Kongregate - Maximizing Player Retention and Monetization in Free-to-Play Games: Comparative Stats for 2D & 3D Games and Asian & Western Games (MIGS 2013 Presentation)

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

What is Kongregate?

• Mobile publisher of F2P games for core gamers

Some of Kongregate’s Existing Developer Partners

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.

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

Linear Growth x Many Years = Awesome Business

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%

Commitment Really Matters

2D vs 3D

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!

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

Asian F2P vs Western F2P

ARPU and ARPPU

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

ARPU and % Buyers

ARPU and % Repeats

ARPU and % 50+ gameplays

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

F2P Best Practices

Best Practices for Optimizing Retention:Keeping players engaged

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

Daily Play Bonuses

• Add an element of chance - make it exciting!

• Repeat logins opens up bigger potential rewards

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.”

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

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.

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!

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

Best Practices for Optimizing Monetization:A happy customer is a paying customer

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.

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

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

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!

Best Practices for Community Building:When you’re here, you’re family!

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.

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

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

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

Surprise and delight• IGG rewards its players with some resources after each of its

weekly 30-minute maintenance

Have fun with your community

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.

The Value of Developer Activity

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New zone, XL, etc.

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THANK YOU

For a copy of the presentation or questions, email davidchiu@gamestop.com

For more talks & data visit developers.kongregate.com

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