Our friend Homer, decided to buy a casino, bought it and thought the money would flow like a river. But he 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 online casino KPIs was, “Ouch!” But that’s okay, Homer, we’ll help you figure it out! Let’s get started!
The success of an online casino or any other gambling project relies heavily on two core pillars of marketing: attracting traffic (players) and retaining clients (ensuring that players return to the platform). These two aspects form the foundation for growth and profitability in the highly competitive gambling industry.
Attracting players to an online casino involves a range of strategies, from paid advertising to affiliate marketing and SEO. The goal is to drive new users to the platform, ensuring that the casino has a steady flow of new players eager to explore the games and features it offers. This can be achieved through various marketing channels, such as social media campaigns, collaborations with influencers, and email marketing.
Once players are on board, the next challenge is retaining them. Retention is all about encouraging players to return to the platform and engage in more gaming sessions. Loyalty programs, personalized offers, and regular updates in the game library help to build long-term relationships with users. A well-planned retention strategy can significantly improve player lifetime value (LTV) and reduce churn rates.
To effectively manage and scale any gambling business, key metrics known as KPIs (Key Performance Indicators) are essential. These metrics give operators insight into how well the business is performing in attracting and retaining players, and how financially successful it is. The higher the KPI score, the more successful the project is considered to be.
The main KPI’s in online casinos are divided into 2 types: Finance and Traffic (people related KPIs).
These metrics focus on player behavior and how effectively the casino is attracting new users:
1. Cost per Acquisition (CPA) – The cost associated with acquiring a new player. Lowering CPA while maintaining high-quality traffic is crucial for profitability.
2. Average Revenue per User (ARPU) – This metric reflects the average income generated from each active player for the fixed period. With this parameter, you can understand to what extent the traffic for which you are paying money is diluted by 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) – This metric shows how much revenue a player generates over the entire time they remain active on the platform. The higher the LTV, the better an online casino 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 online casino KPI analysis will give you an understanding of where your business stands. Increase the people-related KPIs 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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