Our friend Homer, decided to buy a casino, bought it and thought the money would flow like a river. But I forgot to keep an eye on the main indicators and metrics of the online establishment. And those are the metrics that show how effective the business is. So the first thing he said when he saw his metrics was, “Ouch!” But that’s okay, Homer, we’ll help you figure it out! Let’s get started!
The main types of marketing in gambling projects are two things:
In order to manage and develop a business effectively, we need special metrics – KPIs – Key Performance Indicators. For those who do not like the ‘newfangled words’ that we have adopted from foreigners, there is an alternative name that is closer to our people: KPI – Key Performance Indicators. The higher the KPI or KPI of your project, the more successful it is.
The main indicators in online casinos are divided into 2 types: Finance and Traffic (People).
1. Cost per Acquisition (CPA) – shows the cost per player who has made the minimum deposit according to the terms.
2. Average Revenue per User (ARPU) – The average profit of a player in a certain period of time. With this parameter, you can understand to what extent the traffic for which you are paying money is diluted with frost (bots, motivated traffic).
Example: You pay a CPA $50 per new player who makes a minimum deposit of $20 or more. And you get 100 new clients who have made a deposit of $20 each. And in the first month ARPU = 20$, and in the next month APRU = 0$, it means that you have to urgently terminate cooperation with this partner. Partner is cheating you and sending you fraudulent traffic, you have already lost 3’000$ in the first month. To avoid such situations, they use hold (delay before payment), and only after analysis of traffic according to indicators they decide whether to pay money to the partner, who attracted traffic or not.
3. Traffic conversion – is the % of people who have taken the action we want. The average traffic conversion rate is a ratio of 1 to 10 or 10%.
Traffic conversion is usually divided into three groups :
Based on the results of each group, you can judge how good your advertising materials and locations are. How convenient and enticing it looks to register with you. How well your bonuses, freespins, etc. are working.
4.Player Lifetime Value (LTV) – is the profit a player has made to you over the time they have played at your establishment. The higher the LTV, the better the institution works with the players and the more money they leave with you.
5.Churn Rate (CR) – the number of players who have stopped playing to the number of active players. The higher the ratio, the worse it is, you have problems with your loyalty system, bonuses, support, etc. You need to look for weaknesses in your establishment.
Regular KPI analysis will give you an understanding of where your business stands. Increase the KPI of your project with our products, read Case: “+53% to Casino Profit in 5 months on Mobile Solution alone”
Homer has listened to us, though, and has started to monitor the performance and metrics of his business. He’s added our games, increasing conversion rates from mobile devices. And also increased LTV of players, who are more interested in playing our brand new slots with excellent mathematics, which keeps their attention and keeps them coming back again and again. And as a result, Homer and his whole family are swimming in the money they honestly deserve. Good for Homer, good for him!
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