How Player Reactivation turns Churn into Return

Since the birth of the iGaming industry, operators have invested primarily in player acquisition. Our research, based on data from years of player retention optimization, shows that it costs 5x more to acquire new players than to retain existing ones. It also costs 16x more to bring new players to the same profitability levels as existing players.

We’ve seen the iGaming market becoming increasingly saturated, and as a consequence, the industry now moves further into maturity and consolidation, and competition to retain Players become even more fierce. Investing in Player Retention activities and relationship building, is now more key than ever. For operators, it means building the capability to re-engage with inactive players after registration and initial deposit, re-activate them and invest to keep players loyal to the brand over time. Our research shows that it generates significant organic re-growth, bottom line profits, while at the same time safeguards responsible gaming commitments.

 

Player Reactivation and “turning churn” is an important and concrete method in order to maximise the value of the existing player database and avoid wasted potential.

 

In a recent case study Enteractive measured the impact on Player Reactivation with two mid-size operators offering four Nordic facing brands. We initiated a one month pilot for all brands with the goal to reach 30% reactivation rate.

In this pilot, the Player Reactivation initiative resulted in an average conversion rate of 44%. Assuming an estimated lifetime net profit per player of ~€500 this would equate to over €600,000 in profit from the short pilot alone.

The study emphasized that mid-size operators have significant untapped potential in their dormant player databases. That potential can be realised quickly within 1-2 months by initiating a reactivation pilot project, then scaling up. This case pilot was carried out across different regions and brands, highlighting the fact that results are consistent across demographics and products, ranging from Casino to Sports betting.

In another case study, we combined the yearly performance of two larger brands in order to highlight the long term reactivation impact. The two operators in this combined case, service more than eight regions including the UK and offer a full range of products from Casino to Sports Betting. When consolidating the results, reactivation activities showed a yearly net revenue creation in excess of €6M and average monthly net revenue creation of €500k, all in all a ROI of >270%.

The study tells us that also larger operators often have massive dormant player databases, and keep re-filling them every month as more players churn. Implementing a structured reactivation process scales well, and delivers significant bottom line results for both mid- and larger size operators over time.

 

Another interesting finding, is that reactivated player deposit levels increase by around 200% and “re-churn” is even lower when compared to the active, non-reactivated player base.

 

In Summary, the cases highlight that material value can be obtained through reactivation of churned players. Using the correct technique, both recently churned players as well as older players have the potential to return to your brand, and the results are valid both for larger and mid-size operators. Results can be expected fairly quickly with very strong ROI. They will also scale and can be relied upon over the long term creating a further channel for internal growth, immune against the increasing competition for new player acquisition.

Want to discuss iGaming Player Reactivation? Contact us here.

About Enteractive

Enteractive was founded in 2008 with the mission to help iGaming operators to reactivate churned players. We are the iGaming industry leader in Player Retention Solutions. We partner with operators to reactivate churned players over phone. By letting players talk with players, we personalise every single player conversation. The results are significant improvement to player relationship, profitability and loyalty.

Our tried and tested methodology has delivered amazing results from leads as old as four years, across multiple markets, brands and products. Our mindset is learn and deliver. Powered by our unique methodology and state of the art technology, we’re changing the way iGaming brands engage with players, giving operators a real capability to stay ahead of the game.