When acquiring users isn't enough: retention is the answer bgf2010

When acquiring customers isn’t enough:

Harnessing gameplay to keep them coming back again and again

Nicholas Lovell, GAMESbrief

Nicholas Lovell, GAMESbriefAuthor, How to Publish a

GameDirector, GAMESbriefClients include Atari, Channel

4, Channelflip, Firefly, nDreams and Rebellion

@nicholaslovell / @gamesbrief

I’ll get some visitorsSome who visit will registerSome who register will

subscribeSubscribers will spend an

average of £10 per monthI’ll put my Maserati on order

1% convert = £1,000.00

1% convert = £10.00

Say each costs £0.10

Only if the average user stays for 100

months!

How most people start

ARM yourself Hoping for the best is not good enough, you

need to ARM yourselfACQUISITION: How do I get people through

the door cost-effectively?RETENTION: How do I keep people coming

back for more?MONETISATION: How do I build money-

making strategies into gameplayMost developers focus on one of these All three are really important

The funnelUsers

Profits

The equations

Why the funnel mattersThe funnel matters because it is your entire

businessTo emphasise that, we need Equation I

CPA < LTV = good businessCPA > LTV = trouble

Where:CPA is cost to acquire a userLTV is the Life Time Value of a user

You can improve your business by decreasing CPA or by increasing LTV

The old Holy Grail: viralityA viral business can be an insanely profitable

businessCPA is close to zero, so even if LTV is low, your

business is great Time for Equation II:

Viral coefficient = A% x B x C%Where

A% = Percentage of your users who invite a friendB = Number of friends they inviteC% = Percentage of friends who accept the invitation

If viral coefficient > 1.3, time to order the Maserati

Viral businessesTRUE FALSE

Virality != spamViral businesses add value to their users through

virality, not just to themselvesChasing virality is a fool’s errand; chase

retention instead

The new Holy Grail: RetentionBuying customers is expensiveBuying customers is necessaryPouring customers into a leaky bucket is stupidErgo: Retention is the new Holy GrailAnd the most forgotten

How to chase retentionRetention is in your control: it is all about

gameplayAsk yourself:

How can I make it fun and rewarding to come back every day

Remember that different gamer-types find different things rewarding

Special Offers

Three days in a row

Maintenance

Commitment I

Commitment II

Six social techniquesSocial proofReciprocityCommitment / consistencyAuthority LikeabilityScarcity

Read this book

ConclusionRETENTION is a gameplay issueThink about game mechanics which can

reward, delight and entertain players (while making them come back)

Make the transition from ONE MORE GO to COME BACK TOMORROW

[email protected]

@nicholaslovell / @gamesbrief