Chapter 4: Customer engagement
4.1 Introduction
Put simply, there is no loyalty in gambling any more. For example 20 years ago in the UK, the
overwhelming majority of punters, whether they were betting on horses, football, greyhound or
anything else, placed most of their bets in a single high street shop. The handful that could bet on
credit via telephone – a throwback to the days before betting shops were legalised – might have
accounts with a couple of firms at most.
For some punters, this brand loyalty was rooted in superstition - they had a ‘lucky’ bookie – but
for most, it was born of necessity. The ‘demand’ rule in local planning regulations – which required
bookies who wanted to open a new shop to prove that there was sufficient local demand – meant
that betting shops were spread out. The competition was often several blocks away. The 'demand'
rule was abolished as part of the 2005 Gambling Act and the nearest alternative is often next door as
shops are now clustered in high population areas.
When it comes to digital meanwhile, there is no need for brand loyalty at all. Aggregator sites offer
real-time prices with one-click access to the best odds available. Bookies new and old face the same
problem: they attract money only when a price is at, or near, the top of the market and thus has very
little margin attached. How long would a supermarket stay in business if its customers bought only
the loss-leaders and ignored everything else? Digital gaming operators therefore have to fight harder
than ever before for market share.
With personalisation and localisation of services high on the agenda of many digital gaming
operators, understanding the demographics and motivations of sports bettors can greatly enhance
the effectiveness of product development strategies and customer retention initiatives. Furthermore,
brands from other media or industries might be leveraged to appeal to these types of customers
effectively.
Internet registration information and customer tracking technologies enable digital operators to
gather a wide variety of information about customers, including valuable demographics. This helps
operators to implement effective customer research management (CRM) systems and produce highly
targeted marketing campaigns and customer retention strategies including loyalty schemes.
Likewise, land-based bookmakers can capture details about their customers through membership
programmes. In short, a sportsbook operator has a potential advantage of possessing detailed
intelligence on who its customers are and what they like or dislike.
On average, investment in marketing counts for more than a quarter of a digital gaming operator’s
revenue base. Meanwhile, marketing expenditure is around a third of a digital cost base.
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