Measuring the Unmeasurable: How to Quantify Soft Metrics in Marketing

Hey everyone! ??

I know, I know… I’ve kept you waiting! But I hope this newsletter will be worth it!? ?? Today, I want to dive into a topic that's often tricky, especially if you haven't worked in marketing and branding before measuring the “unmeasurable” - those soft metrics that can be a bit mysterious!

Measuring the Unmeasurable: How to Quantify Soft Metrics in Marketing

Ever feel like you're stumbling around in the dark trying to figure out these soft metrics? You know, the data that doesn’t directly turn into dollars but still plays a massive role in your brand’s success - like player sentiment, emotional connection, community engagement quality, and brand awareness! (Sometimes called 'fluffy metrics,' but what are they, exactly?"

Here's the kicker: Let’s figure out together how to measure these metrics and discover how they can directly impact your key business KPIs, like Average Revenue Per User (ARPU), Cost Per Acquisition (CPA), or Customer Acquisition Cost (CAC) in other industries, as well as Lifetime Value (LTV)—especially in the iGaming space. ??

1. Sentiment Analysis: Beyond Bets to Boost LTV

Understanding player sentiment isn’t just about knowing who’s happy or frustrated — it's about predicting long-term value!

Example: Positive sentiment among the players (tracked via private feedback, live chat interactions, or in-app surveys or why not using machine learning) often correlates with higher LTV. Players who feel great about their experience are more likely to keep playing, try new games, and stay loyal over time.

Quick Tips to Boost Sentiment:

• Respond quickly to negative feedback (customer support is super important here).
• Improve user experience (e.g., faster cash-outs, simpler interfaces).
• Regularly gather and act on player feedback (let's not forget that today's consumers are more aware of advertising and want to be heard).

2. Engagement Quality: Casual Bettors vs. High ARPU VIPs

Engagement quality - the depth and frequency of player interactions - gives insight into which segments bring the most value.

Example: High-engagement behaviors like participation in live betting, micro betting, VIP tournaments, or frequent use of advanced features often identify your high ARPU players. Identifying and nurturing them optimizes your marketing spend and boosts returns.

This is where, in my humble opinion, machine learning becomes a game-changer! Instead of using AI to directly manage customer interactions, you can leverage machine learning,? to process vast amounts of data, uncovering valuable patterns and trends. Machine learning algorithms can analyze player behavior in real-time, segmenting your audience based on their engagement levels, preferences, and potential value.

By doing so, you can predict which players are most likely to become high-value customers and tailor your marketing efforts accordingly. This strategic approach ensures that your budget is spent on the right players, enhancing both customer satisfaction and overall profitability. After identifying these key segments, VIPs need definitely to be handled with direct human interactions

Try This:

• Create personalized and human experiences for high-value players. I highly recommend following Gali Hartuv ’s guide if you want to delve more into VIP management
• Offer exclusive content or VIP access to increase engagement.

3. “Emotional ROI- driven”: Measuring Sentiment to Optimize CPA

Emotional ROI is all about understanding how different promotions resonate with your players, influencing their behavior and acquisition costs.

Example: A personalized offer (like a cashback offer VS a VIP experience) that leads to higher emotional satisfaction can correlate with a lower CPA. Satisfied players are more likely to respond positively to marketing efforts, reducing future acquisition costs. (To clarify, this refers to the overall eCPA, (effective CPA) not specifically affiliate CPA deals.

In addition, when these players feel valued, they are less likely to churn and more likely to increase their betting activity. This reduces the need to spend heavily on acquiring new customers since maintaining an engaged player base directly lowers the average CPA by increasing the lifetime value (LTV) of existing players

4. Community Health Metrics: Enhancing Retention and Reducing CPA

This point is connected to the previous one but focused on building a community (especially for Crypto brands) A healthy community retains its members and directly impacts CPA and LTV. A strong player community drives organic growth and reduces churn.

Example: Measuring community health through retention rates, Exclusive event participation, or loyalty program engagement can correlate with reduced CPA. A vibrant community retains players longer, lowering acquisition costs and increasing LTV as players remain active over time. ?? (I've shared some insights on the value of a thriving community—feel free to explore them here)

5. Brand Affinity Scoring: Driving Up ARPU and LTV

Your brand affinity score tracks player loyalty and engagement beyond just money. High brand affinity often correlates with increased ARPU and LTV.

Example: Players with a high brand affinity score (frequent interactions with support, regular deposits, participation in exclusive content) tend to spend more, resulting in higher ARPU. They’re also more likely to stay loyal, boosting LTV. Cultivating brand affinity creates a cycle where loyal players engage more deeply and frequently.

Bottom line: Soft metrics and hard KPIs go hand in hand!

By understanding how soft metrics like sentiment, engagement quality, and emotional ROI tie into key performance indicators like ARPU, CPA, and LTV, we can create a more holistic and effective marketing strategy.

Let’s not just measure what’s obvious - let’s dig deeper, connect the dots, and strategize for maximum impact!

Stay tuned for more insights in the next newsletter! and if there is any topic you want me to delve into please reach out to me!

As we wrap up, I’d like to highlight a few platforms and people that I genuinely believe are pushing the boundaries in our industry- no sponsorships or affiliations, just honest recommendations!

• apidae Digital / Clint G. : A data-driven marketing acquisition partner, committed to optimizing growth by blending highly performances -driven activities and soft KPIs;
• Fieldstream AI / Staffan Engstr?m : A powerful AI Marketing Analytics platform transforming the way we utilize data and intelligence.
• Routy Even though today’s newsletter wasn’t specifically about affiliate data optimization(I might actually delve into this topic next) I know that a few of you, work specifically in affiliation. The KPIs I mentioned above do directly impact the commissions earned by affiliates too. If you're looking to strengthen your affiliate strategy, Routy is an excellent choice. It automates data and metrics, providing deep insights that can drive better decision-making and increase your earnings

I encourage you to explore these tools and talents!