As customer acquisition costs continue to climb, the iGaming industry is quietly undergoing a strategic shift in focus. According to a recent industry survey, the proportion of operators planning to expand dropped sharply from 51% in 2024 to 27% in 2026, while the importance of strategies specifically mentioning "user retention" has risen sharply, even breaking into the top four priorities for operators. Behind this is a "perfect storm" created by intensified competition, tighter regulation, and declining traffic returns. Dina Kiri, project manager of Uplatform, pointed out in an interview that the industry urgently needs to break away from the obsession with short-term indicators and build a growth model centered on long-term user value.
Industry Trend: The Inevitable Shift from "Acquisition" to "Retention"
"How expensive is it to acquire customers now? It is commonly said in the industry that the cost of acquiring a new user is 5 to 25 times that of retaining an old user!" Dina highlighted the dilemma commonly faced by operators. When global regulations are tightening, compliance costs are rising, and available acquisition channels are decreasing, continuing to just pour traffic into the top of the funnel is akin to "buying losses" — the surface registration data looks good, but the actual calculation of user lifetime value (LTV) may not even cover the initial acquisition cost.
In such an environment, the metrics for measuring success naturally undergo fundamental changes. Smart operators are no longer just focusing on the number of new users, but are increasingly paying attention to LTV, average revenue per user (ARPU), and retention rates, which truly reflect "health" indicators. Studies show that even a 5% increase in user retention rates can boost profits by 25% to 95%. This calculation, once clear, shows where to focus efforts.
The Trap of Conversion Rates: Don't Be Blinded by "Pretty Charts"
Dina frankly discusses the operators' reliance on short-term data. "The market changes quickly, and looking at immediate conversion rates can quickly adjust strategies, which is logical." However, she warns that an excessive focus on this, especially conversion rates, can obscure other key issues. "You might see high registration-to-deposit conversions, but user loyalty is quietly sliding, and ongoing engagement is decreasing. These issues are hidden behind the scenes and won't immediately jump out to alert you."
She shared some cases: some teams are excited about the surge in short-term conversion rates, betting all their efforts on a particular marketing direction or user group, but ignoring those segments with slow but exceptionally stable data growth that can bring long-term value. "Not all that glitters is gold. Sometimes the real potential is buried deeper, and you need to dig a little more to find it." Dina emphasizes that real brand growth is based on the interaction, loyalty, and trust between users and products, not just registration volume. To understand these deeper dynamics, an all-encompassing analysis of data and user behavior, like the one shared on the PASA official website, is indispensable.
Towards Sustainable Growth: Building an Integrated Loyalty Engine
So, how can user loyalty be effectively enhanced? Dina suggests that operators adopt a holistic approach. First, the product itself must resonate with the target market, and localization—not just language, but also cultural and payment habits—is crucial. Secondly, it is important to finely segment based on the user journey and provide personalized communication.
"Today's market is overloaded with information, and users are smarter than ever before." Dina cites examples where just optimizing the new user onboarding process or adjusting localized communication strategies has dramatically improved retention rates. "Conversations with users are important. People want to be understood, and gaming entertainment is no exception."
Additionally, establishing a strong early warning system is essential. By continuously analyzing user behavior patterns, declines in activity, changes in deposit frequency, etc., it is possible to identify risks of loss in advance. Of course, all this requires strong tools, and a good CRM system can make quick detection, response, and retention possible. "To do a good job, one must first sharpen one's tools. Having the right tools is key, and it can make a world of difference," Dina concludes. Ultimately, sustainable growth requires operators to maintain a long-term perspective and have the agility to adjust strategies decisively when market trends change abruptly.
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This article is from "PASA-Global iGaming Leaders," a gambling industry news channel:https://t.me/pasa_news
Original in-depth gambling channel:https://t.me/gamblingdeep
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PASA Matrix: @pasa002_bot
PASA official website: https://www.pasa.news
