Predicting and analyzing your online casino’s churn rate is critical; this data is essential for enhancing your performance and increasing earnings. What caused players to abandon the platform? Is it likely that they’ll return? How can you reclaim them, and what efforts can you make to reduce churn? Continue reading to find out.
What is the churn rate, and how is it determined?
Churn, also known as attrition rate, refers to the percentage of users who stop using the platform and leave after a certain time. It’s the polar opposite of retention in that it shows how many gamers signed up and played on your platform before abandoning it.
Every gambling site today strives to reduce turnover. With the help of existing tactics and CRM strategies, you can keep your customers engaged and cut churn dramatically. However, there are two numbers to remember when it comes to churning: customer churn rate and revenue churn rate.
According to statistics, if a gambling corporation boosts its retention rate by at least 5%, its profit can increase by 95%. Therefore, many marketers think that lowering the turnover rate should be the most important thing for any business, no matter what it does.
How do you keep gamers from leaving online casinos?
Identify the cause
To avoid losing a client, start by identifying the primary triggers. Then, to figure out which components of the product need to be modified or enhanced, you’ll need to talk to your customers.
Offer a wide range of games
Any online casino should offer various games from reputable sportsbook software providers. Furthermore, you should regularly improve your catalog:
- Include titles that are popular in your area.
- Stay up to date on your providers’ scheduled releases.
- Diversify your offering as much as possible.
This endeavor to keep customers helps to lower the turnover rate.
Make yourself stand out from the crowd
Upgrade your product by understanding what makes it unique. For example, you can expand your game selection by adding live dealer games, hosting tournaments, providing generous bonuses, or establishing a loyalty program.
Keep a proactive mindset
You must learn to anticipate potential challenges your athletes may face and identify solutions before they become a problem. Answer your players’ queries before they ask them, and connect with them effectively by announcing new updates, features, and product enhancements—any engagement will raise brand recognition.
Reacquisition: a win-back strategy
Once you understand why your players depart, you can take steps to address the issue and reduce churn in the future. You can also use the data to develop a win-back strategy—a plan to try to reclaim players who have been lost through churn.
Operators should consider the effort required and the possible outcomes before addressing the players again. Is it really worth it? Your reacquisition strategy will have costs, and the planning quality will largely determine the success of the strategy. Before initiating a reacquisition strategy,
Operators should consider the following questions:
- What is the likelihood of a player returning?
- When the player returns, how long will they stay?
- Will the player be profitable enough to make the effort worthwhile?
These questions necessitate some guesswork, but they are nonetheless necessary. The first two questions can be answered by looking at why players left.
Remember that reactivated gamers must also go through a retention procedure, so returning to the platform is simply the first stage. You shouldn’t waste time and money trying to reclaim a customer you won’t be able to keep.
Once you know what percentage of players who left your online casino due to churn is likely to come back, stay, and play enough to make you money, it’s time to come up with a strategy to bring them back.
Operators typically give bonuses and upgrade their services and goods to regain players’ trust and urge them to return to their online casino. It’s worth mentioning that combining these two win-back tactics produces the best short-term outcomes; however, players who are reactivated this way are unlikely to stay for long. When only one of these strategies is used, on the other hand, the win-back rate goes down, and the second-lifetime value of re-acquired customers goes up.
Another thing to remember when reacquiring churned players is that the quality of their initial experience is critical to your win-back attempts. Regardless of the challenges that led to their departure from the platform, reactivation would be much easier if their first experience included favorable aspects to which you could appeal. The most excellent method to reduce churn is to provide a high-quality product.