Why is it so important to launch good deposit campaign? The reasons are many, improved conversions, higher customer value, improved retention and more. In this article the most important details about deposit bonuses in the retail FX industry will be highlighted. Do not miss your chance to bring the competition down and increase your broker’s performance by just devoting 7 minutes to read this article.
Three reasons to launch bonus campaigns
More customers and higher conversion rates
Nowadays, in order to gain additional customers, Forex brokerages have to create new types of attractions that will be considered worthy by the customers. It is clear that brokers with effective bonus campaigns are more prefered by the customers comparing to those without any bonus offers. When a potential lead comes to your brokerage and finds a suitable deal that will offer some extra trading cash for him the chances of successful conversion are higher.
Taking all other factors identical, in most of the cases potential customer will prefer the deal that gives him 20% extra deposit bonus over the one that does not offer any additional trading funds. Even though one can claim that some brokers do offer EA’s and VPS services instead, leads still choose solid trading cash to services that do not have any direct impact on their trading from the perception of the customers.
The main reasons for such behavior are greed and laziness. Leads tend to calculate everything in cash equivalents and since monetization of VPS and EA’s can be done only via indirect estimations and requires additional actions, they will go for the service that will have direct impact on their earnings, as they recon.
Extra offers for affiliates
From my experience, Forex affiliates market is divided into two different groups. First group consists of affiliates that work with every broker and another group are the affiliates that tend to cooperate only with specific brokers.
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Second group of affiliates has specific set of requirements that the broker should fulfill in order to become affiliate partner and be promoted via them. On average, this group of affiliates tends to send higher quality leads. And often, one of the requirements of such affiliates is existence of Forex bonus deal for the customers.
It is difficult for affiliates to promote brokers that do not have any bonuses. The only thing via which they can be promoted is actually Forex broker review. If we compare the searches for “Forex broker review” and “Forex bonus” the second one has 75% more average monthly searches in Google. This is why it is no surprise that most of the affiliates concentrate on the second keyword and tend to have bunch of good forex deposit bonuses on their main page.
Customer satisfaction rate
As has been mentioned before, customers tend to calculate everything in money equivalents. More to that, people enjoy getting free stuff. Forex deposit bonus helps customers to make more expensive trades without breaking their money management rules, this is one more reason why most of them will choose it over VPS services or advanced level webinars.
Additionally, FX deposit bonus shows loyalty of the brokerage to its customers. It is indirectly saying “we believe in you and we trust you, this is why feel free to use additional cash in your trading”. These factors help Forex brokers to make their customers more satisfied with services provided. And if the customers are satisfied with quality of services, they tend to be loyal and recommend this Forex broker to other potential customers.
Disadvantages of FX bonuses
It is obvious that deposit bonuses to have negative side for the broker. First of all, the implementation of deposit bonus policy may require additional investments in order to cover upcoming additional costs. If the brokerage is not able to bring enough investments to cover the Forex bonus campaign, it can go out of the business.
Additionally, every new deposit bonus requires technical changes to the software and account processing. It can require changes in current queries, creation of new queries and both front and backend changes.
Moreover, FX deposit bonus policy should eliminate all possible unfair practices. It is common practice for people to take advantage of some deals that leave a place for an unfair practice. Omitted milestones in the regulations can cause situations in which customers will make deposits with only one target – to withdraw bonus as well.
Is it really worth?
Summarizing everything stated above, it is clear that Forex deposit bonus should be implemented by every reliable broker that seeks for additional leads and opportunities in the Forex market. Two main things that should be stressed out are the deposit bonus policy which should not leave any place for unfair practices and technical changes that are required for bonus implementation.
This article is supplied by Nick from Forex Bonus Lab, a leading resource that covers FX bonuses and broker reviews.