New Study Shows High Player Abandonment of Mobile CasinosPublished March 13, 2016 by Elana K
Jumio, a leading ID credentials authentication company, recently conducted a study of mobile operators and found that across the board, they all suffer from player abandonment and high churn rates.
With the advent of smartphones, people have gotten used to having the ultimate convenience in the palms of their hands. Need to check a bank statement? Use your smartphone. Need directions? Use your smartphone. And just as smartphones have become our go-to information centers, they have also become our go-to entertainment centers. For instance, people who enjoy online gambling are turning to mobile casino sites in droves. But at the same time, if players have a bad mobile experience, they can just as easily leave the site and never return.
Jumio, a leading ID credentials authentication company that helps businesses reduce fraud, meet regulations and increase revenue, recently conducted a study on the effect of poor mobile experience on the consumer. They discovered that despite the increase in mobile registration, casinos across the board are suffering from player abandonment, during both the registration and deposit process. A previous survey done by Jumio and Harris research in 2015 found that 1/4 of UK consumers who had attempted to open a gaming account had abandoned the attempt before completion. Moreover, player abandonment in 2015 cost UK gaming companies approximately £39 million.
Why Does Player Abandonment Occur?
One of the reasons for abandonment during the registration process is that it’s lengthy. Online casinos usually require lengthy registration processes in order to root out fraud, potential money launderers and to comply with regulations. And this lengthy registration process can sometimes drive away customers.
Not only is the registration process daunting, but the deposit stage is also underachieving when it comes to customer retention, according to the report. The deposit stage has an even higher rate of abandonment than the registration stage, averaging 19% among operators. This is because the deposit stage is also lengthy, players are constantly being redirected and in some cases, such as the newly regulated online market in certain American states, credit card companies deny the transactions.
Lengthy registration and deposit processes lead to player abandonment, as well as high churn rates, which is when players leave one site and go to another. Data from CRM specialist Optimove shows that 1 in 4 players churn within 14 days of their first deposit and 70% of the average operator’s player-base is inactive.
Is There a Solution?
Jumio claims that these issues can be resolved by implementing three changes: Optimizing the mobile experience for customers, using the most advanced technology in order to speed up loading times and awkward navigation, and of course, making the registration and deposit process easier and quicker. Now all that is left for online casinos to do is to implement these changes.