Roundtable: A strong retention strategy serves as a roadmap for acquisition

The increasing cost of user acquisition has proven to be a critical pain point for many across the sports betting ecosystem, with the addition of FTDs proving to be an increasingly challenging and costly exercise.

In a two-part SBC News roundtable special, a quartet of industry experts will share their insights on the current state of user acquisition in the sector, shining a particular light on re-engaging inactive or churned players to increase revenues. 

This first chapter sees Andrew Foster, Enteractive’s Chief Business Development Officer, Michail Koutsoukos, Head of Customer Engagement at BoyleSports, Motti Colman, VP of Revenue at Optimove, and Neill Simpson, Director at Rivalo, delve into the current challenges being faced, effective strategies in minimising associated costs and how to achieve that crucial balancing act.

SBC News: What are the main challenges you face regarding user acquisition in the current sports betting market?

Andrew Foster: It is important to note that my perspective is shaped by my role as a service provider, which may differ from that of others. However, I believe this vantage point offers a broader view of market trends, given our interactions with numerous operators across various markets.

The market appears to be shifting towards a more direct acquisition approach, moving away from the heavily affiliate-driven models of the past. This shift has resulted in operators investing significant resources into digital marketing, with a focus on achieving sustainable ROI. Consequently, this may reduce the revenue share associated with traditional acquisition methods which will be a driving force for many operators.

However, this strategy presents certain challenges, particularly in creating a localised competitive environment with limited marketing opportunities, such as UEFA or Euro sponsorships. This scarcity can drive up the costs of digital marketing efforts, potentially narrowing profit margins.

As a result, operators must be highly strategic in optimising player value post-acquisition, given that initial marketing expenditures are now substantially higher than in previous years.

There are many tools and strategies that operators can employ to keep players active and I believe there will be continued growth in the area of re-engagement and products that keep players active for longer or products to get these valuable players re-engaged like we do at Enteractive.

Michail Koutsoukos: The primary challenge in user acquisition today is mastering real-time marketing, particularly given that live/in-play betting now accounts for over 85% of the turnover. The difficulty lies in reaching the right audiences with highly relevant offers at the precise moments when the action unfolds. 

No company has fully capitalised on this opportunity yet. Even major players like Google, social media platforms, and leading affiliate networks have struggled to develop effective advertising means that can truly harness the potential of live/in-play betting!

Motti Colman: The sports betting market is increasingly competitive and commoditised, with many operators offering similar experiences and bonuses. This saturation makes it challenging to stand out and capture player attention, leading to rising acquisition costs.

Traditional acquisition methods often rely on broad demographic targeting, missing the nuances of individual player behaviours and preferences. As a result, campaigns can be inefficient and fail to resonate.

Regulatory compliance and data privacy add layers of complexity, requiring operators to navigate changing laws while respecting user data. Bettors today seek more than competitive odds—they want engaging, seamless experiences with fast payouts and innovative features.

To tackle these challenges, we focus on data-driven strategies, personalised marketing, and optimising the user journey to differentiate ourselves and maximize the value of each acquisition dollar.

Neill Simpson: With our core markets being Colombia and Brasil, competition is fierce but in slightly different ways. In Colombia it’s due to the dominance of the established market leaders and Brasil, purely because of the large number of operators in the region.

This means that more often than not, new prospects are blinded by attractive offers that don’t often meet the players original expectation. We haven’t had the large marketing budgets that a lot of competitors have utilised so we have had to find alternative channels and strategies in order to continue to acquire players.

SBCN: What strategies have proven most effective in managing or reducing acquisition costs?

MK: Fundamentally, executing the basics correctly remains the most effective strategy for managing acquisition costs across the digital marketing ecosystem. This involves optimising core activities such as targeted advertising, keyword optimisation, audience segmentation, and ongoing campaign management. 

This includes a balanced approach to PPC branded campaigns versus the right SiS (Search Impression Share), ensuring high-value betting keywords are ranked appropriately, maintaining always-on social media campaigns, and strategically selecting key exposure opportunities within affiliate marketing networks allow businesses to control CPA levels while staying aligned with predicted value benchmarks.

MC: Retention marketing, especially through micro-segmentation and first-party data, is highly effective in reducing acquisition costs. Since acquiring a new player can be up to five times more expensive than retaining one, focusing on retention is crucial for profitability.

A strong retention strategy serves as a roadmap for acquisition by identifying the traits of high-value customers. By analysing player behaviour from the start, operators can personalise marketing beyond demographics, optimising bonuses and targeting those likely to become VIPs.

