kongregate - maximizing player retention and monetization in free-to-play games: comparative stats...
TRANSCRIPT
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Maximizing Player Retention and Monetization in Free-to-Play Games: Data, Best Practices and Case Studies
David P ChiuDirector of Developer Relations & Business Development (Kongregate)Principal, Business Development (GameStop Digital Ventures)
$$$$$$$
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What is Kongregate?
• Open platform for browser-based games– Flash, Unity, HTML5, Java, etc.– 96%+ of users already have Unity installed
• 20M monthly unique visitors worldwide• Core gamers – 85% male, average age of 22• MMOs, RPGs, CCGs/TCGs, TD, shooters, etc.• Platform level virtual currency “Kreds” for F2P games• Acquired by GameStop July 2010
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What is Kongregate?
• Mobile publisher of F2P games for core gamers
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Some of Kongregate’s Existing Developer Partners
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Stats both reflect & shape mind-setSo what statistics does F2P focus on?
Daily Active Users, DAU$/DAU1- & 7-Day RetentionTo a lesser extent MAU & 30-Day
30-Day Retention is a good stat, but 30 days is not “long-term” retention, it’s the start.
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A little background• All stats are lifetime, min 6 weeks on platform• ARPU: average revenue per user• ARPPU: average revenue per paying user• Player: a Kongregate registered user who loaded
the game page at least once• Plays = Sessions: our preferred method to measure
retention
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Linear Growth x Many Years = Awesome Business
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Commitment Matters
Type of Player % Buyers Avg Trx ARPPU ARPU % Players % of RevNon-Repeats 0.03% 2.1 $24.69 $0.01 43% 0%
Repeats (2-9 plays) 0.40% 1.85 $19.61 $0.08 40% 3%
Regs (10-49 plays) 4.68% 2.61 $21.35 $1.00 10% 12%
Committed (50+ plays) 16.53% 7.03 $96.92 $16.02 7% 84%
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Commitment Really Matters
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2D vs 3D
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2D vs 3D
• 3D games tend to have lower monetization compared to 2D games– Lower ARPU, ARPPU & % Buyers– Initial retention has similar range vs 2D games– But long term retention is much lower
• Does this mean a 3D F2P game can’t succeed?– No, remember correlation does not equal causation!
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2D vs 3D
• Confounding factors that may help explain difference in monetization and retention #s
• Developers of 3D games tend to:– Be console developers with limited F2P experience– Focus on gfx, may shifts resources away from improving
retention and monetization funnels– Not accept pay-for-convenience & pay-to-win– Make games in genres with low monetization (FPS, MOBA)– May still design games as a shippable product instead of
designing for long term retention, games-as-a-service
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Asian F2P vs Western F2P
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ARPU and ARPPU
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ARPU & ARPPU• ARPPUs for single-player games cluster around $5-$10• Multiplayer games range $20-$350
• Average ARPPU for a multiplayer game from Asia: $181• Average for Western multiplayer game: $51• Only 9 Western games have an ARPPU above $100• ARPPU is the main factor in high ARPU for Asian games,
important factor for all games
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ARPU and % Buyers
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ARPU and % Repeats
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ARPU and % 50+ gameplays
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Asian vs Western Style• Asian games: High ARPPU, tight player funnel
– Monetization caters well to big spenders• Western games: Lower ARPPU, wide player
funnel– Monetization focuses more on initial retention and
broad conversion to paid at lower prices– Pay 2 Win is not as accepted by Western devs
• Mixed games: can combine the best of both– High conversion, wide funnel, still create big spenders
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F2P Best Practices
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Best Practices for Optimizing Retention:Keeping players engaged
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Daily Play Bonuses• Daily play bonuses are good to get users coming back regular• But improve on the typical 5-7 day daily bonuses
• Reward playing game regularly in longer term
• Doesn’t reset after 5-7 days • Doesn’t “punish” players for
missing a day
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Daily Play Bonuses
• Add an element of chance - make it exciting!
• Repeat logins opens up bigger potential rewards
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Don’t punish people for taking a break• Psychologically, punishments or the possibility of punishment deters
unwanted behavior• Base/castle raided, loot stolen, crops withered, troops dead, account
de-activated, etc. deter players from being away too long• But it can be a two-edged sword• Players sometimes need to take a break (exams, vacation, illness)• Punishment may drive re-activated users away again
“I just got back from vacation/work conference/being sick but my base is completely destroyed, my resources are gone, troops are dead. No point in getting back in the game since I lost everything already.”
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Don’t punish people for taking a break• It can sting but it shouldn’t handicap
you permanently• Limit amount of resources that can
be looted or # times you can be attacked while gone
• Enable shield or protection time if you lose a significant amount
• Mix positive reinforcement with punishment
• Quick one-button rebuild• Resources still available for harvest• Gain XP or gold while away
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Keep players busy!More things to do = more players staying
• Solo and team PvE• Solo and team PvP• Asynch raids• Guild battles• World boss raids• Farming• Town Building• Weapon/Gear
Synthesizing & Upgrading• Astral Collecting and
Combining• Etc.
It is important to pace the introduction of new features/gameplay modes to not overwhelm players with a long and intimidating tutorial.
