SBC News Voice of the Sports Betting Industry
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 the concluding portion of a latest SBC News roundtable, the role of personalisation in acquisition and retention, as well as how the industry can combat rising costs, are put under the microscope.
Neill Simpson, Director at Rivalo, Andrew Foster, Enteractive’s Chief Business Development Officer, Michail Koutsoukos, Head of Customer Engagement at BoyleSports, and Motti Colman, VP of Revenue at Optimove, offer their expertise once more.
SBC News: What role does personalization play in both acquisition and retention, and how can it be optimized?
Neill Simpson: This is a very interesting area especially with the rise of many AI related tools helping both target and create an experience for players. In my opinion a basic level of personalisation is paramount from initial onboarding rough through to your top VIP’s, this can take on many different facets.
However I think personalisation moving forward should solve problems rather than a focus on recommendations. This has been the default in this area from what I have seen over the last few years. By this I mean more often than not players have limited time to spend placing a bet or playing a casino game.
They will know what they want to bet on and what games they want to play before coming to your site. Therefore I think utilising AI/personalisation to make areas like verification as easy as possible/smooth navigation around the site and ease of bet placement optimal is key. How to enhance a players experience with favourite games and frequent betting behaviour should be at the forefront of the thinking.
Andrew Foster: Personalisation is vital in both acquisition and retention within the sports betting industry, as it enhances player engagement and loyalty.
For acquisition, tailored marketing based on data analytics allows operators to attract the right players with customised offers, targeted promotions, and personalised messaging, increasing conversion rates and reducing acquisition costs.
For retention, personalisation deepens player engagement through relevant content, timely bonuses, and customised communication. By predicting player behaviour, operators can deliver tailored experiences like favourite team updates or personalised betting recommendations, improving satisfaction and extending player value.
To optimise personalisation, operators should:
- Leverage data analytics for precise targeting.
- Use dynamic segmentation for real-time relevance.
- Enhance communication with personalised messages and direct contact at the appropriate time.
- Improve customer experience through seamless, tailored interactions.
This approach boosts acquisition efficiency and strengthens retention, driving long-term success.
It’s no secret that we feel the personalised human to human touch point is unparalleled in the role that it plays in gaining feedback and building the deepest relationship with one’s player base in the shortest time possible. In a world with so much going on and millions of messages and emails, going back to the old school process of speaking to one’s player base makes them feel valued and cared for and the value add of the process remains unchallenged in our opinions at Enteractive.
Michail Koutsoukos: The traditional CRM tenet of ‘right customer, at the right time, through the right channel’, which very successfully describes the concept of customer relevance is a critical element to maximise retention.
Essentially it translates to being willing and able to change your behaviour toward an individual customer based on what the customer tells you and what else you know about that customer.
In the realm of customer interaction, fostering a learning relationship involves the dynamic ability to adapt and modify our behaviour towards individual customers. This adaptability is informed by both explicit customer feedback and the wealth of knowledge we have about each customer.
Think of a learning relationship as one that gets smarter with each interaction. The customer tells you of some need, and you customise your product or service to meet it. Every interaction and modification improves your ability to fit your product to this customer. Through this process, customers are not willing to start a new relationship but rather stick with the one that makes them feel valued.
Every communication should be personalised, relevant, timely, driven by insight, measured, evaluated with a next best action considered & aligned to a overall management strategy for the customer. We know when to reward, by how much and by what means.
Motti Colman: Personalisation is key in both acquisition and retention, especially in a commoditised market where differentiation is crucial. For acquisition, understanding a player’s preferences and behaviours from their initial interaction enables operators to deliver targeted messaging and offers, increasing the chances of conversion.
In retention, personalisation maintains engagement by providing relevant content and experiences that keep players coming back. Optimised through micro-segmentation, personalisation uses data to create detailed roadmaps of player journeys, identifying key behaviours and preferences.
This allows operators to optimise generosity and bonuses for different player types, helping to identify and retain those with the highest potential lifetime value. This approach not only drives immediate engagement but also builds a foundation for acquiring new customers who exhibit similar high-value traits.
SBCN: In what ways does player retention balance the rising costs of acquisition, and which retention methods have been most successful?
AF: There is a clear relationship between acquisition costs and retention rates. If acquisition costs are high but retention rates and player values are strong, this creates a balanced mix that can drive sustainable growth.
Conversely, low retention rates can be offset by lower acquisition costs, allowing operators to find a profitable niche that works for their business.
Many operators are adopting a multi-brand approach to capture the broadest possible share of player spend over the longest period of time. This strategy aims to maximise player value across different segments and verticals, ensuring longevity and profitability.
Ultimately, there are various ways to achieve success in the market, but the optimal scenario remains a combination of the lowest acquisition costs – whether through direct channels or affiliate networks – paired with high retention rates. This blend allows operators to maximise both short-term growth and long-term player value, providing a sustainable model for success.
For me, having a real touchpoint with players is the key differentiator, regardless of how it’s achieved. Truly understanding what the player likes, what they want, and when they want it creates a personalised experience that resonates with them.
This deeper connection enhances player satisfaction and engagement, ultimately leading to higher retention rates. Operators who invest in understanding player behaviour and preferences can tailor their offerings more effectively, providing value at the right time and in the right way, which fosters loyalty and long-term success. This personal touch is crucial in today’s competitive market.
MK: Player retention is key to offsetting the rising costs of acquisition by maximising lifetime value and ensuring a return on initial investment. A robust retention strategy starts with a smooth and consistent journey from acquisition to early engagement.
By leveraging data insights to identify player preferences, behaviours, and motivations, we can tailor experiences and anticipate the next best action for each player.
Successful retention methods include personalised reward mechanics, a thoughtful contact strategy across multiple channels, and gamification elements that enhance player engagement. Loyalty programmes can further incentivise sustained play, driving long-term value for both the player and the business.
However, it is crucial to maintain a strong focus on responsible gaming. Understanding a player’s disposable income, ensuring player safety, and adhering to responsible gaming practices are vital to creating sustainable growth.
Ultimately, well-executed retention strategies not only reduce churn but also build player loyalty and trust, allowing for a more balanced and cost-effective approach to acquisition.
MC: The industry can address the growing cost of acquisition by shifting its focus from broad, demographic-based marketing to a more personalised, data-driven approach. Leveraging micro-segmentation and AI-orchestrated marketing provides deeper insights into player behaviours and preferences, enabling operators to create tailored experiences that attract and retain players.
By emphasising retention marketing, operators can reduce the overall cost of acquisition since retaining existing players is significantly less expensive than acquiring new ones.
Additionally, understanding how to optimise generosity for different player types helps identify the best customers to target – those with the greatest future value. This creates a roadmap for acquiring and retaining high-value customers, ultimately driving profitability and sustainable growth in a competitive market.
NS: It’s literally the million dollar/euro/real question, in competitive, growing markets media costs are on the steep increase. In quite a few markets, consolidation of brands over time will need to occur before we will see any dramatic changes, I think.
In the meantime brands will have to adopt different strategies in order to succeed. The Industry is still very much seen as a cash cow for suppliers, media and sports properties alike. As long as the demand is still there then the prices will reflect things accordingly.
I can safely say, during the last 20 years of being involved in different markets, this is the most competitive period I have seen in the industry for operators.
