When it comes to growing a business, a lot of attention and time is given to lead generation and nurturing new sales. New sales certainly mean more profits; however, a successful B2B company knows the value of client retention. It’s often easy to overlook, but engaging existing clients – and mobilising relationships with old ones – is crucial when it comes to ensuring a company’s long-term success.
Why is Client Retention so Important?
Any competent marketer knows that if a business doesn’t commit to re-engaging old clients, its growth and development simply won’t be as abundant. This is because retaining clients is considerably more cost-effective than acquiring new ones. Long-term clients who are satisfied will make more and regular purchases, try new products or services, and typically recommend a provider to other business owners in their network.
Statistics show that it can be 5 to 25% more expensive to acquire a new client than to nurture the relationship with an existing one. Meanwhile, just a 5% increase in client retention can boost business revenue by anywhere from 25% to 95%.
Why study digital casinos?
It may seem strange to take inspiration from the iGaming sphere when it comes to B2B client retention, but online casino leading platforms like PokerStars Casino have managed to cultivate extremely profitable and long-lasting relationships with their customers, even in a market that is highly saturated. Their customers don’t just deliver increased lifetime value, brand loyalty also means they will recommend and share their favourite platform with others. Digital casinos also spend a lot of time identifying repeat players and one-off gamers, ensuring that they can pour further resources into the most profitable segment.
On a basic level, digital casinos achieve client retention by:
- Segmenting customers by demographics to identify long-term players
- Building loyalty by appealing to customers’ wants and needs
- Providing high-value customers with rewards and gifts
Let’s take a further look at the key lessons B2B companies can take away from this.
Know your Demographics
They may all join a casino with a shared interest in gaming in mind, but not all digital casino customers are the same. As mentioned above, operators spend a lot of time identifying the demographics that are the most profitable, with research suggesting that the Gen X demographic is more likely to spend higher amounts of money – 80% of their allocated budget – on games in their preferred platforms than Millennials, who typically only spend around 30%.
Can you segment your clients in the same way? Do you know which relationships are the most profitable, and more importantly, are you nurturing them?
Build Brand Loyalty
When used wisely, complimentary rewards or ‘comps’ can be an effective way to encourage brand loyalty, and they’re also quite a hallmark of casino marketing. From free spins offers to vacation packages, digital casinos have an arsenal of rewards that they will present to loyal customers to nurture lasting relationships.
In what ways are you rewarding your existing clients, and at what stage in the lifecycle are you introducing perks and rewards? If you’re stuck for inspiration, think about what your clients would want the most. It could be something as seemingly straightforward as a discount for orders over a certain amount, annual freebies or even invitations to company events.
Rewarding High-Value Clients
Another thing that casinos, both digital and brick and mortar, do exceptionally well is give back to their high-value customers. Those VIP gaming rooms and exclusive online rewards clubs cater to the customers who are spending the most and playing the most. Even the longest-running casinos know, however, that their High-Rollers aren’t just interested in gaming, so they vary the rewards on offer, which only serves to level-up their exclusivity.
One leading casino and entertaining conglomerate, Caesars, for example, has just finalised a 20-year partnership with a global hospitality group: their high-value customers will receive special discounts and deals on travel, and vice versa. This type of partnership serves all involved parties: the customer gets a money-saving deal that they will almost certainly take up and, by working collaboratively, both companies can increase the lifecycle of the relationship they have with the customer.
With all the benefits that can come from maintaining and developing existing relationships with clients, it’s important that client retention strategies be built in from day one of the relationships. They shouldn’t, however, be stagnant. Instead, flexibility is required so they can adapt throughout the entire relationship lifecycle.
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