Online casino operators offer flexible limits. Land-based casinos typically don’t offer the most flexibility in terms of minimum and maximum betting limits. As was already mentioned, lower operating expenses give online casino operators more flexibility. In comparison to most land-based casinos, this means that the limits are both significantly better and lower. Online casinos have surpassed traditional casinos in popularity.
GGR demonstrates how much money your company has made over a specific time period. This is undoubtedly the most crucial success indicator, and fortunately, it is also the most straightforward to determine. Simply subtract the amount your players won from the total revenue generated by your company. Your GGR, for instance, is 3 million if your players have wagered 10 million and won 7 million.
Net Gaming Profit (NGR)
While GGR provides you with a general idea of your company’s trajectory, it is not a completely accurate predictor of the revenue generated by your online casino. This contributes to Net Gaming Revenue (NGR). NGR essentially represents your GGR after deducting all other costs, such as operating costs and product royalties.
The conversion rate reveals how many of your clients have successfully finished the task you gave them to complete. This is frequently the number of people who successfully completed the registration process at your online casino, the number of players who successfully made their first deposit, or the number of people who visited your casino after seeing an advertisement.
The total amount of money that a player has (or will) deposit into your casino over the course of the time that they were active players is known as lifetime value. The better, the higher the lifetime value.
The number of players who have stopped participating in your online casino as compared to those who have remained active over a specific time period is displayed to you by the churn rate. One of your main ongoing objectives should be to reduce the churn rate.
Purchasing Power Parity
This is a crucial performance key indicator for your marketing campaigns. The cost per acquisition, or CPA, is essentially the sum of money needed to bring in a single player who visits your website, creates an account, and deposits money to play. Your marketing will be more effective if you can lower your CPA.
Better reporting leads to better choices
You must closely monitor your company’s KPIs if you want to predict financial performance and create marketing plans. A successful online casino software provider is ultimately the result of being able to quickly see and evaluate this information. Use fafabetsfgaming Connect iGaming API Solution to gain access to high-end reporting tools that give you a real-time overview of the state of your company.
Net gaming income (GGR)
A simple KPI is gross gaming revenue (GGR). It is equal to the sum of the players’ wagers and their winnings. This metric displays the amount of money generated by your players’ wagering activity that remains in your casino before you cover any operating costs. For instance, if players wager $4 million at your casino in a year and win $3 million in winnings, your casino’s GGR for that year is $1 million. GGR, in a nutshell, is a measurement of game outcomes. It shows the casino’s profit and a player’s loss for a specific time frame.
Net Gaming Revenue
Net Gaming Revenue (NGR) reveals the amount your casino actually earns after expenses are cleared from the total revenue. In other words, NGR is GGR minus bonuses, chargebacks, licensing fees, taxes, commissions paid to payment system providers, royalties paid to game content providers, etc.
This online casino KPI offers a concise and comprehensive analysis of your casino’s performance. It provides a more in-depth look at the project’s success rate compared to GGR as it takes a wider range of costs into account. With that said, NGR covers only a small percentage (e.g., 20%) of the total amount that players wager during a specific time period (their “turnover”).
Client Lifetime Value
Customer Lifetime Value (CLV), also known as Player Lifetime Value (PLV) in the iGaming sector, is a measure of the total revenue a player contributes to your casino over the course of their entire gaming experience. Increasing CLV is the main objective of all casino marketing initiatives. Multiply the monthly ARPU by the average player lifetime to determine CLV. Additionally, CLV can be cross-referenced by player segment. This can show you which groups of people are most likely to be valuable to your casino. You can even predict future CLV by looking at past player lifetime value, which is useful for creating retention strategies. You can compare CLV as well for a thorough assessment of your marketing strategy.
The aforementioned KPI models for online casinos can assist you in monitoring and enhancing the performance of your company. However, this does not imply that implementing these KPIs will ensure a long-term profitable business. For you to be able to develop the crucial growth strategies your casino needs and to develop new solutions, player behavior data must be tracked, dissected, and analyzed. KPIs give you the various viewpoints you require to create a clear picture of how your business is performing. Software providers with relevant experience can help you create efficient management so that you can base your decisions on precise data and thorough analysis.