Player Retention vs. Acquisition


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Players Retention vs. AcquisitionOne of the biggest debates in the online bingo industry is whether to focus on player acquisition or the retention of existing players. A few years the focus was on player acquisition but now some experts believe player retention is more important in the long run. These experts believe that marketers will earn more if they can maintain a balance between keeping converted players and acquiring new customers. One industry report said that "when it comes to the allocation of marketing dollars, new customer acquisition gets nearly double the attention of customer retention efforts. On average, responding companies spend 56% of their marketing budgets on lead generation/new customer acquisition and spend 33% of their marketing budgets on customer retention. Furthermore, 91% of these companies say they measure the success of a marketing program by the number of new customers acquired/leads generated, compared with 63% that measure marketing program success by the increase in customer retention/sales from current customers/lapsed customers."

The information is extremely important to affiliate marketers. For those unfamiliar with the concept affiliate marketing is performance based marketing where one business pays another for sending them new customers. For example if an affiliate marketer sends a new player to an online bingo site they will receive a fee or a percentage of what the player deposits. While the concept predates the internet most of today's affiliate marketing is done online. For online bingo affiliates there is a greater motivation for focusing on acquisition.

Many of the larger online bingo operators award affiliates multiple tiers of commissions which can include lifetime revenue sharing. As long as the player referred by the affiliate continues to play on the site the affiliate will receive a commission. In 2011 Playtech's Virtue Fusion announced upgrades designed for player retention. The upgrades will also help affiliates who will receive increased lifetime revenue sharing rates. New upgrades included a loyalty points system that allows operators to reward loyal players with bonuses or cash. At some sites players can exchange their points for shopping vouchers or tickets to concerts and sporting events. In a press release Virtue Fusion said "Tiered levels will rank rewards and allow the more faithful players to collect higher value gifts."

The new retention strategies have been adopted by several bingo and casino operators. For affiliates of online bingo sites and casinos the new strategies will help generate a steady revenue stream and players will also benefit.



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