Customer loyalty has never been more important than during COVID-19, but earning this loyalty has also become harder than ever. We all know the old adage that the top 20% of customers make up 80% of a company’s revenue, but nurturing and growing that top 20% gets tricky when old ways of engaging with customers are no longer an option, as businesses are imperative to embrace digital and artificial intelligence to analyze the Key performance indicators (KPIs) business metrics that are deemed crucial to the success of an organization.
Importance of KPIs
KPIs are industry-specific metrics that specifically focus on the performance of a gaming business over a stipulated time period. Depending on the observed metrics of the online casino, the business may need to zoom in and focus on the improvement of specific KPIs over others.
Business KPIs are computable metrics that outline the performance of an organization on a particular factor. KPIs help businesses to measure the performance against their determined objectives and against the competition. Therefore, by analyzing and measuring KPIs, businesses can take the necessary strategic decisions to ensure they achieve the business goals to stay ahead of the competition.
How to measure KPIs
KPIs are measured daily, monthly, quarterly, and yearly period of intervals. Output measured at various time intervals will provide a different perspective into the KPI which we are measuring.
The two important objectives for any gaming operator is to sustain a highly competitive gaming market is:
- Customer retention
- Player Acquisition
So how do you measure the success of your acquisition and retention strategies? Below we outline the most important USA online casino KPIs that your business must measure.
Gross Gaming Revenue(GGR) – total bets less total wins revenue and Net Gaming Revenue – marketing or bonus costs incurred, are the two KPIs that outline the profitability of the business.
Revenues generation for a casino business is players, thus understanding the quality of the player base is a very important KPI for the gaming operators:
- Average Revenue Per player (ARP) – Calculated by dividing the NGR by the total number of depositing customers over a certain period of time.
- Customer Lifetime Value (LTV) – overall revenue generated by a player during the lifetime
- The Churn Rate (CR) – the proportion of players who discontinued playing at the casino to active players from a specified period
- Cost per Acquisition (CPA) – the cost of getting one new customer to register and deposit at your casino
To analyze the various KPI data needs to be captured, stored, and transformed into readable information easier to access and understand by any stakeholders with access to the relevant information using the technologies like big data, artificial intelligence, and machine learning.
Advanced analytics lets you segment and profile patrons, better understand their buying behaviors and attitudes, anticipate their desires, and fulfill them. As a result, promotional expenses are significantly reduced and customer retention builds due to better-focused marketing campaigns and offers.
We at BizAcuity, have formulated COVID-19 impact analysis dashboard dashboard using many internal & external factors such as covid data, air traffic data, mobility data, industry GGR, global population and many other factors to help derive the industry prevalent KPIS like:
- Financial trends considering the Bet amount, GGR, NGR vs business drivers like channel, age distribution.
- Geographical spread vs change in mobility, change in industry GGR.
- Quadrant view of NGR vs Mobility considering product mix total activities new vs repeat