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Pricing and Risks in the Sports Bookmaker Offers Differentiation – Expert Opinion

26 July 2019, 15:26
Votes: 1

Keith Hayes, Commercial Director of Metric Gaming, became another SBC roundtable’s participant. He offered his ideas regarding the sports bookmakers personalization and the influence of gamification on their business and spoke about the customers’ behavioral types.

Pricing and Risks in the Sports Bookmaker Offers Differentiation – Expert Opinion

What is the role of pricing and risks in the sports bookmaker offers differentiation?

Not as big as it should be. The risk, in particular, is deeply underestimated when compiling betting odds on sporting events.

When it comes to bets, the majority of customers want to be sure that the prices are fair, and there is no need to constantly monitor general market prices in order to find a cheaper offer. No one wants to deposit an extra £1 if it can be saved. Leading international bookmakers’ average bet is less than £10.

The key to success in most industries is to know your clients’ peculiarities. In sports betting, the knowledge of your client involves risk management, not to be confused with asset and liability management.

Asset and liability management is a set of operational tasks related to ensuring that risk management is carried out in accordance with the established parameters, while risk management is a strategic initiative that allows you to understand how to deal with the risks.

To do this correctly, you need to analyze your customers. Nevertheless, due to the almost complete similarity of sports betting platforms and products, you might think that players betting on sports should behave the same, but they do not.

Everyone knows that customers have different behavioral types with a different set of characteristics, according to which they are divided into groups. Among these characteristics are the amount of time spent on betting, the degree of social activity, preferences for sports and bets, as well as susceptibility to gambling.

Almost all bookmakers praise their “innovative” services, but each client declares that most of their personalization settings are identical. And here is the question: Why do most products look so similar and cannot satisfy customers’ demands?

The truth is that the sports betting industry lags far behind other entertainment industries. Especially when it comes to providing customers with high-quality service and greater betting products diversity.

How should operators use their client’s analytics in order to improve the customer service quality and increase profits?

Bookmakers have to adapt to the customers’ needs. This requires the use of modern technologies, proper risk management and taking into account the clients’ individual characteristics. The implementation of these recommendations will lead to an increase in the number of bets and, consequently, in profits.

After online bookmakers started their operation, operators could no longer manually confirm each bet. They implemented modern security systems to ensure online payment security, but customers’ mistrust to these systems had a negative effect on bookmakers profitability.

At Metric, we focused on creating automated solutions that allow operators to treat their customers as individuals. Thus, it would become easier for customers to bet, receive and withdraw funds.

How can artificial intelligence and analytics help to personalize bookmakers and adapt them to customer needs?

My advice to operators is to use modern technologies in order to solve the customers’ problems because there are a lot of them.

Why are payments to customers delayed? Why is it so difficult to place betting odds during a game? Why are there betting limits for some sporting events? Why is there such a big commission for cash withdrawals? Why are payments not made in cash? And so on and so forth.

The answer to all these questions is one – fear. Operators are afraid that without such protective mechanisms they will be out of funds very quickly.

Most customers do not spend hours exploring the conditions of promotions in order to use existing loopholes. They just want to be able to reinvest their funds, which is why the service must be performed quickly.

Recently there has been much talk about gamification. How can it affect sports bookmakers?

This term is perceived differently among people, and probably that is how it should be.

According to Metric, gamification is a set of actions aimed at customer satisfaction by means of client analytics in order to improve the interaction between the resource and its clients.

If we interpret gamification as the shortest path to retaining customers and attracting them, it can’t be right due to the different customers’ expectations. Gamification is an improvement to the service, which helps to involve clients more actively and provide them with maximum enjoyment from the services.

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