The Sports Betting and iGaming industry has grown at quite a high rate over the last couple of years, and it certainly shows no signs of stopping anytime soon as it is expected to grow to $64.82B by 2030.
As markets continue to open up, there has been an increase in new operators vying for players in these territories. Which is great news for the players out there, with plenty of offers and deals for them to choose from.
But herelies the challenge for operators. There are now a plethora of competitors out there promoting eye watering sign up bonuses and deals to acquire new players. You can hardly blame players for taking advantage of them.
As a result, the cost for player acquisition is as high as it’s ever been, and retention and loyalty rates are low. Operators need to find ways to stand out from the crowd and give their players a reason to come back to them.
This is where free-to-play (F2P) games come in.
Free-to-play experiences serve as an accessible entry point for new users, allowing them to explore various games without the financial commitment.
Demographics that might be hesitant to wager real money can be attracted using F2P games.
For example, sports enthusiasts might be drawn to an online sportsbook for any reason, but are reluctant to engage with casino games like slots or blackjack.
F2P gaming provides a non-threatening way for these users to experience a broader range of offerings. It acts as a gateway, lowering the barriers to entry and enabling users to experiment and find their preferences.
Besides expanding the user base, it also paves the way for future monetisation.
The complexity of some games can be a barrier for new players. F2P games offer a platform where users can learn game mechanics and strategies without the risk of losing real cash.
This is particularly valuable for games like poker or blackjack, where an understanding of rules and strategies can have a significant impact on the outcome.
In regions where online gambling is newly introduced, these educational experiences are invaluable in familiarising users with different gaming options.
As well as enhancing user satisfaction, this educational aspect encourages long-term engagement. Once a player understands the game and builds confidence, it becomes more likely that they will take the next step and begin to take their chances in the pay-to-play games.
Using predictions in your F2P strategy is crucial for optimising engagement and retention. Prediction models, driven by data and machine learning, help operators anticipate player behaviour, identify players at risk, and target players with the right offers or incentives.
VIP prediction models help operators to identify which players are on track to become part of their VIP segment. Session times, betting consistency, share of wallet, and other measurements that indicate a highly engaged player can all indicate a potential VIP player.
It’s important to increase activity and engagement through personalised omnichannel offerings and messages.
Churn prediction models help identify players who are at risk of leaving the game. By analysing patterns like declining session times, inactivity, or reduced spend, you can develop targeted strategies to retain these players.
These strategies can be things like personalised incentives based on player affinity and historical behaviour, or even timely and well crafted messages to them
In many online gambling platforms, different products like sportsbook, casino, bingo, and poker are often managed separately, creating silos that limit cross-selling opportunities.
F2P can act as a bridge between these silos, encouraging players to explore different offerings.
For example, after placing a bet on a sports event, players could receive an invitation to try a free spin on a slot machine or engage in a free poker game.
This introduces users to new gaming experiences, broadening their engagement. Integrating different gaming experiences helps to create a more cohesive and engaging user journey, creating a smoother transition across various products.
The power of F2P in driving cross-selling lies in its ability to leverage data for personalised marketing. By analysing user behaviour, platforms can create tailored offers that are more likely to appeal to individual users.
For instance, a user who frequently engages with F2P casino games might be offered a special bonus if they try a new sportsbook feature during a major sporting event.
Machine learning algorithms can refine these efforts, predicting user preferences and optimising the timing and type of offers.
Targeted offers based on user data can enhance the relevance and effectiveness of promotions. Through this data-driven approach, users receive offers that match their interests, thereby increasing cross-sell conversions for the operators.
Bringing elements of gamification into F2P experiences significantly enhances user engagement. Features like leaderboards, achievements, and quests create a more immersive and interactive experience. Users might be challenged to complete specific tasks, like playing a variety of games or reaching certain milestones, to unlock rewards.
Taking this approach transforms the platform experience into an engaging journey, encouraging deeper engagement. It adds a layer of excitement and competition.
In addition to encouraging users to explore different games, it increases their time on the platform, creating more cross-selling opportunities.