There are many key performance indicators (KPIs) that online casino operators might consider to maximise the performance and efficiency of operations. But which ones provide the most valuable insight?
Given their significance to competitiveness, growth and overall profitability, leading software provider Altenar has put together a list of the most important KPIs, explaining the insights and value they offer online casino operators in 2024.
Revenue-Related KPIs
Revenue-related KPIs underpin fundamental aspects of business strategy and operations. Key indicators in this area provide a clear picture of financial health to guide informed decision-making and strategic planning. By closely monitoring these indicators, operators can optimise marketing efforts, manage operational costs, and enhance competitiveness. Specifically, accurate revenue tracking helps in identifying profitable games and player segments while providing insights for targeted improvements.
Revenue-related KPIs
| KPI | MEASUREMENT | CALCULATION | USE |
|---|---|---|---|
| GGR | Measures casino's gross income and performance. | Total wagers minus payouts. | Evaluating game profitability Assessing marketing impact Budgeting and forecasting |
| NGR | Shows profitability after operational costs. | Revenue after expenses and fees deducted | Optimising marketing expenses Evaluating operational efficiency Setting profitability targets |
GGR - Gross Gaming Revenue
Gross Gaming Revenue (GGR) is a significant Key Performance Indicator that reflects the net earnings from player wagers. It is calculated by subtracting the total player winnings from the total bets placed. For instance, if players wager €1 million and win €800,000, the GGR is €200,000.
GGR is important for evaluating an operator's financial health and operational performance, providing insights into profitability, efficiency, and market competitiveness. The main benefits of using this KPI include enhanced revenue tracking, strategic planning, and informed decision-making.
NGR - Net Gaming Revenue
Net Gaming Revenue (NGR) is another Key Performance Indicator related to online casino revenues. It assesses the revenue retained after deducting bonuses, taxes, and other expenses from Gross Gaming Revenue (GGR). For example, if the GGR is €200,000, and operational costs and bonuses amount to €50,000, the NGR is €150,000.
This metric is essential for assessing true profitability and operational efficiency. The primary benefits of using NGR include precise financial analysis, improved strategic planning, and better resource allocation.
Player Acquisition and Retention KPIs
Player acquisition and retention KPIs, such as Customer Acquisition Cost (CAC) and player retention rate, provide insights into marketing efficiency and player loyalty. Understanding these KPIs helps online casino operators refine strategies, optimise marketing spend, and enhance operational performance.
Player Acquisition and Retention KPIs
| KPI | MEASUREMENT | CALCULATION | USE |
|---|---|---|---|
| CAC | Measures cost-effectiveness of acquisition strategies. | Total acquisition costs / Number of new players. | Budget allocation efficiency. Campaign performance assessment. Player value optimisation. |
| Player Conversion Rates | Measures player sign-up effectiveness. | New players / Site visitors. | Track campaign success Optimise marketing strategies Improve user experience |
| Player Retention Rate | Measures player loyalty over time | Players retained / Total number of players acquired. | Assessing player loyalty trends. Evaluating marketing campaign effectiveness. Planning player re-engagement strategies. |
| Churn Rate | Measures player loss over time. | Players lost / Total active players. | Identifying retention improvement areas. Evaluating player attrition trends. Enhancing player retention strategies. |
CAC - Customer Acquisition Cost
Customer Acquisition Cost (CAC) represents the total expense incurred to attract a new player. It is calculated by dividing the total marketing and sales expenditures by the number of new customers acquired. For example, if an operator spends €100,000 on marketing and gains 1,000 new players, the CAC is €100.
For online casino operations, the player acquisition cost KPI is essential for understanding and evaluating marketing efficiency and profitability. Ultimately, it allows iGaming operators to tailor marketing strategies, enhance budget allocation, and improve overall business sustainability.
Player Conversion Rates
Player Conversion Rates measure the percentage of site visitors who become active players. It is calculated by dividing the number of new active players by the total number of visitors, then multiplying by 100. For example, if 10,000 visitors result in 500 new players, the conversion rate is 5%.
This KPI highlights the effectiveness of marketing strategies and user experience. Knowledge of player conversion rates enables operators to optimise marketing campaigns, improve user engagement, and drive revenue growth.
