Essential KPIs to Elevate Your Online Casino Business
The competitive world of online casinos thrives on data-driven strategies, where Key Performance Indicators (KPIs) play a crucial role in informing decisions to thrive in the industry. From attracting players to retaining them, understanding and improving these metrics can make a substantial difference to an online casino’s success.
Let’s break down the key KPIs that can give online casino operators actionable insights, drive strategic impr... moreEssential KPIs to Elevate Your Online Casino Business
The competitive world of online casinos thrives on data-driven strategies, where Key Performance Indicators (KPIs) play a crucial role in informing decisions to thrive in the industry. From attracting players to retaining them, understanding and improving these metrics can make a substantial difference to an online casino’s success.
Let’s break down the key KPIs that can give online casino operators actionable insights, drive strategic improvements, and lead to increased revenue.
Determining the key performance indicator
There are probably hundreds of different KPIs that any business can analyze to either make data-driven decisions, analyze the health of the business, measure progress, or analyze trends.
It can be overwhelming to analyze all possible KPIs. If you have too many KPIs to track, you can lose focus and energy on irrelevant metrics.
As your business grows, you will need to keep an eye on more different metrics. The reasons for this are simple – your team will grow and you will have more data, giving you endless angles to look at.
In this article, we’ll take a look at the most important metrics from a business owner’s perspective. Most of the metrics listed here are tracked by affiliate managers who are responsible for traffic acquisition, budget, and profitability. Every business owner should be aware of these metrics to ensure the performance and growth of their business.
Lifetime customer value in the iGaming industry (and a real case study)
Customer Lifetime Value (LTV) is an important metric for any business, and online casinos are no exception.
Why is LTV so important for online casinos? It provides insight into how much revenue each player generates throughout their time as a customer. This information can help inform decisions about marketing spend, player retention initiatives, and overall business strategy.
If you want to know the Lifetime value of your clients without using special tools then you have some work to do!
LTV = total gross gaming revenue of a site / total number of ACTIVE players
This formula can be misleading if you don’t understand the difference between your players:
They can be players who have simply registered on your site and never made a deposit (dormant players).
They can be players who come from different sources such as SEO, PPC, and others. And the LTV for each traffic source can be very different.
They can play on your site for years or make just one bet and then disappear.
Why is this important at all? Let’s take a look at this case study. It represents the reality of a customer acquisition process:
Case study: A group of players who came to an online casino through the marketing team’s SEO efforts have an LTV of 200 EUR. The owner of the online casino decided to buy PPC traffic based on this value and paid 70 EUR for each depositor. He spent a considerable part of his marketing budget but never made a profit. In his case, he made the wrong decision because he assumed that PPC traffic would generate the same LTV. He forgot to divide his players into different cohorts based on traffic channels. In reality, the LTV for new players could be as low as EUR 120.
ANALYZING DIFFERENT TRAFFIC SOURCES
KPIs only make sense if they tell the whole story. That’s why it’s important to not only calculate the LTV but to have a goal in mind for which you need this metric.
Are you underestimating your casino's LTV? Here's how this metric can transform your revenue https://licensegentlemen.com/blog/essential-kpis-to-elevate-your-online-casino-business/
