How Operators Can Increase Player Lifetime Value

Wed, Jan 12, 2022
by CapperTek

Player lifetime value or player LTV is a vital metric that online casinos use to measure their performance.


If operators can gauge player LTV, they’ll know how to determine the appropriate marketing and customer relationship management strategies to use.


Player lifetime value measures a player’s estimated net worth to a betting site. It starts from the date of client acquisition to the end of the punter’s relationship with the online casino.

The Importance of Player LTV

          When operators accurately estimate how much a punter is potentially worth, they’ll know what customer retention strategies to use.


A thorough understanding of player LTV may help a betting site identify the value of various player segments. They may also tailor their customer service accordingly. 


        Keeping a client on the betting site is worthwhile. Some online casinos even invest in special cutting-edge gambling features and find unique ways to boost their customers’ gameplay.


These features are excellent additions to online casinos. Aside from offering various games and high-end features, other betting sites are also gracious in giving special bonuses to their valued clients.


However, operators shouldn’t spend more on their customers because not all are equally valuable.


        For instance, a punter who bets a few pounds on a football matchup once every few months is less valuable than one who stakes on hundreds of pounds annually on an online slot machine.


Therefore, operators must spend their marketing budget and give their attention to players accordingly.   


Balancing player LTV against customer acquisition cost or CAC is essential. One rule of thumb is the 3:1 ratio. It means that a client’s LTV should be equal to three times the acquisition cost.


When an operator has a better ratio, they’ll have a better return on investment or ROI.

How to Increase Player LTV

        Most online casinos want to raise player LTV as high as possible. Some may even extend a punter’s lifetime on their site to increase revenue from every visit.


Below are some ways to increase player LTV:

Utilise Effective CRM Software

Utilising effective CRM software may help manage the extension of a punter’s lifetime on the betting site.


Customer relationship management software or CRM is a tool designed to help organisations offer their customers a unique and seamless experience. 

Utilise Loyalty and VIP Programs

Remember that a punter will provide value to the online casino as long as they feel it gives value to them.


An operator should utilize loyalty and VIP programs. This way, their clients know their importance, resulting in an extended player lifetime and increased bet sizes.

Establish Effective Customer Service

It’s also necessary for online casinos to have effective customer service. When they have efficient customer service, they can increase lifetime value and reduce churn rate. 

Offer High-Quality Products   

Lastly, it’s also essential to offer a high-quality product to customers. It’s the most effective way to increase player lifetime value.


When an operator keeps its operations updated with live dealer games and the latest slots, they may build casino customer loyalty quickly.

Calculating Player LTV

Player lifetime value considers the revenue earned from a client and compares it to the predicted customer lifespan.


To determine player LTV, an operator should multiply the online casino’s average revenue per user or ARPU by the average length of time punters engage in the betting site.


The operator can determine the ARPU by dividing the revenue they earned in a particular period by the number of punters on their site during that time.


In other words, a player lifetime value is the total amount of money a punter generates over the entire length of their relationship with the betting site.


        Player lifetime value is a crucial metric that shifts an operator’s focus from short-term to long-term goals.


Player LTV delivers sustainable business advantage by linking client experience with real business impact.


Online casino operators must think long-term to use player LTV effectively to drive growth. This strategy allows them to retain happy clients who pay more and stay with them longer. 


1.   Understanding Customer Lifetime Value in a Casino 2021

2.   CRM Software