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Vicky Nolan

The MatchLogic Solution to Customer Retention

30 May 2000

Here are some interesting figures*:

The average e-commerce site spends $208 to acquire a new customer.

The average e-casino acquires a new customer for $250.

As you can see, acquiring a new customer isn't cheap. Unfortunately, if that player doesn't stick around, then the money spent attracting him or her is lost too.

One way to plug that money drain is through the use of customer relationship management (CRM) tools. Excite@Home subsidiary MatchLogic, for example, has created eCRM specifically for Internet businesses. Its use, according to company officials, will enable customers to build long-term relationships with their key audiences by creating an integrated digital marketing solution. They claim to be the only company offering a CRM tool for e-businesses.

"We take disparate data and transform it to build customer relationships," explained company president Tim Prunk. "In today's business world, relationships with customers may be the only true differentiator that companies have. ... Data and information do not equal knowledge. Allowing the knowledge gained from the data to drive customer specific decisions is the key difference. That's the value-add of MatchLogic's eCRM."

Using a CRM tool like MatchLogic's will increase the lifetime value of players, explained Jack Garzella, who heads up MatchLogic's eCRM division.

Online gaming sites benefit from CRM by increasing the number of players and increasing the amount of detail on each player. Player retention increases because the site has learned more about the player - wants, needs, and preferences. The key elements of MatchLogic's product include audience measurement, customized promotions, customer retention and data management.

MatchLogic builds CRM for its customers through a four-step process:

  • Interact: a series of transactions and interactions generates a dialogue between a player and the site.
  • Connect: eCRM maps and manages the interaction between a player and a site.
  • Know: the insight gained by the gaming site through the capture and analysis of detailed information creates continuous learning about the player.
  • Relate: The application of that insight forges relevant interactions that build valued relationships.

Gaming site operators need to determine identify their goals before deciding to use a CRM tool, Garzella recommended. Some sites might want to increase the number of new players, while others are looking for ways to retain more of the ones they have.

MatchLogic charges anywhere from $10,000 to $15,000 per month for a small site to $4 million annually for large companies.

So far, 15 customers have signed on for eCRM. More information on MatchLogic's eCRM is available at their corporate site,

*These figures are from The River City Group.

The MatchLogic Solution to Customer Retention is republished from
Vicky Nolan
Vicky Nolan