Key Performance Indicators for Sweepstakes Business
Imagine starting a sweepstakes platform without any means to verify if promotions are actually drawing players or producing a profit. The things may take off for a while, but sooner or later, you are doomed to fail without reliable data. The reason why key performance indicators for sweepstakes businesses are so important is that. They give you an actionable point of reference for the lifeblood of your business performance.
Share at:
Establishing and using KPIs will allow you to transition from speculation to a result-oriented plan in the ever-expanding, competitive nature of the sweepstakes market. In this blog, you will get a condensed toolkit containing the LPIs that matter most. If you are considering how to start a sweepstakes business or looking to grow one further. Read more for the KPIs that matter and how to measure them to a high degree of accuracy.
Stand Out in the Industry with These 14 Key Sweepstakes Sportsbook Software Features
What is a Sweepstakes Software?
Sweepstakes software is the system behind a prize-based gaming platform that utilizes virtual currencies like Gold Coins and Sweepstakes Coins. It provides casino-style games without the use of real money. Sweepstakes platforms are designed to be compliant with laws to allow all users to potentially win prizes without the risk of wagering real money through play for free. The developers provide you with turnkey or white-label solutions that include dual wallets and full compliance with engagement-disciplined marketing.
Finance Or Money-Related KPIs
It is a critical mission to assess your financial health when you operate a sweepstakes business. These key performance indicators for sweepstakes business will give you insight into how much you are making and how much you are spending. It will also analyze whether your player base is financially sustainable or not. You rely on these numbers so you can make real decisions to change bonuses, scale ad spend, and decide which segments of the player base to focus on. The table below provides the main finance-related KPIs you should monitor regularly:
| KPIs | Description | Measurement |
| Gross Gaming Revenue (GGR) | Amount of the money wagered by the players but with deductions to that amount by the total amount won by the players. | Monitor it by tracking backend reporting systems over a set time limit. |
| Net Gaming Revenue (NGR) | Represents the actual amount won after the deductions of bonuses, taxes, and platform fees from GGR. | Deduct all costs of associated expenses from GGR to calculate NGR. |
| Average Revenue Per User (ARPU) | It indicates the amount of money that you make per user per month. | Divide the total sum of revenue per month by the active monthly users. |
| Customer Acquisition Cost (CAC) | Measure the cost you have to incur to obtain a new player. | Divide the sum of the money paid on marketing by the number of new players acquired. |
Hire Expert Sweepstakes Casino Developers for Scalable iGaming Solutions
Player Acquisition And Retention KPIs
Gaining new players is only half of the equation to build the customer base. You need to ensure they are coming back to your sweepstakes platform on a regular basis. Player acquisition and retention KPIs denote both the breadth and depth of your platform. Understanding these metrics helps you shape your marketing strategy and onboarding processes. Here are the most important KPIs you may want to track:
| KPIs | Description | Measurement |
| Monthly Active Players (MAP) | Indicates the number of different users who were active in a certain month | Record the unique player logins throughout the month. |
| Daily Active Users (DAU) | Denotes how many distinctive users access the platform on a daily basis | Count the number of unique log-ins of players per day and average it |
| Retention Rate | The retention rate measures the percentage of players who come back to the platform after a certain number of days | Conduct cohort analysis at regular intervals, like 1 day, 7 days, and 30 days |
| Lifetime Value (LTV) | Shows how much money a player can be expected to generate over his or her lifespan | The sum of user revenue from registration to the estimated churn |
Sweepstakes Casino Legal Compliance: When and Why to Consult a Lawyer
Engagement Kpis
Engagement KPIs assess your sweepstakes platform’s level of captivation and interactivity. These metrics examine user behavior on the basis of how long they stick around and how frequently they return. Analyze these signals to update features of your game design, bonus mechanics, and conversion funnels to increase growth and retention.
| KPIs | Description | Measurement |
| Average Session Length | It is the average time that one uses your platform every time they visit | Monitor the time between a session and the time it is logged off, and get an average |
| Sessions Per Active (SPA) | It shows how many sessions on average are initiated by each user per day | Divide the total number of sessions by the number of daily active users |
| Bonus Utilization Rate | Measures the number of bonuses you issue that are actually claimed by the players | Divide the number of bonuses claimed by the number of bonuses offered |
| Conversion Rate | The rate of the free players who make a purchase or deposit | Divide the number of paying users by the total number of free users |
Operational Kpis
Operational KPIs assess the health, reliability, and compliance of your promotions platform. Metrics used primarily evaluated seamless user experiences and legal obligations. Some of the key points are measuring the uptime, support efficiency, and purposeful compliance to sustain a reliable service and preserve your brand image.
| KPIs | Description | Measurement |
| Uptime | Observe the proportion of the duration during which your platform works properly and is at your disposal fully | Use logging and monitoring tools to calculate the overall system availability |
| Reported Issues | Maintains the number of troubles, crashes, or bugs reported by the users in the platform | Count the issues reported by using a support ticket system or bug tracker |
| Support Response Time | It involves the rate at which your team responds to a customer or a technical query | Calculate how long it took at the time of submission of the ticket and the initial response |
| Compliance Issues | Logs any cases of failure to achieve the regulatory or legal requirements of the platform | Review internal audit logs and legal reports for compliance alerts. |
Hybrid Kpis
Hybrid KPIs combine financial with engagement and operational elements to provide more in-depth trends in player behavior and sweepstakes platform efficiency. They indicate what is occurring and where you can make strategic adjustments. These hybrid metrics more clearly reveal retention, funnel performance, promotional ROI, and marketing efficiency.
| KPIs | Description | Measurement |
| Churn Rate | It measures the percentage of players who have left the platform after a specified time | The number of churned users divided by the number of active users at the beginning of the period |
| Bonus ROI | The cash increased in the form of income through your platform by offering bonuses to the clients | Divide the revenue through bonuses by the total bonus expenditure |
| Conversion Funnel Drop-off | Identifies where the sign-up, onboarding, or payment process is exited by the user | Monitor drop-off at every stage in the process by using funnel tracking tools |
| LTV: CAC Ratio | Compare the player lifetime value to acquisition cost, which determines the efficiency of ROI | Divide the average LTV by CAC to get the ratio, and compute the marketing profitability. |
Everything Operators Need to Know About Sweepstakes Casino Payment Systems
Final Thoughts
You must observe the correct KPIs to run a sustainable and scalable sweepstakes business. Every monitoring measure provides you with an essential clue on what is propelling or holding your performance back. These key performance indicators for sweepstakes business will communicate your results and prepare you to make better decisions in developing more intelligent growth models in a competitive market for the future.
If you are looking to build or grow a serious sweepstakes platform, then now is the time to position your infrastructure correctly. TRUEiGTECH is a sweepstakes software provider that offers exceptional sweepstakes software solutions and serves several operators by confirming their key tracking metrics. You can also measure outcomes and get optimized solutions for the platform to stand out in the market. Get in touch with TRUEiGTECH to learn how to start a sweepstakes business and build a data-driven and growth-centric business you can win.
Written by: Prish K
Prish K, Head of Marketing at TRUEiGTECH, holds an experience of more than 10 years in the iGaming domain. Starting from strategic planning and digital marketing to team leadership and cross-functional collaboration, he is a master of his domains. For more than a decade, he has shown a promising commitment to fostering result-driven and creative work outputs. Beyond guiding newcomers and established iGaming operators with the right software solutions for their business needs, Prish also wants to share his industry expertise and knowledge through insightful blogs and articles
