A new study has just been released offering insights into client acquisition strategies employed by iGaming startups.
This research, spearheaded by gambling industry investor Waterhouse VC, involved in-depth conversations with a variety of early-stage gambling companies. The goal was to uncover the most efficient methods for gaining traction during the crucial early phases of a business.
Tom Waterhouse, the Chief Investment Officer of Waterhouse VC, highlights the importance of these findings: “High-touch customer engagement emerged as the clear front-runner. It reinforces the idea that in the early stages, doing things that don’t easily scale can be the key to building a solid customer base.”
Strategic partnerships and networking are cited as pivotal in these early stages. These tactics not only expand a startup’s reach but also lay the groundwork for sustainable growth.
The study also brought to light some intriguing trends. It was observed that B2B startups often focus on one or two strategies in the early days, whereas their B2C counterparts generally adopt a more varied approach, typically utilising two to three strategies.
A case in point is Shuffle, an online crypto casino. As a B2C startup, it has successfully implemented four diverse strategies to drive its early growth.
Shuffle’s approach to partnerships was detailed by Head of Business, Ishan Haque: “We excelled at finding influencers to work with, but we failed to follow through on their funnel after signing them – it was like an influx of signups upon the first promotion by them, and then silence.”
“To overcome that, we implemented a few retention strategies that included personalised offers, community races, and specific promotions that lasted for the duration of the partnership.”
In contrast, Low6, a B2B provider of free-to-play games, used partnership strategies to overcome early visibility challenges. Jamie Mitchell, Co-Founder & Group CEO of Low6, shares how they “looked at partnering with established leagues and teams within the sporting space to drive awareness.”
Once they saw traction from this approach, they put those consumer-facing partners at the front and centre of our games as it’s their brands that resonated most with customers.
Clyde Harris, Co-Founder of iGaming technology consultancy Circle Squared, points out the benefits of leveraging existing networks. He explains: “Deepening our existing relationships led to strategic partnerships that not only brought in direct customers but also enhanced our industry profile.”
Tom Waterhouse further adds, “The absence of paid advertising in these early stages reflects a strategic shift towards more organic and relationship-driven growth methods.”