The Importance of Data Science and Analytics in Gambling
Within the gambling industry, data science and analysis have been rapidly relied upon. The gambling industry has come to the realization that their revenues and profits could be improved based on the data of their customers and how this data is analyzed and utilized. Therefore, it’s pertinent to understand how gambling companies have access to customers’ data and the importance of data science and analytics in gambling. Understanding customers is something that the most popular websites in this industry do well ( and top online Casinos NZ are not an exception, if you’re interested in these, you would find more information on this website) The main idea behind the data utilization however are mutual benefits for both companies and users as well.
Reasons why Gambling companies have access to data science and analytics
- Compared to land-based (physical) gambling, online gambling (use of online casinos and online sportsbooks) has begun to trump land-based gaming and was reported at 2016 to account for 57% of gaming, though gamers still patronize land-based gaming for the actual experience. With an increase in online gaming, data is easily registered with the sportsbooks, and this increases the ability of gambling companies to know the preferences of their customers.
- With concepts such as rewards for customer loyalty, gambling companies can easily link the preferences and it’s quite easy to understand the manner of purchasing relied upon by each individual customer.
Use of Data Science and Analytics in Gambling
Targeting profitable Customers: This works best for online gaming operators who are targeted with free offers upon registration, such as welcome bonuses, free spins, moneyback offers, better odds amongst the various offers. Data science and analytics therefore help gambling companies pay attention to the customers who are likely to yield them profits.
Make suggestions to Customers based on preference: With data science and consumer analytics, it’s easy for sportsbooks and online casinos to find the sequence in which online gamers prefer to play. With access to these, gambling companies are able to use the observed patterns to suggest products for each customer. This way, data science and analytics help boost profits as customers are very likely to select the suggested games.
Risk Models: As regards risk models, data science and analytics help in the area of credit risk and prevention of fraud. In this area, credit risk and prevention of fraud refer to permitting customers make use of credits or credit cards to carry out actions on the online casinos or sportsbooks for instance, to pay for games they wish to play with the permitted methods of payment.
Secure online payments: Most online casinos and sportsbooks offer their customers variety of payment methods. With the use of data science and analytics, the payment details could easily be saved on these websites for ease of payments, however this is based on the preference of the user. Most users prefer not to have their payment details online and so choose not to save them for security purposes ( though online sportsbooks and casinos usually have a secure network topology which comprises of intrusion prevention and firewall systems, encrypted communication, authentic and access control as well as external and internal audit tests.)
Customer Behavior: Data science and analytics help gaming companies easily track the previous purchases made by customers as well as conduct of each customer, and helps the companies offer the customers incentives which still have corresponding benefits to these gambling companies. Data science and analytics also help these gaming companies offer their customers loyalty rewards. They’re also helpful in sending personalized emails to customers. In terms of customer behavior, data science and analytics also help online gambling companies and online sportsbooks suggest similar results to customers when carrying out online searches.
Lifetime Value: With data science and analytics, each customer has their value summarized in numbers and indicators which are measured as life-time value. The measurement of a customer’s life-time value assists the online gaming companies in evaluating the expected returns from the individual customers over the period of time such customer is registered with the online gaming company, the marketing costs, cost of managing accounts amidst other projections.
Conclusion: Data and Analytics in the Emerging Gambling Industry
With acquisition of data as well as based on customer records, gambling companies (includes casino gaming companies and online sportsbooks) have abundant data which they can evaluate to identify why customers have acted in certain ways previously as well as to envisage the future actions of their customers. Also, with data science and analytics, these gambling companies wield adequate information to boosting their revenue and returns. However, the downside of Private Data Acquisition should not be ignored, like in the case of the Facebook Intrusion.