Online casinos use many different marketing methods and strategies. The goal is to attract new users and retain existing ones for as long as possible. They need to know that the money they spend on marketing is achieving results. This is where KPIs are invaluable.
KPIs are quantifiable performance metrics that allow casinos to find out more about the efficiency of their marketing plans. They not only evaluate current performance but can help casinos to make informed decisions about future actions and growth strategies.
Money-related KPIs clearly indicate the profits of online gambling. Calculating gross gambling revenue (GGR) means deducting the total sum of winnings from the total sum of bets. This is the revenue that casinos earn from players before they deduct expenses. Net gaming revenue (NGR) shows the casino earnings after deducting all the expenses.
The higher the NGR-to-deposits indicator (how much revenue casinos get from player deposits), the better it is for a casino. If the bets-to-deposits indicator is high, the casino could be giving out too many bonuses to players. Examining these indicators can help casinos to make positive adjustments.
Some of the people-related KPIs for casinos need to look at include conversion rates, the lifetime value of players (LTV), and churn rate (CR).
A low conversion rate means that not enough potential players are taking actions the casino wants them to take. It means there is room for improvement. Wayang88 need to do everything they can to raise the LTV of players and lower their churn rates. Bounce rate is when a player goes to a casino site but leaves without performing any action. If the bounce rate is high, the site needs work. Dwell time on a site is another indicator of how engaged players are.
When looking at USA vs. Europe gambling figures, they show that players in Europe still play much more. Legal online gambling in the U.S. is still relatively new and is growing rapidly. In the next ten years or less, the picture may be different.
Multiple KPIs connect money-related metrics to people-related metrics. For example, cost-per-acquisition (CPA) refers to the amount of money a casino spends to get a new user to sign up and make a deposit. The average revenue per user (ARPU) shows how much a casino earns from a particular player over a specific time. The casino can obtain this number by dividing the total revenue for the specific period by the number of active players at the time.
A framework to analyze competitive position
Online casino software helps casinos to track KPIs. It captures, stores, and transforms data into information that’s ready to interpret, analyze and use to formulate strategies.
Casinos should never just use a single approach when formulating their strategies. A SWOT analysis is a framework used to analyze a company’s competitive position in order to develop strategic planning. Online casinos can use a SWOT analysis to identify challenges affecting business and find opportunities to enhance it.