Throughout centuries of business practices, you could make a clear case that adapting to a digital, global market is the most significant and extreme change any business leader has ever faced. On more than one front, businesses had to adapt and pivot their approach to include a digital avenue, otherwise, they risked being left in the dust by their competition. Although the bulk of this change occurred around 20 years ago, and companies that failed to adapt have disappeared into obscurity or administration, business models that were able to engage the new digital landscape were able to expand their ideas from local to international ideas almost overnight.
Pillars of success – industries that evolved
Although the internet has resulted in many different companies that are incredibly successful purely because of the digital revolution, some businesses have achieved similar levels of success by modifying how they operate and planning ahead, looking to the future and anticipating how a new market could develop as the internet started to connect people globally.
Prominent examples include Microsoft, which pioneered this change, and Amazon, which brought the whole idea of a convenience store and delivery to a new dimension, becoming one of the world’s most prominent and identifiable businesses.
However, entire industries have also succeeded – casino gaming is an excellent example of how business models seized the upcoming disruptive changes and channelled them into successful ideas. Casino companies were able to appeal to gamblers worldwide instead of being restricted to localized, physical premises, and by innovating in marketing, product and promotions to bring potential betting customers on board. It isn’t just gambling companies that implemented this model, but they’re one of the best examples of how implementing it appropriately and appealing to millions of betting customers worldwide has resulted in an expanding and solid medium to long-term business strategy.
Loss-leaders and bonuses
Bonuses and promotions offering the chance to explore the product have long been a successful way of bringing in potential new clientele, whether digital gambling promotions, try before you buy, or buy one get one free offers. Companies that were able to transpose these solid promotional tools from land-based business to online business models were able to appeal to a mass audience. Loss-leaders and bonuses remain two of the most impactful ways to appeal to and maintain new customers.
Loss-leaders are designed solely to bring in new customers and are not profitable for the organization as a whole. Using the gambling model, loss-leaders aim to advertise a business model through usage, hoping that the next time the customer looks to place a bet or play a casino game online, they seek out their service. Bonuses and loss-leaders often go hand in hand, and the age-old adage “It takes money to make money” is a prime example here.
Another excellent example is investment companies that usually give you a small amount to trade with on the NASDAQ when you open your trading account, to show you the range of services available to retail investors.
How to stand out
Depending on your business type, you’ll need to think long and hard about how to come up with a new way to approach bonuses and loss leaders. Standing out in a global market is extremely difficult, and many competent business models have tried and failed to find a niche that sets them apart from their counterparts.
This issue has been exacerbated and made much more complex, given that many digital businesses compete directly with international companies. However, with this added risk comes added reward. Suppose you can use a bonus or loss leader approach and gain an advantage over the competition – in that case, your business can quickly become profitable and gain a strong standing in your chosen industry.
The power of online reach
Social media has become the main marketing channel for many businesses. Some companies opt for paid ads to share their product and offers. Others will aim for an SEO-driven approach that ranks their page high on search engines. So if you can chisel off some of this market for yourself, then you will set up a solid foundation for your business to get off the ground.