A lot has to happen for a business to succeed. As a result, being an entrepreneur is stressful because you may end up like the estimated 80% of companies that end up closing their doors after a decade. Thankfully, a savvy way to prevent making mistakes that lead to failure is to analyze your industry and your competitors in particular.
By following a tried and tested example, there’s a strong likelihood that your organization will be able to eliminate errors and implement the correct tools and strategies. One sector that has flourished more than most in the last ten years is the casino market. In South Africa, for instance, PWC is projecting that wagering revenues will hit $2 billion, a gross gambling yield increase of almost 4%.
However, it’s common for business owners to assume that they are playing a different game to casinos, so the tactic won’t work. In reality, many of the techniques are applicable across the board, including the following.
Fulfillment Over Consumerism
Okay, casinos are businesses, which means they must sell products and services to survive. Still, the perception that they put selling above everything else is false. If anything, the industry understands the need to rank experiences above anything else because customer ideals are beginning to change. For example, a study by TLF Research found that 50% of UK adults are more bothered about personal fulfillment in their lives than anything else.
This may sound as if it doesn’t apply to the business world, yet, the truth is that shoppers are bringing their principles into the industry, and they eliminate brands that don’t hit the high notes as a result. This is causing iconic brands to react to the changing tone of consumerism, as evidenced by the shift from fuel-powered cars to electric vehicles. Casinos have always been effective at providing an experience by making sure there is something for everyone, such as live entertainment and food and drink.
The strategy builds authenticity and brand success. Online wagering establishments are taking this mentality to a new level with their range of live casino options that make players feel as if they are on a casino floor. Furthermore, the sector doesn’t seem to be stopping, as the likes of Betway are constantly adding more titles to their libraries so that users have what they are searching for; whether it’s a Deal or No Deal slot version of the TV show, or the popular Indian card game, Andar Bahar. You should take note of this as Neil Patel points out that genuine companies inspire and prosper, since 53% of shoppers will pick the brand with a suitable social purpose when their offerings are similar.
The Rise of Philanthropy
Philanthropists have a specific image. When you hear the term, a certain person, or persons, will spring to mind. Erick Yuan, the founder of Zoom, is a perfect example because the growth of his app means he can afford to donate $6 billion of stock to un-specified recipients. After all, Mr. Yuan has a net worth of $15 billion, and not all the stock will come from his investment portfolio.
Still, rich people don’t have a monopoly on giving back to their local communities, as showcased by the casino business. Many establishments are happy to give off their own backs because they understand that a thriving economy is good for everyone. In Iowa, a proportion of revenues are handed out to the 84 counties without licensed betting facilities by the Iowa Council of Foundations’ County Endowment Fund, ensuring all Iowans get a piece of the pie.
Not only do providers not complain, but they welcome the expectation to pump money into the community as it gives them a competitive advantage. The Harvard Business Review stated that corporate giving fell by 50% in 2002, yet the companies that continued to help out in hard times only cemented their market position. To highlight that it isn’t only casinos utilizing this tactic, Coca-Cola has adopted an economic scheme to empower six million women in Africa and the world.
The reality is that, while the casino industry appears as if it plays by different rules, the steps the sector takes to drill home its advantage are transferable to SMEs and startups that are desperate for success. Remember that putting experiences first and giving back to your base are two small-yet-powerful lessons you can implement in your business plan.