6 x Operative Changes That Kept SciPlay Growing Despite the Market Headwinds
The story behind SciPlay's evolution in the realm of social casino gaming is guided by a commitment to player-centric experiences and a pioneering spirit.
In the recent podcast, Mishka has a chat with the CEO of SciPlay, Josh Wilson, tackling the intriguing question of how the company achieved substantial growth in the social casino market amidst an industry decline and post privacy changes.
Over the last two years, SciPlay has undergone significant transformations, marked by strategic mergers and acquisitions. Notable decisions include acquiring 80% of Turkish hyper-casual developer Alictus, Israeli casual casino developer Come2Play, and being acquired by Light & Wonder.
How did they do it? Let’s dig into a quick overview.
For an in-depth exploration, listen to the podcast here.
Investing in Tomorrow’s Wins
“85% of our focus is making sure our core business grows. It's not chasing the next new game. It's not chasing the next revenue stream. This is where we make sure that we've even done the investments needed. The other 10 to 15% is looking for that new revenue stream”.
Faced with challenges like Apple's IDFA policy changes, SciPlay made decisive moves, significantly reducing spending on their largest games to maintain profitability. In the third quarter of 2021, utilizing existing EBITDA, SciPlay invested in ad tech, technical infrastructure, and real-time decision-making tools.
Josh attributes success to a diverse set of strategies, emphasizing the importance of:
Data-Driven Agility.
SciPlay invested significantly in its data platform, allowing real-time decision-making. According to Josh, this move enhances their ability to adapt to changing player preferences and market dynamics swiftly.Unified Infrastructure for Informed Game Decisions
Changes in infrastructure facilitate the transfer of knowledge from one game to another.
As Josh puts it, standardizing certain features across their portfolio ensures quicker in-game decisions, optimizing both performance and development costs: “In social casino, for example, Jackpots are something that don't need to have five different versions of it because it's a singular feature that works.”Talent investments
I find SciPlay's strategic investment in its top talent truly commendable. Josh's forward-thinking approach, transforming their best people into internal educators, goes beyond the norm. It not only showcases a commitment to skill development but fosters a culture of continuous learning and collaboration.Direct-to-Consumer Empowerment
SciPlay's development of its Direct-to-Consumer platform is about establishing a direct connection with players. The key here is having control over the entire platform instead of relying on someone else's. Josh envisions a future where SciPlay's platform is at the forefront, liberating the company from the constraints of Apple, Android, and Facebook. This strategic shift is not just about financial gains; it's focused on providing a more personalized gaming experience. By reducing dependence on external platforms and emphasizing player satisfaction, every move aligns with player expectations and comfort, perfectly in line with the company motto.Strategic Acquisitions for Synergistic Growth
Rather than pursuing everything profitable, SciPlay has a deliberate effort to select acquisitions that complement and enhance the company's existing portfolio. In this instance, the acquisition of Alictus signals a strategic shift towards ad monetization.Diversification with a Core Focus
SciPlay's portfolio spans various genres, moving beyond the confines of casual games. The company explores social casino games, delves into hyper-casual games, and taps into the expertise of the Come2Play team for solitaire offerings, adding richness to their collection. Despite this diversity, SciPlay strategically centers its focus on games with a straightforward core loop, drawing parallels to the familiar characteristics of slot machines and bingo.
Customer-first company
Within the walls of SciPlay, the mission is clear and unwavering for its 800-plus employees – to be a player-first focused company. The emphasis isn't on maximizing revenue or inflating Customer Lifetime Value (LTV).
"We're more of a CRM company than we are a mobile video game company. Mobile video games are just what we do to retain the customer."
This customer-centric ethos, paired with a diverse range of strategic initiatives, stands as a key differentiator in SciPlay's growth within a challenging market landscape.
SciPlay prioritizes product excellence over immediate marketing solutions when faced with revenue challenges. According to Josh, the growth narrative unfolds through the careful attention given to existing players. While marketing contributes to future user acquisitions, it's the sustained focus on current players that prevents potential revenue leaks.
At the heart of SciPlay's vision is the unwavering commitment to maximizing player engagement. Whether it's retaining users or introducing innovative features, the goal is clear—create the most entertaining experience. SciPlay's focus on gaining an extra few minutes a day or an additional play session per week reflects a dedication to player satisfaction and loyalty.
Every player's departure represents more than a loss – it's a missed opportunity, a cost, and a challenge. SciPlay's commitment is not just to acquire players but to retain, engage, and thrive alongside them.
Contrary to the belief that acquiring new users can swiftly compensate for losses, Josh highlighted that every lost player translates to a substantial expense—around a hundred dollars. Limited customer budgets make rapid upselling challenging, often resulting in users quitting and seeking alternatives. Despite playing five to six games weekly, social casino players statistically only pay in one and a half, posing challenges to player retention and revenue. And considering that players of social casino games are very known for engaging with multiple games at a time, this poses substantial challenges for a steady revenue stream. Despite these hurdles, Josh expressed confidence in SciPlay's ability to stay ahead in this dynamic industry, where adaptation is key.
Mishka makes a great point about social casino experts—they're considered the best at running things smoothly in the industry. Why? Because the products are similar. It's about who can handle their product the best. The competition involves data, getting users, product and user experience, in their purest forms. And those who excel at handling these aspects tend to come out on top.
