13 minutes to read
CRM Operation Team Lead
Want more revenue—provide your players with what they want. At first glance, the rule is simple. But a closer look requires a deep dive into player needs and how to apply your knowledge in practice. For the first part, you have to understand the psychological motivations behind gambling. And to apply your knowledge correctly, you need player segmentation.
Player segmentation is a foundation for operators' activities. Basically, you divide players into groups based on how they like to play, how much they spend, how often they play, and their personal data. This filtering helps create special promos, bonuses, and games for different player groups, ensuring everyone gets what they like. It also allows personalized offers, improves games and sports selection, boosts conversion rates, optimizes spending on bonus campaigns, and, finally, makes players return for more.
When you see on the platform provider’s website or brochure that they have advanced segmentation, it pales somewhere in between the full list of features. But let’s give it a name that better reflects its nature—the ultimate moneymaker and money saver. Here is what you can achieve with segmentation:
For players, it creates a feeling of match with your platform: When you segment players based on their preferences, behaviors, and spending habits, you can offer a more tailored gaming experience. Think of personalized bonuses or recommendations that hit just the right spot. It’s like offering a VIP experience to every player, increasing their satisfaction and loyalty.
Improves ROI: Instead of spending big bucks on generic campaigns, advanced segmentation helps you target specific groups of players with laser-like precision. You can focus on your high rollers, casual players, or bonus hunters with offers that match their interests. The result? Way better returns on marketing efforts.
Boosts retention and LTV: Knowing what makes your players tick means you can hit them with timely rewards or relevant content that keeps them coming back. Players who feel like the casino “gets them” are more likely to stick around.
Saves you money: You won’t need to throw a “one-size-fits-all” promotion at your players. Instead, you can create deals that match different segments’ spending habits, keeping costs down while maximizing impact.
Helps in anti-fraud: Segmentation isn’t just for marketing. Operators can also use it to identify risky behaviors early on. For example, you can spot problem gambling patterns by monitoring how certain segments behave and intervene with responsible gaming tools when necessary.
💡 At GR8 Tech, our segmentation strategy is to categorize our risk segments into four main categories: Negative, Neutral, Positive, and Premium. Each player is assigned a single segment for each product type, and if a player's segment is not defined, the default segment is used. Player segments are always associated with specific IDs, and while segment names can be modified, the ID remains constant. Furthermore, the name of the product type should not be changed.
How much players spend, how often they play, and where they're located are decent to start the segmentation process, but we need to dig deeper to better understand how to manage CRM activities and act according to each segment. Here is a table with iGaming player segments and recommendations:
One of the most effective strategies for iGaming business segmentation is Recency, Frequency, and Monetary (RFM) analysis. RFM analysis involves segmenting players based on their calculated Recency, Frequency, and Monetary metrics related to their gambling experience.
To enhance the insights gained, we have incorporated Duration into the RFM metrics, providing more information about player engagement. Furthermore, we have implemented machine learning segmentation and classification algorithms to uncover complex data patterns and reduce human bias.
Ready-to-use RFM(D) segmentation example:
Okay, now that we understand the benefits of segmentation, how to filter our player base, and how to engage them to take action, it’s important to realize that the iGaming business is not as simple as it may seem. Here are some pitfalls you or your CRM team may encounter in operations.
According to a study by Experian, poor data quality affects 83% of companies, leading to inefficiencies in marketing and business operations. Inconsistent or incomplete data can skew insights and lead to faulty segmentation. In iGaming, you risk misinterpreting player needs and offering irrelevant content if data about player behavior, spending habits, and engagement is not correctly captured or maintained.
🔧Solution: Operators should invest in robust data management platforms that automatically clean, verify, and update player data in real-time. Combined with machine learning, regular data audits can help identify anomalies and missing data points, ensuring that segmentation models are correctly built.
Player preferences and behaviors in iGaming are not static. For example, a player who once preferred live casino games might shift towards sports betting based on changing interests or external events (e.g., major sports tournaments). Failing to account for these shifts can lead to inaccurate targeting, reducing the effectiveness of marketing and retention strategies.
🔧Solution: Operators should use dynamic segmentation models that continuously update based on real-time data. Machine learning algorithms can track and predict behavioral shifts, allowing operators to adjust their segmentation strategies and offers in response to new trends. For example, operators can use AI-driven models to automatically reclassify players based on changes in betting frequency, game preferences, or deposit patterns.
In a McKinsey survey, 53% of businesses reported that outdated technology prevented them from making the most of their customer data for marketing purposes. iGaming is no exception: some operators lack the technology stack to analyze large amounts of data effectively for player segmentation. Outdated systems may struggle to process real-time data, especially for large iGaming platforms with thousands of players engaging simultaneously.
🔧Solution: To overcome these limitations, operators should invest in CRM tool development or switch to a platform with integrated CRM explicitly developed for iGaming peak loads.
💡Forrester’s research shows that 49% of organizations struggle with data integration across different systems, leading to operational inefficiencies. Relying on third-party CRM can cause issues related to data processing delays and slow down your ability to respond in real-time because external systems might not work smoothly with your platform.
