European Wide Total Support and Technology (www.ewts.at) provides crucial insights and data-driven analytic approaches for the benefit of online casino providers and businesses.
We specialize in the support of online gambling operators through focusing on data mining, customer retention, as well as analysing and reporting on key online gambling metrics including Casino and Sportsbook player CPA (cost per acquisition), Bonus offers and incentives.
Making sure that your online casino business is on the right trajectory is essential for long-term, sustained success within this ever-competitive industry. And one of the best ways to keep track, just like in any industry, is to use tailor-made Key Performance Indicators (KPIs).
Which indicators are key?
Choosing relevant indicators to measure your online casino’s performance ensures that you find the path to success and stay on it. The right indicators can shed light on what exactly your website is doing well at, what it is lacking or its weaknesses are and how both players and potential players are using it.
Here are just a few of the data-driven KPIs we look at here on www.ewts.at.
In the world of online gaming, traffic alone to your website doesn’t equate to income or profit. The true test of success relies on having a high conversion rate. Conversion rates are the percentage of people visiting your site who carry out your desired action. For example, if 10 people visit your homepage and 5 of these people download your casino’s software, that would be a (very good) conversion rate of 50%. Similarly, a conversion rate might look at how many current players make an initial cash deposit when offered a bonus or promotion etc. after signing up. A quick formula for calculating any conversion rate is:
Conversion rate = [Total No. of Sales or Downloads / No. of unique visitors] x 100
Almost as important as conversion rates are retention rates, which focus on the behavior of pre-existing players/customers. A basic metric to gauge player retention would be to calculate the number of times a player logs back in and plays a particular game over a set period of time. For example, the analytic software could see how many times a player logs in every day, every couple of days or every week over a 3 or 6-month period compared to other players. This type of data mining can then be used in a variety of ways, such as improving bonuses, incentives, gameplay and payout systems.
DAU – Daily Active Users
Counting your site’s Daily Active Users (or DAU) is another crucial insight that you need to be aware of. DAU is often measured as a monthly average (for example, the total number of users is calculated over a given month and then this is divided by the number of days in the month). This way, analytic programs can keep track of how a website is performing over any particular period of time. By seeing how many daily active users or monthly active users (MAU) and comparing this with the total number of registered users, it is also useful to see what percentage of your casino’s registered users are logging in and playing.
Customer Lifetime Value
The lifetime value of customers looks at how much each person is contributing to your business. Calculating this figure allows casinos to see whether or not their current business plan is on the right path. For example, if each customer’s value is not high enough to compensate for on-going business costs and the initial customer acquisition cost, then there is not going to be profit in the long-run. Measuring CLV is also a good metric to use to track how much customers are going to continue to spend in the future. A simple way of measuring CLV is:
Customer Lifetime Value = [Annual contribution per customer x Average No. of years they remain a customer] – Initial cost of customer acquisition.
The importance of science in defining and understanding Gambling KPIs
Collecting data to measure business performance is something that any manager will understand the importance of. But as to which data to collect? That’s something that many companies know little about. In fact, using the wrong measurements can result in a waste of time, money and create inaccurate insights as to how a business is performing. Science is the key here, and this metric requires careful analysis and understanding.
Instead, a scientific approach is best adopted in order to define and understand the right KPIs for your gambling business.
It’s important for KPIs to be reflective of a business’ overall strategy and mission. This means that data-driven results need to be personalized, looking at the set of criteria below:
• KPIs to measure customer behavior
• KPIs to analyze financial performance
• KPIs to evaluate internal business operations
• KPIs to evaluate employees
Rather than adopt generic KPIs that can be applied to any business, to gain a more relevant and useful business insight, gambling sector-specific KPIs should be used instead. This way, a casino business can not only understand how their website is performing on any given day, but also track progress over time and predict how the site will perform in the future.