Guest Blog: Personalisation is the future of online sports betting

Guest Blog: Personalisation is the future of online sports betting

Friday, March 20, 2015

Marketing promotions in iGaming are largely irrelevant and the industry may need to change its approach to make the most of the opportunities created by individual customers’ betting preferences and behaviour. David O’Reilly, COO of award-winning remote gambling operator Colossus Bets, explains more to TotallyGaming.com.

 

How do operators try and differentiate themselves in a crowded and commoditized market? Well it seems to be by pushing more and more copycat marketing offers and bonuses in a continual race to the bottom. Yet sometimes the obvious is too obvious in our industry. The ‘obvious’ I’m referring to is personalisation, writes David O’Reilly.

An example of the growth in personalised betting is cash out/cash in. This feature, offered by an increasing number of sports betting operators, is truly a personalised offer relating to the individual player’s position in his bet.

Players have embraced cash out because it gives them control over their destiny and allows them to avoid the ‘near miss’ frustration of a traditional multi-leg/accumulator bet. The feature however has typically involved a binary ‘all or nothing’ decision – the player can either elect to ‘stick’ or can take a cash amount to exit his bet completely.

The logical extension of this traditional cash out feature is to give players the option to exit part of their bets and retain the corresponding part.

For example, a player with a cash-out offer of £200 should be able to cash-out 50 per cent of the bet and bank £100, whilst still playing on for 50 per cent of the full return from the bet. As a business, we have pioneered this exact feature through our ‘Fractional Cash-In’ option which has patent protection in this area.

In terms of the benefits of personalised Fractional Cash-In offers, we have found that:

The feature provides us with a second revenue stream on the player’s original bet (via the Cash-In margin), as well as reducing our pay-out volatility.

It creates product personalisation, relevancy and a huge socialisation factor, with players frequently checking their offers, communicating these through social media and banking profits in increments, before the match/pool is resolved. 

A player who makes at least one Cash-In transaction in a given month, whether betting into our pools directly or via one of our B2B partners, is 50 per cent more likely to play our pools again the following month, than a player who has not made a Cash-In, in the first month.

Cash-In improves the recycling of player returns because a bigger number of players are repeatedly banking smaller amounts rather than having just one person winning a big jackpot.

There is probably no greater feel-good PR story than a player Cashing-In a big sum on a ticket which subsequently goes on to lose. Last month a Colossus Bets player banked £93,000 by Cashing-In 90 per cent of a £4 bet, which 90 minutes later became worthless!

Perhaps the next phase of Cash-In will be in other forms of gaming and even lotteries.

Picture the scene: your first five Lottery numbers have come up with £100m in play if you can get the sixth.

The final ball is drawn a week later in a TV game show format and Simon Cowell is making you a Cash-In offer for your ticket of £5m. Will you Cash-In some or all of that ticket?

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