In iGaming, sometimes it can feel as if all the attention is on bringing in new players. From welcome offers to first deposit bonuses, new players are a core marketing focus. However, when it comes to player acquisition v retention, which is more valuable over time?
Unfortunately, the allure of the new player can often mean existing players are overlooked. This is a fatal flaw and can lead to an increased churn rate that offsets the hard work done to bring new players in. In today’s increasingly competitive iGaming world, understanding which is more profitable between player acquisition v retention is vital. It allows brands to realign strategies for maximum returns. Let’s find out more.
Defining the Metrics
The first thing we need to do when trying to figure out whether acquisition or retention offers more value is to define the metrics we use to measure each.
Acquisition costs are measured with Customer Acquisition Cost/Cost per Acquisition (CAC/CPA). Industry reports suggest that iGaming brands can expect a CAC of $280 – $1,400 per player.
When it comes to retention, we need to look at something called Lifetime Value (LTV). This figure represents how much revenue a single player generates over the course of their engagement with your platform or product.
You can use CAC as a reference point to measure LTV. You should aim for a player LTV that’s at least 3x larger than the cost of acquiring that player. If you’re regularly falling below this 3:1 ratio, you’re going to struggle to generate the required revenue.
Acquisition Fuels Growth
As we touched on earlier, there’s a huge focus on player acquisition in the iGaming world, and it’s easy to understand why. New players are the lifeblood of any brand; without bringing in new customers, you’re not going to have a future audience to retain.
Acquisition also ties into brand visibility. Marketing campaigns designed to attract new players, be that through social media activity or sponsorships and partnerships, can be fantastic brand-building exercises.
For brands looking to scale and expand, player acquisition is absolutely critical. However, it’s also increasingly expensive, and the competition to attract players is only getting more intense. This trend will only continue as the market matures and as player expectations continue to rise. If your player LTV isn’t keeping up, your profits are going to get squeezed fast.
Retention: A Hidden Goldmine
New players are flashy and exciting. They’re an easy way to measure the success of a marketing campaign and always look good in a monthly stats report.
Player retention doesn’t get nearly the same level of attention. But if we dive into the data, it’s clear to see that it should. Retaining an existing player can be as much as 5x cheaper than acquiring a new one. This is significant disparity, and it’s something you need to think about when comparing the profitability of player acquisition v retention.
If that wasn’t impressive enough, a retention boost of just 5% can lead to profit increases of anywhere between 25% and 95%.
Focusing on retention can also improve player trust and enhance your brand’s image. Loyalty schemes, personalised offers and tailored experiences all make players feel more valued, generating returns that go above and beyond an initial deposit. For example, personalised messaging can increase LTV by as much as 25%.
Which Delivers Better ROI?
If we look at player acquisition v retention on a purely cost v return basis, retention takes the crown. Players cost less to retain than they do to acquire, and the LTV of these players can increase with the right approach.
However, that’s not the full picture. Without acquiring players in the first place, you’re not going to have any to retain further down the line. Understanding this symbiotic relationship between acquisition and retention is essential, and successful brands know why and how to strike a balance between them.
It’s also important to think about the size of your organisation and where it is on its journey. For brand-new companies or those expanding into new jurisdictions, acquisition should be a priority. As a brand matures, there should be a shift in focus with more emphasis put on player retention.
Tips for Balancing Player Acquisition v Retention
Striking a balance between acquisition and retention can be tough. Use these tips to ensure you’re getting it right:
- Track the right KPIs: CAC/CPA, LTV, and churn are all key metrics.
- Personalise at scale: Harness AI, player history and predictive analytics to make every touchpoint relevant.
- Benchmark continuously: For example, a 30-day retention rate of 70–80% is considered strong and monthly churn under 5% is ideal.
- Create value beyond bonuses: Community-building, VIP experiences, and gamified loyalty programs keep players engaged beyond standard promotions.
Final Thoughts
At Digital Footprints, we understand that iGaming success is about aligning acquisition with long-term value and making sure the players you bring in today don’t disappear tomorrow. Whether you’re fine-tuning a retention strategy or ramping up acquisition campaigns, the goal should always be to maximise profit while minimising waste. Retention might not make as much noise, but in the long run, it just might make more money.
Is your brand ready to grow? Get in touch with Digital Footprints to build smarter player journeys, from first click to long-term loyalty. Our strategies are built around real data, real results, and real profitability.
