How to Better Showcase Profit and Growth to Stakeholders of Your Gaming Company

By Paul Smullen on November 21, 2017

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Showcasing profit and growth can be a challenge for a gaming company. Merging various sets of information and trying to showcase it in a way stakeholders can understand can be time consuming, expensive and stressful.

 

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Having a robust set of business intelligence reporting tools can help gain genuine insight into the financial data of your gaming business. There are a few key metrics which are most valuable from the perspective of a gaming company: ARPU (Average Revenue Per User), CPA (Cost Per acquisition) and NGR (Net gaming revenue). Let's take a look at these in more detail.

 

ARPU (Average revenue per user)

Measuring the average revenue per user over a certain period is a great way to determine which customers or customer groups are generating the most revenue. The monthly recurring revenue from your customers divided by the number of active customers gives you the figure. Put very simply the higher this figure is the better the business is doing. It can also help to identify which price points and packages are performing best.You can then adjust marketing and customer retention measures accordingly. This can improve your churn rate and boost the bottom line.

 

CPA (Cost per acquisition)

Cost per acquisition is always a hot topic in any business. Should we spend more to attract customers? How much is too much? Do we even know? Well this is the million dollar question so to speak. Knowing your CPA and your ARPU allows you to set budgets so you know you are getting a good ROI (return on investment) over the lifetime (LTV-lifetime value) of the customer's interaction with your business. Having these in place allows you to identify what is working and very importantly what is not. Failing to track costs can result in losses and seriously impact a business's ability to grow.

 

NGR (Net Gamer Revenue)

The last metric we will look at is NGR (Net gaming revenue). This gives you an insight into what profit is really being made since GGR (Gross gaming revenue) does not consider the costs involved. Having a clear picture of both figures is important for management and the stakeholders to track performance.

Stakeholders generally feel your business is important to them. Similarly, they should be important to you. Everyone working together to generate the best ROI for all parties is the ideal situation. Communication is central to this process. Having a clear way to help everyone easily understand the metrics and patterns in the business can really improve the overall experience for everyone involved.

Ddaas is a business intelligence specialist that can make the process easy for your gaming business. Specialising in gathering, extracting and combining data from multiple channels and systems we deliver a companywide view in real time. This takes the headaches out of the process for you and your team and allows you to have on demand reporting. This is a great advantage in terms of communication and information sharing with your team and stakeholders.
With our help you can grow your business by leveraging your own data, increase your return on investment, get a better breakdown or data to segment your audience and improve your marketing and more.

Managing and analysing data is a major undertaking if managed in house, but with Ddaas the complete solution offers benefits that will be worth the effort, money and time invested. As a result, gaming businesses are more likely to prosper.

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Topics: Business Analytics, business intelligence, Gaming

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Written by Paul Smullen

Ddaas help business grow using their own data.

We help companies from all sectors improve their return on their marketing investment, by showing them where their money is best spent, how to better segment their audience and decide who they should target with their promotional efforts.

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