Longer lifetime value = increased bottom line profitability
Anyone in iGaming and specifically CRM understands that Customer Lifetime Value (CLV) is critical.
Improving lifetime value invariably increases the bottom line profitability of the company. Making every customer more profitable is probably one of the most important strategies your CRM team can take on.
iGaming companies that have customers with a solid lifetime value do focus on 3 things:
1. Player Retention – They reduce player churn
Player churn is a silent profit-killer. In the iGaming industry, churn rates can be sky high, making growth and profitability really hard. Your churn rate is going to be directly proportional to your potential for growth. Problems in this department can cause a start-up to fail or an established brand to see a plateau in its profits.
Identifying the reasons for this churn is the first step to reducing your churn rate. The points where churn occurs and targeting this problem with strategic intervention, can turn your figures around really fast.
In order to control and reduce your churn rate you need to:
- be aware of your churn rates: Measure your churn rate down to monthly and weekly figures. What can’t be measured can’t be improved.
- identify potential reasons for the churn rate. Check your data points and figures from the various touch-points. Is it a mobile problem? Understand which players are more likely to churn.
- create a strategy to fight high churn rates by implementing or improving players segmented offers, cross selling other verticals or understanding the player’s individual needs in more depth or making product changes to reduce player friction and lapse.
2. Promotion ideas – They design strategies to increase player spend
Increasing player spend is quite an obvious way to increase profitability, however it is not easy in a highly competitive and regulated market like the iGaming industry. In order to improve Customer Lifetime Value, the marketing team needs to be aware of the promotions and incentives offered by their closest competitors and level-up those offers or make them more targeted to one’s targeted player base.
With the new legislation that came into effect in Sweden at the beginning of 2019, we see promotions to becoming increasingly more complex especially as other territories will adopt similar regulations in the future.
3. Delighting Players – Creating loyal relationships
Whether it is delivered in-house or outsourced, adding a human touch to your playerbase communication strategy can play a crucial factor in player retention. In a world where bots and automated replies have replaced support landlines, the direct phone call has become a VIP service or the “phonemail” of the future.
This is why players are surprised and delighted when they actually get to speak to a real person through a reactivation call. Increasing positive and proactive personal engagement with customers, whether they are newly registered or lapsed, will increase trust, build brand loyalty and deliver higher actual spend.
Giving better service to all your players and increasing the amount of positive human interactions can make you stand out from the crowd. So leverage this strength in any way you can. In an impersonal world where we hide behind tech tools and avoid real interaction, that phone call could make the difference between a player that fully drops off your CRM cycle and a delighted reactivated customer.
Thinking of improving your player communications?
Contact Andrew Foster for a Free consultation on firstname.lastname@example.org
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