LTV casino

Increase the LTV of your customers in your online casino

We all know that a player’s relationship with a casino or a bookmaker starts with their registration. The tricky part is to know when it will end. Certainly, there are indicators that allow us to know, with greater or lesser certainty, whether users are happy with the services offered by the operator. However, as a general rule, the decision to end the relationship is in their hands. If players have the final say, what can operators do to prevent them from fleeing? Let’s take it one step at a time: are you familiar with Lifetime Value (LTV)? In our first Eureka article, we explain what it is and how you can improve it to retain your players.


What is LTV ?


LTV is a fundamental metric that determines the economic value that a player brings, over time, as an active customer. In other words, it represents the total net revenue they are expected to bring in during their relationship with the casino.

To calculate it, we multiply the Average Revenue Per User (ARPU) by the Player Lifetime: LTV = ARPU x Player Lifetime.

But why is this so important?

  • Achieving an increase in customer retention rates of just 5% increases revenue by 35% to 95%.
  • Acquiring a new customer is between 5 and 25 times more expensive than retaining an existing customer.
  • The probability of retaining an existing customer is between 60 and 70%.
  • Existing customers spend 67% more on average than new customers.

Taking these points into account, we can say that LTV is one of the fundamental KPIs in an online casino. But, let’s get down to the nitty-gritty, how to work on this KPI to improve it, what different strategies can you apply? We tell you about it.


Competing with the big boys (h2)


In the online gaming industry, there are large companies that have been in business for years and have a strong reputation. Competing against them is not easy, and getting a foothold in the market means making real efforts in user acquisition and retention.

One thing is clear, in the gaming sector, the player who gives you a chance, and leaves, does not come back. That is why major platforms such as Bet365 invest around a third of their revenues in marketing campaigns and customer retention strategies. Specifically, Bet365, thanks to its actions, managed to increase the number of global active users by almost 50% in 2023.


Strategies to improve LTV on your online casino


Segment your players

The online casino industry is growing and user segmentation is becoming increasingly important. And one way to segment users can be through their LTV, classifying players into tiers according to their contribution to the casino.

For example, players with a high LTV can be part of VIP programmes with personalised benefits, while players with a lower LTV can receive special bonuses that motivate their participation and increase their long-term value.


Targeted promotions

LTV analysis can also help to understand user behaviour patterns. This can be useful to tailor specific strategies for each group of players quickly.

For example, identifying a group whose LTV has decreased and sending them a personalised promotion can reactivate their interest and increase their engagement with the platform.

In addition, knowing when a change in this KPI has occurred can also help to understand which strategies are more effective and which have not been as successful as expected based on observed behaviour.


Personalisation: key to improving LTV

Personalisation is the key to retention. Offering personalised experiences tailored to the tastes and interests of each user is a great way to improve LTV.

Introducing gamification elements into your platform is a good way to make the gaming experience more interactive and exciting. You can develop achievements, events, exclusive tournaments and offer prizes that motivate your players and increase their participation. Even create an online community around your casino, using social media and forums to encourage player interaction and a sense of belonging.


Stand out from the crowd with innovation

Retaining key players is one of the most complex challenges, as they are the most demanding users. They won’t settle for business as usual, so neither should you.

Take advantage of the latest technologies, such as virtual reality, to offer unique gaming experiences that enhance player loyalty.

Cryptocurrency payments, artificial intelligence tools, automation of operations. All these innovations will be indispensable over the next few years for anyone who wants to compete in the league of the big players.


The power of LTV

Combining these effective strategies and tailoring them to the specific needs of your players can help you significantly improve the LTV of your casino users, creating stronger and longer lasting relationships.

As we have seen, LTV goes beyond being a simple metric: it represents a powerful tool that allows us to measure our achievements and identify new opportunities for growth. It acts as a window that reveals the value of each player, and offers valuable insights to enhance and improve that contribution.


At Calímaco we can help you


Contact us and find out how these strategies can be applied in your casino to help you improve long-term relationships with your players, ensuring the continued growth of your platform.

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