The Customer Acquisition Tactics Catapulting iGaming Startups
A new analysis by Waterhouse VC has shed light on the unique customer acquisition methods adopted by iGaming startups.
The study involved a comprehensive analysis of several new companies in the online gambling arena, both in the B2C and B2B sectors. It unveiled a myriad of tactics that these companies are applying in their crucial early stages of growth.
The key finding of this investigation is the emphasis on intensive customer interaction as the main strategy for the majority of these startups.
“Our findings suggest a shift from traditional methods to more organic, engagement-focused tactics,” stated Tom Waterhouse, Chief Investment Officer at Waterhouse VC.
This technique, while challenging to scale, is vital for establishing a solid early customer base.
The study also revealed a stark difference in the approaches of B2B and B2C companies. For instance, B2B entities like Low6, a free-to-play game provider, usually concentrate on a limited number of strategies.
Conversely, B2C companies, exemplified by the cryptocurrency-based online casino Shuffle, often employ a wider range of methods. Ishan Haque from Shuffle shared:
“Instead of participating in traditional acquisition channels like streaming or traditional affiliate marketing, we recognized our edge in finding influencers with a small following, but that following consisted of 1000 true fans.”
Additionally, the report accentuated the role of strategic partnerships and networking in customer acquisition, as demonstrated by Circle Squared, an iGaming product and technology consultancy. Co-founder Clyde Harris illustrated how leveraging networks and alliances was instrumental in their client acquisition and industry presence.
An interesting observation from the report was the minimal reliance on paid advertising by these startups. This indicates a shift towards organic growth and a deeper understanding of and engagement with their audience.
Other successful strategies include incentives for early adopters. Voxbet, a Dublin-based innovator in ‘speak-to-bet’ technology, is an example of this approach.
“Typically, we have used exclusivity as the reward for an early adopter,” explained Jonathan Power, the founder and CEO of Voxbet.
This research underscores the importance of innovative and interactive strategies for acquiring customers in the iGaming industry. As these startups evolve, their pioneering methods in cultivating customer relationships are charting new directions for the sector.
For those interested in a thorough understanding of these tactics, the complete report is accessible on Waterhouse VC’s website.
