Connect with us

Business

Loss Leader strategy- businesses thought to use in increasing numbers

mm

Published

on

When people talk about pricing strategies, one of the most mentioned is the ‘loss leader strategy.’ This involves pricing a product low enough to get customers through the door. Once there, the customers will likely spend more on higher ticket items. Essentially, the business sacrifices the loss leader to encourage customers to shop with them. But how effective is the strategy?

Loss Leader to Develop Loyal Customers

The loss leader strategy can be used to develop loyal customers to incentivize them to use a certain brand. Nightclubs and bars that offer happy hours do so as a loss leader strategy, with very little profit being made on each item. Instead, the customer becomes a loyal patron and may visit at other times.

They may also stay beyond the happy hour or spend enough due to the cheap prices to make up for the loss leader of the original happy hour offering. The goodwill gesture that can be seen in the reduced prices will be more likely to foster positive attitudes towards a brand or business, which will then cultivate a stronger relationship.

Loss Leader to Incentivize Against Competitors

Moreover, the online entertainment industry utilizes the strategy to get customers to try the product or service instead of those of a competitor. Customers can then indulge in more of what the entertainment site has to offer. As we can see, some new casinos in the USA offer no deposit bonuses as a loss leader to attract new customers. These range from no deposits to free spins and can be tailored to specific games. This means that they offer an incentive for customers to use them, and once on the site, the customer can engage with the online casino games they have on offer. The welcome bonus gives them a foot in the door to then try out the other aspects the site has to offer.

Loss Leader to Sell Higher Ticket Items

One of the main reasons for using the strategy in retail is to get customers through the door so they then purchase other higher priced items. Milk is a common loss leader product as most retailers make little on the milk – but without it, many customers wouldn’t step foot in the store and would go elsewhere.

Losing money on these items is necessary for a business who might be charging more for other higher priced items. By giving away something like milk for a low price the retailer can focus on upselling other products. If someone is coming to a store for one item, they are likely to go somewhere it is cheapest. As most people attest to, one item rarely means one time.

The loss leader strategy can be useful for a business. As part of a wider strategy, it can help incentivize customers to use the brand or business, can help foster stronger relationships with customers, or could be used as a ploy to sell more expensive items. Ultimately businesses who use this strategy understand that by sacrificing something to get the customer’s attention, they could end up with far more profit than if they had relied on the customer arriving without any incentive.

The idea of Bigtime Daily landed this engineer cum journalist from a multi-national company to the digital avenue. Matthew brought life to this idea and rendered all that was necessary to create an interactive and attractive platform for the readers. Apart from managing the platform, he also contributes his expertise in business niche.

Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

What to Look for in an Enterprise Webcasting Solution

mm

Published

on

The modern workplace doesn’t stand still. Teams are global, employees are remote, and companies must communicate faster and at scale. That’s why enterprise webcasting has gone from a niche tool to an essential part of internal communication strategies.

Reliability is the starting point when broadcasting to hundreds or thousands of employees, stakeholders, or partners. The platform you choose needs to deliver more than a stable video feed; it must offer security, accessibility, scalability, and real engagement.

For enterprises navigating this decision, here’s what to consider before committing to a webcasting platform.

Scale and Performance Matter More Than You Think

It’s one thing to host a video call with your immediate team. It’s another to run a high-stakes webcast for your entire global workforce. Enterprise webcasting means reaching large, often geographically dispersed audiences, sometimes tens of thousands of people at once. And when that’s the case, performance isn’t negotiable.

Your platform should offer proven scalability with minimal lag, buffering, or outage risk. Many organizations underestimate the bandwidth and technical infrastructure needed to deliver seamless webcasting at scale. Look for solutions that utilize global content delivery networks (CDNs) and redundant systems to guarantee smooth streaming, regardless of your viewers’ location.

The reality is, your message only lands if the technology holds up under pressure.

Security Isn’t Optional

In a world of growing cyber risks and data privacy concerns, security must be front and center, especially for enterprise webcasts. Not every message is meant for public ears, from internal town halls to sensitive investor briefings.

Leading webcasting platforms provide enterprise-grade security features like encrypted streams, password protection, login authentication, and customizable access controls. Depending on your industry, you may also need to meet specific regulatory requirements for data protection and compliance.

Ultimately, your webcasting solution should provide peace of mind, knowing that confidential information stays where it belongs.

User Experience Makes or Breaks Engagement

Let’s face it: no one wants to wrestle with clunky software minutes before a big company update. The best webcasting platforms make life easy for both presenters and attendees.

Intuitive interfaces and simplified workflows reduce stress and help presenters focus on delivering the message. The process should be frictionless for attendees, with one-click access, mobile compatibility, and no need for complicated installations.

But accessibility isn’t just technical, it’s also about inclusivity. Your platform should offer features like captions, translations, or on-demand playback options to ensure your workforce can engage with the content.

Because if people can’t easily join or follow along, your webcast risks becoming background noise.

Engagement is More Than Just Showing Up

In enterprise settings, communication can’t be one-way. True engagement requires interaction.

Modern webcasting solutions offer features like real-time Q&A, live polls, and chat functions to turn passive viewers into active participants. These elements keep audiences focused and create opportunities for meaningful feedback.

Especially for company-wide meetings or virtual events covering important updates, giving employees a voice makes the experience feel collaborative, not just another broadcast.

Data and Insights Drive Improvement

One of the most overlooked aspects of enterprise webcasting is analytics. But without data, it’s impossible to measure success or spot opportunities for improvement.

Look for platforms that provide detailed reporting, including attendance metrics, engagement rates, audience locations, and performance benchmarks. Over time, these insights help refine your communication strategy, adjusting formats, reworking content, or targeting specific groups with follow-up resources.

The more visibility you have into how people interact with your webcasts, the better equipped you are to make those events impactful.

Flexibility for Different Event Types

Not all webcasts are created equal. Some are formal, high-production events with large audiences. Others are more casual, interactive sessions for smaller groups.

The platform you choose should give you the flexibility to manage both scenarios. Whether you’re hosting a polished executive briefing, a technical product demonstration, or a virtual town hall, the tools should scale to fit your needs, without requiring entirely different systems or workflows.

Many providers also offer managed services for high-profile events, giving you access to technical experts who handle the backend so your team can focus on the message.

Final Thoughts

Webcasting has become a critical tool for modern businesses, but choosing the right platform requires more than just comparing price tags. It’s about finding a solution that delivers reliability, security, engagement, and scalability while making the process simple for both your team and your audience.

With enterprise webcasting, companies can ensure their most important messages are delivered securely and at scale, whether to employees down the hall or stakeholders around the globe.

Continue Reading

Trending