Which loyalty programs work best for fantasy sports business?
If you don't know the basic metrics for ensuring efficient loyalty programs, you ought to read this.
Research shows that the cost of acquiring a new customer is five to 10 times more than selling to an existing one. These numbers are crucial for fantasy sports startups when they are planning their business.
There are many reward point systems used online but not even 50% of them are actively used (earned or redeemed once in a year). So, it becomes extremely important to consider some important aspects before finalizing the most suitable Loyalty Programs for fantasy sports software. Some of these aspects are:
1) Customers’ psyche or personality
2) Customers’ geographical location
3) Spending Patterns
4) Actual value to customers (the most significant aspect)
Some tried-and-tested Loyalty Programs that have proved to be lucrative in the long run for fantasy sports industry are:
Simple Point System
This is the most commonly used rewarding system where customers earn points based on certain actions they perform on the fantasy sports application (like entry fee, wins, number of games participated in etc.). The customers can then use these points to earn rewards (Like Free entry in actual/fantasy games, freebies, discounts on selected outlets etc.) This system assures customers that all they need to do is keep playing and stay active – one of the sure-shot ways to sustain their loyalty.
Research shows that the cost of acquiring a new customer is five to 10 times more than selling to an existing one.
Use of Tier system for rewarding
This reward system has a long-term perspective. It focuses on increasing loyalty of users and encourages more participation in fantasy games. Under this system, there would be smaller rewards for being a part of program. This would compel users to play more and more games to rise up the loyalty ladder. The rewards become bigger as users move up the Loyalty ladder.
It’s not always money that attracts a fantasy sports player. The reason for this is the basic principle of fantasy sports participation: competing and winning is in human nature. Hence, non- monetary loyalty system (like achievement badges) is a must-have feature on fantasy sports application. Allocating different badges to users on their different achievements and then allowing them to share the same with friends, family, work colleagues etc. on social networks works great in a fantasy sports solution.
These are some of the most effective loyalty systems when it comes to sports website design, fantasy football or any other fantasy sport. However, having a loyalty program and tracking a loyalty programs are two very different ballgames altogether and cannot be separated. So it’s essential to have a fool-proof tracking mechanism in place before your loyalty program goes live.
- Achievement badges inspires players to compete
- Use of tier-system for rewarding increases loyalty
- Simple point system keeps users active
Vinfotech creates world’s best fantasy sports-based entertainment, marketing and rewards platforms for fantasy sports startups, sports leagues, casinos and media companies. We promise initial set of real engaged users to put turbo in your fantasy platform growth. Our award winning software vFantasy™ allows us to build stellar rewards platform faster and better. Our customers include Zee Digital, Picklive and Arabian Gulf League.