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Maximizing Player Retention and Monetization in Free-to-Play Games: A Comparative Analysis

This report explores strategies for enhancing player retention and monetization in both Asian and Western free-to-play (F2P) games. It highlights vital statistics such as Daily Active Users (DAU), Average Revenue Per User (ARPU), and engagement tactics like daily play bonuses. The analysis shows significant differences in monetization approaches between Asian and Western games, emphasizing player engagement methods tailored to diverse audiences. By understanding these insights, developers can better design their games to keep players engaged and willing to spend.

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Maximizing Player Retention and Monetization in Free-to-Play Games: A Comparative Analysis

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  1. Maximizing Player Retention and Monetization in Free-to-Play Games: Comparative Stats for Asian & Western Games • David P Chiu • Director of Business Development & Developer Relations (Kongregate) • Principal, Business Development (GameStop Digital Ventures) • Emily Greer • Co-Founder & COO (Kongregate) $$$$$$$

  2. What is Kongregate? • Open platform for browser-based games • Flash, Unity, HTML5, Java, etc. • 15M monthly uniques visitors worldwide • Core gamers – 85% male, average age of 21 • MMOs, RPGs, CCGs/TCGs, TD, shooters, etc. • Platform level virtual currency “Kreds” for F2P games • Mobile publisher of F2P games for core gamers • Acquired by GameStop July 2010

  3. Some of Kongregate’s Existing Developer Partners

  4. Stats both reflect & shape mind-set So what statistics does F2P focus on? Daily Active Users, DAU $/DAU 1- & 7-Day Retention To 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.

  5. A little background • All stats are lifetime, min 6 weeks on platform • ARPU: average revenue per user • ARPPU: average rev per paying user • Player: a Kongregate registered user who loaded the game page at least once • Plays = Sessions: our preferred method to measure retention

  6. ARPU and ARPPU

  7. Big spenders matter

  8. Linear Growth x Many Years = Awesome Business

  9. Asian F2P vs Western F2P

  10. ARPU and ARPPU

  11. 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

  12. ARPU and % Buyers

  13. ARPU and % Repeats

  14. ARPU and % 50+ gameplays

  15. 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

  16. F2P Best Practices

  17. Best Practices for Optimizing Retention:Keeping players engaged

  18. 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

  19. Daily Play Bonuses • Add an element of chance - make it exciting! • Repeat logins opens up bigger potential rewards

  20. 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.”

  21. 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

  22. 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.

  23. Without progress you have nothing • The foundations of a F2P game are a strong RPG elements and a sense of progress over time. Surprisingly it’s more important than multiplayer

  24. Asynchronous > Synchronous Multiplayer is a good way to keep players engaged and busy in the long run but not all types of multiplayer are created equal

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

  26. 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.

  27. 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

  28. 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 • Lvl1 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

  29. Gamificationof buying • VIP program – customer loyalty program like airlines and hotels • The more you buy, the more status points you earn which unlock more benefits/bonuses

  30. 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 maywant 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!

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

  32. Make it easy for community to build Chat, forums, player-to-player messages are all great Real relationships build when people interact. The more ways they can do it, the better.

  33. Guilds are awesome • 100% of our top games have them. • 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

  34. 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 Be visible – forums, chat, email Listen to their concerns and acknowledge their emotions Be transparent, honest, and accurate Give advance notice of changes and downtimes Don’t feed the trolls

  35. 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

  36. Surprise and delight • IGG rewards its players with some resources after each of its weekly 30-minute maintenance

  37. Have fun with your community

  38. THANK YOU For a copy of the presentation or questions, email davidchiu@gamestop.com or come by the Kongregate booth in the Silver Sponsors room (Table#5) For more talks & data visit developers.kongregate.com For web games contact us at apps@kongregate.com If you’re interested in mobile publishing it’s mobile@kongregate.com Follow us on Twitter: @EmilyG & @KongregateDevs

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