With the importance of operating a sportsbook driven by data, it is key that operators understand the patterns and behaviours of all customers.
Greater understanding allows operators to minimise risk whilst optimising performance, and Player Segmentation and Risk Profiling are trading models that help to better analyse data, which can help with responding to customers in real time.
Designed with a focus on delivering operational efficiency with bespoke insight into all user activity, the knowledge and advice of our teams can enable improved trading decisions and greater risk management, which results in long-term profitability.
Read our in-depth guide to learn more about how these important areas of sportsbook support can help your business.
How Player Segmentation And Risk Profiling Works
Key to this functionality is the ability to process and categorise bettors based on specific behavioural and financial metrics. Player Segmentation can divide customers into various factors such as size of bets, betting patterns, level of engagement, and profitability.
Risk Profiling denotes a different level of risk to each bettor by identifying the nature of a customer's bets. They can be classified as a casual/recreational bettor or a more shrewd/professional bettor.
This then allows sportsbooks to limit the possibility of financial exposure and apply dynamic trading rules accordingly. Dynamic trading rules can be adjusted in real time and include applying betting limits, limiting odds and pricing, and promotional eligibility all customised for each player.
What Problems Player Segmentation And Risk Profiling Solves
Uniform Trading Strategies: If all users are treated in the same way, it can lead to overexposure or missed opportunities for operators. A more tailored data-driven approach can eliminate this issue.
Risk Of Sharp Bettors: Failing to identify sharp/professional bettors and make adjustments can lead to large payouts and ultimately a drop in revenue.
Operational Blind Spots: The use of manual monitoring allows for potential human error which can impact a sportsbook. Utilising such automated segmentation reduces this risk and also helps with higher scale monitoring when an operation expands.
Ineffective Promotions: If you don’t know much about how your bettors behave then the effect of marketing strategies will be watered down, leading to generalised campaigns which mean wasted budgets, player churn and decreased revenue.
Benefits Of Player Segmentation And Risk Profiling
Improved Decision-Making: With greater data at the hands of operators, more precise and well-informed decisions can be made when it comes to trading and marketing.
Risk Mitigation: Proactive steps can be made by operators to limit risks by implementing betting limits more efficiently and quickly.
Tailored User Management: The ability to adjust trading parameters based on individual player profiles and increasing both control and flexibility for operators.
Enhanced Profitability: Effectively allocating limits and offers to only applicable bettors, based upon their individual profiles, can aid an operator's profitability.
Targeted Engagement: With bespoke marketing and promotions aimed at individuals, it increases their effectiveness and results, producing greater engagement, retention, and conversion rates.
Conclusion
A modern combination of behavioural analytics, customer profiling and dynamic trading allows operators to garner a deeper understanding of both risk and user experience.
Player Segmentation and Risk Profiling have a significant impact on reducing exposure, providing a more strategic approach to engagement, and resulting in greater profitability.
With the sportsbook market increasing in competitiveness, implementing these trading models becomes essential for any operator looking to take a data-driven approach to operations whilst becoming future-proof and agile.
