Customer Retention Strategies for iGaming Sites: a Review

It is not enough to attract players to an online casino platform because it is also necessary to turn them into regular clients, which is much more difficult.

High conversions against the background of minimal profits or losses, huge costs related to start-up bonuses, and low ratings of the technical support indicate an ineffective approach to maintaining the audience’s interest.

Experts of the Smart Money company will tell you how to increase the loyalty of gamblers and make them regular visitors to your websites.

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Customer Retention in the iGaming Niche

Harvard Business Review published the following statistics:

• attraction of each new user costs from 5 to 25 times more than keeping an already existing one;
• an increase in the level of players’ engagement by just 5% makes the income grow by 25–95%, depending on the specifics of the enterprise.

High-quality interaction with the registered clients is coming to the fore and becoming a key task for operators.

Customer Retention is a set of measures aimed at keeping users on the website. The concept is relevant to many business areas where the brands’ earnings are based on the long-term provision of services. This includes gambling, betting, binary options, cryptocurrency trading, and much more.

For qualitative and quantitative assessment, 2 indicators are used:

1. CRR. This is the retention rate of players. It shows how long a person remains interested in iGaming entertainment and remains a regular customer. To calculate it, the difference between the number of casino visitors at the end and those who registered during this time is divided by the number of clients of the platform at the beginning of the period.
2. CR. This is the users’ churn rate. It is calculated as the difference between the number of gamblers at the end and beginning of the selected gap. The resulting value is divided by the initial number of active players and multiplied by 100%.

CRR can be calculated for a week, month, quarter, and year. Such indicators as 75%, 40%, or 10% are not very informative, so it is best to analyse the parameters in dynamics and compare them with each other.

If, for example, the retention rate is higher than the churn one, then the company has organised a balanced marketing campaign.

The dynamic growth of CRR also shows the correct advertising policy chosen by the operator. There is no single value for the entertainment industry. In the field of online casino affiliate marketing, this parameter is from 10 to 20%. In mobile applications, the best option is from 20 to 30%.

Gambling, like other types of e-commerce, is characterised by high customer turnover. However, the paradox is that digital sportsbook platforms and portals with slots make profits only through long-term interaction with players. Initial deposits of users do not even come close to covering the expenditures for the maintenance of an iGaming business and payments to partners.

The main source of income for entrepreneurs is the continuous stay of casino visitors on the website. To calculate the benefit from their bets, the Lifetime Value indicator is used.

It shows how much money a particular person brought to the company throughout his entire activity on the online resource. The higher the LTV, the more effective the platform’s interaction with the audience.

Why Customer Retention is So Important

Advantages of implementing such a policy in your project:

1. Reduction of advertising costs. It is much easier and cheaper to interact with already registered clients than to attract new ones. That is how operators can save time and money, which can be redirected to the strategic development of their businesses.
2. Increase in customer loyalty. This element consists of many factors: satisfaction and delight of gamblers, personalised approach, access to premium content, profitable bonus program, etc. Casino owners must maintain interest in staying on their sites, please and surprise users with profitable promotions, as well as provide high-quality support.
3. Gathering feedback. Regular customers are more likely to participate in surveys than newcomers and provide entrepreneurs with useful information. With its help, they will be able to improve the marketing strategy and level of service, identify weaknesses in interaction with gamblers, and build strong partnerships.
4. Involvement of the audience. Loyal clients are the best advocates for iGaming brands. Satisfied players are happy to share their positive experiences with other people on social networks and leave reviews or recommendations on independent platforms. Happy fans of entertainment for money are always ready to justify their choice and tell other users about their favourite online casino.
5. Growth and scaling of the company. A proper engagement strategy is a good opportunity to expand the business and enter new markets. It is simpler and easier for operators to diversify their activities when they have loyal clients.

Effective Customer Retention Methods

Tools that are used to reduce the audience’s outflow can be divided into 3 groups:

1. Basics. These are different types of bonuses and personal offers.
2. Social. This category includes multiplayer tournaments, chats, mini-quests, and interaction with friends.
3. Monetisation. It includes subscriptions, access to premium rounds, and other activities aimed at retaining users and making more profit.

Let us consider the main marketing techniques that reduce the outflow of online casino visitors.

Daily Bonuses

This is one of the most effective methods, which motivates players to return to the website more often. Such rewards are appropriate for slot machines, card solutions, roulette, and video poker.

Every second of the US’s top 300 games uses this tool. We are talking not only about traditional casino products but also casual and action entertainment, multiplayer fishing, and puzzles.

Benefits of daily bonuses:

• increase in the duration of sessions and the size of the average check;
• development of positive associations with the platform;
• increased attachment to iGaming solutions;
• maintenance of the interest of clients who place minimum bets or use free versions of casino products.

Several types of rewards can be added to one video slot. These include free spins, additional rotations of the wheel of fortune, rounds with a search for prizes, and much more. Some developers offer progressive wins. To receive them, users need to launch the game every 3 or 4 hours.