Player Retention Rate
Player Retention Rates show the percentage of players who continue to play over a given period. They are calculated by dividing the number of returning players by the total number of players at the beginning of the period and multiplying by 100. For example, if 2,000 out of 10,000 players return, the retention rate is 20%.
This is a significant indicator for understanding customer loyalty and long-term profitability. In practice, a low retention rate might prompt an operator to enhance their loyalty programmes or offer personalised promotions. By closely monitoring and improving retention rates, operators can increase player lifetime value and optimise marketing expenditure.
Churn Rate
Churn Rates measure the percentage of players who stop playing over a specific period of time. The rate is calculated by dividing the number of players lost during the period by the total number of players at the beginning and multiplying by 100. For instance, if 1,000 out of 5,000 players leave, the churn rate is 20%.
This player acquisition and retention indicator highlights player dissatisfaction and identifies gaps in player retention strategies. Operators should use churn rates to pinpoint when and why players leave, allowing them to implement targeted improvements such as enhanced customer service, personalised offers, and better user experiences. Moreover, reducing churn rates leads to increased player loyalty, higher lifetime value, and improved profitability.
Engagement KPIs
Engagement KPIs offer casino game operators insights into player interaction and satisfaction. By tracking and measuring player activity and loyalty, iGaming professionals better understand engagement and interaction levels to aid strategic planning and operational efficiency.
Engagement KPIs
| KPI | MEASUREMENT | CALCULATION | USE |
|---|---|---|---|
| ARPU | Measures revenue generated per active player. | Total revenue / Number of players. | Assessing player spending patterns. Evaluating game profitability. Identifying high-value player segments. |
| LTV | Measures total revenue from a player. | ARPU x Player lifespan x Gross margin | Informing acquisition cost limits. Targeting valuable player segments. Guiding retention investment decisions. |
| DAU | Measures unique players engaging daily. | Count of unique daily active players. | Tracking daily player engagement. Assessing game usage trends. Informing marketing effectiveness. |
ARPU - Average Revenue Per User
Average Revenue Per User (ARPU) reflects the average revenue generated per active player over a specific period. It is calculated by dividing the total revenue by the number of active users. For example, if an online casino earns €500,000 from 10,000 active players, the ARPU is €50.
Operators typically use ARPU to assess the effectiveness of their monetisation strategies and to identify high-value players. A low ARPU might prompt strategies like personalised promotions, improved game offerings, and enhanced user experience to boost spending. Furthermore, when compared with CAC, operators gain further insight into the profitability of marketing efforts.
LTV - Player Lifetime Value
Player Lifetime Value (LTV) is the total revenue a player is expected to generate over their entire relationship with the casino. It is calculated by multiplying the Average Revenue Per User (ARPU) by the average player lifespan. For instance, if the ARPU is €50 and the average player lifespan is 12 months, the LTV is €600.
This KPI is essential for understanding long-term profitability and guiding marketing strategies. Operators use LTV to allocate resources effectively and tailor their retention efforts. To help increase LTV, operators can employ personalised promotions, enhance the gaming experience, and offer loyalty programmes.
DAU - Daily Active Users
Daily Active Users (DAU) is a key KPI measuring the number of unique players who engage with the platform daily. It is calculated by counting the distinct users who log in and play each day.
This metric is standard for assessing user engagement and platform popularity since a high DAU indicates strong user retention and interest. Operators use the KPI to monitor the effectiveness of their engagement strategies and to identify peak usage times. To boost engagement, operators can implement daily bonuses, run time-limited events, and personalise user experiences. These tactics encourage regular play, enhance user satisfaction, and drive sustained activity on the platform.
Financial Performance KPIs
Tracking financial performance KPIs such as NGR-to-Deposits, Cash-Outs Sum, and Bonuses to GGR provides critical insights into revenue efficiency, player behaviour, and promotional effectiveness. By monitoring these indicators, online casino operators can optimise strategy and tailor products, services and marketing efforts to better align with the needs of their customer base.
