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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