Retaining players in the highly competitive gaming industry is crucial for sustained
success.
Research shows that acquiring a new player is 5 times more expensive than retaining an existing one.
Therefore, investing in player retention is not only beneficial but essential.
By leveraging various strategies, such as jackpots, personalized gamification, and
competitive gamification like tournaments, providers can significantly enhance player loyalty and retention.
Key Strategies for Enhancing Player Retention
Here, we explore 3 of the most effective tools in the hands of game providers:
tournaments, jackpots, and prize drops.
Tournaments
Tournaments are designed for players who enjoy challenges and competition, offering them the chance to win valuable prizes through daily, weekend, and leaderboard-based events.
They are particularly popular in social casinos, where fixed rewards attract players.
Tournaments can be networked, involving multiple operators, and offer various prizes, including cash, merchandise, and free spins.
Are tournaments worth the effort?
- Engagement: Tournaments result in a 70% increase in player engagement and 2.5 times longer gaming sessions.
- Revenue: They contribute to a 10% increase in revenue and a 20% improvement in retention.
- Player Acquisition: Initial experiments show that tournaments lasting 2 to 3 weeks can boost player numbers by up to 80%, with a retention rate of 40% even six months post-promotion.
Jackpots
Jackpots create a psychological bond between the player and the game, making them more likely to continue playing after a big win.
This is evident even in games offering merchandise prizes like an iPhone 14, announced via a pop-up screen.
Jackpots are not limited to slot games; they are also popular in bingo games, especially in LATAM regions, where features like Escalator jackpots enhance player acquisition and retention.
Are jackpots worth the effort?
- Engagement: They lead to a 60% increase in player engagement.
- Revenue: Jackpots contribute to a 30% increase in revenue due to higher stakes.
- Retention: They improve retention rates by 30%.
Prize Drops
Prize drops are promotional tools offering daily and weekly rewards similar to jackpots.
Often progressive, they can be awarded randomly or upon completing specific tasks. Players might need to play a certain number of spins with maximum bets to qualify for significant daily and weekly prizes.
These promotions, known as Must Wins or Daily Drops, can include cash, multipliers, or free spins.
Prize drops provide operators with a promotion tool that rewards players randomly during gameplay.
Are prize drops worth the effort?
- Regulatory Compliance: These promotions were developed in response to
stringent gambling regulations. - Innovative Incentives: They offer innovative incentives that comply with
advertising restrictions aimed at mitigating addiction risks. - Potential: While specific data on engagement, revenue, and retention are not readily available, this tool is highly suitable for more regulated markets.
Conclusion
As the gaming industry continues to evolve, focusing on player retention is more critical than ever.
Implementing strategies like tournaments, jackpots, and prize drops can significantly enhance player engagement, increase revenue, and improve retention rates.
Online casinos are advised to gradually integrate these tools to stay competitive and meet the growing expectations of players.
For more insights into gaming, stay tuned as we explore the latest developments and trends in this exciting industry.
Blog author:
Eleonora Milic
Head of Business Technology