The same indicators are used by online and land-based casinos, as well as other online gambling platforms, to gauge their success over time. They’re called Key Performance Indicators (KPI), and they’re crucial when officials are trying to figure out how to enhance their firms. If you’re curious in how success is assessed in the iGaming industry, read on for a quick summary that will give you a better understanding of what goes on behind the scenes.
Gaming Revenues Gross
The gross gaming revenue (GGR) is likely the most essential financial metric, since it reveals how much money a gambling establishment made during a given time period. All you have to do now is subtract the number of winners from the total amount of money wagered on all games.
For example, if bets totaled $5 million and rewards totaled $4 million, GGR equals $1 million.
Gaming Revenue (Net)
The gross gaming revenue (GGR) is not an objective measure of a casino’s earnings. Net Gaming Revenue (NGR) is the total revenue after all expenses have been subtracted, including royalties and running expenses.
This metric is essentially a ratio that shows the amount of revenue generated by patron deposits over a given period of time. The higher the values, the more money you’ll make. If the ratio is low, the casino may have had a lot of winnings within that time period.
This indicator will show how much money was really wagered from players’ deposits. If the values are low, gamers will lose money quickly. Players that have high valuations don’t lose money as quickly as they should. If this ratio is unusually high, it indicates that the slots’ random number generators may be malfunctioning (technical/malfunction concerns).
KPIs that are focused on people
Businesses benefit from indicators relating to past, current, and future players because they assist them enhance their operations.
Rate of Conversion
The conversion rate simply tells how many people completed the task you intended them to complete in the first place. This might be the number of people who came to your casino after seeing an advertisement, the number of individuals who registered on the platform, and the number of people who made their first deposit in an online casino.
Your goal, for example, was to get people to click on the ad and visit your website. A high conversion rate indicates that a large number of users took action. A low signal indicates that your ad isn’t very excellent and that you need to improve it in order to attract more gamers.
Value Over Time
The entire amount of money a client puts to your casino throughout the time they are engaged on the platform is known as life-time value (LTV). It is preferable to have a greater LTV.
Rate of churn
The churn rate at your casino is the number of players who have stopped playing compared to those who have remained active. As a result, most casinos like Mega888 Malaysia strive to keep this rate as low as possible at all times.
ARPU stands for Average Money per User, and it simply refers to how much revenue a single casino game player generates to your iGaming organisation. This is computed by multiplying your GGR by the amount of users you have during that time period.
You Want Automatization, Right?
Despite the fact that some KPIs are more significant than others, they are nonetheless quite beneficial for anticipating your financial or marketing strategy. The good news is that many excellent casino software companies offer automated KPI calculations, allowing you to get financial data whenever you choose.
It’s up to you, though, to make the greatest use of that data and devise the most effective strategy for improving your casino’s operations, attracting more customers, getting them to spend more money, and eventually generating more revenue.