Financial Performance KPIs
| KPI | MEASUREMENT | CALCULATION | USE |
|---|---|---|---|
| Bonuses to GGR | Measures bonuses relative to gaming revenue. | Total bonuses / Total gross gaming revenue. | Evaluating bonus cost efficiency. Optimising bonus allocation strategies. Assessing financial health impact. |
| NPS | Measures customer loyalty and satisfaction. | Promoters minus detractors, scaled 0-10. | Improving customer experience. Enhancing retention strategies. Guiding marketing improvements. |
| CSAT | Measures overall satisfaction level of players. | Average score from satisfaction surveys. | Identifying service improvement areas. Enhancing player loyalty strategies. Benchmarking against industry standards. |
Bonuses to GGR
The bonus to Gross Gaming Revenue (GGR) financial performance KPI represents the proportion of revenue generated in relation to the bonuses given. It is calculated by dividing the total bonuses by the GGR. For example, if a casino issues €50,000 in bonuses and generates €500,000 in GGR, the ratio is 10%. This KPI helps operators assess the effectiveness of their bonus strategies in driving revenue.
In practice, operators use this KPI to fine-tune promotional campaigns. For instance, if the bonus to GGR ratio is too high, it may indicate that bonuses are not generating sufficient revenue, prompting a reassessment of promotional tactics. Effective bonus strategies, such as personalised offers, free spins slot bonuses, and time-sensitive seasonal or themed promos tied to holidays or events, can enhance player engagement and boost revenue.
NPS - Net Promoter Score
The Net Promoter Score (NPS) is another financial performance KPI measuring the effectiveness of promotional strategies in driving revenue. It is calculated by dividing the total revenue generated from promotions by the total promotional expenditure. For example, if a casino generates €200,000 from promotions and spends €50,000 on those promotions, the NPS is 4.0. This KPI helps operators assess the return on investment (ROI) for their promotional efforts.
Typically, operators might analyse the NPS to identify which promotions yield the highest returns, allowing for more strategic allocation of marketing budgets. A low NPS, for example, might indicate the need for more effective promotional strategies. To increase NPS, operators can fine-tune bonus strategies, such as offering personalised bonuses, leveraging data analytics to target high-value players, and implementing loyalty programmes that incentivise repeat play.
CSAT - Customer Satisfaction Scores
The Customer Satisfaction Score (CSAT) indicates the level of satisfaction among players. It is calculated by asking players to rate their satisfaction on a scale, typically from 1 to 5, and then averaging these scores. For example, if 100 players rate their satisfaction and the total score is 400, the CSAT is 4.0.
Operators commonly use CSAT to gauge the effectiveness of their services and player experience. A high CSAT signifies strong player satisfaction, while a low score provides insight into areas that need improvement. To enhance the player experience and reduce churn, operators can implement strategies such as personalising player interactions, ensuring responsive customer support, and continuously updating game offerings to keep the platform interesting. Such efforts can lead to higher satisfaction, greater player retention, and improved overall performance.
Operational Efficiency KPIs
Operational efficiency KPIs, like Average Handling Time (AHT) and Bounce Rates, are also very important. These metrics offer insights into website engagement and customer service efficiency. Monitoring AHT ensures quick issue resolution, enhancing player satisfaction, while reducing bounce rates indicates improved user experience and retention, which are essential for strategic planning and maintaining competitiveness in the iGaming market.
Operational Proficiency KPIs
| KPI | MEASUREMENT | CALCULATION | USE |
|---|---|---|---|
| AHT | Measures customer service interaction duration. | Total handling time / Total interactions. | Improving customer service efficiency. Reducing customer wait times. Optimising resource allocation. |
| Bounce Rates | Measures percentage of single-page visits. | Single-page visits / Total visits. | Improving website engagement. Identifying content effectiveness. Enhancing user experience. |
AHT - Average Handling Time
Average Handling Time (AHT) measures the average time taken to resolve player inquiries. It is calculated by dividing the total time spent on handling inquiries by the number of inquiries. For instance, if the customer support team spends 500 minutes handling 100 inquiries, the AHT is 5 minutes.
In practice, AHT is one of the most effective KPIs for assessing customer support teams. A low AHT indicates swift resolution of player issues, enhancing player satisfaction and retention. Conversely, a high AHT might signal inefficiencies, necessitating improvements in support processes.
