Many iGaming brands enthusiastically jump from one strategy to another, never quite achieving their desired results. They track dozens of metrics but still can't pinpoint why their campaigns underperform or why players churn. Sound familiar? Let's explore the five critical KPIs that will bring clarity to your decision-making and drive sustainable growth.

Gross Gaming Revenue (GGR)

GGR represents the total gaming revenue before expenses and serves as the primary indicator of an iGaming operation's financial health. This core metric is calculated by subtracting player winnings from the total amount wagered, offering a clear picture of gross profit from gaming activities. GGR is essential for:

• Evaluating market performance: GGR provides immediate insight into gaming activity and betting volume, allowing for a direct comparison with industry benchmarks.
• Tracking business growth: By monitoring GGR over time, brands can assess their growth trajectory and identify areas for improvement.
• Measuring promotional effectiveness: GGR helps quantify the impact of marketing campaigns and promotional efforts by tracking changes in revenue.

How Blask enhances GGR analysis

Blask has introduced the estimated Gross Gaming Revenue (eGGR) metric, which is based on public data and AI predictions. Here's how operators can use Blask eGGR:

• Blask defines eGGR as a range, not a specific value. If your brand's figures fall within Blask's calculated range, it indicates your performance aligns with the market. If below, it suggests a need for attention to conversions and products. Exceeding Blask's range means you outperform the market.
• With eGGR, brands can compare performance indicators with direct competitors, understanding who performs better and how marketing strategies affect revenue.

By analyzing eGGR brands can make informed decisions about:

• Market expansion: understanding whether to focus on markets with high player counts but lower ARPU or those with fewer but higher-value players.
• Revenue sources: identifying whether revenue comes from new player acquisition or retention of existing players.
• Marketing effectiveness: tracking how commercials, sponsorships, and brand awareness impact revenue.

Average Revenue Per User (ARPU)

ARPU measures the average revenue generated per player and is one of the most critical metrics for understanding player value. This metric provides insights into the monetization effectiveness of your platform, guiding pricing strategies and identifying high-value player segments.

Key Benefits:

• Monetization Effectiveness: ARPU helps assess how well your platform converts player activity into revenue.
• Pricing Strategies: Understanding ARPU can inform pricing decisions, ensuring sustainability and profitability.
• Player Segmentation: ARPU can highlight high-value player groups, allowing for targeted marketing and retention efforts.

Calculation of ARPU

To calculate ARPU:

1. Sum Player Revenue: Add up the total revenue generated from all player activities over a specific period. This includes:
   • Deposits
   • Wagering amounts
   • Revenue from in-game purchases (if applicable)
2. Total Number of Players: Determine the total number of unique players who engaged with your platform during the same period. This includes both active players and those who may not have generated revenue.
3. Divide Revenue by Players: Divide the total revenue by the total number of players to get the average revenue per user.

Mathematical Representation:

Example: If your platform generated $1,000,000 in revenue and had 10,000 unique players in a given month, the ARPU would be:

This means the average revenue per user for that month is $100.

Using ARPU in iGaming

• Benchmarking: Comparing your ARPU with industry standards or competitors to assess performance.
• Player value: Identifying valuable player segments and tailoring marketing efforts accordingly.
• Pricing adjustments: Using ARPU to guide decisions on game pricing, promotional offers, and loyalty programs.
• Product development: Allocating resources to features and games that drive higher ARPU.

Remember the distinction between ARPU and ARPPU (Average Revenue Per Paying User). ARPU considers all players, while ARPPU focuses solely on revenue from paying customers, offering a different perspective on player value.

Player Retention Rate (PRR)

PRR measures the percentage of players who continue to engage with your platform over time, serving as a key metric for gauging customer loyalty and the effectiveness of your engagement strategies. A high PRR indicates strong player satisfaction and can lead to:

• Reduced Acquisition Costs: Retaining existing players is typically cheaper than acquiring new ones.
• Increased Lifetime Value: Loyal players tend to have higher levels of engagement and contribute more to revenue over time.
• Brand Loyalty: High retention rates signal that players enjoy the gaming experience and are likely to recommend your brand to others.

Calculation of PRR

To calculate PRR:

• Define the measurement period: Choose the period over which you want to measure retention, such as 1 day, 7 days, 14 days, or 30 days. This period is often referred to as the "retention window."
• Identify cohorts: Group players based on their first engagement or registration date. Each cohort represents players who joined during a specific time frame.
• Count returning players: Within the chosen retention window, count the number of players from each cohort who return to your platform.
• Calculate the retention rate: Divide the number of returning players by the total number of players in the cohort and multiply by 100 to express the result as a percentage.

