The Fundamentals of Online Casino KPIs

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What You Should Know About Online Casino Key Performance Indicators (KPIs)

When it comes to helping online casino firms monitor the success and health of their operations, Key Performance Indicators (KPIs) play an important role. Essentially, key performance indicators (KPIs) for online casinos may show you what you’re doing properly and where you need to improve.

The Fundamentals of Online Casino KPIs

The search for the best casino software solutions and business partners is just the beginning of establishing a profitable enterprise. To do so, it is necessary to make informed judgments that are supported by facts. You may not realize that you have made a mistake until it is too late if you make judgments without taking all important information into consideration. Making decisions without taking all relevant information into consideration might lead to devastating consequences.

Even while there is no one fool-proof formula for operating a successful online casino, key performance indicators (KPIs), such as those connected to money and player behavior, present a set of measurements that allow you to determine the worth of your casino.

Here, we’ll explore the most crucial KPI online casino data that iGaming enterprises use to assess and enhance their brands, allowing you to obtain a more complete grasp of how and why key performance indicators are critical to the success of your company.

KPIs that have a monetary component

  • Key performance indicators (KPIs) that are monetary in nature enable you to understand where you are in terms of your online casino earnings. They include the key performance indicators (KPIs) listed below.
  • Gross Gaming Revenue (GGR) is the total amount of money made by gambling (GGR)
  • Gross gaming revenue (GGR) is one of the most straightforward key performance indicators (KPIs). It is equal to the sum of the amount of money that players have wagered minus the total amount of money that they have won. These figures illustrate how much money remains in your casino as a consequence of your players’ betting activity but before you pay for any of your casino’s expenditures. They are calculated as follows: For example, if players bet a total of $4 million at your casino over the course of a year and win a total of $3 million, the gross gaming revenue (GGR) for your casino for that year is $1 million.

In a nutshell, GGR is a metric for evaluating the outcomes of games. It indicates how much money the casino made and how much money a player lost over a certain period of time. As a result of this, it is crucial to remember that GGR does not take into consideration the value of sign-up and deposit incentives. These promos are paid for by the casino. Furthermore, since wins in online casino games are created at random, the gross gaming revenue (GGR) might change from one period to the next. As a consequence, real results may deviate from the “theoretical” average RTP ratios.

Net Gaming Revenue is the amount of money earned by gambling.

It is the amount of money that your casino really generates after all expenditures have been deducted from the total revenue that you should be concerned about. Or, to put it another way, net gross revenue (NGR) is gross revenue (GGR minus bonuses, chargebacks, licensing fees, taxes, commissions paid to payment system providers, royalties given to game content producers, and so on) minus expenses.

This key performance indicator (KPI) for online casinos provides a clear and thorough review of your casino’s performance. When compared to GGR, it gives a more in-depth analysis of the project’s success rate since it takes a broader range of expenditures into consideration. Having said that, the Net Gaming Revenue (NGR) only accounts for a tiny fraction (for example, 2 percent) of the entire amount wagered by players within a certain time period (turnover).

NGR-to-Deposits

When you look at the NRG-to-deposits ratio, you can see what proportion of player deposits result in income for your company. Due to the fact that just a tiny fraction of all deposits result in NGR, it is critical for your players to be making wagers as often as possible. Finally, the NRG-to-deposits ratio allows you to determine the amount of money that players are wagering according on the deposits that they make.

Bets-to-Deposits

The bets-to-deposits ratio enables you to determine how much money players have wagered in relation to the total amount of money they have deposited. It represents the flow of money that has been placed into the games. Nonetheless, it’s vital to keep in mind that bigger wagering amounts might be the consequence of gamers spending bonus money rather from their own funds.

Overall, key performance indicators (KPIs) relating to money may provide you a decent indication of the overall health of your online casino enterprise. They can inform you whether or not you’ve earned a profit, whether or not you’ve produced revenue, the pace at which revenue growth is occurring, and so on. As a bonus, the ratio of net gaming revenue to deposits (NGR to deposits) and the ratio of bets to deposits (bets to deposits) may both tell you how successfully you’re motivating your players to take the next step of depositing and wagering once they’ve created their account.

KPIs that are connected to people

People-related key performance indicators (KIPs) are concerned with assessing how users engage with your platform. The information they provide is critical in assisting you in determining player loyalty so that you can make the required modifications to your online casino marketing efforts in order to maximize player lifetime value.

Rate of Conversion

In order to calculate conversion rate, you must first compare the total number of users who successfully completed the target action you desired (for example, the people who clicked on the CTA link in an email you sent) to the total number of users who could have possibly performed the same target action but did not (for example, the people who received the email but did not click on the CTA link) in order to calculate conversion rate.

This may be split down into two sorts of conversion rates in the context of online casinos.

Conversion 1: Visitors to Registered Users — This is the first step in the conversion process. A ratio of every person who signed up as a player to every other person who viewed the site but did not register is represented by this number. It’s important to remember that the conversion rate at this stage of the player journey might be an indication of whether or not you need to adjust your welcome bonus offer or other marketing methods in order to encourage more people to join your casino.

Registrants are converted into depositors in the second stage. This is the difference between the proportion of all registered players who have made a first-time real money deposit and the percentage of all registered players who have not. The fact that you are not receiving deposits may indicate that you need to consider introducing a signup incentive or modifying the one that you now provide.

