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How to control the business performance of online casinos?

How to control the business performance of online casinos?

Every organization, group, or business should keep an eye on their work and make improvements. The primary indicator that may be used to determine if a business's evolution is positive and successful, or if it is on the right course or not, are known as Key Performance Indicators (KPIs). You can determine a company's performance levels to identify the areas that need attention and necessary action by applying and interpreting KPIs.

Why are KPIs important?

KPIs are used in every sector and vertical, including online gaming. An internet operator will be able to evaluate the effectiveness of his company and how well it reaches its target market by using KPIs. However, the method and tools used to assess performance can be just as important as the performance itself, and choosing the wrong system could have a negative impact and eventually hurt the company.

Knowing what is important to the organization will help you choose the appropriate indicator. When a company's owner measures the appropriate KPIs and uses the data to generate actionable items, the business can beat its competitors.

High-quality, thorough player data is essential to an online gambling business. The more you are aware of your players' preferences and behaviors, the better you can respond to their needs and give them a more individualized experience when they interact with your business. This eventually leads to more gamers and more income.

A successful KPI drives action and project success. Choosing the relevant KPIs and doing an accurate analysis of them provides:

  • A standpoint of your company
  • the development of your company through time
  • quick identification of weaknesses
  • smart action to grow the company.

The keywords used most consistently and most importantly in the iGaming sector.

Gross Gaming Revenue (GGR) is a true indicator of the economic value of gambling since it measures the amount wagered minus the wins paid to players. The gross gaming revenue (GGR) is the amount used to calculate what a casino or other gaming operation earns before paying taxes, salaries, and other costs. GGR is the equivalent of “sales”.

Net Gaming Revenue (NGR) is defined as gross bets minus payout derived from any real transaction with a linking visitor in which revenue is paid or credited to the client, minus chargebacks and discretionary returns, sign-up bonuses, and promotional bonuses. It is the basic profit share which you are due to collect at the end of the month. Any chargebacks that are accrued from an affiliate referral will be deducted from the Net Gaming figure. In the event of the chargeback taking place on an account after the commission has been made, the original commission figure based on that chargeback will be deducted from the monthly commission total. This is by far the one KPI that should be monitored at all times.
NGR = Bets – Wins – Bonus Cost – Tax

Average Revenue per User (ARPU)
A measure of the profit generated by one player, per period of time, usually per year or month, ARPU is calculated by dividing the total revenue by the number of users.

Cost per Acquisition (CPA)
CPA is calculated as cost divided by the number of acquisitions. The marketing metric Cost Per Acquisition is the total cost of acquiring a new customer via a specific channel or campaign.

Customer Lifetime Value (CLV)
Customer lifetime value (CLV) is the amount of a customer's value to a company over the period of their relationship. Increasing the value of your existing customers is a good strategy to stimulate growth because it is less expensive to retain existing customers than it is to attract new ones. CLV helps you make important business decisions about sales, marketing, product development, and customer support.
The simplest formula for measuring CLV is:
(NGR per player) * (Life Time Months) – Total costs of acquiring and serving the customer = CLV

Churn Rate (CR)
The percentage of players who left during a specific time period is referred to as the churn rate (or attrition rate). It could be a sign of dissatisfied customers, cheaper and/or better offers from the competition, more effective marketing and/or sales by the competitors, or factors related to the customer life cycle.

NGR / Deposits ratio
Low values could indicate to a large percentage of winners or abusers. High values indicate that players are spending more money than normal.

Bets / Deposits ratio
This will show how many times players circulate each money they have deposited: higher numbers suggest that it takes longer to lose, while lower results signal that players are losing more quickly. Deviation from the standard might also mean that the games don’t function as they should (RNG problems).

How can you improve your business by tracking your KPIs?

The best way to use KPI is to measure your performance and achieve your defined goals and strategies. The most common core business objectives for the iGaming business:

Core Business Objectives Business KPI
Increase customer acquisition ARPU
Improve customers satisfaction CR
Increase sales GGR, NGR, CLV
Decrease acquisition cost CPA

How we can help?

The 1Click Games platform provides reporting tools for all your business requirements that may provide you with the most crucial and helpful information to increase sales and expand your business.

1Click CRM is a single platform solution for iGaming management that provides an extensive operational overview, allowing access to information about relevant business processes, all in one place. It fully manages all integrated products, from affiliate tracking to customer registration, payments, marketing and beyond.

  • Gives access to key real time data about your customers and full control over gaming content.

  • Enables multi-currency payment processing without third-party software involvement.

  • Supports and gives overview over all popular marketing campaigns - bonuses, coupons, cashback, jackpots and tournaments.

  • Allows you to locally adjust products with multi-currency and multilingual options.

The extensiveness of data processing options can be crucial to the effectiveness of your business because it highlights the specific productive activities to concentrate on and can provide a very high impact in the market. 1Click CRM allows you to process relevant information and data into a readable format through multiple channels, including visual reports.

  • Allows complete customization of consolidated reports with advanced filtering.

  • Enables trend analysis, by producing sophisticated demographical reports exportable in different formats.

  • Enables risk management, responsible gaming, fraud detection and permission management.

  • Integrated with the industry's most complete and trusted NetRefer affiliate marketing platform.

Do you intend to use external business intelligence tool? You'll be pleased to learn that our API is possible to use with different external BI tools. In order to assist you analyze trends and get insights from your data so that you may make tactical and strategic business decisions, business intelligence (BI) solutions are all about that. They also assist you in seeing trends in the masses of data that your company accumulates.

For instance we have already connected Tableau. Tableau is a Business Intelligence tool specialised in data discovery and data visualisation. With the software you can easily analyse, visualise and share data, without IT having to intervene. Tableau supports multiple data sources such as MS Excel, Oracle, MS SQL, Google Analytics and SalesForce. Users will gain access to well-designed dashboards that are very easy to use.

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