Let’s face it. There is so much data available in 2024 that it can be overwhelming. I bet you are reading this in between reviewing Excel spreadsheets for hours on end. The truth is, while the availability of data and the vast capabilities that businesses possess to process that data is impressive, it can also be daunting.
Narrowing down the most important data points for your specific project is paramount to achieving results effectively and efficiently. In an industry dominated by data like igaming, this requirement is amplified to no end.
To help better understand some of the most important KPIs in igaming, CasinoBeats caught up with iGP’s Head of Product, Luka Markota, who identified six data points that can make or break your igaming venture.
Deposit Conversion Rate
The Deposit Conversion Rate measures the percentage of visitors who convert into depositing players, and Markota identifies this as “one of the standout metrics in igaming”.
“When you have information regarding the first deposit and potentially second deposit from any player, this will often indicate the lifetime value of the player,” he explains.
“It is important to have the technology in place that can track this data and provide the guidance on how to improve your number of unique visitors that are transcending into first-time depositors.”
Average revenue per user (ARPU)
The ARPU is a self-explanatory metric which is, of course, key to understanding how engaging products are with users and measuring how profitable they are.
Often used in industries leaning on subscription services, ARPU is essential for understanding player spending behaviour with a certain product.
“Where igaming differs from an industry like media is that some users spend considerably more than others, it is still an extremely useful metric when comparing one operator’s performance against another,” says Markota.
“Management will often take the ARPU number into account when assessing which products are performing well, and which ones will need a different approach.”
Customer lifetime value (CLV)
CLV can help assess long-term customer value and consequently guide future investment decisions in customer retention and acquisition strategies.
Markota outlines: “If players churn before the investment to acquire them has been made back, then the operator is not extracting any worthwhile value from them.
“Your understanding of this value may be deemed from a player’s first or second deposits, but CLV is ideally about measuring the value across a long-term period as opposed to a purchase-by-purchase basis.”
Retention rate
A measurement of the number of players who continue to play on a platform across a defined period, the retention rate is essential to assessing how well a product resonates with players.
“A strong retention rate will be proof of a functioning customer relationship management system,” says Markota. “The way to implement this is to track the number of players who are returning with several deposits, along with the accounts that are inactive.
“This is an important KPI when it comes to both short-term and long-term success. Remaining on top of this can reduce your costs, because it can be significantly cheaper to retain players rather than acquire new ones.”
Monthly active players
Another self-explanatory KPI, but a crucial one nonetheless. The monthly active players data is crucial in determining the overall health of an operator’s player base.
“For a player to class as an active user, they would usually have to perform an in-app action during a 30-day period, whether that’s logging in or completing a specific action, such as making a bet or deposit.
Markota continues: “The number of monthly active users can also be compared with the number of daily active users, which will provide more insight on how players are really engaging with an igaming offering.”
Average deposit rate
Last but not least, Markota identified the average deposit rate to make the top six KPI list.
“Monitoring this metric helps operators understand player deposit behaviour and optimise deposit-related promotions and incentives,” he notes.
“This number can vary based on a number of factors, but the important thing is to delve into these reasons and compartmentalise the different deposit rates from separate player demographics.
“Once you have understood these reasons, you can plan how to track this data and utilise it to improve performance. This figure may fluctuate, but it’s crucial to be on top of when and why this may happen.”
‘Providing expertise to operators’
“Simply knowing the most important KPIs for igaming success simply isn’t enough to identify an igaming platform’s strengths and weaknesses”, explains Markota.
That is why iGP leverages the vast experience and expertise of its product and technology teams to provide in-depth reporting to its clients to ensure they have a holistic understanding of the health of their player base. And regular reporting is even more crucial to get an accurate and contextual view of those vital signs.
“We constantly track these metrics and provide expertise and advice on how to improve and maintain performance based on the data we have,” Markota notes.
“This helps our partners drive growth, enhance the player experience, and maintain a competitive edge. With these insights, operators can make smarter, data-driven decisions which will provide benefits in both the short and long-term.”
But there are, of course, challenges to measuring and reporting such vital metrics. Firstly, the integration process must be strong enough to import the necessary data information. Yet, there is a less technical challenge that operators and suppliers alike must overcome.
What defines good performance?
The industry likes to keep its cards close to its chest when reporting these metrics publicly as to retain crucial information it can benefit from. So challenges arise when benchmarking because there isn’t enough readily available data. This can make some look red-faced, but iGP is confident that the decades of cumulative experience that its team possesses will help it to overcome these hurdles.
“We possess an extensive amount of industry experience, so when it comes to benchmarking data, this is something members of our team can gauge based on their industry knowledge,” Markota boasts.
“We always have to remain on top of what operators expect from us, and we will work with them to define what their KPIs should be. Operator feedback is important to us, so we can use the data our partners already provide us to benchmark and take things from there.”
Commercial challenges aside, Markota does concede that the industry could be more transparent when it comes to data, noting that being a little clearer – without giving away sensitive information – can open up the industry to players and help them understand behaviours even more.
However, for the time being, iGP remains ready to be there for its clients in providing its varied igaming solutions. It also commits to offering robust data, and corresponding insights and advice to ensure it continues to enjoy fruitful and long-lasting partnerships.
As Markota concludes: “We have always managed to demonstrate the long-term benefits of the reporting suite by consistently providing feedback and expertise, while also taking into account what our partners need us to track.
“Keeping an open dialogue with the operator is crucial, and we will always provide the best possible assistance we can in trying to keep on top of each metric.”