Caesars Sportsbook's Efforts in Retaining Customers Impress
Gaming corporations invest heavily in acquiring customers for their sports wagering businesses. While attracting new customers is essential, retaining them is a different challenge.
Flutter Entertainment's FanDuel and DraftKings combined hold around 75% of the US online sports betting market, so it's expected that these operators excel at customer retention. Caesars Sportsbook is also making progress in this area.
"Caesars is now slightly ahead of FanDuel and DraftKings in terms of unified (iOS + Android) retention at Day 60," remarked Eilers & Krejcik Gaming (EKG).
Many operators in the industry experience high enthusiasm for new sports betting apps, especially those from well-known brands. The key is keeping these customers for the long haul, often enticed by generous welcome bonuses. Caesars has significantly improved in this regard.
Caesars Succeeding in Retaining Clients Despite Slashing Promotions
Caesars, one of the first online sportsbook operators to significantly cut marketing and promotional spending, demonstrates proficiency in retaining customers using its Caesars Rewards loyalty program.
Reducing promotional spending could potentially lead to customer loss, as bettors often choose platforms based on the most attractive deals. However, Caesars' loyal clientele has increased due to organic methods, such as its Rewards scheme.
EKG further explained, "The change is Caesars cutting back on churn-y mass acquisition and bonusing spending – leaving the operator with more loyal customers acquired via more organic routes like its Rewards scheme. Otherwise, retention rates mirror what we would expect based on our product grades, with FanDuel leading the way."
In effect, Caesars effectively utilizes its Caesars Rewards loyalty platform to incentivize online sportsbook and iGaming customers, as points earned online can be redeemed at the company's physical casinos.
Maintaining Loyalty in Online Sports Betting Is Tricky
Retaining online sports betting customers is a difficult task for gaming companies. New bettors frequently make decisions influenced by promotional offers, while experienced ones seek out the best odds. As a result, loyalty in this sector is challenging to achieve.
Experts predict that more than half of bettors who sign up for a regulated mobile sports betting account make more than two deposits in their first year. Fewer than 5% remain dedicated to a specific platform after a year.
Typically, customer retention rates vary across industries, ranging from the mid-50% range to the mid-80% area. However, in the iGaming space, which includes sports betting, retention rates hover around 40%.
Yet, some operators have mastered customer retention. For instance, in 2022, DraftKings reported that 83% of new clients stayed with the company for a year, while 88% of that group continued to use their accounts in year two. Notably, loyal clients contribute significantly to operators' profits over time.
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Source: www.casino.org
