Measuring the Effectiveness of Casino Operations Management
Albie Oconnell November 8, 2024 0 COMMENTSProductivity metrics allow casinos to run true-to-fact performance analysis. If there are any areas that need to be improved, casino owners can implement training programs or other actions that improve overall performance.
Net Gaming Revenue (NGR) — or the gambling play, net of software vendor costs, aggregator costs and promotion expenses — is a core accounting KPI for casinos. When you keep NGR at eye level and promote at as low a cost as possible, marketing is assured.
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Converting new players into first time depositors is one of the best ways to determine online casino performance and casinos must be aware of these data in order to see what campaigns, offers or traffic sources are producing the most revenues and turn these metrics to maximize profit.
Net Gaming Revenue (NGR): NGR is how casinos calculate the amount of gaming revenue they had after deducting operating expenses and bonuses. NGR is a critical measurement of profitability, as well as for strategic planning and decision making.
Casinos should consider Player Lifetime Value (PLTV) as well to keep customers in their casino. The casino that has a positive customer acquisition cost-to-retention will be better able to develop profitable and long term customer base that will bring in new casino guests.
Profitability
Profitability is one of the metrics casino has to meet in order to stay in business and continue earning, so it’s imperative that you know about profitability ratios as part of your planning; they help guide companies to success in the long run.
People KPIs are Average Revenue Per User (ARPU) and Player Lifetime Value (PLTV). ARPU – Total revenue earned by every active player in a given period of time PLTV – Estimated total lifetime revenue generated by an online casino customer account.
Both of these are key in the evaluation of how successful the casino marketing is, and where it needs to be better. You can make them better in various ways, from tweaking the game or data analytics tool like Scaleo to boost conversion; digital offers or secure payment methods to boost customer retention; and avoid litigation or maintain their reputation.
Customer Experience
Customer Experience (CX) or CEP or customer perception describes the customers’ impression and experience with a brand, which is both face-to-face and in promotion, such as advertising.
Online casino owners must find out how their products and services impact player experience in order to come up with solutions that optimise the business results.
Those people KPIs are key to this process, such as churn rate and bounce rate. Low churn rate — which indicates player’s liking the site and services, and low bounce rates — which indicates users found what they were looking for on the site.
Average revenue per user (ARPU) is a number that indicates how much an individual casino player makes in a given period. Paired with financial metrics such as gross gaming revenue (GGR), these hybrid KPIs provide a complete picture of a casino’s business, and at the same time pinpoint high-value customers and tailor marketing efforts accordingly.
Employee Engagement
Employee engagement hasn’t faded from business as research demonstrates that engaged employees are more productive and loyal to companies. But sadly, according to a Gallup poll, just 33% of US workers report being actively engaged at work.
Casinos are 24/7 operations and their employees need to be in constant contact with customers. Managers frequently work nights and can also be called on off-hours if there is a problem. Finding the right balance between delivering to the customer needs and managing employees isn’t always easy, but it’s critical for casino profitability.
KPIs for People such as Bets-to-Deposits or NGR-to-Deposits help managers know what games and promotions are getting the most players, what promotions are performing, and how to optimize the gaming floor experience. They’re critical to optimize both gaming strategy and marketing activities, and regularly monitoring KPIs such as Bets-to-Deposits or NGR-to-Deposits also gives managers an early warning sign of issues such as employee attrition or service shortages, among others.
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