It is a proven fact that the timely calculation of customer outflow will not only minimize the loss coefficient but also significantly increase the time players spend on the website. In this article, we will consider how to calculate the Churn rate in online casinos and methods for retaining reactivated users.
The outflow of players is the loss of online casino customers due to the absence of any activities on the site for a long period of time.
WHY PLAYERS LEAVE THE ONLINE CASINO SITE: MAIN REASONS
The task of each gambling resource is to minimize the level of customer churn. Having correctly identified the causes of customer churn, the company will be able to predict the potential loss in advance. As a rule, a user leaves an online casino only when he loses interest in the products offered by the company. Therefore, the goal of each operator is to maximize the level of interest among players by developing unique solutions and products.
The main reasons for the gamblers’ outflow are the following ones:
- reduced involvement and a low level of activity on the site. This point includes a decreased number of calls to the support service, the number of visits to the site, and the amount of time spent previously by the user on the resource.
- bad service. Online casinos must provide players with 24/7 customer support, otherwise, complaints may cause their loss;
- competitors offer better services. The gaming segment is constantly evolving. Each operator tries to offer something new, unique, which is not the case with other similar companies. In order to avoid the loss of gamblers, it is necessary to constantly update the range of games.
HOW TO CALCULATE THE PERCENTAGE OF THE PLAYERS’ OUTFLOW
Today, every gambling site faces the problem of losing players. However, thanks to the implementation of existing methods and CRM-strategies, it is possible not only to preserve the already existing customer base but also reduce the percentage of loss significantly. Calculate the outflow rate (churn rate) by the formula:
Churn rate = number of players left for a certain period of time ÷ number of players at the beginning of a period
For example, if at the beginning of the month, the total number of players in the online casino was 2,000, and at the end of the month, 500 players decided to leave the gambling resource, the result would be as follows:
500 ÷ 2000 = 0.25% customer churn
Some companies prefer to determine the outflow of players in the form of a cash equivalent of the profit that they could receive if they were active. Then the client’s loss calculation formula will look like this:
Number of players left · Average check · Number of player’s payments for a certain time = Cash loss from the players’ outflow
For example, if 500 gamblers left the gambling resource for the last month, the size of the average check is $500, and the number of payments made is 8, the lack from the players’ loss in monetary terms is:
500 people · $500 · 8 payments = $2,000,000
Statistics show that if a gambling company increases the retention rate of attracted customers by at least 5%, its profit will increase by 100%. It is worth noting that many marketers believe that reducing the outflow rate should be a priority in any company regardless of its direction.
HOW TO PREVENT THE OUTFLOW OF PLAYERS FROM ONLINE CASINO: EFFECTIVE METHODS
Determine the cause
To prevent client loss, the operator needs to understand in advance what could be the main reason for that. Interviewing and communicating with customers will help determine what exactly gamblers lack in a gambling resource, what can be added, changed or improved.
Large assortment of games
In the case of online casino players, the only thing they are interested in is games. Therefore, the gambling resource must have a wide range of games from well-known software developers constantly adding and updating them. Such a step helps to reduce the number of the gamblers left.
Determine what is your main feature
The key metric of the famous AirBnB service is the ability to book accommodation for one night. Understand the value of your product for Internet users, what benefit your casino has.
Proactivity is a key to success
You should not wait for the player to come up with the problem, you need to find a solution before this problem appears. Give answers to customers’ questions before they ask them. Communicating with players, warning about current updates, features, novelties, and products will interest users. Based on the results of a recent study, specialists from Experian company determined that personalized email distribution to make people familiar with the products allowed to attract a large number of the recipients of these letters.
There are many marketing tools the use of which contributes to the return of the lost gamblers back to the site: retargeting, email distribution, content marketing, new products, and solutions, replenishing the range with unique gaming content, posting comments, conducting various promotions and tournaments. Do not miss the opportunity to “reanimate” old accounts. The right way to achieve this is sending a reactivation letter which will determine the real status of the client. If a player responds to a message, it’s too early to consider him “dead”.