Starting your online casino business is a daunting task, even with help from turnkey casino solutions you can use to build your casino. However, that’s just half of the story. The other half has to do with measuring the progress of your casino business, and there’s where certain benchmarks come into play.
The story behind every successful casino enterprise begins with implementing certain marketing strategies such as engaging in affiliate marketing, putting up banners and advertisements, and running special bonuses and promo campaigns that can attract and retain the players.
To measure how these strategies perform, we need to look at key performance indicators or KPIs in short.
Below, you will find the most important online casino KPIs and learn more about their importance.
Gross Gaming Revenue
Gross Gaming Revenue, or GGR, is the initial KPI you need to focus on. It’s also one of the simplest metrics out there. In essence, it represents the amount of money players wagered minus the amount they won over some time. GGR is usually measured over a one-year period.
We should note that the GGR value does not account for bonuses and other expenses the casino might have.
Net Gaming Revenue
Net Gaming Revenue is probably the most important money-related KPI for online casino businesses. It includes the GGR minus all the bonuses, cashbacks, chargebacks, commissions, and royalties the operator needs to pay gaming providers, including state-owed taxes.
It is the main KPI because it ultimately tells you how much money you are making, and profit is what all entrepreneurs are after.
A subsection of the Net Gaming Revenue KPI is related to the percentage of the player deposits that eventually turned into casino revenue. In other words, it shows how much of the deposits the players made are being wagered.
If the players are depositing but not wagering the money, then you might want to consider updating the gaming portfolio or offering better incentives that will get the players to wager their real money balances first and then the bonus cash in an attempt to clear the wagering or playthrough requirements.
The bets to deposits ratio determines the number of times the players have wagered their deposited money. The higher the value, the longer it takes them to lose their money, while the opposite indicates that they are burning through their purse faster.
Cost per Acquisition
Cost Per Acquisition, or CPA, is a vital KPI and one that’s closely related to casino’s marketing endeavours. Namely, it shows how much money you need to invest into marketing that will lead to players registering and depositing. Say you invested 10,000 EUR into bringing 5,000 first-time depositors. The CPA is then 20 EUR, a very good ratio in most cases.
Still, the CPA can vary since it depends directly on the marketing channels you want to use to promote your product and many other factors.
Conversion Rates
Conversion rate is a major KPI, especially compared to the ones that have to do with a player’s customer journey. Conversion rates show the number of players who completed the entire cycle like you imagined they would, from clicking on your ad or link to registering an account and making a deposit, compared to those who had a chance to do it but, for some reason, didn’t.
There are two conversion rates you need to observe. First is the visitors to registration rate. This one shows the ratio of people who landed on your casino’s site and left to those who registered. The data from this conversion rate can tell you more about the user experience customers get and how you can improve the layout, content, and other aspects of your site.
The second conversion rate shows the registration to deposit ratio. In other words, how many players have registered and made a real money deposit. If you notice a growing number of users who don’t follow through, maybe you should reconsider your marketing strategies, bonuses and promotions, and other aspects.
Customer Lifetime Value
Customer Lifetime Value, or CLV, refers to how much profit you can expect from a player in the long run. To calculate the CLV, you need to multiply the monthly average revenue per player by an average player lifetime, also known as the chance that the player will return to your casino.
Analysing the data can help you reimagine the marketing strategies that affect the retention rate.
Churn Rate, or the Attrition Rate, is closely connected to the CLV, as it represents the number of players who left the gambling platform. This data could show you if the players left your site after seeing some unfriendly bonus terms and conditions, a poor choice of games, and other flaws.
By analysing the churn rate, you can alter the retention strategy and create a loyal fanbase in the future.
Summary
Tracking down the KPIs is a big step, but it’s far from the only one you need to take to run a successful online casino. You need to analyse the data by using other tools or by asking online casino marketers for help. With SoftGamings’ casino solutions, you can build a full-fledged casino with reporting tools and other software solutions to track your casino’s performance. Contact us now for more details.
