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

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The viral goldrush is over. Customer acquisition (CPA) costs are rising. The solution: use game mechanics to drive retention and engagment....

The viral goldrush is over. Customer acquisition (CPA) costs are rising. The solution: use game mechanics to drive retention and engagment.
Here are practical examples and behavioural psychology examples to retain users and drive revenue.

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

    • When acquiring customers isn’t enough:
      Harnessing gameplay to keep them coming back again and again
      Nicholas Lovell, GAMESbrief
    • Nicholas Lovell, GAMESbrief
      Author, How to Publish a Game
      Director, GAMESbrief
      Clients include Atari, Channel 4, Channelflip, Firefly, nDreams and Rebellion
      @nicholaslovell / @gamesbrief
    • 1% convert = £1,000.00
      1% convert = £10.00
      Say each costs £0.10
      Only if the average user stays for 100 months!
      I’ll get some visitors
      Some who visit will register
      Some who register will subscribe
      Subscribers will spend an average of £10 per month
      I’ll put my Maserati on order
      How most people start
    • ARM yourself
      Hoping for the best is not good enough, you need to ARM yourself
      ACQUISITION: 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 gameplay
      Most developers focus on one of these
      All three are really important
    • The funnel
      Users
      Profits
    • The equations
    • Why the funnel matters
      The funnel matters because it is your entire business
      To emphasise that, we need Equation I
      CPA < LTV = good business
      CPA > LTV = trouble
      Where:
      CPA is cost to acquire a user
      LTV is the Life Time Value of a user
      You can improve your business by decreasing CPA or by increasing LTV
    • The old Holy Grail: virality
      A viral business can be an insanely profitable business
      CPA 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 friend
      B = Number of friends they invite
      C% = Percentage of friends who accept the invitation
      If viral coefficient > 1.3, time to order the Maserati
    • Viral businesses
      TRUE
      FALSE
      Virality != spam
      Viral businesses add value to their users through virality, not just to themselves
      Chasing virality is a fool’s errand; chase retention instead
    • The new Holy Grail: Retention
      Buying customers is expensive
      Buying customers is necessary
      Pouring customers into a leaky bucket is stupid
      Ergo: Retention is the new Holy Grail
      And the most forgotten
    • How to chase retention
      Retention is in your control: it is all about gameplay
      Ask 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 techniques
      Social proof
      Reciprocity
      Commitment / consistency
      Authority
      Likeability
      Scarcity
    • Read this book
    • Conclusion
      RETENTION is a gameplay issue
      Think 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
    • nicholas@gamesbrief.com@nicholaslovell / @gamesbrief