All businesses today need to measure their success, and the only way to do that is with the help of Key Performance Indicators or KPIs.
These metrics give insight into the business’s health, and the same is valid for online casinos. A couple of KPIs matter greatly for online casinos, including Average Revenue per User, Lifetime Value, Gřoss Gaming Revenue, the Churn Rate, and many others. Let’s take a closer look at the most important ones.
Gross Gaming Revenue (GGR)
The formula for GGR is simple, and it equals the Total Amounts Wagered minus the Total Amounts Won.
GGR is a straightforward metric that tells you how much you’re left from the money the players have wagered and after they’ve collected their winnings. In other words, it shows you how much all of your players have lost.
However, this metric doesn’t account for bonuses, so others need to fill in the overall picture.
Net Gaming Revenue (NGR)
The formula is NGR = Total Amount Wagered – Sum of Payments to Players – Sum of Bonuses Used by Players – Sum of All Taxes.
The NGR metric shows a more complete picture than GGR because, in addition to total amounts wagered and paid to players, it accounts for both the bonuses used and taxes paid.
The taxes include royalties for game providers, licenses, and regular taxes.
This is why NGR is the most commonly used metric among online casinos and gives a quick and easy-to-understand glance into the casino’s performance.
NGR-to-Deposits and Bets-to-Deposits
The NGR-to-deposits metric shows you the number of player deposits that become casino revenue. In contrast, bets-to-deposits show you the number of bets placed compared to the deposits made.
Both metrics are important as they tell the casino how active the players are and how much money they bring after making their initial deposits.
Average Revenue Per User (ARPU)
As you can surely understand, the ARPU metric is a very useful one, not only because it shows the revenues a user brings but how worthy each user is.
This metric is calculated by dividing the casino’s total revenue for a given timeframe with the number of active users for that same period.
Customer Lifetime Value (CLV)
The CLV metric shows you the total revenue an average player provides. It’s measured by dividing the monthly ARPU by the average lifetime of a player.
Daily Active Users (DAU) and Monthly Active Users (MAU)
Both of these metrics show precisely what their names might suggest — the number of active users per day and month.
Length of Average Session Per User
As the name suggests, this metric tells you how long an average gaming session is for your user.
This number should be as long as possible, and it’s often good to include new games and other products to entice players to play longer.
Conversion Metrics
Conversion rates are standard metrics in most businesses, as they compare the number of those who could have completed a specific action to the number of those who actually did.
In the world of online casinos, two conversion metrics matter greatly:
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Visitors-to-signups — Tells you how many people became patrons of the casino from the total number who visited the site.
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Signups-to-deposits — Shows how many newly-registered players have actually followed up with an initial deposit.
Retention Rate
The retention rate is always measured differently, as it depends on the period you want to follow. However, it will always show the percentage of players who stay with the casino during that specific timeframe.
Churn Rate
The churn rate represents the number of casino players who leave the site for good. As you can appreciate, this rate is very important for every online casino, as the rise in this rate can indicate that something is wrong with the platform.
Cost Per Acquisition (CPA)
The CPA metric shows you how much money you need to attract a new casino member, on average.
This metric is critical to follow as it shows how successful your marketing campaigns are and how much you are getting for the budget you’re using. In other words, the CPA will tell you if your marketing efforts are worthwhile.