Utilising first-party data allows for personalised, targeted campaigns that increase conversion rates and reduce wasted spend. Additionally, optimising the channel mix by focusing on high-performing channels ensures budget efficiency.

Improving retention through personalised offers and loyalty programs extends the player lifecycle, enhancing the value of initial acquisitions. Using lookalike audiences based on high-value players further improves acquisition efficiency. Continuous testing and optimisation ensure that only the most effective methods are used.

These strategies collectively help attract and retain high-quality players, balancing acquisition costs with long-term growth.

NS: As a group we changed our platform provider roughly 18 months ago and adopted a policy of not providing a welcome offer to players. We have tried to build a brand utilising the resources we have such as our partnership with Cafu and other strategic partnerships.

Although we see slightly lower conversion numbers, bonus costs are significantly reduced, with prospects that become players at Rivalo staying longer. With this we are able to generate a greater life time value and a much quicker ROI.

AF: I have observed that many operators are increasingly focused on key metrics, particularly when evaluating payback periods and structuring deals with affiliates. It is clear that the era of easily negotiated agreements, featuring high upfront CPAs and generous revenue share models, is coming to an end.

Operators are now placing greater emphasis on verifying the quality and performance of traffic sources before committing to any substantial agreements with affiliate partners.

The focus has also clearly shifted towards a model that prioritises acquiring players in a manner that ensures long-term engagement and maximises their lifetime value with the company.

There is now significant attention on the transition and collaboration between the acquisition team and the CRM team, with the goal of providing a seamless experience for players. This increased focus on player retention and handover processes ultimately enhances the overall user experience, benefiting both the operators and their customers.

SBCN: In what ways does player retention balance the rising costs of acquisition, and which retention methods have been most successful?

MC: Player retention is crucial in balancing the rising costs of acquisition, as retaining an existing player cost significantly less than acquiring a new one. By investing in retention strategies, operators can reduce their dependence on constantly acquiring new users while maintaining profitability.

Retention marketing through micro-segmentation creates personalised experiences that resonate with players on an individual level, fostering long-term engagement.

Successful methods include personalised offers, timely incentives, and targeted communication tailored to a player’s unique journey. Again, a great retention strategy not only maximises the lifetime value of existing players but also serves as a roadmap for acquisition.

By understanding what drives loyalty and engagement in current players, operators can identify key characteristics to target in new potential customers, focusing on those who are most likely to become high-value players. This approach ensures that marketing efforts are directed toward acquiring customers with the greatest future potential, making retention a key component of a sustainable growth strategy.

NS: Retention is always key, particularly as markets move through their growth stages. We all know that there is a finite disposable income available for players. In addition it’s more than likely, this potential revenue is split between a number of operators.

You have to do everything possible to ensure that the player sees your brand as one of their long term ‘go to operators’. We focus on the initial player experience, ensuring that the player has a reason to come back to your brand to make a second, third, fourth deposit etc.

All of our rewards are retrospective and segmented accordingly so we think we have a good methodology in order to look after the players in the right way.

AF: From Enteractive’s perspective as a service provider specialising in player reactivation and acquisition for the sports betting industry, tackling the rising cost of acquisition requires a focus on retention and reactivation, supported by data-driven strategies.

Reactivating dormant players is far more cost-effective than acquiring new ones, as these players are already familiar with the brand. Enteractive’s personalised, one-to-one reactivation campaigns have shown that extending player lifecycles can deliver better ROI than traditional acquisition methods.

Data-driven segmentation is also crucial, allowing operators to target the most valuable player segments more effectively, improving efficiency and reducing unnecessary marketing spend. Additionally, seamless collaboration between acquisition and CRM teams is vital for enhancing player loyalty and reducing churn.

Finally, diversifying acquisition channels beyond expensive digital ads, such as through personalised engagement and emerging media, can help operators better manage rising costs while maintaining sustainable growth. This holistic approach addresses acquisition challenges with long-term value in mind.

MK: The escalating costs of acquisition are largely a by-product of regulatory inefficiencies, and I hope we don’t burst any bubble with that statement! Costs will begin to stabilise once regulators enforce more stringent measures to prevent unlicensed operators from advertising in jurisdictions where they lack the necessary licenses.

By cracking down on illegal market entrants, regulators can create a more level playing field, reducing the competitive pressure that drives up acquisition costs.