#10: The iGaming Metrics That Deserve Your Attention - Part 1

I recently wrote on LinkedIn about the trap I nearly fell into with vanity metrics when I did content marketing. I was overly focused on likes, engagements, and followers and lost sight of the metrics that better indicated the content’s performance.

But it got me thinking…

Within our iGaming businesses, there are “cool” and “uncool” metrics, as I call them. The cool ones (like GGR) get all of our attention, while the “uncool” metrics can slip under the radar when they deserve more focus.

Definitions.

Cool Metric – Generally accepted as a straightforward representation of business success.

Uncool Metric – Metrics that are often overlooked or undervalued despite their critical importance.

This essay will focus on shining a light on the uncool metrics that are like the unloved middle child and deserve more attention. I’ll split this into two essays so you’re not overwhelmed with metrics (bored of writing that word already). But investing more time in these uncool metrics will make your business healthier.

First, I want to address the “coolest” iGaming metric…

GGR is considered the coolest metric in our industry because it represents your business results, so everyone uses it. But I’d argue that it has become almost too cool for its own good.

Too much focus and reliance on GGR is blinding people to what’s happening behind the scenes in your business. It has become a dangerous trap, like me getting excited because a LinkedIn post received 200+ likes. 

Keep a sharp eye on it, sure. But it shouldn’t take 100% of your attention. Disagree? Then please let me know. I want to hear more opinions about what I write here :)

Let’s dive into the uncool metrics

ARPU

This is the measure of the revenue generated per user, typically calculated by dividing the total revenue by the number of active users over a specific period.

Why is it uncool? Despite its utility, ARPU is often seen as "uncool" because it averages out the revenue, potentially masking the variance between high-value and low-value players.

Why it's important? ARPU is crucial for understanding the overall revenue efficiency of your user base. It helps in setting realistic revenue expectations and is vital for forecasting and strategising business growth. By monitoring ARPU, operators can identify trends and make informed decisions about marketing spend and user acquisition strategies.

Some people have never heard of ARPU and might think it sounds like a magical spell: "ARPU-cadabra!"

While it may not conjure gold coins out of thin air, understanding ARPU can help you generate more revenue in the long run!

EPC

This is a metric used to measure the average earnings generated per click. It’s crucial for both affiliates and operators to understand the effectiveness of their marketing efforts.

Why is it uncool? It’s often deemed "uncool" because it can fluctuate widely based on various factors, such as the quality of traffic and conversion rates, making it seem less reliable.

Why is it important? EPC is a direct indicator of the performance and profitability of marketing campaigns. By analysing EPC, businesses can optimise their marketing efforts and ensure that they invest in the most lucrative channels. It provides immediate feedback on campaign effectiveness, allowing for quick adjustments and improvements.

Retention Rate

This metric measures the percentage of users who continue to engage with a platform over a specific period.

Why is it uncool? Despite its importance, the retention rate is often considered "uncool" because it requires continuous effort to maintain and improve, unlike simpler metrics like GGR. And we are too focused as an industry on acquiring users rather than retaining them.

Why is it important? Retention rate is a critical measure of player satisfaction and loyalty. High retention rates indicate that users find value in the platform, leading to sustained revenue streams and reducing the cost of acquiring new users. Focusing on retention can drive long-term profitability and brand loyalty, which is essential for business sustainability.

ROI / ROMI

ROI and ROMI measure the efficiency of an investment or marketing campaign in generating profit.

Why is it uncool? They are seen as "uncool" because they require detailed tracking and analysis of costs and revenues, which can be complex and time-consuming.

Why is it important? ROI and ROMI are fundamental for understanding the profitability and efficiency of business investments and marketing efforts. These metrics ensure that resources are being used effectively and provide insights into which strategies yield the highest returns. They help make data-driven decisions that maximise profitability and growth.

Payback Period

The Payback Period is the time it takes for an investment to generate a profit equal to the initial investment.

Why is it uncool? It’s often considered "uncool" because it focuses on recovery time rather than immediate gains, requiring a long-term perspective.

Why is it important? The payback period is essential for assessing the risk and feasibility of investments. It helps businesses understand how quickly they can recoup their initial costs and begin to generate profit. This metric is crucial for cash flow management and planning future investments, ensuring that the business can sustain itself and grow over time.

Summary - Now it’s your turn…

Alright, folks, you've got one week to start implementing these "uncool" metrics. Dive into ARPU, EPC, retention rate, ROI, ROMI, and payback period. They might not sparkle like GGR, but they’ll show you the real magic behind your numbers.

See you next week for more insights on how all these metrics (and more) impact GGR. Happy calculating!