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How online casinos calculate customer value



Not all players have the same value to the company. Some customers will use their welcome bonus and never come back, while others regularly spend large amounts and become loyal customers. But how do websites separate the wheat from the chaff? In this article we will look at all the tactics online casinos use to calculate the value of their customers.



Lifetime value analysis



When a company truly understands a player's lifetime value, it means they can tailor their advertising to their individual wants and needs.



Understanding the lifetime value of customers is an important tactic for online businesses. This allows them to assess where their profits are coming from, make strategic decisions about which games and offers to invest in, and predict how they will get the best returns. Understanding which customer segments are most profitable and engaged is key to successful marketing and increasing profits.



To increase lifetime value, you need to increase both the likelihood of a new customer returning to your business and your average sales.



Long-term costs can be calculated in a number of ways. Simpler methods use calculations such as total sales divided by the total number of customers. More sophisticated models, however, can determine more accurate figures. This may require months of user activity data, so it will take some time to get results.


Factors to consider



There are a number of factors that online businesses should consider when trying to determine lasting value and how it can be improved, including:



  • Bidding requirements

  • welcome bonuses

  • free spins

  • initial deposit options that have an impact



These can be broken down into three core areas:



Player behaviour



One of the ways an online casino can predict the lifetime of a new player is by analysing their behaviour during and around play. A player who signs up for newsletters about new gaminator 3 games and gaming tactics is likely to be someone who takes their casino games seriously. For example, a player looking for expert advice on reputable sites will find similar blogs written by gaming expert John Grohowski offering tips on winning slots to improve their game.



They are more likely to wager larger amounts or play more frequently than players who simply want to benefit from a sign-up promotion. According to Pareto's Law, 80% of a company's profits come from only 20% of its customers.



Customer requirements



The bidding requirements set by the online platform can affect the overall value of the customer. Those with lower wagering requirements may find that players spend more after using their first deposit or welcome bonus, while those with higher requirements are more likely to attract customers with a greater commitment to the game or those who like to take risks.


Account Activity



It is also likely that customers who sign up and claim a welcome bonus but then leave their account inactive for a few days will not have much lifetime value for. Casinos do not want to offer free games or free spins on slots to players who do not revisit the site and spend money.



Targeting



Targeting players who are likely to spend more means that casinos can be sure of gaining more business from their most loyal customers.



By identifying customers who take their services seriously, a business can use targeted advertising and promotions to build customer loyalty and increase overall satisfaction. The goal is to achieve a lower churn rate, which is the number of customers who stop playing on the site after a certain amount of time.



You can identify customers who are most likely to participate in loyalty programmes and even give them exclusive access to newly released games or game guides. Loyalty bonuses are usually awarded to players with the highest lifetime value.

A long-term cost analysis proves that blindly targeting their offers to all consumer segments is not an effective way to achieve a good return on marketing investment. To get the best return on investment, companies need to build and nurture the relationships that will bring them the most profit.



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