Game Development Reference
In-Depth Information
Let's evaluate the information on the slide on the previous page:
l Although the minimum transaction is only one Facebook credit, the aver-
age transaction is far higher at 90 cents. One implication of this is that
users are comfortable spending anything less than $1 in a session as a sort
of “impulse buy.” Ravenwood Fair offers items for sale anywhere from $1
to $100.
l• The second interesting note is that 14 percent of Ravenwood Fair 's users
pay daily. It would be fascinating to know if this trend remains static,
or if they are able to monetize a greater percentage of their users (with-
out driving down the average purchase price) over time, by tweaking
their game mechanics. This is exactly the sort of thing you'll want to
use A/B testing to determine in your own game. This type of statistic
speaks to the addictiveness of the game and their ability to retain users
over time.
l The discussion of LTV in this slide is interesting as well because of the cor-
relation drawn between play time during the first session and total lifetime
value. This correlation implies that the way you should market to users
whom you've identified as “committed” could be different from the way
you market to those who are still “undecided” players. On the other hand,
this could well be the social equivalent of a “channel-surfing” phenome-
non. Many viewers flip through ten channels in a minute looking for some-
thing they care about. But if one sits and watches your station through a
full commercial break, you can accurately predict that they are likely to
watch the full episode. And, of course, those viewers who return to watch
a show the following week represent an even more committed customer,
similar to a user who has returned to a social game daily for weeks; you
know you've got 'em.
l Because 15 percent of their users spend money without actually directly pur-
chasing something (likely signing up for various offers in exchange for game
credit), this slide also reminds us of the importance of implementing ways to
monetize users through third-party services. In this example, we can reason-
ably assume that if Ravenwood Fair had 3.3 million purchases during this
timeframe, at an average of 90 cents each, and 15 percent of their purchas-
ers didn't directly buy, they made about $445,000 through their deal offers.
Assuming that they used two full-time developers at average monthly per-
head burn rates to implement the offering features, implementation of this
feature more than paid for itself within the first month or two. Don't ignore
alternate mechanisms for monetizing users. Implementing offer walls and
other ways for users who don't directly pay you to contribute to your overall
revenue is highly recommended. As we can see from this slide, it can lead to
a big boost in profit margins.
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