In the Information Age, customers have become increasingly concerned about value for their purchases. Thanks to the rise of comparison websites, online review sites and voucher providers, it’s never been easier for customers to find the best deal for them. But, how have businesses responded to this trend in order to not only attract new customers, but also retain existing ones? Here, we look at how increased marketplace competition has led to better incentives for customers.
Gambling Sites: Free Bets and Sign Up Offers
Still a relatively young industry, the online sports betting market has sharply risen to prominence over the past couple of decades and now has an estimated market value of $46bn, according to Statista.
This increasing market value is expected to double by 2024 and has been driven by increasing competition from a growing number of online providers. As a result, in order to stand out in an ever more crowded market, a number of bookies have started to offer free bets and sign up offers for new customers. As many of these can be checked at comparison sites such as Oddschecker, customers now have more power in their hands to compare offers and find a provider to suit them and the games they wish to play.
Uber and Taxi Firms: Free Rides and Discount Codes for Friends
Founded only a decade ago, Uber has expanded from its San Francisco base to almost 800 metropolitan areas worldwide. With Uber now having a 69% market share in the US for passenger transport, independent taxi companies and other providers such as Lyft have been forced to respond, which has led to customer incentives including free first rides and discount codes for inviting friends to join the service. All of this has made these lift provision services cheaper for the end user while also raising standards in the industry due to the increased competition provided.
Nespresso and Starbucks: Coffee Clubs and Loyalty Schemes
In America alone, it’s estimated that over 400 million cups of coffee are sold every day, making the market one of the most competitive in the world. From home coffee providers such as Nespresso to takeaway baristas like Starbucks, retailers across America are trying to compete for space in a crowded field.
This has led to a number of incentives for both new and existing customers. At Nespresso, for example, new customers can join their club and receive 10 free welcome sleeves of coffee, while regular Starbucks users can use the app to earn rewards like discounts, free coffees and free foods. With America’s caffeine fix showing no signs of slowing down, providers will have to continue to provide unique ways of attracting new customers and retaining their existing ones.
No matter what the industry, increasing competition and expanding customer knowledge is leading to price reductions and customer incentives. With the current squeeze on living standards, this trend appears set to continue for the foreseeable future, and it will be interesting to see how retailers respond. This may be through creating partnerships with other businesses or increasing charitable giveaways.