Reducing player attrition

The biggest events on the sporting calendar always attract a new wave of punters who only have one bet in mind. Highly publicised events suit inexperienced punters who are keen to be part of the fun, even if just for the one occasion.

The standout example of this phenomenon is of course the Grand National, but world title boxing fights and the ubiquitous Football World Cup tournament are others. Punters will open an account, place one (in the case of the Grand National) or a few (in the case of the World Cup) bets and then disappear. The vast majority of these fly-by-night punters never log back into their accounts again in the two months after they join.

Other forms of attrition are tied to the highly promiscuous nature of the online gambler. This is a market in which new player bonuses abound. Players will join with the sole purpose of cashing in on the bonus. As soon as it is clears, they are never seen again. In games in which skill is important, such as poker, attrition often occurs because there is not enough support for the rookie player to help them become more skilled to the point they will want to stick around.

Attrition levels are high across all products within the online gaming industry but there are ways to reduce it by understanding at what point action might prevent attrition and that action needs to be. Through the appropriate use of analytics and ethnographic research it is possible to map players’ behaviour over the lifetime of their account, by looking at their habits, profiles, frustrations, motivations, touch points with gambling and gaming brands etc… It’s then possible to timestamp potential dropouts or dithering moments.

By ‘nudging’ players at the right time and in the right way, both the business and the player win. A ‘blanket’ e-mail campaign without proper targeting is both a waste of money for the company and a source of annoyance for players. Likewise, displaying casino adverts to all customers in the hope that some may click on high-revenue games, is a waste of valuable space for players that would never cross-sell to casinos, and could even scare off contended customers. Click-through rates must be monitored and behavioural targeting considered.

Foviance can provide recommendations for creating the optimal user journey from a Customer Lifetime Value (CLV) point of view, mapped against time. In a world of high acquisition costs, using this information as the basis for a CRM strategy will improve profitability by maximising CLV.

This type of information can also be used to define cross-sell and up-sell strategies. By knowing what motivates your players and at what stage of their player life they are at, website content can be easily tailored to suit those needs. Bingo companies are able to promote and games developers are able to sell the right games, or side-games, efficient advert space for cross selling from sportsbook to casino games can be achieved and decisions about whether to cross-sell or up-sell to certain high revenue punters can be made with confidence.

In the highly competitive online gaming space, maximising every player interaction is vital. By using the correct mix of techniques and tools it is possible to pinpoint user needs with extreme accuracy to a time in their playing life. Businesses can then make substantial savings and increase profits whilst providing users more precisely with what they want. Positive experiences naturally follow when they have been tailored to players, and brand attachment naturally follows from that. Everyone wins.

This article was written as part of our June newsletter