Mathematical representation:

Example:

• Suppose you have a cohort of 10,000 players who registered on day 1.
• After 7 days, 2,000 players from that cohort return to your platform.
• The 7-day PRR would be:

Interpreting PRR

• Short-term retention: A high 1-day or 7-day PRR indicates that players are engaged and likely to return quickly. This is a positive sign of immediate player satisfaction.
• Long-term retention: A 14-day or 30-day PRR provides insights into sustained player engagement, reflecting the effectiveness of long-term retention strategies.
• Benchmarking: Compare PRR with industry averages to assess your performance and identify areas for improvement.

Strategies to Improve PRR

• Diversify game offerings: Regularly introduce new games to keep players interested.
• Loyalty programs: Implement programs that reward player loyalty with bonuses, promotions, and special events.
• Personalization: Tailor experiences to individual player preferences and behaviors.
• Targeted promotions: Use targeted marketing to keep players engaged and offer incentives for continued play.

Player lifetime value (PLTV)

PLTV calculates the total value a player brings throughout their entire relationship with your brand. This metric is vital for:

• Planning long-term strategies: Understanding the long-term worth of players helps allocate resources effectively.
• Optimizing acquisition costs: PLTV guides decisions on how much to spend to acquire new players.
• Identifying valuable player segments: By analyzing PLTV, brands can target marketing efforts toward segments with higher long-term value.

Calculation of PLTV

PLTV is calculated by summing up all revenue a player generates over their entire lifecycle with your brand. Here's how to determine PLTV:

1. Track player activity: collect data on player deposits, wagers, in-game purchases, and other revenue sources.
2. Sum total revenue: add up the revenue from all player activities over their entire engagement period.
3. Account for costs: if desired, subtract the costs associated with acquiring and retaining that player. This includes:
   • Marketing and acquisition costs
   • Customer support
   • Platform maintenance costs (if attributing to individual players)
4. Calculate PLTV: divide the total revenue (or net revenue after costs) by the total number of players to get the average PLTV.

Mathematical representation:

Detailed calculation steps

Step 1: Data collection

• Deposits: track all deposits made by the player, including initial deposits and subsequent top-ups.
• Wagers: log all bets placed by the player across different games.
• In-Game Purchases: If your platform offers in-game purchases, record those transactions.
• Engagement metrics: monitor time spent on the platform, frequency of play, and other engagement indicators.

Step 2: Sum Revenue

• Total revenue: sum up all revenue generated by the player from deposits, wagers, and in-game purchases.

Step 3: Account for costs (optional)

• Marketing costs: calculate the cost of acquiring and marketing to that player.
• Support costs: estimate the cost of supporting the player over their lifecycle.
• Platform costs: if possible, attribute a portion of platform maintenance costs to individual players.

Step 4: Calculate PLTV

• PLTV: Divide the total revenue by the number of players to get the average PLTV. Alternatively, use the net revenue (after subtracting costs) for a more accurate representation of player value.

Example:

• Suppose a player deposits $500, wagers $2,000, and makes in-game purchases worth $100 over their lifetime. The total revenue from this player is $2,600.
• If the costs associated with this player are $100 for acquisition and $50 for support, the net revenue is $2,450.

In this example, the PLTV for this single player is $2,450.

Strategic use of PLTV

• Marketing allocation: Allocate marketing budgets to channels and campaigns that attract players with higher PLTV.
• Pricing and offers: Use PLTV to guide decisions on game pricing, promotions, and loyalty programs.
• Product development: Focus on features and games that drive higher PLTV.
• Player Segmentation: Identify high-value segments and create tailored experiences for them.

Churn rate

The churn rate measures the percentage of players who stop engaging with your platform during a specific period, making it a critical metric for understanding player retention and ensuring sustainable growth.Monitoring churn helps:

• Identify retention issues: A high churn rate signals potential problems with player satisfaction or engagement that need to be addressed.
• Improve player experience: By understanding why players leave, brands can enhance their offerings to retain existing players.
• Optimize retention strategies: Churn rate analysis guides the development and adjustment of retention strategies to reduce player attrition.

Calculation of Churn rate

1. Define the measurement period: choose the period over which you want to measure churn, such as 1 day, 7 days, 14 days, or 30 days.
2. Identify churned players: count the number of players who were active at the start of the period but did not engage with your platform during the measurement window.
3. Calculate churn rate: divide the number of churned players by the total number of players at the start of the period and multiply by 100 to express the result as a percentage.

