How is my business doing? This question, asked by business owners of all types around the world, is essential to know whether their current strategy is working or whether they need adjustments to improve. In online casinos, it is no different. To get an answer, we can rely on some key metrics, which give us an overview of how the business is doing.
In this article, we will explain what are the most important metrics for online casinos. We will divide them into four main groups: revenue, players, marketing and operational metrics.
Revenue metrics
The revenue metrics are those that help you understand whether your business is generating profits and how much you are earning. Among them, we can include:
Gross Gaming Revenue (GGR)
Gross gaming revenue is the total amount of money your business makes after subtracting the total amount paid out in winnings to players. If your online casino has at least a 10% increase in GGR per year, you don’t need to worry. Numbers below this percentage indicate that your business can improve.
Net Gaming Revenue (NGR)
The net gaming revenue, on the other hand, is the total amount of money your business makes after subtracting bonuses, promotional costs, and other player incentives. This metric provides a more accurate picture of your business’s profits and should grow by at least 5% per year.
Average Revenue Per User (ARPU)
This metric tells the company how much profit it makes on average from each player. Making between $100 and $200 per month per user is healthy for most online casinos.
Player metrics
These metrics seek to understand user behavior, engagement and retention.
Player retention rate
This metric is the percentage of users who continue to visit your online casino over a given period of time. The higher this number, the more loyal and satisfied your players are. If your retention rate is above 70% over a one-month period, you have nothing to worry about. If the number is lower, your business may need to adopt more interesting strategies to keep your players engaged and loyal.
Churn rate
Churn rate indicates the percentage of players who have stopped using your online casino in a given period of time. A low number in this metric is a sign that your users are engaged and satisfied. A rate below 5% in a month is excellent.
Player lifetime value (LTV)
Player lifetime value is the total expected profit per user, on average, over the course of their entire experience at your online casino. This metric, when compared to the customer acquisition cost (CAC), which we will explain next, will give you an idea of how profitable your user base is. Your business should aim for an LTV that is around 3 to 4 times higher than your CAC.
Marketing metrics
Marketing metrics are important for evaluating the success of your campaigns and understanding how your casino is attracting and converting new players.
Customer Acquisition Cost (CAC)
This metric indicates how much your company spends, on average, to acquire a new player. The lower this number, the more effective your marketing campaigns are – a CAC of less than $200 is generally considered effective for most online casinos.
Return On Investment (ROI)
The Return On Investment is calculated by dividing the profit by the marketing costs. The higher this number, the more effective your marketing campaigns are – a ROI of 5:1, or five dollars earned for every dollar spent, is considered an indicator of success.
First-Time Depositors (FTD)
The metrics measures the proportion of new users who convert into first-time depositors. A conversion rate higher than 20% usually indicates that your online casino is successful.
Operational metrics
Operational metrics indicate the efficiency and effectiveness of the services offered by your online casino.
Downtime
Downtime is the period of time that your casino platform is unavailable to players. Ideally, your services should be available more than 99.9% of the time, meaning that your downtime should be less than 9 hours per year.
Transaction speed
Transaction speed refers to the time it takes for players to deposit or withdraw money. The faster transactions are completed, the more satisfied customers are. Online casinos should process deposits instantly and offer withdrawals within 24 hours.
Customer support response time
Customer support response times are crucial to keeping your players loyal. Ideally, you should respond to users within an hour and resolve their issues within 24 hours.
For online casino owners, it is important to constantly monitor these metrics and compare their progress over time. This way, you will be able to see which areas of your business are performing well and which need adjustments to improve. Remember that the goal of your business is to generate profit, but to achieve this, it is essential not only to attract new customers, but also to keep them engaged and satisfied for as long as possible.
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