How Sign Up Bonuses Boost Conversions
Freebies come in all shapes and sizes. Among the most popular is the sign up bonus strategy, which gives consumers store credit, free products, or services as a reward for being loyal to a brand.
Freebies and Digital Marketing
As digital marketing continues to expand, creating promising new tech jobs for people of all backgrounds, businesses must find unique ways to appeal to their audiences. The way many do this is by offering freebies; this involves a business offering free products, services or credits in order to maintain their relationship with customers and potential new audiences.
Freebies are not a new concept and have been used in the advertising world for decades. Elias St. Elmo Lewis, the creator of the AIDA advertising model, reminded advertisers that people will always put themselves first when it comes to the buying journey. What often motivates them is how much they’ll get from one business compared to another. That’s to say, consumers look for the best deals, so when companies provide them with a taste of what a product or service might look like using a freebie, it helps them to feel more confident about their choice.
While freebies have been around for a while, they have become increasingly popular with the rise of digital marketing. In fact, freebies have taken many different forms such as vouchers, free downloadable content, and free trial periods, to name a few. One method that has gained relevance is the sign up bonus, which is exceptionally useful for businesses that rely on consumers creating accounts with them.
That’s because creating an account, for many online businesses, is like getting a foot in the door. They can gather customer data to study different buying and usage habits or conduct email marketing to keep ties with interested audiences. By reminding people of their brand presence, companies often gain conversions over time and build strong relationships with customers.
Here are a few sectors that have used the sign up bonus strategy to their advantage.
Online Banking
One of the most popular versions of the sign up bonus happens in the online banking sector, and in particular with credit cards. The way credit card sign up bonuses work is through credit card companies providing a cashback gift to new members for spending a certain amount of money in a short window of time. Sign up bonuses tend to play a huge factor in how potential customers make their decision on which company to go with, and they often choose the highest sign up bonus they can find. However, other banks have created plans that are more accessible to people’s budgets, such as referrals and flying mile credits. In any case, the smartest decision would be to create a variety of plans that caters to different customers’ needs, so a single bank can host more customers.
Online Gaming
Like online banking, the world of online gaming also has lots of competition. With so many games out there, customers often need an incentive to make their choice easier. When it comes to slot games, some gaming companies help make their games stand out from the rest by offering a sign up bonus so players already have certain perks to use when they play, such as free spins. Free spins bonuses give players extra rounds to use in slot games. By providing sign up bonuses for new customers, gaming companies create a bond with them because they are providing something which they may not experience with other iGaming services. They also create a sense of trustworthiness which, in turn, strengthens customer loyalty and entices people to return to them.
eCommerce
While online banking and gaming have been smart in crafting sign up bonuses to make their services stand out from their competitors, sign up bonuses really shine in eCommerce. There are lots of companies that have innovated sign up bonuses, including FARFETCH, a luxury platform service which gifts members with perks and discounts, as long as they’ve signed up for an account and made a purchase in their loyalty program. However, where eCommerce might get an initial spike in sales, a problem in the industry is that they have to fight the one-time shoppers, who use the sign-up bonus but don’t make more purchases afterwards. While this is a challenge for eCommerce companies, creating a positive, seamless user experience and quality products often ensures that customers come back again.
Final Thoughts
Digital marketing allows companies to innovate selling. From online banking to gaming to eCommerce, companies have crafted sign up bonuses to fit their customers’ needs and create a strong bond between business and consumer.