While segmentation allows for targeted marketing, there is a risk of over-segmenting the player base. Creating too many micro-segments can lead to fragmented marketing efforts, making it difficult to scale campaigns. It also increases the complexity of personalization, as too many small segments can water down the effectiveness of promotions and slow down the overall marketing efficiency. According to a study by Bain & Company, businesses that over-segment their audiences often struggle with inefficiencies and confusion.
🔧Solution: Operators should focus on creating proven segments rather than over-complicating the segmentation process. By clustering players into broader categories with similar behaviors and preferences, operators can streamline marketing efforts and create campaigns that resonate with larger audiences.
Imagine you have set up a CRM, a ready-steady team, a business analytics tool, and segmentation ideas based on your industry experience. But which metrics will help you understand the impact of targeted strategies? Here are some main things to look for:
Communications Metrics: Metrics such as the open rate, click rate, click-to-open rate, delivery rate, and unsubscribe rate offer insights into how well communications are received. A high open rate and click rate indicate that the content is relevant to players. In contrast, a low unsubscribe rate suggests the messages are well-tolerated and perhaps even anticipated.
Bonuses Metrics: In iGaming, bonuses are the primary tool for player engagement and retention. Metrics like clear bonus amount, bonus rate, bonus rate to deposits, number of players with bonuses, and bonus amount per player help assess how effectively bonuses drive player activity. We use this metric for control: it helps us understand do players make additional deposits to obtain bonuses or simply collect bonuses through planned deposits.
Engagement Metrics: The number of players(%) using stickers, achievements, and quests reveals much about player engagement and the viability of your gamification tools. Metrics such as the completion rate of these activities and the activation rate of randomizers or promotional pages highlight how engaging and compelling the platform's features are.
Retention and Reactivation Rates: These are perhaps the most direct indicators of segmentation success. A high retention rate signifies that existing players are staying engaged, while an effective reactivation rate shows that previously inactive players are returning to the platform.
💡Your CRM team may not be responsible for checking these metrics, but you should definitely analyze Gross Gaming Revenue (GGR), Net Gaming Revenue (NGR), deposit and withdrawal amounts, and active users (DAU, WAU, MAU). These metrics are markers of the platform's overall health and proper targeting.
The foundation of successful segmentation is understanding your players better than they understand themselves. If you have that knowledge, the rest depends on the cooperation between the CRM, platform, business analysts, and marketing teams. If you are at the beginning of launching an iGaming platform, pay attention to developing your own CRM solution or partner with the provider that can bring your vision to life, develop necessary features, and swiftly adapt to changing trends, feedback, or events, especially in the context of sports betting.
We hope that we helped you get better at segmentation. Have a great day!
🎙 What interests you about iGaming player segmentation? Drop a comment below, and let's spark a conversation.
We develop a segment strategy for each client based on region-specific needs, product types, common risks, new trends, and established best practices in iGaming. Accelerate profitable play with GR8 CRM under the hood.
Segmentation in business is a strategic approach used by companies to divide their customer base into smaller, manageable groups based on shared characteristics. This method allows businesses to target specific segments with tailored marketing strategies, products, and services, enhancing customer satisfaction and increasing efficiency in resource allocation. In the context of iGaming, companies apply segmentation to identify distinct player groups such as high rollers, casual gamers, or geographical locations. By understanding the preferences and behaviors of each segment, iGaming operators can tailor their promotions, gaming content, and communication strategies to meet the specific needs and preferences of each group, leading to improved player engagement and retention.
Segmentation is vital because it allows businesses to divide a customer base to design and implement targeted strategies. For iGaming operators, applying segmentation helps to tailor promotions, content, and experiences according to the distinct preferences of different player groups. Strategic focus improves player satisfaction and engagement and increases each player segment's lifetime value (LTV) by aligning the offerings more closely with their specific demands and expectations.
Player segmentation is crucial in iGaming because it allows operators to understand and categorize players based on their behaviors, preferences, and value to the business. By segmenting players, operators can create personalized experiences, target their marketing efforts more effectively, and optimize resource allocation. This approach increases player satisfaction, as personalized experiences are more likely to meet individual player needs and expectations. Additionally, segmentation helps identify the most valuable players, allowing for strategies focusing on retaining them and maximizing their lifetime value.
Casinos segment players to tailor their strategies for different types of users, optimizing the player experience and the casino's operational efficiency. Segmenting players in online casinos requires CRM managers to categorize players into groups based on their activity levels, spending habits, and game preferences. Here are some examples:
Aces: Represent high spenders and frequent players, often engaging with the casino over 20 days per month. Aces includes a significant proportion of women and is among the oldest in the player base.
Jacks: Regular players who show loyalty to a specific type of game, like slots, and have average income levels.
Jokers: Primarily sports bettors with below-average income who experiment with various product types, making them the most diverse gaming habits. They are also typically younger and have the smallest share of female players among all segments.
Sixes: Low spenders and the least frequent players, mostly sticking to casino games without branching out.
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