Research has revealed that 24% of businesses feel that competition is their biggest current threat, closely followed by demand outlook (20%), regulation (18%) and the labour market (14%).
To counteract these threats, many businesses are looking to offer low-cost entry points in an attempt to cultivate increased business and reach new customers. Here, we’ll show some examples of how this works, so you can consider it as a strategy for your business.
Gambling: Free Spins
Highly regulated and intensely competitive, the UK gambling market has a total gross gambling yield of £14.4 billion. As a result, in such a crowded market, it’s more important than ever that businesses come up with innovative incentives to stand out.
To cultivate extra business interest, we’ve seen providers adopt unique selling points to engage customers. This includes online casinos offering free spins on roulette games, which means that new customers and those who haven’t gambled previously can try out a service before they decide whether it’s the right choice for them. This also helps casinos attract customers who gamble with other providers, as it gives these customers easy (and free) access to a competing service
Additionally, we’ve seen providers such as Paddy Power offer penny roulette and slots, which has helped them expand their target market to low stakes gamblers.
Gym Memberships: Free Trials
Gym memberships are often 12-month contracts, which makes them a significant financial commitment. As a result, to attract new clients, many gyms have now begun to offer free trials, as this gives prospective customers a risk-free opportunity to see what the gym offers, how it operates and how it may be better than their current gym.
These trials attract customers who don’t want to be pressured into buying a membership. It also allows customers to see exactly what they will get for their money.
As each gym offers something slightly different from the next (in terms of classes, atmosphere or equipment), a free trial allows any potential members to see if a gym can meet their needs, or whether it is better than their current gym. From the perspective of the gym, it allows them to get ahead of their competition, as they can showcase the unique selling points that help them stand out above their competitors.
Satellite Television Deals: Lower-Cost Fixed-Term Contracts
Whereas Sky used to have a near monopoly on satellite television in the UK, the provider is now under increasing competition from the likes of Virgin, Netflix and Amazon.
With it being reported that Netflix will overtake Sky’s satellite television subscriptions by the end of the year, we’ve seen television providers offer reduced yearly memberships for the first year in an attempt to attract new customers and shore up market share.
If your business is looking to introduce low-cost entry points to attract new customers, make sure you carry out market research on your competitors to understand how you can differentiate your product. By using trials to highlight your USPs, you’ll be able to give yourself an advantage.