Playing with Pricing

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Playing with Pricing

  1. 1. grgetherh Playing with Pricing in Social Mobile Games Oscar Clark Evangelist PapayaMobile Inc
  2. 2. Syllabus: Playing with Pricing• Some of the theory behind Freemium billing models?• Understanding Player Reward behaviours & Lifecycle• The importance of the Free-Player, Minow & Whale• Virtual Goods Techniques• Working with Papaya Image Source: http://jameslao.com/2008/04/
  3. 3. Billing and Game Design: TheoriesLets start with some economic principles• Consumer Purchase Process• Price Elasticity of Demand• Barriers to Purchase• Short Term and Long Term Risk...and how they apply to Social Games Image Source: http://harmonyartmom.blogspot.co.uk/2009/04/sketch-tuesday-take-seat.html
  4. 4. Consumer Purchase ProcessGive your users a Purchase reason to buy goods• How easy it is to buy? Blocking Events Permission• What drives anticipation? Stimulus• Are there blocking events? Consideration• What motivates users? Review• What gives them „Permission?‟ Motivation Remorse Awareness
  5. 5. Pricing Elasticity of DemandMaximize theopportunity• Price affects supply• Revenue = Price times users• $0 to $0.001 is huge barrier• $0.001 to $1 is easier• Multiple low price purchases easier than fewer high price
  6. 6. Pricing Elasticity of DemandMaximize theopportunity• Price affects supply ≠• Revenue = Price times users• $0 to $0.001 is huge barrier• $0.001 to $1 is easier• Multiple low price purchases easier than fewer high price
  7. 7. Short term and long termNagging has an impacton long term loyalty• Consumables are easy short term• Durables are east longer term• The existence of both affects player confidence & willing to buy• Durables should reduce the nagging/Blocking Events
  8. 8. Short term and long termNagging has an impacton long term loyalty• Consumables are easy short term• Durables are east longer term• The existence of both affects player confidence & willing to buy• Durables should reduce the nagging/Blocking Events
  9. 9. Short term and long termNagging has an impacton long term loyalty• Consumables are easy short term• Durables are easy longer term• The existence of both affects player confidence & willing to buy• Durables should reduce the nagging/Blocking Events
  10. 10. Short term and long termNagging has an impacton long term loyalty• Consumables are easy short term• Durables are east longer term• The existence of both affects player confidence & willing to buy• Durables should reduce the nagging/Blocking Events
  11. 11. Syllabus: Playing with Pricing• Some of the theory behind Freemium billing models?• Understanding Player Reward behaviours & Lifecycle• The importance of the Free-Player, Minow & Whale• Virtual Goods Techniques• Using the Papaya Game Engine for rapid Social Game Development Image Source: http://jameslao.com/2008/04/
  12. 12. Where does Social come in?Maslow‟s Hierachy• Gamers need to be entertained Make the• Trust influences buying most of decision making the game• Social Influences affect buying Let me show off choices• Players typically purchase Who else plays? „Customization‟ items first Build my trust• „True Fans‟ spend most on game accelerators Keep me entertained Image found via Flikr (Erica Glasier)
  13. 13. Who are your players?Different Players buy for different reasons• Collector: – "Got to catch them all"• Explorer: – "Where can I go today?"• Socialiser: – "I want to be popular"• Competitor: – "Im going to Pwn ya!"
  14. 14. What do your players want now? Mobile Players play based on Mood & Mode • Entertain Me: – "Keep me from going mad" • Max my time: – "Just two minutes to fill" • Show and tell: – "Too cool for you" • Habit Forming: – "My guilty pleasure"
  15. 15. The life of the gameWhere are your users in their lifecycle• Products have a lifecycle• Players also have a lifecycle Revenue• Early stages are vital starts here!• Push past the chasm Image Source: http://www.agilemodeling.com/essays/proof.htm
  16. 16. Syllabus: Playing with Pricing• How does the billing model affect game design?• Understanding Player Reward behaviours & Lifecycle• The importance of the Free-Player, Minow & Whale• Virtual Goods Techniques• Working with Papaya Image Source: http://jameslao.com/2008/04/
  17. 17. Why do people buy?
  18. 18. Understand the True FansTrue Fans are happy to spend money•Dont break the Free Player experience•Takes 8-12 days to start paying•Make it great to spend the first $1•Nurture one-time spenders & Minows•What are your „Gateway‟ purchases?
  19. 19. Talking Social: Total Lifetime ValueWe dont just want a onenight stand• True fans can take 8-12 days to start spending• Work with the user lifecycle to keep them engaged• Build Anticipation between Games Typical number of• Cross-Game Virtual Games an X-City Currency player where spends money
  20. 20. Compulsion LoopsGive Players a reason tokeep coming back•Schedule of reinforcement•Grinding & flow•Visible achievement stream•"Just one more turn"•What happens between sessions?
  21. 21. Syllabus: Playing with Pricing• How does the billing model affect game design?• Understanding Player Reward behaviours & Lifecycle• The importance of the Free-Player, Minow & Whale• Virtual Goods techniques• Working with Papaya Image Source: http://jameslao.com/2008/04/
  22. 22. Applying The TheoryOffer low cost Consumables• Each with their own play/refresh profiles• Pay with Grind only• Pay with Cash only• Limit access by „Level‟• Pay to skip „Cool-down‟
  23. 23. Applying The TheoryBalance with different Durables• Each with their own art style & impact on gameplay• Encourage emergent play• Grind or in-game currency• Offset nagging of consumables
  24. 24. Applying The TheoryReward repeat play with Collections• Each with an art style relevant to their source• Encourage gifting/trade with friends• Trade in for Consumables• Trade-in for Unique Durables Image Source: http://www.speedrungames.com/?cat=5
  25. 25. Monetization 3.0Make buying goods part of the fun• Collection Cash-in• Grind relief goods• Level limited items• Purchase only items• Special “Level-clearance” items
  26. 26. Things to Avoid…Casual Gamers expect more fun• Don‟t Punish Players• Don‟t require purchases to continue• Don‟t make the game painful without spending• Don‟t sell goods players can‟t show off
  27. 27. Syllabus: Playing with Pricing• How does the billing model affect game design?• Understanding Player Reward behaviours & Lifecycle• The importance of the Free-Player, Minow & Whale• Virtual Goods Techniques• Working with Papaya Image Source: http://jameslao.com/2008/04/
  28. 28. Social SDKSocialize your game and connect to millions of engaged, active users1.Integrated social features2.Integrated social features3.Virtual currency4.Support major develop tools5.Language support
  29. 29. Social Game EngineA Cross-Platform Social Game Engine for Mobiles1.Integrated social features2.Virtual currency3.Script based language4.Advanced 2D graphics5.Cross platform6.Cloud server hosting7.Language support
  30. 30. SummaryPricing should enhance gameplay• Keep players entertained• Meaningful interaction with others• Social Capital for purchases• Consumables & Durables• Manage user lifecycle Image Source: http://www.speedrungames.com/?cat=5
  31. 31. Any Questions? oscarclark@papayamobile.comThank you :) Twitter: @Athanateus

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