When it comes to 21st-century Big Tech success stories, the gaming industry undoubtedly ranks highly. Within just a few decades, gaming has risen from being a niche market to a mainstream, global industry expected to be worth over $200 billion by the end of 2023.
Video gaming is now so popular that it’s inspired hit movies and TV shows, while gamification influences everything from advertising to corporate and governmental policies, as terms like “levelling up” and “unlocking achievements” feature in the speeches of world leaders.
The fact that there are now over 3 billion people playing games indicates that gaming brands have mastered the art of engaging their target audience. Furthermore, many developers and publishers have successfully monetised free-to-play games, generating billions in profits via in-game items and premium content purchases.
Online casinos like Bovada, meanwhile, represent much more than platforms on which to play games like European roulette; they can also teach entrepreneurs some crucial business development lessons.
There’s a lot that business owners and entrepreneurs can learn from the world of gaming, whether that’s storytelling or how to generate and maintain customer loyalty. So, without further ado, here are four of the most fundamental business lessons that can be found in the digital gaming industry.
Table of Contents
Harness the Power of Storytelling
Sure, effective storytelling is an integral element of video games, but the gaming industry also makes use of storytelling to engage audiences outside of the gaming environment.
Game developers and publishers understand the power of story-driven marketing to create a connection between their games and the gaming community. Whether it’s via impactful social media campaigns or by working with gaming influencers to showcase sneak peeks of upcoming IP, gaming businesses know how to weave stories to generate maximum engagement.
Never underestimate the power of storytelling to promote your business or entrepreneurial venture. Stories can entertain, engage, motivate and even affect consumer perceptions, making them an essential marketing tool. Utilising storytelling is a powerful way to convey key information in a creative way and effectively allows potential clients and customers to imagine using and receiving help from your products and services.
Listen to Feedback
It’s easy to look at top-selling games like Overwatch and Grand Theft Auto V and assume their success came instantly. The truth is most of the games you’ll find on the best-selling lists have been in development for years — especially those that are part of a series. Even after a game has been released, it’s still possible for issues and glitches to arise, so developers need to be approachable and transparent and listen to gamer feedback.
This is a business practice that all companies should endeavour to apply, not just those involved in gaming, entertainment or any other consumer-facing industries. While it’s not always possible to act on every piece of feedback received, if there’s a consensus among your existing client base about critical improvements that need to be made, it’s worth your while to take this into account.
Customer Loyalty Pays Off
One area in which online casinos — and the gaming industry as a whole — stand out is customer loyalty. While many an operator will concentrate some resources on business development via new customer acquisition, as highlighted in the sign-up bonuses offered by the top platforms, they put a lot more effort into their customer retention efforts.
Casino gaming operators engage their existing audience in several ways, the most prominent of which involves loyalty bonuses and VIP reward programmes.
Customer acquisition is a necessary part of the business lifecycle; however, it’s becoming increasingly clear that retaining existing customers is not just the more cost-effective strategy but can also lead to higher profits. According to the latest research, businesses spend, on average, between 5 and 25% more to acquire new customers than retain their existing ones.
Furthermore, not only do some companies generate 65 to 75% more business from retained customers, but they also typically spend 67% more than a new customer would.
The Necessity of Risk
In addition to taking inspiration from the business practices of casino gaming operators, we can also look to the nature of the games themselves for a valuable business lesson.
All casino games, from roulette to slot machines, carry with them an inherent element of risk. The savvy gambler understands the delicate balance between risk and reward and takes a calculated approach to ensure the potential rewards of any decision outweigh the risks that are involved.
Taking risks is a necessary part of running a business, and entrepreneurs need to be prepared to take calculated risks to thrive. From investing in new products to expanding into a new market, taking bold steps while fully aware of the consequences can lead to significant rewards. Similarly, risk and reward drive innovation, with businesses that develop new products or services often gaining a competitive advantage by disrupting existing markets.