Who says the gambling business has low-profit potential compared to others? Marina Bay Sands is a famous gambling company (owned by Las Vegas Sands). Do you know its brand value? It has the highest brand value in the world, worth $6.16 billion.
Their digital advertising strategy is on the right path, which is why they earn that much. They are also focused on attracting new players, which helps them grow their brand value. Ever wonder how some iGaming platforms like Marina Bay Sands attract a constant stream of new players? The answer often lies in a simple yet powerful promotional strategy: a referral code.
These codes are unique promotional codes that can be shared with friends, neighbors, and family to encourage them to join a platform. While this strategy is not new, it has evolved. Previously, companies would entice users to promote them by sharing promotional links on various platforms. Now, they offer substantial benefits such as cashback, discounts, or vouchers for every successful registration or action completed through the referral link or code.
Basics are crucial for everyone before jumping into this promotion strategy. In this blog, we will cover everything you need to know, from creating a referral code to launching it, so you won’t need to look elsewhere for more information.
A Referral Code: The Pyramid Promotional Strategy
Let’s recall a pyramid shape with a broad base that narrows to a single point at the top. The top point is a person who shares the promotional code of a particular brand on various platforms, and the base gets broad. The base widens due to the consistent sharing process and the increasing number of new joining. If you put it on the board, it will look like a pyramid. Now, let’s understand the meaning of a referral code.
It’s a special code given to users by businesses to share with others. When someone uses this code to sign up or make a purchase, both the person who shared the code and the new user can receive benefits, such as discounts or rewards (depending on the referral program).
These codes are often used by businesses to engage new customers and encourage existing ones to spread the word. For example, if you have a referral code for an iGaming app and share it with a friend, both of you might get a bonus or free credits to use on that app.
It’s a smart way for iGaming businesses to hold their ideal customer base, maintain a steady inflow of new customers, and allow users to earn amazing rewards.
How a Referral Program Can Benefit Your iGaming Business
A referral or affiliate program can be a game-changing promotional strategy for iGaming businesses to attract new players and increase customer loyalty. Here’s how:
Increased Player Acquisition
iGaming platforms rely on a large customer base for successful matching. If they have a broad range of players, they can better utilize game collections and earn profits. Referral programs can significantly increase player acquisition by using existing players to attract new ones. When current players refer friends or family by introducing them to the benefits of playing on your iGaming platform, then you will experience growth in your player base and increased revenue through the expanded network.
Refer and earn commission is a form of promotional marketing that often carries more importance than traditional advertising because it comes from a reliable source. As a result, you can gain new players who are more likely to stay engaged and become loyal users.
Reduces Overall Marketing Costs
Using a referral program can reduce your overall iGaming marketing expenses. Instead of investing heavily in old advertising methods like TV or Radio ads, you incentivize your current players to spread the referral link or code through various digital modes, such as:
- Social Media
- Messaging Apps
When players realize they can earn substantial rewards just by sharing with their network, there is a higher chance that they will participate. The primary goal of the promotion is to boost popularity, which is effectively achieved through the iGaming referral program. So, why should an iGaming business spend money on other marketing methods?
Expands Your Market Reach
Reach is the second most favorable thing for businesses after profit. They have two ways to expand their market. The first one is by launching an ad campaign and targeting the right market. The second one is through a gambling affiliate program.
Implementing a referral program can help you reach new demographics and geographic areas, which expands your market reach. Each successful referral introduces your platform to potential users from different backgrounds or locations.
By offering incentives for referrals, you encourage your current players to invite people from diverse segments, which helps you broaden your market reach and increase your platform’s exposure across various regions or groups.
Valuable Customer Insights for Targeted Marketing
Every business updates its offerings and tries to give more things to customers through its platform. Just like them, iGaming businesses also keep updating their games for their customers so they can stay for a long period on their iGaming platforms. Different iGaming games don’t necessarily need different players, as their common motive is to gamble money in the hope of winning cash or prizes.
When you start a referral program, you can gain valuable insights about existing and new players so they can utilize them in your future targeted marketing campaigns.
Different Referral Methods: Referral Links, Referral Codes, and QR Codes
iGaming referral programs often use various methods to track and reward referrals. Here’s a brief overview of different referral methods:
Referral Link
These are unique URLs that users can share with their network. When the referred person clicks on the link and completes a desired action (like signing up or making a purchase), the referrer earns rewards. These links are easy to share through emails, social media, and websites, which makes them a popular choice for new users and transactions. This way, everyone can easily attain their objectives, like:
- iGaming brand increases its customer base
- The referrer gets the rewards.
Referral Code
These are unique alphanumeric codes, like (ZAR589) that users can enter during sign-up or checkout. When someone uses the code, the referrer receives a reward. A referral code is often used in offline promotions and online promotions. The best part is they can be easily shared through the blog or by making a video and motivating audiences to sign up or make a purchase by using a given referral code. The thing that makes these codes unique is that they are short and can be easily remembered by a referrer.
QR Codes
Quick Response (QR) codes are square-size scannable codes that can link to a referral URL or a sign-up page. Users can easily scan the Quick Response code with their smartphone to be directed to the referral page. QR codes are effective for bridging offline and online marketing efforts and allow users to quickly access referral pages with a simple scan.
(Each method has its advantages depending on the context of your campaign and the behavior of your target audience.)
