Balancing player engagement and payout efficiency

The gaming industry is a live sector with increasing competition as much as challenges. Attracting players and keeping them hooked to the game is a real challenge and added to this is to maintain player engagement and loyalty. Releasing addictive games can keep the ones who are in for engagement but for those who consider this as a career, need more. On-time rewards and rank upgrades have to be accurate and consistent for this group to stay with the brand.

MLM gaming companies operating in Europe have a lot more challenges to face in terms of operations and security. Data privacy and security stays as a topmost priority for businesses operating in the region and a business in the gaming sector is at a higher risk of getting exposed to AML and KYC related frauds. MLM companies have to stay vigilant and attentive to these risks to avoid legal troubles. But, they can also not compromise on making on time payments.

These complex mix of challenges caused operational disruptions and soaring churn rates for a Europe-based gaming MLM company.

Balancing player engagement and payout efficiency in gaming MLM

The solution to improving retention and loyalty

When the company approached Epixel MLM Software with the request to develop a compensation engine that can handle dynamic gaming rewards with real-time payments, we already had a clear approach to address the challenge.

Our Compensation and Incentive AI System was the right solution for the gaming company and with tailored features it successfully addressed the challenges that they were facing.

Automated rewards management

Every time a player scores or brings in a new player, their reward points get updated in the system and are visible to them. The automated payout system calculates the reward points against the compensation structure and rewards each player in real time. Rank promotions are also automated to ensure distributor genealogy is updated and current when viewed by distributors.

The company can reconfigure its compensation plan or modify commissions, incentives, or bonuses at any time during the course of business.

Personalized incentive system

The personalized incentive system can help design personalized incentive structures for each distributor segment to ensure consistent performance. The segmentation of distributors is done based on their behavior and performance. The platform creates achievable incentive goals for players, distributor-players, and distributors. Business admin can set milestone-based rewards for new players and advanced incentives for top performers that increase as they progress.

Predictive compensation modeling

Predictive intelligence applied to compensation planning created a smart forecast with AI-powered insights for the business to optimize its compensation. The system analyzes historical data and performance trends to predict payout results and user behavior. Scenario planning tools give the business an advantage to test possible compensation scenarios and their impact on the business. It allows the business to test the compensation against market shocks and user demand changes and stay ready with strategies to counter the risks.

Incentive analytics dashboard

Comprehensive dashboard presents all data related to incentive performance in easy-to-understand visual formats. Admins can view the complete payout profile of the company or choose to filter the performance of a player or a distributor. The analytics dashboard in the distributor portals give them a complete view of their earnings, goal progress, and team performance.

The gaming MLM company can set their preferred metrics to be monitored and the system generates automated reports and sends it to the designated personnel. AI tools in the system analyze the compensation data and identify incentives that delay or boost a distributor’s progress. Automated plan recommendations are displayed as insights beside the main compensation dashboard to help leaders in optimization planning.

Security and compliance management

Since the company was based out of Europe, data privacy regulations and compliance became top priorities. The advanced security management and compliance system continuously monitored processes and transactions for compliance and security. The financial and personal information of players and distributors were secured with end-to-end encryption, and strict AML/KYC monitoring was put in place right from the onboarding process. Sensitive data was secured with role-based access control and secure verification processes.

Improving retention and loyalty with MLM gaming compensation system

Impact of AI-powered incentives in gaming MLM business

The implementation of AI-powered incentive system improved various business areas that impact revenue and performance. The automated reward system and accurate payouts reduced payout related disputes and improved distributor retention rates. Players and distributors could track their performance on their dashboards and the transparency improved user engagement rates.

Personalization of incentives motivated players to extend their gaming time and thus improved revenue per player. The company also experienced a notable growth in the number of distributors and players. Advanced automation reduced compensation management costs and improved payout processing times.

The company could clearly see the performance of each compensation element separately and with AI insights, future performance became predictable and decision making easier.

Impact of AI powered incentives in gaming MLM business

Challenges faced in boosting engagement and retention

The system had to handle high-frequency real-time transactions with utmost accuracy. The automated payout system ensured that there were no delays or errors when processing instant high-speed transactions.

Forecast accuracy was another challenge as it impacted the business performance directly, we had to deploy machine learning models trained on historical and real-time data. The platform also allowed the business to test forecast scenarios to devise practical strategies for optimization.

Risks related to AML and KYC processes were complex and required continuous monitoring. Advanced encryption, role-based access controls, and secure verification processes safeguard data of players, distributors, and the organization.

The system had to be implemented without interrupting gaming operations. We designed a modular approach to implementation and adoption so that it would not impact ongoing operations.

Expected Results


Increase in user engagement rate

Increase in user engagement rate

62%

Improvement in distributor/player retention rate

Improvement in distributor/player retention rate

48%

Increase in revenue per player

Increase in revenue per player

62%

Reduction in payout related disputes

Reduction in payout related disputes

89%

Reduction in compensation management costs

Reduction in compensation management costs

32%

Increase in the number of active distributors

Increase in the number of active distributors

54%

Increase in user engagement rate

Increase in user engagement rate

62%

Improvement in distributor/player retention rate

Improvement in distributor/player retention rate

48%

Increase in revenue per player

Increase in revenue per player

62%

Reduction in payout related disputes

Reduction in payout related disputes

89%

Reduction in compensation management costs

Reduction in compensation management costs

32%

Increase in the number of active distributors

Increase in the number of active distributors

54%

Build an adaptive compensation structure with an AI-powered Compensation and Incentive System.

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