Since the re-regulation of the sports betting market in Denmark, the industry has focused entirely on increasing market share through new customer acquisition. This has been done through aggressive pricing, heavy promotions for new customers, and an overall top-line focus. The market prognosis of the thesis shows that the industry is consolidating and growing. This means that the current customer base of bookmakers, such as Betsafe, is proving to be ever more valuable, yet heavily neglected. The lack of focus on customer loyalty has lead to heavy customer churn in the industry and a common industry belief that the most important determinant of loyalty is the price (odds). The thesis investigates these determinants by identifying selection, loyalty-building, and loyaltydisruptive factors of the industry. Thereafter, these customer-identified loyalty factors are compared to the perspective of Betsafe’s employees, and discrepancies between the two are identified. The thesis measures the loyalty profiles of the top competitors along with the loyalty profile of the entire industry. The study shows that despite low switching costs and high customer churn, customer loyalty does exist in the sports betting industry. Betsafe has the worst loyalty profile in the industry and thereby faces a tough challenge in a growing industry. Betsafe must therefore invest more effort and resources in customer loyalty. The thesis presents five main strategic recommendations including a generic, growth, price, marketing, and loyalty strategy for Betsafe. The loyalty strategy builds upon the loyalty ladder by providing a strategic direction for each loyalty segment on the ladder. The loyalty strategy is thereafter carried out through a standard and customized loyalty program. The standard loyalty program (Betsafe Clip Card) appeals to first-time customers, non-committed, and dissatisfied customers, while a customized loyalty program (Betsafe Club Card) appeals to customers, clients, and advocates. The thesis provides a scientific contribution by inductively constructing a generic loyalty process model for increasing customer loyalty. The process model is a six-step instruction for any organization wishing to increase customer loyalty. The foundation of the model is constructed on three elements, namely strategy suggestions, findings of the thesis, and customer loyalty theory.
|Educations||MSocSc in Management of Creative Business Processes , (Graduate Programme) Final Thesis|
|Number of pages||109|