Data centric Design & OperationA data-driven and scientific approach for game business Nguyễn Chí Hiếu - Japan Dept – VNG ...
Table of content Methodology of data-centric approach What is data ? Disclaimers Unit economy
Methodology of data centric approachJapanese Methodology & Principle buzzword: Kaizen Just-in-time principle
Methodology of data centric approach Good at Math                                            Bad at Math   Opposite of Goo...
What is data ?            Is this the “data” we looking for ?
Data-centric: Disclaimer                                                          Option B     Option A                We ...
Unit Economy Profit = ( Revenue per User – Cost per User ) X Number of UserNumber of User    AcquisitionRevenue per User ...
Acquisition – User funnels   Everyone   Internet user   Gamer   Platform user base   Target Segment   Ads Awareness...
Acquisition – Viral K-factor K-factor measurement needs reliable viral mechanic. Viral is becoming less and less effecti...
Unit Economy Profit = ( Revenue per User – Cost per User ) X Number of UserNumber of User    AcquisitionRevenue per User ...
Retention     Let’s have a look at how new users stay in our games.
RetentionPercentage of staying user/total user 100.00%  90.00%  80.00%                                                    ...
RetentionStaying user 45000 40000     40945 35000 30000 25000                                                          Sta...
Retention     Begging the players: “Don’t leave me, I can change for you” ?
Retention       Lock them up ?       Any better idea ?       Let’s stay by asking ourself: “Why do users stay ?”
Retention   User retention at a closer look.    How users funnel into your game.    How do you impress your player.    ...
Unit Economy Profit = ( Revenue per User – Cost per User ) X Number of UserNumber of User    AcquisitionRevenue per User ...
MonetizationHow we frequently look at the most important part of our business: ARPU           : Average Revenue Per User...
Unit Economy Profit = ( Revenue per User – Cost per User ) X Number of UserNumber of User    AcquisitionRevenue per User ...
Life Time Value Life Time Value = Total Revenue you get from 1 user until they cease  to be your user.    Profit = (Cost ...
Life Time Value – User Life TimeStaying user 45000 40000     40945 35000 30000 25000                                      ...
Life Time Value – User Life Time        Projecting object lifetime is an old problem.
Life Time Value – Poisson Distribution
Life Time Value - Segmentation          Segmentation criteria           Daily cohort basis.           Marketing Campaign...
Life Time Value - Segmentation                                    Banner A user LTV:   1$                                ...
Unit Economy Profit = ( Revenue per User – Cost per User ) X Number of UsersNumber of Users    AcquisitionRevenue per Use...
Thank you !My Contact: hieunc@vng.com.vn
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Data-centric Design & Operation in Social game

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Data-centric Design & Operation in Social game

  1. 1. Data centric Design & OperationA data-driven and scientific approach for game business Nguyễn Chí Hiếu - Japan Dept – VNG Corporation
  2. 2. Table of content Methodology of data-centric approach What is data ? Disclaimers Unit economy
  3. 3. Methodology of data centric approachJapanese Methodology & Principle buzzword: Kaizen Just-in-time principle
  4. 4. Methodology of data centric approach Good at Math Bad at Math Opposite of Good at Math is not good at Literature or Creativity Data-Centric # Limitation of Creativity
  5. 5. What is data ? Is this the “data” we looking for ?
  6. 6. Data-centric: Disclaimer Option B Option A We still need a good game to start with
  7. 7. Unit Economy Profit = ( Revenue per User – Cost per User ) X Number of UserNumber of User  AcquisitionRevenue per User  Retention  Monetization  Life Time Value
  8. 8. Acquisition – User funnels Everyone Internet user Gamer Platform user base Target Segment Ads Awareness Interest Desire Action Registration Download client Chose character Tutorial Play Stay Regular player Payer Regular payer …….
  9. 9. Acquisition – Viral K-factor K-factor measurement needs reliable viral mechanic. Viral is becoming less and less effective.
