In the competitive world of online betting and casino gaming, attracting and retaining customers is a constant battle for operators. Two powerful tools can give your company an edge: prize pool indemnity and well-crafted welcome bonuses. Keep reading to understand what exactly we mean.
Understanding prize pool indemnity
Prize pool indemnity, also known as prize indemnity insurance or simply prize pool insurance, is a specialized insurance policy designed for businesses (gaming / gambling companies) offering large prize pools in contests, promotions, or games of chance / skill.
Imagine a betting company offering a ₹10 crore jackpot for a cricket tournament. Prize pool indemnity ensures that even if a single player wins the advertised jackpot, the company won’t have to scramble to cover the cost. The insurer steps in, financially protecting the company by paying the prize, and allowing the operator to offer more enticing prizes in the future.
Marketing and product powerhouse
Prize pool indemnity unlocks a treasure trove of possibilities for any gaming company’s marketing and product teams, which we have listed down below, with examples where possible:
- Attract high roller players: Large prize pools work like a magnet for high-value customers. Indemnity allows your brand to offer life-changing jackpots without the added financial risk, attracting big spenders and generating a significantly higher betting volume.
Example: Consider a betting or fantasy sports company offering a ₹100 crore jackpot for the upcoming IPL cricket season. Without indemnity, the potential payout could be crippling for the company. With a premium of 10% (the common range), the company would pay ₹10 crore for the insurance. And if and when a player wins the jackpot, the insurer covers ₹90 crore, absolutely minimizing the company’s risk.
- Boost brand image: Offering larger prizes signifies confidence and financial stability, enhancing your brand image and positioning you as a leader in the market. This translates to increased customer trust and loyalty, and ensures that every player in the industry will be talking about you.
- Experiment with new products: Prize pool indemnity will also allow for more creative freedom in promotions and offerings. You can experiment with new game formats featuring massive prize pools too, safe with the knowledge that the insurance company will mitigate potential losses.
- Entice new customers: Welcome bonuses, like matched deposits or free bets and more, provide a financial incentive for new players to try your platform. This lowers the initial barrier to entry and encourages exploration on the app.
Example: XYZ company offers a 100% match bonus up to ₹4,000 on a newly registered player’s first deposit. This essentially doubles their initial investment, giving them more funds to play with and potentially leading to higher engagement, and maybe higher returns too.
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- Increase customer lifetime value: By providing a positive first-up experience, welcome bonuses can increase customer lifetime value. Players who feel welcomed and supported are more likely to stick around and become regular users. Operators need to move away from wanting short-term, immediate gains from players.
- Target specific demographics: Tailor your welcome bonuses to attract specific demographics. Example: Offer free bets on popular cricket matches to target cricket fans, like an upcoming IND vs PAK World Cup encounter or the next IPL final.
Leveraging the power of both
Combine prize pool indemnity and welcome bonuses for a truly impactful marketing strategy for your gaming brand:
- Promote large prize pools with welcome bonuses: Announce a massive jackpot alongside a generous welcome bonus. This double whammy entices new players with the chance to win big, while also offering additional funds to explore the platform.
- Offer bonus bets on guaranteed payouts: Partner with an indemnity provider for a guaranteed payout promotion, regardless of the number of participants. Offer bonus bets on the outcome, attracting new players and mitigating risk with the insurance.
Real-world examples
While specific examples in the betting industry include luxury cars like BMWs for new cricket tournaments, a chance to meet an ambassador through a betting prize draw and more, prize pool indemnity finds application in other sectors too:
- Esports tournaments: Major esports tournaments often feature million-dollar prize pools. Indemnity protects organizers from the burden of a single team’s dominant performance.
- Fantasy sports leagues: Large fantasy sports platforms sometimes offer guaranteed payouts exceeding entry fees. Indemnity ensures they can fulfill these obligations even if a significant number of players win.
Prize pool indemnity and welcome bonuses are not mutually exclusive; they are powerful tools that work best in tandem. By mitigating risk with indemnity and offering attractive bonuses, betting companies can create a winning formula to attract high rollers, strengthen their brand image, and ultimately, build a loyal customer base.
This combination allows companies to focus on what matters most – creating a thrilling and rewarding experience for their customers. If you represent a gaming brand that’s looking to get themselves covered with prize pool insurance, send us an email at admin@readscoops.com right away!
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