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Without progress you have nothing• The foundations of a F2P game are a strong RPG elements and a
sense of progress over time• Building up account, leveling up, adding/improves skills and stats, etc• Surprisingly it’s more important than multiplayer
Type % 50+ Plays % Buyers ARPPU ARPU
Multiplayer RPG 2.6% 0.75% $69 $0.51
Multiplayer Non-RPG 1.0% 0.45% $9 $0.05
Single-player RPG 1.8% 1.29% $12 $0.10
Single-Player Non-RPG 0.2% 0.53% $4 $0.02
Deep RPG mechanics and multiplayer matter:• 25x ARPU for Multiplayer RPG vs Single Player non-RPG!
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Asynchronous > Synchronous
Type % 50 Plays % Buyers ARPPU ARPUSynchronous 1.4% 0.54% $43 $0.25
Asynchronous 3.6% 0.80% $88 $0.66
Both 2.9% 1.07% $51 $0.55
Single-Player 0.8% 0.85% $7 $0.05
• Multiplayer keeps players engaged and busy in the long run • But not all types of multiplayer are created equal
• Top games have both synchronous and asynchronous multiplayer (more is better)
• Asynchronous is better than synchronous because it allows players to play at their own pace and convenience
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Best Practices for Optimizing Monetization:A happy customer is a paying customer
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Shopping should be easy and frictionless
• Location, location, location – make the store easy to find!• Make it easy to find the right item
– Meaningful categories and item descriptions– No massive scroll bars
• Mix soft currency and hard currency items • BUT – don’t try to sell too hard, too fast. First few sessions should
focus on fun & giving players reasons to come back to play and get hooked.
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Buy Screen
• Bonuses % or/and items provide incentives for buying larger hard currency packages• Clearly call out bonuses of larger packages!• Make all packages visible in one page• Hide $100+ packages until after first purchase
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Making the shopping experience interesting
• First time buyer/ Starter packages• Seed players with some paid/hard currency and guide “intro purchase”• Deals/events to get people into the habit of spending regularly• Offer items that enhance the gameplay experience (not just speedups)• Intro the right items at the right time
– Lvl 1 players should not be shown the lvl 100+ holy sword that’s on sale for $100)
• Keep them coming back – keep store fresh by adding new items, unlocking items as players level up and featuring seasonal and time-limited items
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Make sure players can spend as much as they want
• The longer someone plays your game the more likely they are to buy and the less price sensitive they become
• Give committed players the ability to spend at $1,000+ if they want• Have lots of items that are appealing and useful to a committed player
and price them higher (if possible) than items meant for early/mid-game play. [Higher means $30-100, not $1000]
• If you make a fun game, someone may want to spend an infinite amount.• Don’t create a situation where spending is capped by availability or utility.
• Again, remember to make it easy for players to buy!
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Best Practices for Community Building:When you’re here, you’re family!
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Make it easy for community to buildChat, forums, player-to-player messages are all great
Real relationships build when people interact. The more ways they can do it, the better.
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Guilds are awesome• 100% of our top games have guilds• Guild members spend 10-20x more than non-guild members• Strong correlation as guilds improve retention and monetization
with late stage players
Some reasons they make a difference• Social incentives to return I want to see my friends• Social pressures to return I don’t want to disappoint them• Improves the psychology of purchases I’m doing it for the
team, not me• Upends the dynamics of pay-to-win can set up a symbiotic
relationship between buyers and non-buyers where both add value to the same group
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Community Management and Customer Service
If a player invests many hours into a game they begin to feel some ownership. It may be YOUR game, but it’s THEIR experience
1. Be visible – forums, chat, email2. Listen to their concerns and acknowledge their emotions3. Be transparent, honest, and accurate4. Give advance notice of changes and downtimes5. Don’t feed the trolls
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Opportunity Complains
Customer service is a chance to surprise and delight• Handle things quickly• Be generous with compensation• But don’t do something unless you’re willing to do it
for everybody
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Surprise and delight• IGG rewards its players with some resources after each of its
weekly 30-minute maintenance
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Have fun with your community
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The Value of Developer ActivityKeep feeding your players• Regular updates, new features, and events yield greater
engagement and reduced fatigue.• Sales and specials can offer significant jumps in revenue.
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The Value of Developer Activity
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Equips, Guild bonuses
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The Value of Developer Activity
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Front Page
Badges
Item promotionNew Version
Fantasy OnlineAsian MMO
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The Value of Developer Activity
Nov-09
Dec-09
Jan-1
0
Feb-10
Mar-10
Mar-10
Apr-10
May-10
Jun-1
0Ju
l-10
Aug-10
Sep-10
Oct-10
Oct-10
Nov-10
Dec-10
Jan-1
1
Feb-11
Mar-11
Apr-11
May-11
Jun-1
1Ju
l-11Ju
l-11
Aug-11
Sep-11
Oct-11
Nov-11
Dec-11
Jan-1
2
Feb-12
Feb-12
Front page
Badges added
Expansion
Labor day event
Expansion
Christmas update
Expansion
Easter event
ExpansionExpansion
New Server
Fantasy OnlineDream WorldAsian MMORe
venu
e
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THANK YOU
For a copy of the presentation or questions, email [email protected]
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