RFM smiley means Recency-Frequency-Monetary. Just like its name, it’s a system that classifies customers on when they purchased a product, how frequently they purchase a product, and how much they put into purchasing a product. However, this system is becoming archaic as it has so many limitations. In this article, we will be discussing the limitations of the RFM system and the impact of AI on casino marketing, too.
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RFM and Casino Marketing
The RFM-based marketing system has been the major system around which online casinos build their businesses. They look at recent customers and develop marketing strategies whilst neglecting infrequent high-potential customers.
The system is supposed to create different offers to different players, but it fails to do so. Instead, the RFM system creates the same offer to only recent and frequent players, and this can decrease their incremental play. This is where AI-driven casinos come in.
With AI-driven casinos, players are given different offers irrespective, and this increases their incremental play. However, more casinos are using AI-powered software.
The Impact of AI on Casinos
View it this way; you have customers who constantly visit your store with high monetary sales, you focus on them to increase sales. What then happens to customers that visit frequently but with low monetary values?
This is where the RFM-based marketing system is supposed to play a significant role. However, it doesn’t play its role fully. It only focuses on recent customers, as is the case with casinos, too. To serve all customers efficiently, casinos had to start drifting to AI-driven casinos. Keep reading about the impact of online casinos on casino marketing.
Setting up an AI-driven casino
The major drawback for casinos considering AI for casino marketing is their unfamiliarity with the system. Because they have dwelt so much on RFM systems, switching is more difficult as the AI system works by analyzing historical data.
Quite easy, conducting experiments with RFM models that make different offers to the same customers and track their behaviour will help develop the AI casino marketing system. This is one effective way to set up your AI casino marketing system.
After setting up an AI-based system, you should know the benefits it has to offer to casinos. The major benefit of an AI-driven system is the prediction that comes with it. AI can predict based on past behaviour a player’s worth in a month, quarter, or year.
Likewise, you can predict customers with high potential values and those without, so you easily start marketing on players who’ll be going forward instead of rewarding players based on past play.
Also, with AI-driven casinos like bästa casino online, you know players who haven’t played recently but are likely to resume soon. This way, you can focus on them and convert them into regular timers and drive quality customers.
You can also know high-potential customers who are on a declining trajectory.
AI and shifting marketing
Having known your customers, you may want to try shifting marketing strategies. Shifting strategies will include you facing very valuable customers.
With AI, you can study specific customers at risk of churning and can illuminate the precise reasons at the individual level. You can render help as the case may be.
In rendering help, you can organize marketing campaigns that target them personally in an organized way to keep them still at your casino. Likewise, you can identify customers that abuse free plays by replacing their spending with free plays and paying less or not playing all the foreplay at all.
With all of these, you can channel your energy and cash to marketing to suitable customers instead of wasting on unreliable customers.
To Wrap It Up
AI software is changing the feel of casinos’ experience as it makes it easier for owners to know where the problem lies and channel the right energy to it.
Beyond this, AI software has proven to be a better and safer option than RFM as it leaves no stone unturned, serving every customer efficiently.