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As a sports betting business, you should look out for some essential KPIs that every betting platform should track or measure. These KPIs are key metrics to measure the performance of your betting business and provide insights on player engagement, players’ interactions, and overall performance of the platform.
In this blog post, we will explore the top six iGaming KPIs that every betting platform should track and measure in order to understand their high and low performing areas. You will be able to understand all metrics, including GGR meaning and how these metrics play a vital role in the success of your iGaming company. Let’s dive in!
What are iGaming KPIs? Why does it matter?
KPIs play a significant role in any business, and they might differ from business to business. For the iGaming industry, some KPIs could be more essential than others but the main function is to measure business performance. The interpretation made by KPIs reflects how your business is performing and those areas that require attention.
For this reason, analyzing the performance of the business is a crucial step taken by every management of the business to decide on the future course of action.
The Most Important Performance Metrics for an Online Betting Company
Gross Gaming Revenue
What does GGR meaning? And what is GGR in gaming? The most common type of KPI in every iGaming business is gross gaming revenue, which is the result of the total bets placed minus total wins by the players.
So, GGR = Total bets - Total Wins
This is the money left with the game provider after the wagering activities of players. This is before paying any expenses. An important factor to note is that GGR may vary from time to time depending on various factors. For example, if the amount wagered for two months, say, January and February, can be identical, but the GGR of both months will show a drastic difference. This is due to the fact that GGR is affected by how lucky (or not) your players were, as online betting platforms work on predictions.
For online betting operators, tracking GGR earnings will help them to assess the betting business performance, adjust marketing strategies, plan out promotional strategies, understand player behaviour and identify improvement opportunities. For example, a GGR gaming analysis can provide a list of sports popular among betters so that betting operators can divert their marketing efforts to those sports.
Net Gaming Revenue(NGR)
What is NGR? NGR acronym stands for Net Gaming Revenue, which is the actual amount earned by the iGaming betting
operator after all expenses have been cleared.
NGR earning is calculated as:
NGR = GGR - Expenses (all bonuses paid to players, all taxes paid on revenue)
When it comes to GGR vs NGR, NGR gaming provides an actual analysis of a sports betting company’s susses rate. Expenses
can also include any commissions, royalty fees paid to betting content providers, and online betting license fees, taxes
etc.
NGR meaning is easy to understand as it reflects the actual casino earnings. NGR is a financial KPI that helps in
financial analysis, forecasting and planning. It allows the iGaming betting platform to make informed decisions on
resource allocation, financial investments, and expansion into new markets. Etc.
NGR-to-Deposits
NGR-to-Deposits is a term used to describe the total money raised from the deposits made by players. NGR meaning in terms of deposits, is a calculation of money raised through total deposits. The higher the sum, the better it is for the casino betting platform.
Bets-to-Deposits
Bets-to-deposits means the total circulation of money deposited in the betting game. The higher amount will mean that the online betting operator has been giving more money in the form of bonuses.
To summarise, financial KPIs are directly related to the revenue of the betting company. After getting an understanding of the GGR meaning and NGR meaning, let’s move to another pack of KPIs which is hybrid KPIs.
Cost Per Aquisition (CPA)
The cost per acquisition or CPA indicates the cost of acquiring a new customer. CPA provides an overview of the betting
company’s marketing efforts in line with the budget.
So, CPA = Total Marketing Expenses / Number of New Customers Acquired
A study on CPA allows betting operators to measure the effectiveness of the marketing campaigns and optimize the budget
allocation for marketing. For example, if you have spent 5000$ on marketing efforts and have generated 100 first-time
players, then your cost per acquisition here will be 50$ per customer acquired.
Average Revenue Per User (ARPU)
Another type of hybrid KPI is average revenue per user, which indicates how much an average player benefits from the
betting platform, typically calculated per month. This metric provides a clear picture of the betting company’s
profitability and the company’s ability to generate revenue. This metric only has users who have paid for your betting
software subscriptions, in-app purchases, or downloads.
So Average Revenue Per User = Total Casino Revenue / Number of Active Players
For betting games on mobile, the betting software development company uses ARPU to derive its valuable players, and
buyer profiles.
Conversion Rate
As an online betting software development company, conversion rate can be broadly categorised into two types.
Conversion Rate 1(visit to registration) = % of people who signed up or registered as players / total number of visitors of the platform
This conversion rate is a direct indicator of the type of traffic you bring to your website, and how many visitors are actually converted into players. A low conversion rate indicates that you might be bringing the wrong traffic to your website or your website needs more polishing in terms of outlook, or requires work on the layout and content of your website.
Conversion rate 2(registration to deposits) = % of total registered visitors who have made a real money deposit.
This is another important conversion rate for online casinos as it indicates how many players are actually depositing money.
Customer Acquisition Cost (CAC) or Retention KPI
This iGaming KPI for a betting platform indicates how much it costs to acquire a new customer. This metric is calculated by including all marketing costs and sales costs. A lower CAC indicates that your marketing strategy is going well.
So, Customer Acquisition Cost = Total cost of sales and marketing / total new customers
For example, if you have spent 30000$ and acquired 1000 customers, then your CAC is $30. This CAC is the result of all marketing and sales activities to the new customers gained by the betting company in a particular period of time. CAC is a good indicator if the company wants to analyze all marketing and sales activities to finalize a budget for them.
Customer Lifetime Value(CLV)
Customer lifetime value or player lifetime value(LTV) is a calculation of how much the overall revenue a player brings to the casino during the time the player is connected to the betting site.
So, Customer/Player Lifetime Value = The average revenue per average daily user * Number of days a player uses the betting platform
The goal for any iGaming betting operator is to get an all-time high LTV for the success of all marketing campaigns. The company can use CLV to optimize each revenue source to maximize profits. It provides information about each user’s financial contribution to your betting site. This metric is used to measure the success of the company in a particular period of time and estimate the company’s growth.
In short, knowing the LTV and its usage can help iGaming companies to focus on enhancing marketing strategies and profits on overall investment.
Churn Rate
Churn rate is a unique iGaming KPI that is directly related to a betting company. Churn rate indicates how many players have left your betting platform.
Churn Rate (CR) = (Lost Players / Total Number of Players at Start of Time period) * 100
Players tend to migrate to different betting platforms to look for more options and bonuses. A higher churn rate is bad for any betting site. The churn rate can be the inverse of the retention rate. Lower churn rate indicates that your retention strategies are working well in keeping your users intact.
More iGaming KPIs in Sports Betting Platform
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Frequently Asked Questions(FAQs)
What does GGR meaning in an iGaming betting platform?
GGR gaming or Gross Gaming Revenue is an iGaming KPI used to calculate the difference between the total amount wagered minus the amount won. It is a type of financial KPI used by all gaming platforms.
What is GGR vs NGR?
GGR is the total money wagered minus the amount won. However, NGR meaning is Net Gaming Revenue, which is calculated after subtracting expenses from GGR.
I am looking for a sportsbook software provider. Can you help me with the same?
Yes, iGamingbook is the best sportsbook software provider, which works in developing all sports book software. Contact iGamingbook for more information.
How can GGR influence casino earnings?
GGR meaning is described as the gross gaming revenue of the company calculated on the money wagered minus the money won by players. It is the result of all the efforts made by the casino to increase its returns. A higher GGR means an increase in the casino's earnings.
What iGaming services are provided by iGamingBook?
iGamingbook provides all types of B2B sports book software development services. We will guide you through the whole process of launching your sports betting software and also provide marketing support. Contact us to know more.
