What is a ‘KPI’?
KPI is an acronym for Key Performance Indicator. KPIs are quantifiable targets by which a business' success can be measured and monitored.Understanding KPIs is crucial for a bookmaker or a casino
because metrics such as table hold rates, casino floor turnover and players' time and money spent are all crucial factors in determining overall success or failure.Revenue growth is the most important KPI for any business and KPIs are a vital piece of any business plan and can be used to drive future changes in a casino's operation and strategy.
Every business, including casinos and gambling establishments, should be tracking their Key Performance Indicators. These can include revenue and growth potential, casino hold and percentage
values, and other important financial details that add up to a successful operation. KPIs can also relate to things like customer satisfaction and return play rates, and even staff retention and general attitudes to work.All good business models will have likely KPIs measured and tracked at regular intervals, and successful companies are always taking steps to improve their main performance areas. Many casinos include security in their KPIs - protecting players' funds and the casino's against cheats
, thieves and frauds.KPIs can also relate to the games themselves. Having the right house advantage and making enough off the tables and games offered is a performance indicator, and having full tables with happy customers is another. Casinos need to strike a balance between these two key metrics: happy customers are often winning ones, but too many wins will upset the books and leave the casino down on profits
.Issuing complementary gifts is the main way casinos will try to level the two metrics. Through gifts and rewards, players feel they get 'value' and feel satisfied with their session, but the casino's advantage remains strong and the hold is in the casino's favour.