Managing the customers of a betting business is one of the most important tasks that bookies must perform.
The problem is that many bookies do not implement any kind of strategy or metrics to determine if they are performing good customer management.
Moreover, it is common to find betting businesses that don’t even know who their most loyal customers are or how many new customers are coming in each month.
For this reason, in this blog, we will show you the concept of customer churn and how you can implement it to manage your betting business better.
What is customer churn?
Customer churn is an indicator by which you can know the number of new customers entering the business and replacing customers who have left and never returned to the betting business.
The smaller the customer churn rate is, the better for the business. It indicates that you are doing a good job of retaining customers.
Why is this data necessary to the betting business?
A Forbes article shows that it costs five times as much to attract new customers as it does to retain existing ones. This is why bookies need to know their customer churn rate. This will allow them to project their revenue better, determine the growth potential of their business with current customers and design better programs and strategies to retain customers.
A high customer churn rate implies that the business is not doing the right things to retain customers. Therefore, if the business wants to continue to grow, it must invest a lot of money in attracting new customers.
A good churn rate does not mean that you should not look for new customers. For the business to keep growing, you should always look for new customers. But by having a good customer churn rate, you will be able to use your resources better, and getting new customers will be cheaper and easier.
How to calculate customer churn?
Calculating the customer churn of your betting business is very simple. To better demonstrate the process let’s use an example.
A betting business has 50 active customers in its first year of operations. But at the beginning of year 2 it loses 13 of those customers, but manages to gain 9 new customers.
To calculate the churn percentage, we use the following formula: Lost Customers / Total Customers X 100
Therefore: 13 / 50 x 100 = 26%.
The betting business has a customer churn rate of 26%. While 26% is not a bad score, the ideal is to lower this percentage as much as possible.
But, how can you reduce customer churn on your betting business?
There are several strategies that bookies can implement to reduce churn; here are some of them:
Effective Communication
A fundamental element to reduce customer churn and prevent customers from abandoning the business is establishing effective communication with them.
For this, you should implement several communication channels such as real-time chats, email, and phone calls.
In this way, you make available to your customers a complete set of communication channels, which they can use at their convenience.
Of course, not only must you have the communication channels available, but you must also have the qualified staff to serve them.
For this reason, you must have a good Pay Per Head partner that will provide you with a competent and professional customer service staff.
By creating effective communication mechanisms with your customers, they feel accompanied. Therefore they feel more comfortable in your betting site, and their willingness to pay increases.
In addition, the customer service staff of the Best Pay Per Head companies always makes sure that the bettors are well taken care of and are satisfied.
A satisfied bettor is a happy bettor who will think twice before abandoning you and looking for another bookie.
Know Your Betting Business Customers In Depth
Bookies should know their customers in-depth. This way, they can design better strategies to meet their customers’ needs.
For example, if a bookie knows which are the favorite teams of its customers, it can offer them bonuses or promotions to bet on those teams.
As a result, the bettor feels special and creates an emotional bond with the betting site. This generates greater loyalty on the part of the bettor.
In addition, this type of strategy tends to make bettors bet more. This translates into higher profits for the business.
Knowing in-depth the tastes and preferences of customers also helps bookies to understand what the market trends are. Therefore, bookies can prepare strategies or look for new products and services to take advantage of such trends.
If you have a good Pay Per Head provider, it is super easy to know the tastes and habits of the bettors. Through the reporting tool, it is possible to see every bet that customers have placed over time.
Therefore, by using this tool, bookies can better know their bettors and determine their tastes and preferences.
Research The Why
There are many reasons why a bettor leaves a betting site. The problem is that bookies never inquire to know specifically what was the reason for a customer to leave their business.
By knowing the reasons for abandonment, it is possible to determine areas of improvement for our business. For example, if the customer left looking for better betting lines, this means that we are not offering attractive odds and lines.
Therefore, it is advisable to look for a new Pay Per Head provider.
If you can build a close relationship with your customers, it will be easier to contact them once they have left the site to find out why.
It is important to find out why customers are leaving, especially when you have a lot of dropouts in a short period of time, as this is an indicator that something is not right with your gambling business.
Monitor your customers’ behavior on your Betting Business
It is important to learn how to determine when a customer is about to leave your betting services. This way, you will be able to implement strategies that will allow you to retain that customer.
Thanks to the reporting tools and a customer’s betting history, you can identify if there are any changes in their betting patterns or overall activity. These changes may be an indicator that the customer is close to leaving the betting site.
If you notice any changes, you can contact the customer and ask them if everything is okay and if he is satisfied with your betting services.
Provide a Superior Betting Experience
Finally, one of the most critical elements to reduce customer churn is to provide good service.
If you have a good Pay Per Head provider, it is easy to provide customers with a top-notch experience.
This is because Pay Per Head companies provide bookies with the latest in betting software and hardware. Therefore, thanks to the infrastructure of a Pay Per Head partner, you can offer your bettors a gaming experience that includes sportsbook, casino, live casino, live betting, and racebook.
By taking full advantage of the tools and platforms of your Pay Per Head provider, you can create a betting experience that matches that of the biggest brands in the industry.
You will also be able to profit from the growing betting market.
Start measuring your customer turnover and improve the performance of your betting business.