Mathematical Representation:

Detailed calculation steps

Step 1: define the measurement period

• Determine the timeframe for which you want to assess churn, such as daily, weekly, or monthly.

Step 2: count churned players

• Churned Players: Identify players who were active at the start of the period but did not engage (e.g., did not log in, place bets, or make deposits) within the measurement window.

Step 3: calculate churn rate

• Total Players: Count the total number of players at the start of the measurement period.
• Churned Players: Count the number of players who did not engage during the measurement period.
• Churn Rate: Divide the number of churned players by the total number of players and multiply by 100.

Example:

• Suppose you have 5,000 active players at the start of the month.
• During the month, 1,000 players do not engage with your platform.

In this example, the monthly churn rate is 20%.

Interpreting churn rate

• Short-term churn: monitoring daily or weekly churn rates provides insights into immediate player attrition, helping identify and address issues quickly.
• Long-term churn: monthly or quarterly churn rates offer a broader view of player retention trends, guiding long-term strategies.
• Benchmarking: compare your churn rate with industry averages or competitors to assess performance and identify areas for improvement.

Strategies to reduce churn

• Engagement strategies: Implement features like loyalty programs, bonuses, and personalized experiences to keep players engaged.
• Customer support: Provide responsive support to address player concerns and prevent dissatisfaction leading to churn.
• Platform optimization: Ensure a smooth user experience through regular updates, high platform uptime, and optimized performance.
• Player feedback: Collect and analyze feedback to understand why players leave and how to improve the experience.

ConclusionKeeping an eye on these top five KPIs — Gross Gaming Revenue (GGR), Average Revenue Per User (ARPU), Player Retention Rate (PRR), Player Lifetime Value (PLTV), and Churn Rate — is crucial for iGaming brands aiming for sustainable growth, improved player engagement, and increased profitability. These metrics offer valuable insights into financial performance, player worth, loyalty, and retention, helping to inform strategic choices regarding market expansion, marketing effectiveness, and retention efforts. By consistently tracking and refining these KPIs, iGaming brands can remain competitive, fulfill player expectations, and secure long-term success in the ever-evolving iGaming landscape.

FAQ

1: What are the most important KPIs for iGaming brands to monitor?

The five most critical Key Performance Indicators (KPIs) for iGaming brands are:

1. Gross Gaming Revenue (GGR) - Total gaming revenue before expenses.
2. Average Revenue Per User (ARPU) - Revenue generated per player.
3. Player Retention Rate (PRR) - Percentage of players who continue to engage with your platform.
4. Player Lifetime Value (PLTV) - Total value a player brings over their entire relationship with your brand.
5. Churn Rate - Rate at which players stop engaging with your platform.

What’s the formula of Gross Gaming Revenue (GGR)?

GGR is calculated by subtracting player winnings from the total amount wagered. Here's how:

• Sum Total Amount Wagered: Add up all bets placed by players.
• Subtract Player Winnings: Deduct the total amount won by players.
• Result: This gives you the gross profit from gaming activities.

How to calculate Player Retention Rate (PRR)?

Here's how to calculate PRR:

• Choose a Retention Window: Define the period (e.g., 1 day, 7 days, etc.).
• Identify Cohorts: Group players based on their registration or first engagement date.
• Count Returning Players: Track how many players return within the chosen window.
• Calculate the Rate: Divide returning players by total players in the cohort and multiply by 100.

Why is Player Lifetime Value (PLTV) important for iGaming brands?

PLTV is crucial because it:

• Guides Long-term Strategies: Helps allocate resources effectively over time.
• Optimizes Acquisition Costs: Informs decisions on marketing spend and player acquisition strategies.
• Identifies Valuable Segments: Allows for targeted marketing to high-value player segments.

How to calculate Churn Rate?

To calculate churn rate:

• Define the Measurement Period: Choose the timeframe for analysis (e.g., daily, weekly, monthly).
• Identify Churned Players: Count players active at the start but not engaging within the period.
• Calculate the Rate: Divide churned players by the total number of players at the start and multiply by 100.

What strategies can iGaming brands implement to reduce churn?

Strategies include:

• Engagement Features: Implement loyalty programs, bonuses, and personalized experiences.
• Customer Support: Provide responsive and effective support to address player concerns.
• Platform Optimization: Ensure a smooth user experience through updates and performance improvements.
• Collecting Feedback: Understand why players leave and improve the experience accordingly.