  10. 10. Unit Economy Profit = ( Revenue per User – Cost per User ) X Number of UserNumber of User  AcquisitionRevenue per User  Retention  Monetization  Life Time Value
  11. 11. Retention  Let’s have a look at how new users stay in our games.
  12. 12. RetentionPercentage of staying user/total user 100.00% 90.00% 80.00% 28-02-12 70.00% 27-02-12 60.00% 26-02-12 50.00% 25-02-12 40.00% 24-02-12 30.00% = 23-02-12 20.00% 10.00% 0.00% Date 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28  Normalization chart for user retention over 1 month on daily basis.
  13. 13. RetentionStaying user 45000 40000 40945 35000 30000 25000 Staying User 20000 15000 14,318 10000 5000 6,883 0 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29  Normalization chart for user retention over 1 month.  How do we keep user ?  How did they leave ?
  14. 14. Retention  Begging the players: “Don’t leave me, I can change for you” ?
  15. 15. Retention  Lock them up ?  Any better idea ?  Let’s stay by asking ourself: “Why do users stay ?”
  16. 16. Retention User retention at a closer look.  How users funnel into your game.  How do you impress your player.  “Don’t make me think” - KISS (Keep It Stupidly Simple).  How can user understand “core design”.  Do you have Retention Features in your game cycle.  What is your Retention Feature KPIs.  1st Login to 2nd Login.  Define your Hardcore/Reg user.  ……
  17. 17. Unit Economy Profit = ( Revenue per User – Cost per User ) X Number of UserNumber of User  AcquisitionRevenue per User  Retention  Monetization  Life Time Value
  18. 18. MonetizationHow we frequently look at the most important part of our business: ARPU : Average Revenue Per User ARPPU : Average Revenue Per Paying User DARPU : Daily Average Revenue Per Paying User MARPU : Monthly Average Revenue Per Paying User Conversion Rate. Paying User Rate. Sale charts.Is that all ?Can we do better ?Why do user pay ?
  19. 19. Unit Economy Profit = ( Revenue per User – Cost per User ) X Number of UserNumber of User  AcquisitionRevenue per User  Retention  Monetization  Life Time Value
  20. 20. Life Time Value Life Time Value = Total Revenue you get from 1 user until they cease to be your user. Profit = (Cost per User – Life Time Value) X Number of User. Most reliable Life Time Value is historical data. Historical data = history, you need some way to predict, or project your Life Time Value 2 most simple Life Time Value Models on Cohort basis: LTV = ARPPU x Paying Rate x User Life Time = ARPU X User Life Time LTV = ARPPU x Paying User x Paying User Life Time
  21. 21. Life Time Value – User Life TimeStaying user 45000 40000 40945 35000 30000 25000 Staying User 20000 15000 14,318 10000 5000 6,883 0 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29  Normalization chart for user retention over 1 month.
  22. 22. Life Time Value – User Life Time  Projecting object lifetime is an old problem.
  23. 23. Life Time Value – Poisson Distribution
  24. 24. Life Time Value - Segmentation Segmentation criteria  Daily cohort basis.  Marketing Campaign basis.  User source.  User behavior.  User Demographic.
  25. 25. Life Time Value - Segmentation  Banner A user LTV: 1$  Banner A LTV: 1,000$ Banner A new users: 1,000 Banner A Profit: 500$ Banner A cost: 500$ Banner B new users: 5,000  Banner B user LTV: 0.1$ Banner B cost: 1,000$  Banner B LTV: 500$ Banner C new users: 500 Banner B Profit: -500$ Banner C cost: 500$  Banner C user LTV: 3$Total new user: 6,500  Banner C LTV: 1,500$Total banner cost: 2,000$ Banner C Profit: 1,000$
  26. 26. Unit Economy Profit = ( Revenue per User – Cost per User ) X Number of UsersNumber of Users  AcquisitionRevenue per User  Retention  Monetization  Life Time Value
  27. 27. Thank you !My Contact: hieunc@vng.com.vn
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