PointsBet banking on ‘super users’ amid US growth spike
US CEO Johnny Aitken lifts lid on product-first customer acquisition strategy targeting “highly engaged” bettors over recreational players
PointsBet US CEO Johnny Aitken has revealed the sportsbook and igaming operator is using a strategy designed to attract so-called “super users” over traditional recreational players in the US.
In the firm’s Q1 FY23 investor presentation, the Australia-headquartered firm provided more color on this strategic approach under the banner “Super users are bettors first, sports watchers second”.
One of the key parts of the separation between super users and regular bettors, PointsBet said, is that they require a personalized level of service, with the firm suggesting super users are “underserviced” in the US market.
“They love to bet on live events – double that of the average user – and they love to bet across a wide range of sports,” PointsBet explained.
“These are highly engaged users who bet on average three days per week.
“These users want an elite product and user experience; they appreciate the best odds, breadth of markets and being able to place their bets quickly and easily.
“The super users are very strong PointsBet advocates across their network,” the operator concluded.
Elaborating on the drive to acquire these users specifically over the more traditional recreational players, CEO Aitken suggested that changes to the market had forced a rethink.
“To be clear, this is not a change of strategy, but an evolution of strategy,” Aitken said.
“We’ve spoken consistently about seeking a profitable handle and a focus on net win growth.
“A hyper focus with our investments across brand, marketing and promotional spend to target and convert the super user cohort will continue to improve our LTV (lifetime value) to CPA (cost per acquisition) guide relationship and assist in driving net win growth,” he added.
PointsBet enjoyed a strong start to its financial year in the US with Q1 FY23 total net win growing 101% year on year (YoY) during the period to A$29.5m from a prior high of just A$14.7m.
igaming led the charge for PointsBet US, delivering 229% YoY growth in net win to A$7.2m, while sports betting operations in the US reported an increase of 78% to A$22.3m over the same comparable period.
Discussing PointsBet’s approach, Aitken suggested the firm would look to “lead on product and make revenue” in the US market.
“We continue to take learnings from new state launches and are primed to capitalize on our next two market launches in Maryland and Ohio,” he explained.
“Our high priority state for PointsBet continues to be Illinois, one of the largest online sports betting revenue markets and one of our best performing states.
“Capitol city Chicago is a true sports town with five professional sports teams and the big four US sports. That market loves sports and love betting.
“Our positioning on sports betting excellence has resonated, complemented with smart investment across marketing, media integrations via NBC’s broadcast rights to the Bulls, Blackhawks and White Sox, offering superior core the market odds compared to competition and investing in a Chicago-based loyalty and player development team,” Aitken added.