Customer retention is one of the main challenges in the iGaming sector, with casinos using a range of techniques to try and reduce churn.

While attracting new players is still of importance, focus has recently shifted to retention. This is because it’s less expensive to keep a customer than it is to find a new one.

There are a number of metrics that are used to determine churn rate. This includes average session duration, frequency of logins, and player lifetime value. These KPIs are the ones most casinos use to judge the effectiveness of their retention strategy.

How To Reduce Churn

Personalization – The importance of personalization cannot be understated. Players are looking for unique tailored experiences. By utilizing the power of data-driven AI and machine learning, you can deliver those experiences automatically and cost-effectively.

Targeted Marketing – Another use for AI is marketing. Operators can market specific games through email, SMS, or push notification. Meanwhile, data can be utilized to target players at times of high engagement. You can also provide individualized bonuses based around player history and behavior. For example, by offering cashback or free spins on a player’s favorite slot, you can encouraging greater retention.

Gamification – This has been another key trend in iGaming. It involves incorporating things like rewards, achievements, and leaderboards into traditionally non-gaming areas. This makes the environment more immersive. Again, AI can be used to tailor the experience, particularly on site and in the lobby, where this is most effective.

Segmentation – This involves splitting your player base into various groups based on metrics like game interest and betting patterns. You can then target these groups with specific offers on particular games. This is a form of basic personalization, as opposed to the advanced or hyper-personalization as previously described. The key use of this is targeting potential VIPs with incentives and offers based on the amount they spend.

Payments – Offering a wide range of payment options – from credit and debit cards to e-wallets and cryptocurrency – means you can not only attract but also retain more players. Furthermore, the greater the number of options, the lower the chance of failed transactions. This will boost loyalty and the overall customer experience.

Data Analysis – Data and AI can be used to monitor customer behavior and identify players who are most likely to leave. This allows operators to target them with incentives to try and get them playing again.

Conclusion

In the crowded iGaming space, casinos are having to use more techniques to both acquire and retain customers. As retention is easier, largely because you already have the customer’s details, there has been an increased focus on providing an immersive and engaging experience to encourage them to stay.

By leveraging new technologies including AI and data analysis, operators can not only target customers to give them personalized experiences, but they can spot and predict players who are no longer engaged. This enables operators to target these players with offers and incentives. The development in AI technology also means that this is done automatically, reducing manual costs too. By adopting these strategies, therefore, profits can also be increased.