NGR-to-Deposits

NGR/Deposits is a measure of how much revenue is raised from the deposits made. Obviously, the higher the rate-the better.

Bets-to-Deposits

Bets/Deposits – thisis the rate of circulation of deposited money in the games. High bets/deposits means that the casino has given out too many bonuses.
In short, money-related KPIs indicate the state the casino is in: whether it’s making profit or not, or whether it’s generating revenue or not.

HYBRID KPIS

They are called “hybrid” because they are used to connect money metrics and people-related indicators.

Cost per Acquisition

The first one is called Cost per Acquisition, or CPA. It reflects the amount of money it costs to get one player to sign up and deposit. For example, if you spend $10,000 on your marketing campaign and generate 100 first-time depositors (FTDs). The CPA here is $100 per each acquired player. $10,000/100 FTDs=$100.

Different marketing channels and promotion methods will result in different CPA values. This makes the key difference, because thousands of players with high CPAs can bring the casino the same profit as a couple of hundred easily acquired ones.

Average Revenue per User

Average Revenue per User (ARPU), or CPA shows how much an average player brings to the casino and is usually measured per month. We calculate the ARPU by dividing the casino’s revenue for a given month by the number of active players during that same month.

PEOPLE-RELATED KPIS

To improve on the parameters mentioned above, the casino needs to understand the KPIs that are relation to active or potential players.

Conversion Rate

To improve on the parameters mentioned above, the casino needs to understand the KPIs that are relation to active or potential players.

Number 1 - Visit to registration %= % of people who signed up as players to everyone who visited the website.

Number 2 - In its broadest sense, conversion rate is a proportion of people that behaved the way you wanted (e.g. clicked on your advertisement) to the total number of people who had a chance to do so (e.g. all people who saw the ad). For an online casino we can define two types of conversion rates.

Conversion rate 1: Visit to registration = % of people who signed up as players among all those that visited the website.

Low conversion rate means that there’s something wrong with the quality of traffic you bring to the site. It might also mean that the design of your website needs to be worked on or it needs to be made more user-friendly.

Conversion rate 2: Registration to deposit = % of all registered players who made an FTD.

This ratio is very important, especially if you give away free spins of bonuses for registration, before a player actually makes an FTD.

Customer Lifetime Value

Player Lifetime Value (LTV) tells us how much revenue a player brings to the casino throughout their entire stay with the website. Increasing player LTV is tha aim of any online casino’s marketing efforts. To increase the LTV, casinos must achieve higher customer lifetime, meaning that the player has to want to come back for more, and a higher average order value, which in our case is the mean revenue per gaming session.

We calculate player LTV by multiplying the monthly ARPU by the average playing lifetime in months. This is quite difficult, because “player lifetime” is tricky to calculate, especially if the casino hasn’t launched too long ago. A widespread technique used to calculate “Player Lifetime” is called cohort analysis. There are lots of posts on this online.

Churn Rate

Churn Rate (CR) is sometimes called the Attrition Rate. Unfortunately for all casinos, players tend to move from site to site in search of new emotions, goodes, free spins and bonuses. The churn rate shows the proportion of players who discontinued playing at the casino to active players from a specified period. A low CR rate is a good indicator of a casino that is performing well and has a great retention strategy. Players are loyal to the casino and keep coming back for more.

Let’s sum up.. all KPIs in the iGaming business are inter-connected and crucial for the analysis of casino performance.

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