The Hidden Costs of Churn: How Predictive AI Can Save Millions in iGaming

Over the years casino operators have come to realize collecting customer data can help immensely when it comes to making more dough. And with the iGaming industry being more competitive than ever, churn analysis is key to staying one step ahead. Keeping churn rates to a minimum can help businesses save millions in marketing costs. 

Sadly, no matter how hard you try – churn is inevitable. The best you can do is minimize it as much as you can by firstly understanding which customers are worth keeping in the long run. 

It’s sort of like a balancing game between keeping your old players and acquiring new ones. It’s important not to outspend on holding on to your regulars at the cost of what you’re actually cashing in. After all, customer satisfaction can cost you a lot of money, time, and resources. 

In this article, we’ll take a closer look at the iGaming nightmare called churn, and how AI can help keep it at bay (as much as possible anyway).

Let’s jump right in!

What is iGaming Churn?

In the shiny world of iGaming, churn refers to the percentage of players who, within a specific time frame, simply stop playing a game. This is a metric that needs to be paid special attention as it helps measure overall player engagement and retention, giving you precious insights regarding the longevity and success of a given game.

In broader terms churn models usually fall within the categories of customer churn and product churn:

• Customer churn means losing the player to the competition altogether.
• Product churn means the casino does not lose the player as a client but loses the revenue from him or her in a particular game.

Customer and product prediction models are generally developed to predict churn within a specific time frame of, for example, one to three months. 

Churn Rate Explained

It's important to acknowledge that some players may visit your platform briefly before leaving after a few gaming sessions, or even sooner. The churn rate measures the percentage of users who stop engaging with the online casino or sportsbook being promoted. A high churn rate can be a red flag indicating issues with the iGaming platform.

To tackle high churn, consider doing a deep audit of the platform to spot areas in need of improvement. Also, implement strategies like sending bonus reminders and crafting personalized offers to re-engage those who have become inactive.

Players come and go – that’s inevitable – that’s churn. The churn rate metric shows you the percentage of people who stopped investing their time at the promoted casino or sportsbook. The higher the churn rate – the higher the amount of problems within the iGaming platform. 

To fight off churn and identify red areas within an iGaming platform you need to run an audit, create more appealing personalized offers and increase bonus reminders to awaken idle players from their slumber. 

Key Factors Contributing to Customer Churn

Customer churn is aided by a number of undesirable factors, which include the following:

• Bad Customer Service: A miserable customer experience can anger your player base and lead to churn, no matter how long they’ve been loyal to you. 
• Poor Gaming or Service Value: If players don’t feel they’re getting their money’s worth, they won’t think twice about going somewhere else. 
• Miscommunication: Bad communication can lead to confusion and dissatisfaction among players.
• Pricing Problems: Higher-than-normal pricing or unexpected charges can make players run for the hills. 

Standard Functional Strategies to Keep Churn at Bay

To reduce churn and improve retention, it is common practice among iGaming businesses to use the following strategies:

1. Make UX Your Top Priority: Focus on providing unmatched customer service to your players. Listen to their wants and needs and adjust your strategy accordingly.
2. Strong Communication: Be open and transparent with players to build trust and loyalty. Customer-business relationships are human relationships.
3. Personalized Experiences: Create games and services that match player needs.
4. Loyalty Programs: Use rewards programs to nudge repeat purchases and worth to mouth referrals.
5. Never Stop Improving: Ask for feedback from players so you can understand what you need to work on most. 

Using AI as a CRM Enhancement Machine

Artificial Intelligence can be of great help when it comes to businesses dealing with customer relationship management (CRM). In iGaming, AI is changing the game by helping operators improve their interactions with players, anticipate when players might leave, tailor marketing efforts, and deal with routine tasks without a hitch.

Adaptive AI is becoming more popular due to its flexibility, speed, and accuracy in CRM as it automatically assesses multiple models. This helps operators grow revenue, keep players happy and entertained, and enhance general UX. 

Using tech that blends adaptive AI with ready-to-use models is often a perfect fit for operators. This approach is perfect both for those needing unique data sets to tweak models according to their needs, and for those less tech-savvy who want easy-to-use solutions to handle common challenges effectively with customized adaptive tools. Smartico.ai uses adaptive AI to do just that, and much more! Make sure to check it out by booking a free in-depth demo and take advantage of its countless money-making benefits – as have big players including Scartesu, Dela, Cactus, Estrella Bet, 4rabet, and many others. 

{{cta-banner}} 

How Can Predictive AI Save Your Company a Boat Load of Cash?

Predictive AI is an immensely powerful tool when it comes to saving millions in the iGaming industry. It boosts efficiency, optimizes operations, and improves player enjoyment. Here are six ways it achieves this:

1. Personalized Marketing 

With predictive AI you can analyze your players’ data to forecast future behaviors and preferences, which can make it easier for you to craft more precise and targeted marketing campaigns. This type of personalization boosts conversion rates and reduces marketing waste by a lot.

2. Fraud Detection and Prevention

Unusual patterns and behaviors need to be closely monitored. Predictive AI has the ability to detect fraud at the early stages so you can stop it in its tracks, helping you minimize financial harm and protecting your business integrity. 

3. Dynamic Pricing and Odds Setting

After analyzing predicted outcomes and player behaviors, AI can dynamically adjust odds and pricing, which can help you optimize profitability and stay ahead of the competition.

4. Player Retention and Churn Reduction

Players who are at risk of churn can be identified by AI so you can do your best to retain them by using methods such as tailored offers or engagement activities. 

5. Operational Efficiency

Anticipating demand and optimizing resource allocation is made easy with the power of AI. This includes server capacity and player support staffing, as well as helping you come up with cost effective operations during peak and off-peak times. 

6. Game Development and Innovation

With AI you can analyze trends and player feedback so you can foresee future gaming preferences. This will be of immense help when you set out to create new games that are more likely to make a lasting impact.

Hopefully, you found this article useful. If so, please share it with your friends and colleagues in the industry. And if you need help implementing predictive AI to push back on churn, don’t hesitate to get in touch