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The six secrets of monetization in mobile games by SWRVE

The great ideas from Tom Farrell and originally published by SWRVE are edited and summarized. To read through the original report is highly recommended.

The original article: https://www.swrve.com/resources#whitepapers

If you are in games, your business depends on engaging, retaining and monetizing app users. Failure is not option.

Secret (1): An impressive game and successful user acquisition is NOT enough

  • The critical question is “how can your game lead a sufficient number of players to the spending point while maintaining retention rate.”
  • How to make it happen? Invest equal amount of game development and user acquisition in testing, optimizing game economy, marketing campaigns and extras.

Secret (2): Conversion is king

  • Measure. Successful game companies are very sensitive to conversion between play and pay and benchmark the flow.
  • Segment the users. Did you?
  • Approach. Build active campaigns to approach specific group of users to give them motivation for spending.
  • ROI. Measure ROI on your campaigns.

Secret (3): Download number is NOT the only key

  • Average day 1 retention rate is 34%.
  • Keep selling after installation. How to raise or maintain retention rate?
  • Tutorial is the first user experience.
  • Build funnels to identify troubles in the game flow.
  • Don’t be lazy for A/B test.

Secret (4): Do you look after your VIPs?

  • Averagely, only 1.5% of users pay.
  • 10% of all paid users contribute to 60% of all revenues.
  • Smart game companies invest heavily in rewarding the VIPs.
  • Record all in-app purchase events to create an easy way to target at VIPs.
  • Offer big rewards for large purchase, including real-world rewards.
  • Don’t forget to improve experience of payers.

Secret (5): Make spending easy

  • A/B test and personalize store formats and campaigns
  • Promote users in the right place and right time to drive revenue.
  • Deliver a killer offer early on and make it happen.

Secret (6): Treat players as individuals

  • Use demographic data: age, gender, job, location…
  • Use in-app events for behavioral targeting.
  • Smart personalized push notification can be significantly more effective.