Top 10 KPIs for Slot Game Business Growth
Analyzing slot game KPIs is crucial for any casino business to track growth. With so much competition in the iGaming industry, tracking your key performance indicators (KPIs) is essential to staying ahead in the market. But why does it matter?
While you need to track some vital metrics on a monthly or quarterly basis, there are some KPIs that need to be tracked on a daily basis. This includes daily customer sign-ups, session times on a daily basis, deposit amounts, active players, etc.
The slot gaming business is in the competitive space now than ever before. Tracking your KPIs and finding out what’s working and what’s not will help you decide the next course of action. These insights are powerful information that can help you increase your business ROI.
This blog discusses the top 10 slot game KPIs for business growth, which any iGaming business should track and measure. These crucial KPI metrics will provide you with valuable information that will help you to increase player engagement and overall business growth.
Top 10 Essential KPIs For Slot Game Business Growth
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Net Gaming Revenue (NGR): Measuring Actual Revenue
One of the most vital KPI for any iGaming business is net gaming revenue or NGR. It calculates the profits of the
business before subtracting operating expenses. It is calculated as gross bets subtracted from payouts made to players.
NGR is calculated as:
Net gaming revenue = Q-R-S-T
Where,
Q = Total sum wagered
R = Total payouts
S = Total bonuses paid to players
T = Total taxes paid on gaming revenue
Monthly Active Players (MAP): Calculating Player Retention
As an online slot game provider, you need to keep track of the active players you can attract in a month. MAP keeps track of the number of active players who are returning to your platform. And to keep track of players retained in a month, monthly active players are used to measure the number of active players logging to the platform and placing bets at least once a month.
You will be able to gain insight into other key factors for your slot gaming platform:
- How well you are able to retain your existing players
- Whether the player acquisition efforts are working
- How do outside factors, such as festive seasons, affect the gameplay
- How impactful are loyalty programs for online slot game players
Customer Lifetime Value (CLV): Calculating Total Value Earned per Player
Every slot game development company aims to bring its customer lifetime value as high as possible over a period of time. The CLV, also known as player lifetime value (PLV), is the monetary value of each player over the time they are engaged in the game. It also helps in understanding how much money should be spent on acquiring a single player.
Customer lifetime value = Average revenue per average daily user * number of days spent by the player on the game
In short, CLV is an estimate of net profit from a player’s overall time spent on the game. Knowing it will help iGaming companies to plan out their strategies and determine return on investment.
Retention Rate (RR): Ensuring Player Loyalty on Slot Game Provider
One of the crucial slot game performance metrics is the percentage of players who continue to use the platform over a course of time. A higher retention rate is better for any slot machine business, which indicates players’ loyalty.
Retention is measured as a free-to-play or subscription model, as it provides the relevancy of the game in a given period of time.
Therefore,
Retention Rate = Total number of users in this month (30 days) / total number of users in the previous month.
Customer Acquisition Cost (CAC): Estimating Customer Costs
This slot game KPI measures the total expenses, including sales and marketing, spent on acquiring one new customer. The lower the CAC, the better for the casino business. It indicates how successful the marketing and sales strategies are and how they're working in the business's favor.
CAC represents the ratio of return on investment of all sales and marketing activities in relation to all new customers acquired by the slot company.
So Customer Acquisition Cost (CAC) = (total marketing and sales costs) / (X number of customers acquired)
For slot game business growth, many companies compare the CAC with the LTV (customer’s lifetime value), which is a clear indicator of business health. In most cases,
CAC: LVT = 3:1.
Churn Rate: Measuring Players’ Activities
One of the most important slot game business KPI is churn rate, which is an iGaming KPI used in the gaming industry. Churn rate provides data on how many players have left your online casino platform. A higher churn rate is bad for the iGaming business as you need to fill the gap with acquiring new customers.
Churn rate is calculated as the inverse of retention rate. For example, if your retention rate is 30%, then your churn rate will be 1-30% = 70%
Therefore,
Churn Rate = 1 - Retention Rate
Net Promoter Score (NPS): Calculating Customer Loyalty
A slot game KPI measuring customers’ loyalty and satisfaction with the platform. It is the overall calculated score of the customer’s view of the online slot game platform. It measures how likely players would be to recommend the casino game platform to their friends or in their circle. A good NPS score indicates that customers are happy with the platform and are more likely to recommend it to others.
Conversion Rate: Measuring New Players
A slot machine business KPI for measuring a casino business’s ability to convert free players into playing customers. It measures the number of users who made a purchase or opted for a subscription in a given period of time. A slot game KPI that measures the unique users making a purchase as compared to the total number of users for that particular time period.
Conversion Rate = unique users or players who purchased in the specified period / total number of users in that particular period
Deposit Frequency (DF): Calculation of Deposits
A slot game KPI that measures the total deposits made by active players in a particular time period. It shows how actively players are wagering money in your online slot game platform. It depicts the frequency of payments made and overall business earnings in that particular period. DF is considered a primary indicator of return on investment (ROI).
Average Revenue Per User (ARPU): Estimating Slot Game Business Growth
ARPU, or average revenue per user, is a slot game performance metric that indicates average revenue earned on each player. It allows slot game development companies to estimate casino business growth and plan accordingly.
Average revenue per user = Total revenue / total user base
Here, total revenue includes download fees, deposits made by users, monthly subscription fees, in-game purchases, content downloads, and other revenue. ARPU is an important slot game KPI that allows investors to estimate the value users have invested in the gaming platform.
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Frequently Asked Questions(FAQs)
Slot game KPIs, or key performance indicators, are the slot game performance metrics measured in quantitative terms. These are measured to estimate the success of your business or apps. KPIs are used to measure various aspects of your business, including game performance, user experience, user acquisition, revenue generation, etc.
The top 5 slot game KPIs include:
- Net gaming revenue (NGR)
- Monthly active players (MAP)
- Customer lifetime value (CLV)
- Churn rate
- Customer acquisition cost (CAC)
GammaStack offers all types of slot game development services, including:
- White-label slot game development
- Turnkey slot game development
- Live slots
- Customizable slot game development
- Slot API & iFrames
The churn rate for an online casino business is calculated as the number of users who have stopped engaging with the platform. A higher churn rate could be a red flag for any iGaming business and requires immediate attention. Working on overall improvements of the casino platform is necessary to reduce churn rates in online casinos.
GammaStack aims to deliver a slot game platform as per your delivery date requirements. However, it depends on the development factors such as customizations required, third-party integrations, design requirements of slot games, etc. Contact us to discuss your requirements.
