With the emergence of online gambling, brick-and-mortar casinos gradually have been taking back seat and now are of less interest to the players. The main reason lies in the convenience of video slots that allows playing, making bets in various currencies and receiving generous bonuses anywhere at any time.
The iGaming industry is developing at a rapid pace, and according to Slotegrator's experts, its growth can reach 11-12% annually until 2020. Many businesspeople in gambling are moving to the online sphere, as it is more convenient, profitable and perspective. However, here, they face the need to evaluate the profitability of their resources. Special metrics can be used for this purpose; let's consider them below.
Key performance indicators: what are they and what are they for?
The process of opening an online casino includes two main aspects: technical and marketing. Each of them is crucial for the successful project performance. The first involves buying or renting a platform, integrating software, obtaining a license and other elements that you can learn more about here: How to launch a successful online casino gambling site.
Now let's go deep into the marketing component. Once the online casino is created, the operator should get involved in its promotion and customer acquisition. To do that, various casino marketing tactics are applied — advertising, partnership, reward systems, loyalty programs, etc.
Of course, every casino owner wants to be in the black and get the maximum from the chosen strategies. That is why you should be aware of the metrics that help you analyze your project's success.
KPIs or Key Performance Indicators are essential when it comes to visualizing results of the casino and its further development. If you want to calculate them correctly, you should understand what types of metrics exist. So in the online gambling industry, KPIs are divided into the following types:
• money-related KPIs;
• people-related KPIs;
• hybrid KPIs.
Let's take a closer look at each category.
They are clear financial indicators that are responsible for the casino profitability.
Gross gaming revenue or GGR is one of the main financial indicators. You can calculate this KPI using a simple formula: from the sum of all bets subtract the sum of all winnings. Thus, you get the data on the online casino revenue excluding the expenses for the resource itself. The obtained value can vary, and it depends on the number of gamblers' winnings on your resource.
NET gaming revenue (NGR) is an indicator that reflects real casino earnings, without any royalties and other operating expenses. It is the best option for quick analysis of the project, dynamics of its development, tracking of particular deposit profit.
NGR-to-deposits. The ratio of net game profits to the amount of deposits shows how much revenue is generated from the deposits made in your casino. The higher the volume, the better it is for the operator.
Bets-to-deposits. If you analyze the ratio of bets amount to deposits amount, you can define the turnover of finances in slot machines. For example, if this value increases it means that the casino is giving out too many cash bonuses to the players.
Money-related KPI is necessary for the operator to estimate the work of the project: does it make profit, whether the revenue rises or falls. However, for more profound analysis it is worth considering other metrics of casino success evaluation.
This type is directly connected with potential and real players. It is divided into primary and secondary metrics.
Conversions. Generally speaking, this is the ratio of the people who committed the target action to the people who could commit it. For example, the proportion of users, who clicked on your ad to the number of people, who saw it.
This indicator shows the number of players: how many of them have clicked on the advertisement of your casino and followed the link for further actions, how many people have registered and made the first deposit.
Two main types of conversions can be distinguished in the online casino:
1. The percentage of people who visited the online casino and registered in proportion to the total number of visitors of the resource. A low conversion rate means poor traffic.
2. The percentage of people who have registered and made the first deposit in proportion to the total number of registered visitors. This value should be taken into account when distributing free bonuses to the players.
Lifetime value of a player (LTV). It shows a net profit gained from one user during the entire period of his activity on the online casino site. In order to increase this index, operators establish permanent loyalty programs for gamblers.
Churn Rate (CR) is the percentage of users who, for some reason, have quit playing at the online casino. As a rule, it is compared with the number of active players over a certain period.
This is a group of behavioral factors showing the project's effectiveness.
Bounce rates. It indicates the number of people who have visited your resource but did not perform any actions. For example, they spent less than 60 seconds on the site and viewed only one page. This demonstrates that the user has opened the site by accident or has visited your casino intentionally, but it was not enough for him to stay there longer.
Website Depth-level and Dwell Time. This indicator shows how people are actually interested in your site. How many pages were viewed during a session and how much time was spent on the site, how easy-to-use is it, does it need some more updating and development for better user engagement.
It is a type of key performance index that represents a bridge between money and people-related metrics.
Cost per Acquisition (CPA). This pricing model reflects the costs spent per player who has committed targeted actions at the casino: in particular, signed up and made a bet. It allows you to calculate the average marketing budget needed to attract a single player and demonstrates the effectiveness of your marketing and advertising campaigns to promote the online casino.
Here is an example: Your weekly budget is $1000. Over this period, you have attracted 200 players who eventually made a deposit at the online casino. Thus, the value of 1 player equals $5. It means that your marketing campaign is successful if the player completely pays off his "cost".
To continually monitor the cost-effectiveness of user engagement and the results of promo campaigns, you can compare and analyze all the indicators for different time lapses (in dynamics). The less the value of each player, the more effective and profitable your project promotion.
Average revenue per user (ARPU) stands for the profit earned from a particular player for a certain period, for example, last month, quarter, or year. You can calculate such earnings by dividing the total revenue of the casino by the number of active gamblers for the selected period.
By analyzing the key performance indicators of the casino, you can evaluate your own online project implementation, see its advantages and disadvantages, and understand the directions in which the resource should be further promoted.
|Gross game revenue (GGR)||Conversion rates||Cost per acquisition (CPA)|
|Net game revenue (NGR)||Lifetime value of a player (LTV)||Average revenue per player (ARPU)|
|NGR-to-deposits||Churn ratio (CR)|
|Deposit rates||Bounce rates|
|Scroll depth and time on a website|
To track the KPIs, you need a multifunctional platform with a well-established data collection and analysis program. The system receives the data, processes it and makes up a visual guide for the operator.
Slotegrator developed its own gaming platform offering a friendly interface and a wide range of different tools to manage your casino, including content, customers, and finances. It also allows you to create and customize reports on players, winnings and other categories for any period.
If the operators are able to track and evaluate the project's key performance indicators, then they can influence them according to their goals, fully control the online casino performance and thus, make it more successful and profitable.