What is an Online Bonus and Why Do Companies Offer It?
Before you can start utilizing the bonuses various industries are offering in Canada, you need to understand what a bonus is and what's the purpose behind it. Sometimes this is obvious l but typically there's more to it than meets the eye.
A bonus is a reward for the customer. Now, the provider of the bonus can be a business, an entrepreneur, or even a big-name corporation. As the scalability of the business changes, the caliber of the bonus offered for the customers changes with it.
Let's say you're staying at a regular hotel in Ontario because you're there to witness the breathtaking beauty of Niagara Falls. If it's a decent hotel, you may get a complimentary breakfast for the duration of your stay.
Now, if you were to stay in a luxury hotel or resort, you get way more amenities than just breakfast. You may get access to the pool, a direct view of the falls from your room, and whatnot.
While both of the advantages we discussed can be classified as a bonus, the caliber is different because the business modality is different. Also, you're spending more to get the additional benefits at the luxury hotel. That's something you need to keep in mind as well. None of the bonuses are actually “free”. We have a dedicated section where we're going to cover the potential terms and conditions for the bonus.
As for an online bonus, think of the same concept but over the internet. It's obvious that you can only get an online bonus if you're taking online service.
The next logical part of our discussion is why online businesses offer bonuses in the first place. Let's try to understand.
Customer Acquisition
This is the biggest reason behind an online bonus or any other type of bonus you can think of. Before you decide who you want to take the service from, you evaluate the pros and cons of your potential experience. The modern audience is very smart so there's no reason to doubt that every business is under the microscope.
The services of any two competing businesses might be identical. They could employ the most competent group of people to provide the best-in-class service. But what's the deal maker or breaker?
Maybe a bonus!
If you see that you're getting the same service along with a bonus, you're more likely to sign up for it and the business meets its customer acquisition goal.
Customer Retention
After a business gets new customers, that's just the beginning. If you're not aware, repeat customers are usually the biggest source of revenue for online businesses, therefore it is typical that existing customers keep getting bonuses for their tenure with the brand.
It's simply because if the businesses are not keeping the customers happy with extra rewards, they'll just go for a better offer.
Customer Satisfaction
This is very much connected to the previous two points. For a customer to turn into a “repeat” customer, they must be satisfied with both the service and the bonus. If the bonus is good but the services are not, that's not ideal for retention as well. Consequently, this is why online businesses are always trying to balance both.
Expanding Awareness
If you get an amazing bonus, chances are you can't wait to tell your friends about it. Hence, you're automatically spreading awareness about a business. After hearing about your experience, your friends may opt for the service and tell their friends about it. That's one way an online business builds credibility and it's one of the most authentic and organic ways to do it.
To Get Ahead of Competition
Although we're not living in ancient times anymore, “survival of the fittest” still applies to businesses. There's intense competition in pretty much every industry you can think of and businesses need ways to get ahead. It's especially true for new ventures.