What is Player Retention Rate in iGaming? Formula
Player retention rate is the share of a starting group of players who are still active after a set time. Read it by cohort, with the activity event and window stated.
Player retention rate is the share of players in a starting group, called a cohort, who are still active after a set time. The cohort is defined by a shared start event such as registration or first deposit. Retention shows how well an operator keeps the players it has already paid to acquire.
Formula
- Retention rate = cohort players active in the later period ÷ players in the cohort
- Retention rate = 1 − churn rate, when both use the same group, activity event and period
A retention cell needs three parts: an anchor event, a time bucket and a retention event that defines what counts as coming back. Amplitude separates two readings. N-day retention counts players who return on one exact day. Unbounded retention counts players who return on that day or any later day, so it is equal to or higher.
Example. 1,000 players make a first deposit in the same week. On day 30, 220 are active that day, so N-day retention is 22%. A further 90 return on a later day, so 310 have returned on day 30 or after and unbounded retention is 31%.
Day-30 retention, two readings
Example. Cohort of 1,000 first-time depositors.
How operators use retention rate
CRM teams read retention as a cohort table: rows are cohorts, columns are weeks or months since the start event. Mixpanel counts users and not events, and it flags incomplete time buckets because their data still changes. Treat partial periods the same way, and do not read a young cell as final.
Compare cells in the same column, so week-8 is compared with other week-8 cells. This shows which cohorts keep players better at the same age. Use the table to test welcome journeys, bonus rules and channel changes. The method is in cohort analysis in iGaming.
Retention rate counts players, not money. Add NGR per retained player, because a retained player on heavy bonuses may earn little. Strategies to move the number are covered in player retention strategies.
Common mistakes
- Mixing N-day and unbounded figures in one report.
- Not stating the retention event. A login, a bet and a deposit give three different rates.
- Starting cohorts on registration in one chart and on first deposit in another.
- Reading an incomplete period as final.
- Crediting a campaign with retention that a control group would also show. Use incremental lift.
- Treating retention as the goal for every player. Players who self-exclude or show signs of harm leave the retention audience.
Related terms
Churn rate, player LTV and the Lifecycle Assessment.
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Order a diagnosticFrequently asked questions
How is player retention rate calculated?
Divide the number of players from the starting cohort who are active in a later period by the number in the cohort. State the activity event and the period.
What is the difference between N-day and unbounded retention?
N-day retention counts players who return on one exact day. Unbounded retention counts players who return on that day or any later day, so it is equal to or higher.
Which should a sportsbook use?
Amplitude says unbounded retention suits products that users open only now and then, such as a monthly payment app. Many sportsbook players follow events and do not play daily, so a weekly or unbounded view is the better fit.
How is retention rate related to churn rate?
Retention rate is one minus churn rate for the same base and period.