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Playing with Pricing
This document discusses strategies for pricing and monetization in social mobile games. It covers theories of consumer purchase behavior and how price elasticity affects revenue. The importance of balancing short-term consumable purchases with long-term durable purchases is discussed to maximize player lifetime value without discouraging new players. Player motivations and lifecycles are examined to understand how to reward recurring play. Virtual goods techniques like collections can encourage social sharing and repeat play. Working with a social SDK and game engine can help implement these strategies across platforms by facilitating social features, virtual currencies, and cloud hosting. Overall, the key is for pricing to enhance the core gameplay and social experiences.
Playing with Pricing
- 1. grgetherh Playing with Pricing in Social Mobile Games Oscar Clark Evangelist PapayaMobile Inc
- 2. Syllabus: Playing withPricing • 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. Billing and GameDesign: Theories Lets 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. Consumer Purchase Process Giveyour 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. Pricing Elasticity ofDemand Maximize the opportunity • 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. Pricing Elasticity ofDemand Maximize the opportunity • 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. Short term andlong term Nagging has an impact on 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. Short term andlong term Nagging has an impact on 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. Short term andlong term Nagging has an impact on 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. Short term andlong term Nagging has an impact on 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. Syllabus: Playing withPricing • 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. Where does Socialcome 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. Who are yourplayers? 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: – "I'm going to Pwn ya!"
- 14. What do yourplayers 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. The life ofthe game Where 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. Syllabus: Playing withPricing • 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. Why do peoplebuy?
- 18. Understand the TrueFans True Fans are happy to spend money •Don't 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. Talking Social: TotalLifetime Value We don't just want a one night 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. Compulsion Loops Give Playersa reason to keep coming back •Schedule of reinforcement •Grinding & flow •Visible achievement stream •"Just one more turn" •What happens between sessions?
- 21. Syllabus: Playing withPricing • 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. Applying The Theory Offerlow 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. Applying The Theory Balancewith different Durables • Each with their own art style & impact on gameplay • Encourage emergent play • Grind or in-game currency • Offset nagging of consumables
- 24. Applying The Theory Rewardrepeat 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. Monetization 3.0 Make buyinggoods part of the fun • Collection Cash-in • Grind relief goods • Level limited items • Purchase only items • Special “Level-clearance” items
- 26. Things to Avoid… CasualGamers 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. Syllabus: Playing withPricing • 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. Social SDK Socialize yourgame and connect to millions of engaged, active users 1.Integrated social features 2.Integrated social features 3.Virtual currency 4.Support major develop tools 5.Language support
- 29. Social Game Engine ACross-Platform Social Game Engine for Mobiles 1.Integrated social features 2.Virtual currency 3.Script based language 4.Advanced 2D graphics 5.Cross platform 6.Cloud server hosting 7.Language support
- 30. Summary Pricing 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. Any Questions? oscarclark@papayamobile.com Thank you :) Twitter: @Athanateus