How Can User Research Boost Key Metrics in iGaming?

In the highly competitive world of iGaming, where online gaming businesses battle for player attention, user research became an essential tool for companies to optimize user experience, increase customer loyalty and save money while boosting key performance metrics. In this article, inplaySoft will explore the significance of user research in iGaming, how it saves money and how it drives key business metrics for success.

What’s User Research?

User research is the process of collecting and analyzing data about users, such as their behaviors, preferences, motivations and pain points, to create a deeper understanding of their needs. This research provides insights that can inform product design, marketing strategies and customer support initiatives. In iGaming, this process is even more important due to the industry’s unique demands, which include user engagement, retention and conversion. By focusing on user-centric design and strategies, iGaming companies can create experiences that cater to their customers and outperform the competition.

How User Research Saves Money

While some might assume that investing in user research requires a significant upfront cost, the return on investment (ROI) it generates makes it an invaluable resource for iGaming businesses because it can:

Reduce Customer Acquisition Costs (CAC)

One of the largest expenses for iGaming businesses is customer acquisition. Marketing campaigns, whether through digital ads, social media, influencer partnerships or promotions, can be expensive. Without a clear understanding of the target audience, these marketing efforts may fall short in reaching the right customers.

User research helps to identify player personas, behaviors and preferences, which enables iGaming companies to create targeted marketing campaigns. By tailoring campaigns to appeal to specific segments, businesses can reduce the cost per acquisition (CPA) by reaching the right audience with the right message at the right time.

If research reveals that a segment of players prefers mobile gaming, for instance, marketing efforts can focus on mobile-first campaigns, driving higher conversion rates and reducing marketing spend on channels that are less effective for that audience.

Improve Retention Rates

Acquiring new users is only one part of the equation in iGaming. Retaining them and ensuring they stay engaged with the platform over time is just as important – if not more so. The cost of retaining existing users is generally lower than acquiring new ones, making retention a more cost-effective way to increase revenue.

User research can help identify why users churn and what drives engagement. If research shows that players tend to abandon games due to confusing user interfaces or poor navigation, for example, the business can streamline these areas, reducing friction and increasing retention. By continuously gathering insights about user behavior and preferences, iGaming businesses can make data-driven adjustments that increase user satisfaction and loyalty, ultimately reducing churn and enhancing lifetime value (LTV).

Optimize Product Development

In the iGaming industry, the speed at which new features and games are developed can give businesses a competitive edge. However, if those features are not what players want or need, the investment can go to waste. User research enables businesses to make good decisions about game design, UI/UX improvements and new features, ensuring that the product is built with the user in mind.

User testing might reveal, for instance, that players favor live dealer games over slot machines or that they have strong preferences for certain game themes. By identifying these trends early, iGaming businesses can allocate resources to develop content that is more likely to resonate with their audience, resulting in better user engagement, fewer resources spent on unsuccessful features and an overall better product-market fit.

Minimize Risks

Launching a new game, promotion or platform feature without understanding the user’s needs and expectations is risky. Businesses that fail to understand their users may face backlash, poor reviews and financial losses. User research mitigates this risk by providing data that helps businesses make good decisions before launching new initiatives.

User testing can help identify potential usability issues or areas of dissatisfaction in a game before it’s launched to a broader audience. Addressing these concerns early helps businesses avoid costly mistakes and ensures a smoother user experience once the product is live.

Better Decision Making

Ultimately, user research equips iGaming businesses with the insights to make data-driven decisions, eliminating guesswork. Whether it’s adjusting the pricing of in-game purchases or designing an intuitive interface, decisions rooted in solid user data are more likely to succeed and lead to measurable financial gains.

Boosting Key Metrics with User Research

User research isn’t just about saving money, as it also directly impacts critical performance metrics for iGaming businesses. These include metrics about user acquisition, engagement, retention and revenue growth.

User Engagement

User engagement is one of the most important metrics for iGaming businesses, as it directly correlates with revenue. When players are engaged, they are more likely to spend money, whether through in-game purchases, betting or subscribing to premium features.

By conducting user research, iGaming companies can identify what keeps players coming back. This could be the gameplay mechanics, social features like multiplayer modes, rewards systems or community events. Enhancing these aspects boosts user engagement, which leads to more active players who contribute to higher revenue.

Conversion Rate Optimization (CRO)

Conversion rate optimization refers to the percentage of visitors who take a desired action, such as signing up, depositing money or making their first bet. With insights from user research, iGaming businesses can identify friction points in the user journey that might prevent users from converting.

User research, for example, might show that players abandon the registration process because it’s too lengthy. Simplifying the process can increase conversion rates and lower the abandonment rate, leading to more sign-ups and higher revenue potential.

Lifetime Value (LTV)

User research helps to enhance customer lifetime value (LTV), a crucial metric that tracks the total revenue generated by a player over the duration of their relationship with the platform. By improving the user experience, personalizing offerings and addressing pain points, iGaming companies can extend the length of time a player remains active on the platform, thus increasing their LTV.

If user research indicates that players prefer certain types of bonuses or rewards, offering these incentives can lead to greater player loyalty and an increase in LTV.

Customer Satisfaction (CSAT) and Net Promoter Score (NPS)

Customer satisfaction and Net Promoter Scores (NPS) are critical indicators of user loyalty and advocacy. By consistently collecting feedback through user research, iGaming companies can track and improve these scores, creating a more positive experience for their players. Happy customers are more likely to refer others to the platform, leading to organic growth and lower customer acquisition costs.

Final thoughts

User research is a powerful tool for iGaming businesses looking to save money and boost key metrics. By providing valuable insights into player behavior, preferences and pain points, user research helps companies optimize marketing strategies, improve user experience, reduce churn and increase revenue. In an industry as competitive and fast-moving as iGaming, leveraging user research is no longer optional – it’s essential for long-term success.