This case study shows how Zimpler Bank Payments made it possible for our partner to switch out a crucial part of their business without hurting conversion and actually increase their margins.
Online gambling is a unique industry. The success of a brand lies not with the brand itself, but with third-party suppliers you have no real control over. Unlike an online shop where the product is everything, an online gambling website relies heavily on one of two things:
1. Game suppliers to offer entertainment to your customers.
2. Payment providers to ensure that your customers can get their money in and out.
The power of choice
Therefore, it’s crucial for brands to have a choice between multiple great third party options. A choice between suppliers they trust, suppliers they can rely on to deliver and suppliers that players will use seamlessly all help to ensure the success of the brand.
In recent years instant bank transfers have seen a surge in popularity in many countries, resulting in a monopoly situation where one actor has dominated the market. With no other supplier offering quite what they do, they have been able to push the boundaries of price and force gambling companies into a situation where they have to pay through the nose to survive. Even if it ends up ruining them.
In 2019, Zimpler came along to offer a choice. We put in the hours and days and weeks and months and years to build a product we knew was just as good but at a reasonable price — bringing choice back into payments and allowing companies to make money and flourish again.
This is a case study of one of our first partners in the mission to topple the monopoly. Although we have years of experience of transaction, Zimpler Bank Payments was a new product on the market and we had to work out a clever way to launch with minimal impact on conversion or player experience. And so we did. Their instant bank payment costs got cut by 50% in Sweden and their EBITDA increased by a phenomenal 163%! Without skipping a beat in user conversion.
So, how did we do it?
The 3-month launch plan
Originally we had planned a 3 month growth period where we would begin on a small amount of traffic and gradually increase over time until, by the end of the year, we’d take the bulk of their instant bank payments in Sweden. This cautious approach makes sense when testing out a new product, you want to make sure that everything works smoothly in production before switching over. In the end, we ramped up to 100% of volumes just 3 weeks from launch — a huge stamp of approval on our bank payment product.
Our partner enabled Zimpler Bank Payments (and removed the other actor) for a few players (~700) to see how it would affect their payment flow. In the beginning, we found a conversion rate of around 60% — a drop in performance from before, but an expected one. By informing the users of the switch via email and SMS marketing we notably increased the conversion rate. The fast increase in conversion and the lack of player questions or complaints made our partner comfortable ramping up users in just days, rather than months.
A week after launch, we handled around 50% of the player base. 40 days ahead of schedule. This is when they switched over all their VIP players to Zimpler Bank Payments. A potentially risky move (you don’t want a payment method failing when VIPs are on the line) but one that would pay off due to the fees they were paying. In just two days they switched from a fraction of their VIPs to all VIPs! Satisfied with the results they decided to just switch all their bank payments to Zimpler Bank Payments. This was four days before Christmas.
The 3-week launch
- December 4th: launch for approx 700 users
- December 11th: move a selection of VIPs
- December 17th: all VIPs + 50% total players
- December 20th: 100% of users in Sweden seeing only Zimpler Bank Payments as a banking option
This ramp-up showed us that how you launch is paramount to success. It’s one thing to add a new payment method to the cashier, but quite another to remove the method players are most familiar with — you need to communicate the change to your customers to avoid frustration and confusion. If you inform players there has been a change in provider confidence will increase, it prepares players for the slightly different flow and conversion will soon grow.
Cashier, communication, competition
This launch, compared to other launches of similar brands, showed us that there are 3 main components to a successful rollout of a new instant banking method.
- Cashier placement — it has to be #1, it has to be pre-selected to funnel the players to this new option.
- Communication — inform the users of the change to increase confidence.
- Competition — remove the competition and, along with placement and communication, the players will convert excellently on this new method.
The chance to grow again
By giving our partner a choice of providers, giving them a chance to negotiate on price, plus organising a strong launch plan covering placement, communication and competition we have made it possible for merchants to make money again. Now, with such a huge cost saving they can afford to grow, putting more money back into the product and marketing. This could not be achieved with just any payment partner, but only one with many years of experience in the market, an existing strong, trusted relationship and a drive, not to make as much money as possible, but a drive to end a monopoly and create free competition.