key performance indicators in an online gambling business can’t be ignored 2022
Online and land-based casinos and other online gambling platforms use the same things to measure how well they did over a certain amount of time. They are called Key Performance Indicators (KPI), and they are very important when officials need to figure out how to improve their businesses. If you want to learn more about how the iGaming industry measures success, read this short summary. It will give you a better idea of what goes on behind the scenes.
GGR: Gross Gaming Revenue
GGR is one of the most important financial indicators. It shows how much money a gambling business made over a certain amount of time, which is important. Only subtract the number of players’ winnings from how much money was made by bets on all games and you’re done. Suppose that people bet $5 million and won $4 million. The GGR is $1 million.
The money is made from playing games on your computer or phone. GGR isn’t really a good way to tell how much money a casino makes. That’s called Net Gaming Revenue (NGR), and it shows the total revenue after all costs, such as royalties or operating expenses, have been taken out. Another KPIs that aren’t about money are also there. GGR and NGR aren’t the only things that casinos look at. There are two other things that they look at as well.
This is a ratio that shows how much money was made from deposits made by customers over a certain amount of time. The more money you make, the higher the values. During that time, a lot of people may have won at the casino.
This indicator will show how much money players actually bet. If the values are low, it means that people lose money quickly. High numbers mean that people don’t lose money as quickly as they should. Out of the ordinary: If this ratio is out of the ordinary, it means that slots might have technical or malfunctioning problems with their random number generators.
KPIs that are focused on the people who use them
People who have played in the past, now, and in the future are also important to businesses because they can help them improve their operations.
The conversion rate
In simple terms, the conversion rate shows how many people have done what you wanted them to do in the first place.
How many people came to your online casino after seeing your ad, how many people signed up for the platform, and how many made their first deposit.
For example, your goal was to get people to click on the ad and go to your site. This means that many people did what they said they would do. It would mean that your ad wasn’t very good and that you need to work on it to get more people to play.
Value for the long term
It shows how much money a customer has put into your casino over the time they’ve been on the platform. This is called “lifetime value.” The more LTV, the better.
The Churn Rate
The churn rate is the number of people who stopped playing in your casino compared to the number of people who have been playing for a certain amount of time. It’s because of this that most casinos want to keep this rate down at all times.
Hybrid KPIs: These are KPIs that are mixed with other things.
In the end, there are some “hybrid” KPIs that look at both finances and how well the app works for its users.
Cost of each new customer
A visitor must open an account and deposit money in order to do this. A good CPA should be as low as possible.
ARPU stands for Average Revenue per User, and it tells you how much money a single casino games player makes for your iGaming business. Over a certain amount of time, this is how you figure out how much your GGR was over that time.
The conclusion is automating.
If you’re planning your financial or marketing strategy, KPIs can help. Even though some are more important than others, they can still be very useful. The good news is that many of the best casino software providers have automated KPI calculations so that they can keep track of financial indicators at any time you need them. Then, you have to use that information to make your casino better, attract more customers, get them to spend more money, and ultimately make more money for your business. However, that’s up to you.