Factors significantly impacting player satisfaction and retention include the overall ability of customer support, the quality of game and service offerings, and the user experience provided by an online casino platform. By optimising these aspects, operators can ensure a smooth and enjoyable gaming experience, leading to higher customer satisfaction levels and player loyalty.
Bounce Rates
Bounce Rates measure the percentage of visitors who leave a site after viewing only one page. It is calculated by dividing the number of single-page sessions by the total number of sessions and multiplying by 100. For example, if 1,000 out of 5,000 visitors leave after viewing one page, the bounce rate is 20%.
Operators use this standard metric to evaluate the effectiveness of their website's landing pages and overall user engagement. A high bounce rate, therefore, invariably indicates that visitors are not finding the content appealing or relevant. To improve bounce rates and overall website performance, iGaming operators can enhance site navigation, optimise loading speeds, and ensure that landing pages are engaging and relevant to visitor interests.
Top 12 Tips for Monitoring, Improving and Implementing KPIs
To effectively monitor, improve, and implement Key Performance Indicators (KPIs) for online casino operations in 2024, consider these top tips tailored for iGaming professionals:
1. Set Clear Objectives: Define what each KPI aims to measure and align it with your overall business goals.
2. Use Real-Time Data Analytics: Implement real-time analytics to track player behaviour and financial metrics continuously.
3. Leverage Data Visualisation Tools: Use dashboards and visualisation tools for a comprehensive view of your KPIs.
4. Conduct Regular Audits: Periodically review and audit your KPIs to ensure they are relevant and accurate.
5. Integrate CRM Systems: Utilise Customer Relationship Management (CRM) systems to personalise player interactions and improve retention.
6. Employ Advanced Segmentation: Segment players based on behaviour and preferences to tailor marketing efforts effectively.
7. Optimise Game Portfolio: Regularly update and diversify your game offerings to meet player demands.
8. Enhance User Experience (UX): Focus on UX design to ensure a seamless and engaging player journey.
9. Implement A/B Testing: Use A/B testing to determine the most effective strategies for promotions and user engagement.
10. Analyse Conversion Rates: Evaluate the conversion rates from visitor to registrant and from registrant to depositor to improve marketing efficiency.
11. Use Predictive Analytics: Employ predictive analytics to forecast trends and player behaviour, enabling proactive strategy adjustments.
12. Optimise Mobile Experience: Ensure your platform is fully optimised for mobile users, who represent a significant portion of your player base.
Improving the performance of an online casino platform requires a strategic approach that goes beyond the basics. One key area is optimising user experience (UX) and user interface (UI) design. Advanced UX/UI design tailored to meet user expectations reduces bounce rates and significantly contributes to player satisfaction and retention.
Leveraging data analytics is another top strategy. By analysing player behaviour and preferences, operators can personalise the gaming experience, offering targeted promotions and bonuses that resonate with individual players. This approach not only boosts engagement but also increases the lifetime value (LTV) of players.
Ensuring a diverse game portfolio that includes the latest and most popular titles can attract a broader audience. Partnering with leading game providers and software developers like Altenar to continuously update the game selection keeps the platform fresh and engaging. Furthermore, an effective loyalty program with meaningful rewards incentivises continuous play and helps to retain high-value players.
Importance of using integrated dashboard tools for real-time analysis and decision-making to hit KPI targets
Integrated dashboard tools are indispensable for online casino and sports betting operators. These dashboards consolidate various Key Performance Indicators (KPIs) such as Gross Gaming Revenue (GGR), Net Gaming Revenue (NGR), player retention rates, and Average Revenue Per User (ARPU) into a single, user-friendly interface. This level of integration enables operators to monitor performance metrics continuously and make informed decisions fast.
But that’s not all. The real-time analysis provided by such dashboards allows for immediate insights into player behaviour, financial health, and operational efficiency. For instance, if a sudden spike in the churn rate is detected, operators can quickly implement targeted retention strategies to mitigate player loss. Similarly, monitoring real-time GGR and NGR trends helps in identifying the success of promotional campaigns and optimising marketing expenditures accordingly.
Contact Altenar today to learn more about integrated dashboards for real-time analysis and decision-making.
