Data analytics takes out the guesswork and gives you insights based on hard data.
As government regulations ease in the US and overseas, the online gambling industry has become more competitive.¹ Plus, household income growth is down, consumer debt is up, and there are a lot more gaming options out there competing for disposable income dollars.² Any online player has a minimum of six gaming sites they frequent. As a software developer or service provider in the online gambling industry, how do you compete?
The answers lie with your data. Being in the online space means you have the luxury of collecting and using data at the individual (player) level – and that includes all the transaction data that comes part-and-parcel with gameplay. The opportunity lies in properly harnessing it – targeting the right audience through data-driven customer segmentation and automated, closed-loop marketing campaigns. Here’s how one software firm leveraged data analytics to help their online casino clients succeed and grow.
CryptoLogic (acquired by Amaya Gaming Group in 2012) developed casino and poker-themed games and provided a hosted, back-office platform that was white-labeled and licensed to online casino operators. To help their clients succeed, its’ operating arm (WagerLogic) offered a number of support services, including a data analytics platform to enable data-driven customer segmentation.
Two former CryptoLogic employees (who later founded Gensquared) were instrumental in delivering the platform. It included a suite of tools that allowed their clients to do self-service analytics and derive insights from their customers’ transactional data. The data gave them a clear view into player activity (game-play, deposits), and behaviors on which they could build sophisticated automated marketing campaigns based on advanced player segmentation. Support for closed-loop analysis allowed refinement to those segments in successive campaigns, increasing the effectiveness of the segmentation.
Without the tools and the properly prepared data to drive effective customer segmentation, it was easy for those clients to target the wrong people, send out the wrong message and offer, or send duplicate offers to the same individuals. Marketing with a data-based understanding of customers optimized effectiveness in a significant way.
Help clients connect with the right audience
“Clients often tend to have their own mental models of how customers should be segmented and what drives action,” says Mike Starzynski, CTO at Cryptologic. “So it can be challenging to see the value of using data. But once they see what data can do for them, they tend to jump on board pretty quickly, and start making business decisions derived from analytics.”
The back office platform created a unified customer profile (a single view of the player) with complete, accurate customer information for creating segments and planning campaigns. With access to such information, clients were able to gain and act upon insights that would drive customer play and loyalty. The businesses didn’t have to do all the back office work themselves – CryptoLogic saved them a lot of effort and provided significant value.
“Many of our clients didn’t know the value of the information they had access to,” says Starzynski. “Once they realized how the analytical tools could help them, they became an integral part of growing their businesses.”
Clients often tend to have their own mental models of how customers should be segmented and what drives action. So it can be challenging to see the value of using data.
But once they see what data can do for them, they tend to jump on board pretty quickly, and start making business decisions derived from analytics.
Identifying “bonus abuse”
Analytics doesn’t just help with marketing campaigns – it can provide insights into other customer behaviours too. CryptoLogic’s online casino clients commonly offered a monetary bonus to newly registered players to use for gambling, assuming it would attract new users and drive new revenue. Analysis revealed a very different picture, however. The data showed that many existing customers were creating multiple accounts to claim those bonuses. So not only was a casino unsuccessful in attracting new customers, they were paying for it.
“Advanced parsing, matching and algorithms gave a client the ability to link players to all accounts related to them,” says Starzynski. “It was easy to see what players were creating multiple accounts, so the client was able to put a stop to a lot of this behaviour.”
Getting a view into how those bonuses were being used gave CryptoLogic clients the information they need to stop the bonus abuse and find new, more effective ways of attracting new customers.
The powerful analytics platform helped CryptoLogic position itself as a provider of tools that drive high-value analytics and data-driven marketing, offering a key point of differentiation for online casinos evaluating platforms.
Next up: Determining which games are the best performers
Data analytics doesn’t just help with marketing. Bluberi, a manufacturer of video slot machines, used customer insights to create better games – and help their casino clients use them to maximize revenues. Read the article.