The tasks do not have to be too difficult to perform. Operators also should remember that it is better to do without wagers so that money or free spins become active immediately.

Daily Quests

They are common for strategies and battle games, which have recently become popular in online casinos. To get such rewards, players need to complete several missions. This could be a search for some artefacts, the launch of specific mechanics, etc.

One quest should contain no more than 5 diverse tasks. Otherwise, customers will quickly lose interest in the solution, thus depriving entrepreneurs of the expected profit.

Tutorial

This is a short training in a game format that introduces gamblers to the features of entertainment. Tutorials are found in digital slots, cards, multiplayer fishing, and other types of amusement.

The key task of the tool is to increase loyalty to online casinos among recently registered customers. The solution helps beginners quickly navigate the gameplay and start spinning the reels.

VIP Programs

They are aimed at regular clients who place bets frequently and at medium or high limits. It is beneficial for them to spend more time on the platform and be active if they want to receive generous rewards.

Those people who feel valued are more likely to continue wagering. They do not switch to competitors' platforms, remaining loyal to the chosen online casino.

One of the best features of the VIP offer is the accumulation of points.

Gamblers bet money, spin digital reels and receive credits for it. At the end of each week or month, they are summed up, and the users are assigned a VIP level (there are bronze, silver, gold, and platinum ones).

Each stage provides certain privileges:

• increased cashback;
• access to bonus rounds;
• additional free spins;
• generous multipliers.

Much depends on the operator’s imagination, as well as the desire to highlight and motivate regular players.

The accumulation of points has good social functions. Gamblers compete with each other, trying to get a higher rating and VIP level, which motivates them to stay on the website longer and place larger bets.

Mini-Quests

They include the following elements:

• awards;
• bonuses;
• tickets;
• loyalty points.

This method is used in slot machines or table entertainment with a built-in RNG and is activated after a specified period or number of spins. Such tools encourage clients to visit online casinos more often and increase the brightness of the gameplay.

If users get bored of spinning the digital reels, they can always switch and successfully complete the tasks in the mini-quest.

Referral Programs

This is an opportunity for customers to invite a friend to a gambling platform and receive a reward. Most often, it can be a one-time bonus or extra payment. Business owners may also provide increased cashback and other pleasant options that are valid indefinitely.

Invitations can be sent through referral links, which are posted on social networks, specialised Internet resources, as well as in instant messengers, e-mails, etc.

Decrease in the Audience’s Outflow: the Main Secrets

Let us consider the most common techniques that improve customer retention rates.

User Experience Is a Priority

The trend of the last 3 years is high-quality client segmentation. Gamblers are divided into groups depending on:

• age;
• gender;
• income level;
• behavioural patterns;
• gaming habits, and other characteristics.

Each selected category has its bonuses, loyalty program levels, and much more.

The profiling of players increases the audience coverage (from beginners to the VIP segment). Each customer receives individual solutions that will definitely interest them. These are slots, bonuses, withdrawal conditions, etc.

High-Quality Support

All problems of gamblers must be solved immediately after they arise. This is the only way to achieve better engagement indicators and not lose clients due to difficulties in the website’s work.

Secrets of an impeccable technical service:

• quick feedback and a minimum of delayed replies;
• reliability of the selected communication lines (call centre, e-mail, or chatbot);
• proper training of support staff;
• quick and adequate response to complaints;
• dedicated channel for VIP players;
• round-the-clock operation.

How to Make Gamblers Return to the Platform

A series of unsuccessful spins and sessions is one of the main reasons why people stop placing bets in online casinos. To motivate them to come back, entrepreneurs need to send reactivation letters. They can contain information about updates, benefits, and advantages of visiting the website, as well as exciting slots or favourable conditions of the VIP program.

An emotional component and a clear call to action at the end will help to capture the audience’s attention. Users should want to follow the link and launch reels in the selected slot.

The Main Things about Customer Retention in the Casino Niche

Minimisation of the outflow of clients is an important element of a successful marketing strategy.

Key features that owners of the gambling business need to take into account:

• In the field of entertainment for money, 2 common indicators are used: retention and churn. With their help, it is possible to evaluate the effectiveness of the loyalty program and map the way toward the increase of the audience’s engagement.
• A competent CR policy reduces marketing costs and contributes to the growth of the company’s income. Operators receive high-quality feedback and an influx of new solvent clients.
• Effective methods of retention include daily bonuses, missions, tutorials, and mini-quests. The implementation of referral and VIP programs increases the overall involvement of gamblers and the income of business owners.
• High-quality segmentation of players with the provision of personal rewards for each selected category will help entrepreneurs reduce customer churn. Professional support and reactivation of previously registered visitors will also be necessary.

The Smart Money studio offers the following useful products and services:

• turnkey online casino;
• White Label platform;
• development of HTML5 slots based on individual sketches;
• security software installation;
• promotion of iGaming projects, and much more.

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