Re: 10/05 Party Stock Report Rakeback Highlights
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hrm interesting. the multitablers are obviously much more important than once thought.
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PartyGaming indicated that one of the problems this year had been a reduced frequency of play among their bigger players. It seems reasonable to assume that some of these players have been playing more actively on third-party sites where they get some of their rake back.
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PartyGaming has published that in 2004 10% of the players account for 70% of the rake
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I have been trying to convice the Zoo of this for a while. They all seem to think that it would be better for a site to just have fish playing against each other.
This is the case with almost every business. Most of the revenue comes from a core group of loyal users.
Most businesses provide better service and pricing for their best customers because of how valuable to their business. It is much less expensive to maintain a big customer than to acquire a new one.
In the short run, Party may do fine with the strategy of neglecting its biggest customers, but they are at risk of losing them in the long run. Especially if the other poker sites get their act together. Party will do fine if their competitors are more incompetant than they are.
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