There are two types of business models – the B2C model and the B2B model. While both are useful and necessary in their own ways, B2C is the better choice for the slot market. Many online slot game operators in Malaysia also use the B2C slot market system. In this article, we will take a look at why and how it is beneficial for the entertainment industry.
What is the B2C slot market?
B2C stands for Business-to-Consumer and is also known as Direct-to-consumer or DTC business. This refers to the process of selling products directly to customers without the involvement of any third-party retailers, wholesalers, or other middlemen. So as you can guess, B2C brands usually specialize in a specific product category and usually conduct the business mostly online.
In this concept, the product is sold directly to the customers without there being any intermediaries. As a result, any kind of third-party clients are eliminated from the middle of the process, so there remains less chance of product damage or any kind of fraudulent activities. This process also makes business administration easier without needing any complicated recording of inventory, shipments, and business transactions.
But the biggest advantage of the B2C business model is how its primary focus is always the customers, which ensures stronger brand loyalty. This type of business also enjoys lower costs compared to physical retail as it doesn’t have to count on costly business components like employees, renting, physical store establishment, mailing confirmation, etc.
So as you can probably tell, a slot market that follows the B2C business model always presents their games directly to the consumers, as in the players. This means that they never involve any middleman in the process. They make the games themselves, operate the casino themselves, and present the casino to the public. They never hire any kind of gambling agent to perform the activities.
What is the difference between B2B and B2C slot markets?
B2B is the abbreviated form of Business-to-business. It refers to a process in which one business makes a commercial transaction with another business. So if a business provides something they produced to another business as a raw material that will produce output, it will be a B2B business transaction. An example is when a food manufacturer purchases salt.
The main difference between B2B and B2C is that the first one refers to commerce transactions between manufacturer and retailer, while the second one is the retailer supplying goods to the consumer in a direct way without using any middleman. In B2B there are business people on both sides, whereas in B2C, there is normally one business person and one consumer.
Suppose the operator runs a B2B business in the casino industry. In that case, he will focus on establishing business relationships with other casinos, gaming and manufacturing companies, agent firms, software engineers, and such. The operator might buy games from the manufacturing companies, which they will then present to their customers through a gambling agent, which they will hire for a firm. This is the image of a typical B2B casino operation.
For the B2C system, the process is more simplified, though the workload on the casino operator will be more in comparison. Suppose it’s a slot casino. They will program, design, and manufacture the slot games based on what’s popular and demanded among the players. They will directly sign the players up, guide them through the casino, conduct the transactions, and it will all happen online.
Why is the B2C slot market better than the B2B slot market?
There are many reasons why choosing the B2C business model for the slot market is better than the B2B model. For example:
Better brand loyalty:
B2C businesses primarily focus on the consumers. All their decisions are taken based on consumer expectations, needs, demands, and requests. That is why B2C businesses can build up a stronger brand loyalty with their customers. This will be very useful in the online slot market since consumers have hundreds of casinos to choose from, and if anything about one casino slightly dissatisfies them, they can quickly move to another. But with stronger brand loyalty, that won’t happen.
The middleman has been eliminated:
One of the best things about the B2C slot market is that there is no involvement of a third party in the process. The casino directly presents the slot games to their players, and all the intra casino activities are taken care of by themselves. This helps establish a closer relationship of trust with the players and eliminates the risk of dishonest third party members taking advantage of the casino or the players.
Better for both smaller and larger companies:
When it comes to B2B business, the large companies may have many commercial, resource and information advantages over smaller businesses. But with B2C; smaller companies can become competitive with successful and large companies on the one hand; while on the other hand, large companies can grow faster. Smaller companies can also be competitive in terms of price, availability of the products and quality since costs are lower. So with a B2C system, your casino has better chances of being successful.
Less costly and time-consuming:
Since B2B businesses have to establish business relationships with other companies, nurture it over time, and there is a bigger scale of work involved, so it usually takes a lot of time. For the same reason, it’s also more costly. But with B2C business, there is none of that troublesome activity involved, so it takes less time and fewer costs. It is a more budget-friendly business model for your slots business.
Can provide more payment options for customers:
Another great thing about B2C casino operators is the fact that they can incorporate more seamless transactions as options. Cybercash allows businesses to accept a wider range of payment options; which is why you will always get a lot of payment options when you play in a B2C casino; which you won’t usually see in B2B ones.
In conclusion; the B2C slot market will thrive more in the short and long run compared to a slot market centered around the B2B system such as online slot game operators in Malaysia.