It has been proved that predicting churn not only minimises outflow of players but also significantly increases their time spent at the casino website. In this article, we will look at different ways to calculate churn rate in online casinos, as well as highlight methods to retain reactivated users.
Churn refers to when an existing customer stops any activity during the given period on the online casino resource.
Why are players abandoning online casinos: main triggers
The task of each gambling resource is to minimise the level of customer churn. First of all, because it is too expensive to engage a new customer. Clearly defining the reasons for customer attrition, you can predict the possible churn rate well in advance. As a rule, a player quits playing at the online casino only when he/she is no longer interested in the products offered by the company. Therefore, the goal of each operator is to increase the level of interest by engaging your audience with outstanding gaming content and services.
What stops your players from wagering:
Low engagement and informational activity. If you see a decrease in contacting customer service, in visiting the site and time duration spent on the resource, it is an alarm signal for you that your customer is likely to leave you soon.
Poor customer service. Online casino must provide players with 24/7 support, otherwise negative feedback can result in the loss of players;
Your competitor does a better job than you do. The online gambling is one of the most revenue-generating segments of the entertainment business, fuelling a fierce competition. Each casino operator does its best to offer something new and unique that rival companies do not have. Thus, in order to avoid churn, it is necessary to constantly update your gaming portfolio.
How to calculate customer churn rate?
Today, every gambling site's major headache is a prevention of churn. However, thanks to the existing techniques and CRM-strategies, you can not only keep the active customers but also significantly reduce the percentage of churners. Here is a formula how you calculate your churn rate:
Churn rate = Number of churners over a certain period of time ÷ Number of players at the start of the period
Say you start December with 2,000 gamblers, and at the end of the month, 500 decides to leave your gambling resource, the result will be as follows:
500 ÷ 2000 = 0.25% customer churn rate
Some companies define the outflow of players in the cash equivalent to the profit that they could have obtained if the churners were active. Then the formula for calculating the client's attrition will look like this:
Number of churners · Average revenue over month · Number of payments for a given period = Revenue churn
For example, 500 gamblers left the online casino last month, their average bill was 5,000 dollars, and the number of payments per month is 8, the revenue churn in monetary terms is:
500 people · $5,000 · 8 payments = $20,000,000
Statistics show that if a gambling company increases the retention of attracted customers by at least 5%, its profit will increase by 100%. It is worth noting that many marketers believe that reducing the churn rate should be a number one priority in any company, regardless of its activity.
How to prevent the outflow of players from online casinos: action plan
Determine the reason
In order to prevent client loss, define the primary triggers in advance. The survey and communication with your customers help clarify what is missing on the gambling resource, what can be changed or improved.
Wide range of games
Online casino players are only interested in one thing – gambling. Therefore, casino resource should have a wide range of games from well-known software developers. Moreover, you should constantly work on complementing and updating it. This retention effort helps reduce churn rate.
What makes you special
Key difference of the widely used AirBnB service is a possibility to book accommodation for one night. Here, you should come up or find out what is the feature of your gambling resource.
Proactive approach is a key
Here you have to learn to look into the future. In other words, you have to predict all the possible issues your players will come to you with. Give answers to your customers' questions before they ask them. Communicate with your players, announce the latest updates, features, innovations and products – any interaction will contribute your brand awareness. Recent study conducted by the experts of Experian company determined that sending personalised newsletters increased engagement at the early stage of customer attraction.
There are multiple marketing tools to return the churn players back to the site: retargeting, email newsletters, content marketing, new products and solutions, gambling content extension, commenting, promotions and tournaments. Make an effort and re-establish old player accounts. To do this, the right solution would be sending a reactivation letter to determine the ongoing status of the client. If the player responds to the message, there is still a chance to bring them to your site again.