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- What is customer churn rate and how to stop players leaving your casino 2020
What is customer churn rate and how to stop players leaving your casino 2020
It has been proved that predicting churn rate not only minimizes the outflow of players but also significantly increases their time spent at the casino website. In this article, we will look at different ways how to calculate customer churn rate in online casinos, as well as analyze methods to retain reactivated users.
Customer Churn Rate Definition
Churn rate refers to the percentage of users that stop their activities and leave the resource over the given period of time.WHY ARE PLAYERS LEAVING ONLINE CASINOS: MAIN TRIGGERS 2020
The task of each gambling resource is to reduce customer churn rate. Clearly defining the reasons why customers leave the resource, you can predict the possible churn rate in advance. Players usually quit playing at the online casino when they are no longer interested in the products offered by the company. Therefore, the goal of each operator is to increase the level of interest by engaging the audience with outstanding gaming content and services.
What stops your players from wagering:
- Low engagement and activity level. If players contact the customer support service less, visit the casino not so often and spend less time on the platform, it is an alarm for you that your customers are likely to leave you soon.
- Poor customer service. The online casino must provide players with 24/7 support, otherwise, negative feedback can result in the loss of players.
- Your competitor does a better job than you do. Online gambling is one of the most revenue-generating segments of the entertainment business. Each casino operator does their best to offer something new and unique that rival companies do not have. Thus, in order to avoid the high customer churn rate, it is necessary to constantly update your gaming portfolio.
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HOW TO CALCULATE CUSTOMER CHURN RATE?
Today, every gambling site is aimed at preventing churn. However, with the help of the existing techniques and CRM-strategies, you can not only keep active customers but also significantly reduce the percentage of churn. Here is the customer churn rate formula:
Churn rate = Number of players that have left the resource / Number of players at the start
Let’s look at the example. For example, you started your gambling resource in December with 2000 gamblers, and at the end of the month, 500 of them decide to leave your gambling resource. In this case, the customer churn rate is:
500 / 2000 = 0.25%
Some companies define the outflow of players in the cash equivalent to the profit that they could have obtained if the users have not left. Then, the formula for calculating the churn rate would look like this:
Number of inactive players · Average revenue over month · Number of payments for a given time period = revenue churn rate
For example, 500 gamblers left the online casino last month, their average bill was $5000, and the number of payments per month is 8, the revenue churn rate:
500 people · $5,000 · 8 payments = $20,000,000
Statistics show that if a gambling company increases the retention of attracted customers by at least 5%, its profit will increase by 100%. It is worth noting that many marketers believe that reducing the churn rate should be a priority in any company, regardless of its activity.
HOW TO PREVENT THE OUTFLOW OF PLAYERS FROM ONLINE CASINOS: ACTION PLAN
Determine the reason
In order to prevent client loss, define the primary triggers in advance. The survey and communication with your customers help to clarify what is missing on the gambling resource, as well as what can be changed or improved.
Wide range of games
Any casino resource should have a wide range of games from well-known software developers. Moreover, you should constantly work on complementing and updating it. This retention effort helps to reduce the churn rate.
What makes you special
You should come up with what is the unique feature of your gambling resource and what makes you stand out from other gambling platforms.
A proactive approach is a key
Here you have to learn to look into the future. In other words, you have to predict all the possible issues your players will come to you with. Give answers to your customers' questions before they ask them. Communicate with your players, announce the latest updates, features, innovations, and products – any interaction will increase your brand awareness.
There are multiple marketing tools to return the churn players back to the site: retargeting, email newsletters, content marketing, new products and solutions, gambling content extension, commenting, promotions, and tournaments. Make an effort and re-establish old player accounts. To do this, the right solution would be sending a reactivation letter to determine the ongoing status of the client. If the player responds to the message, there is still a chance to bring them to your site again.
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