The churn rate is an important concept that does not get as much attention as it should. The churn rate in a casino is used to refer to the percentage of casino players who for one reason or the other leave an online casino and never visit again.
The churn rate is important and as and when they are predicted and analyzed, online casinos can take effective measures to forestall it. There are lots of reasons why players desert to an online casino and this boost the churn rate. These and more will be discussed below.
Sweet Is The Churn Of Life
So, what exactly are factors that convince players to stop spending time at one online casino or the other? According to research, the contributory factors are as follows:
Mediocre Customer Support Staff – When the customer support staff at an online casino is mediocre and/or unavailable 24/7, this can boost the churn rate.
Better Competitors – Online gambling is an incredibly competitive sector, with cut-throat competition being the order of the day. With that being the case, lots of online casinos offer the lushest possible bonuses to attract new clientele and retain old ones. A casino that does not do this or which does not have enough bonuses on offer can see an increase in its churn rate. Apart from better bonuses, casinos with old and outdated games will see higher churn rates than those with the latest eye-candy laden and feature-packed games.
Calculating The Churn Rate Made Easy
These days, all online casino operators yearn to speedily identify and prevent churn. This is quite easy to do.
To calculate the churn rate, the following formula is used:
Churn rate = Number of players that have left the gambling platform/ Number of players that were there at the start.
For example, take the case of an online casino that began operations in January with 2000 registered users. A couple of months later the number of registered users had fallen to 1500. To calculate the churn rate 500/2000 = 0.25%.
For some online casinos, calculating the churn rate should be made by taking into account the potential profits that would have been accrued had some gamblers not left. In that case, the churn rate formula can be determined as follows:
The number of inactive players – Average Monthly Revenues – Number of payments for a given period = Revenue churn rate.
As an example, suppose 500 gamblers deserted an online casino within a month, with their bill averaging £5000, and 8 payments being made monthly. The churn rate can be determined as follows:
500 gamblers – £5,000 – 8 payments = £20,000,000.
According to statistics, should an online casino experience a boost of just 5% in the retention of its clientele, it can experience a 100% increase in profit. As a result, there are quite a few blokes who believe that all online gambling operations should make a massive reduction of their churn rate an urgent priority.
Churning Out The Fun Made Easy
So, to reduce player churn to the least possible extent, online casinos should endeavour to do the following:
Find Out Why
This involves finding out what is motivating patrons to desert the operation. Finding out their reasons and identifying how to remedy lapses can be as simple as initiating a survey.
In most cases, it is a lack of games that has the most effect on the churn rate. With that being the case, online casinos should make a conscious effort to always update their offerings and be the first to offer the latest games to their clientele.
This has to do with identifying what makes the particular online casino special and highlighting it. This might be its rich history, its method of operations and just about anything else. Doing this will help the casino differentiate itself and better stand out from the pack.
Being Proactive Like A Boss
An easy way of reducing the churn rate requires online casinos to be fully proactive. Being proactive enables the speedy identification of potential problems and makes possible their speedy resolution. When this is the case, gamblers will like to stick with such an online gambling provider.
The churn rate can be death to an online casino. As such identifying and fixing its causes should be of the utmost concern.
SummaryName: Everything You Need To Know About The Customer Churn Rate
Author: Stanley Roberts
Published Date: 25/07/2019