How to Create a Winning Referral Program for Your iGaming Business
A referral code in iGaming is a popular marketing strategy used to attract and catch new players to online casinos, sportsbooks, and poker rooms. But do you know how they function? No? No problem. Here’s a guide to help you understand its function and create a successful one:
Design of the Referral Program
You can start by creating a clear plan for your referral program. Take time and decide what kind of incentives you’ll offer to people who refer others and what rewards the new players will receive. Make sure the program is attractive and easy to understand. For example, you could offer cash bonuses or free spins for each successful referral. The design should also include terms and conditions to prevent any unfair claims and ensure fair rewards.
Creation of The Code
Develop unique referral codes for participants. Most of the igaming businesses provide that code when a user successfully registers and creates their account on their igaming platform. Each code should be easily identifiable and linked to the referrer’s account. These codes are used to invite new players and ask them to paste a referral code during a signup process. Referral codes make it easy to track for a referrer (who invites new players.) You must make sure the code is simple to share and use, often consisting of a combination of letters and numbers. The uniqueness of each code helps track and assign rewards correctly.
Sharing the Code
Users don’t want to go outside their comfort zone. As an iGaming business owner, you need to keep these things in mind when launching a referral program. Referrers need to share their unique codes with potential new players. They can do this through social media, emails, or directly on messaging apps. Encourage them to promote their codes by providing easy-to-use sharing tools or pre-written messages. The more exposure the code gets, the higher the chances of new players signing up.
Implement Tracking Software
Tracking software is used to monitor the activity of each referral code. This includes checking which new players signed up using the code and how much they play. Accurate tracking helps verify successful referrals and ensure that rewards are distributed correctly. It also helps evaluate the effectiveness of the referral program and make necessary adjustments.
Reward Referrers
Once an iGaming referral is successfully done, provide rewards to the referrer according to the program’s design. This could be a monetary bonus, free spins, or other incentives. Make sure the rewards are delivered promptly and transparently. Regularly reviewing and updating the reward structure can help keep referrers motivated and engaged.
Tips for Running a Successful Referral Campaign
Launching a successful referral campaign can significantly increase your customer base and sales. Here are some tips to help you maximize the impact of your campaign:
Plan Your Referral Program According to Your Budget
Budget decides where your iGaming referral ad campaign will be placed and how effectively it reaches potential players. To make your campaign successful, you need to:
- Set a clear budget for your referral campaign.
- Decide how much you can spend on rewards, promotions, and digital advertising.
- Allocate funds wisely to avoid overspending.
A well-planned budget helps ensure you can run the campaign successfully and achieve your goals without financial strain.
Research Advertising Platform for an Effective Promotion
You need to carefully choose an advertising platform to launch your referral ad campaign successfully, just like a rocket needs a solid launch pad. So, what do you look to find the best one? You must look for platforms with a good track record of promoting referral codes and reaching potential players in iGaming.
The second thing is to check the minimum budget required to launch your ad campaign. If your budget meets their minimum criteria, then look at the targeting options, pricing models, ad formats, and the network of their publisher partners.
Create an Ad and Include All the Information
Design a clear and engaging ad for your referral code campaign. Include all essential details, such as the referral code, benefits, and how to use it. Make sure your ad is visually appealing and provides straightforward instructions to avoid confusion. This helps ensure that potential referrers understand your offer without feeling any confusion and act instantly on it.
Implement Social Proof for Credibility
If you want to make your iGaming referral campaign successful, then you also need to win the trust of your ideal audience. You can use testimonials, reviews, or success stories to build trust in your iGaming referral campaign. Showcasing positive experiences from previous users can encourage new participants. Social proof helps validate your offer and makes it more appealing, as people are more likely to join if they see others have had good results.
Review Your iGaming Referral Campaign Regularly
Don’t be too confident that you’ll achieve the desired result on the first attempt. Sometimes, advertisers find success only after many failed attempts. Monitor the performance of your referral code campaign frequently. Check key metrics like the number of referrals, conversion rates, and ROI. Regular reviews help you identify what’s working and what’s not, allowing you to make adjustments to improve effectiveness and achieve better results.
Conclusion
Referral codes are a popular and effective way for iGaming businesses to attract new players and lower marketing costs. You can engage your existing user base to promote your platform organically by providing incentives through referral codes, links, or QR codes. This not only expands your market reach but also helps reduce overall marketing costs while gaining valuable insights for future campaigns. However, success requires a well-planned program with clear incentives, effective tracking, and regular reviews. All the best!
Frequently Asked Questions (FAQs)
What is a referral code?
Ans. It is a unique code given to users by businesses to share with others. When someone uses this code to sign up or make a purchase, both the person who shared the code and the new user can receive benefits (according to the terms and conditions).
Why do iGaming businesses use referral codes?
Ans. iGaming businesses use referral links or codes to attract new players, increase customer loyalty, and reduce marketing costs.
Are referral codes legal?
Ans. Yes, these codes are legal as long as they comply with local laws and regulations.
How does a referral code work?
Ans. When someone shares their code with a friend, and the friend uses it to sign up on the platform, the system tracks this referral. Both the person sharing the code and the new user receive rewards based on the program’s rules.
How does a QR code work in an iGaming referral program?
Ans. Quick response code can be scanned by a smartphone and links directly to a referral page or sign-up form. This makes it easy for people to quickly access and use the referral code.
