free gifts can still be seen in certain industries. Free gifts are also commonly given to ecommerce customers, when the gifts will match the products offered by the retailer, in most cases.
Loyalty Points
Loyalty schemes were popularized as frequent flyer programs, and they are also very common across physical retail companies. H&M and Lancome, for example, both offer loyalty schemes that reward customers for every item they purchase. Loyalty schemes can offer anything from free items to sizeable discounts, depending on the level of loyalty scheme the individual reaches, and the best rewards are reserved for those who spend the most or spend most consistently and frequently. Other bonuses can include early access to sales, first access to new products, and exclusive access to certain deals.
Exclusive Deals
Exclusive deals are typically offered to existing customers, but they can also be used as a part of reward-based customer acquisition. They are commonly seen as part of partner marketing schemes. For example, social media influencers or other online marketers might be given codes to give out to their own followers to encourage them to visit the marketer’s site.
Gift Cards
Gift cards have become a very common reward for all types of business and marketing schemes. This has coincided with the launch and increased popularity of online gift vouchers, with companies able to offer their own vouchers or those belonging to other, typically related businesses. Gift cards can be used as rewards for new membership, included as part of a loyalty scheme, or given away as part of marketing campaigns.