Rate of Retention

Retention rate, like most other key performance indicators (KPIs) in online casinos, is often monitored over a set period of time (e.g. 3 months, 6 months, 12 months). A broad notion of how long gamers normally continue to return to your platform before abandoning it may be gained by knowing your retention rate.

It is more cost efficient to maintain players than it is to recruit new ones to your team. Having said that, the length of time a player remains in the game may be determined by a number of variables, the most of which having to do with the player’s own preferences. There are still methods to increase client retention rates, such as by providing VIP and loyalty programs, continuing promotional campaigns, new game releases, gamification, customer relationship management (CRM), enhanced site usability, dependable and prompt customer service, among other things.

Churn Rate is the percentage of people who leave their jobs.

The churn rate of your casino is the percentage of players that stop playing at your casino compared to the percentage of players who continue to play at your casino during a given period of time. Keeping track of how long gamers have remained loyal to your brand may assist you in developing and refining your retention strategy, as well as identifying potential bonus misuse. If you observe that a significant amount of players that join up churn as soon as they’ve met the wagering requirements for the welcome offer, you may need to adjust your bonus approach.

There is no one remedy for a high churn rate; nevertheless, it is an indicator that something is wrong and that adjustments are required. The presence of a high churn rate might indicate the presence of one or more concerns such as increasing competition, player unhappiness, an inadequate game offering, bad customer support, or other difficulties.

KPIs that are a hybrid of the two

Key performance indicators (KPIs) that fall under the Hybrid category are used to integrate financial measures with indications that relate to people. More to the point, they are concerned with both the behavior of your athletes and the financial ramifications of that behavior on your organization.

Acquisitions at a high cost

In the gaming industry, cost per acquisition (CPA) is a key performance indicator that measures how much it costs on average to attract a new player who joins up and deposits. Consider the following scenario: If you create 100 first-time deposits from a $5,000 marketing effort, the resultant cost per acquisition (CPA) would be $50 for each player you recruit.

CPA analysis allows you to determine whether or not your marketing efforts are worthwhile in terms of both time and money. In essence, CPA tells you how much it will typically cost you to acquire a new first-time depositor on a recurring basis.

When various online casino marketing tactics are used, the cost per acquisition (CPA) will be varied. To drive traffic to your casino website, you may use a variety of strategies, including search engine optimization (SEO), sponsored advertisements, link-buying, and affiliate networks. It is critical to determine which channels provide the most profit for your casino since thousands of players with high CPA may generate the same amount of profit as a few hundred players who were recruited more easily.

Per-User Revenue on an Average

Over a given time period, the average revenue per user (ARPU) displays how much income is earned by a single player on average, as well as how much revenue that player loses on average.

The formula for calculating ARPU is straightforward. Simply take all of your casino income for a certain time period (for example, a month or year) and divide it by the number of active players during that same time period to get your revenue per active player. The result will show you how much income each participant produces on an average each game.

Value of a customer over a long period of time

A player’s Customer Lifetime Value (CLV), also known as Player Lifetime Value (PLV) in the iGaming business, is an indicator of the total amount of income a player delivers to your casino over the course of the full time period in which they continue to bet at your site. The fundamental purpose of all casino marketing initiatives is to improve the average revenue per player (ARP).

To compute the CLV, multiply the monthly ARPU by the average player lifetime of the players in question. In addition, you may cross-reference CLV by player section. This may demonstrate which demographics are most likely to provide the most value to your casino, allowing you to better target your marketing efforts. Even a simple analysis of historical player lifetime value may aid in the prediction of future CLV, which can be useful when developing retention tactics.

Aside from that, you may compare your CLV with your CPA to get a more full picture of your marketing plan. A cost-benefit analysis of new customer acquisition may be performed to determine the value that player adds to your business model. Important because you should not be spending more money on acquiring players than the actual amount of money these gamers are spending on your games.

Keeping track of and analyzing your key performance indicators

KPIs are being tracked and analyzed. Once you’ve determined your key performance indicator (KPI) plan for your online casino, the following stage is to determine how you’ll monitor and evaluate these key performance indicators.

Although this is something that you can do on your own, the actual monitoring of key performance indicators (KPIs) is frequently best left to specialists in the online casino software industry, such as the renowned software platforms we evaluate here at The Casino Site. The reason for this is because it is required for this critical data to be gathered, saved, and translated into information reports that can be accessed quickly and easily from the casino backoffice. As soon as the data has been collected and the reports have been created, it is up to the company to analyze the results and take the appropriate action.

Conclusion

The key performance indicator (KPI) models for online casinos outlined above may assist you in tracking and improving the success of your company. That being said, it does not follow that implementing these KPIs would inevitably result in the achievement of a long-term successful enterprise.

When tracking, breaking down and analyzing player activity data, you’ll be better equipped to generate the critical growth plans your casino requires and come up with innovative solutions for players. When it comes to key performance indicators (KPIs), they provide you the various viewpoints you need to build a comprehensive picture of how your organization is operating. Software companies with extensive expertise in this industry may aid you in developing effective management systems that will allow you to make educated choices based on correct information and rigorous analysis of the data.

For the duration of your casino’s operation, you will need to regularly and meticulously measure these key performance indicators (KPIs), make modifications, and record the consequences of the changes you make. It is only through precise and continuous assessment of key performance indicators (KPIs) that you will be able to remain competitive and ahead of the curve for many years to come.

Do you need assistance with KPIs? Send us an email and we’ll assist you in finding the perfect individuals to work with.

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