How Sony Online Entertainment
Optimizes Player Relationship
Management (PRM) with Predictive
Analytics

Lisa Nicklin
Senior Director, Global CRM and eCommerce
Sony Online Entertainment

Nick Lim
CEO
Sonamine
Agenda

•Introduction to SOE and Sonamine
•Market forces
•What is Player Relationship Management?
•SOE PRM program plan
•SOE PRM program execution
Gamers dedicated to creating the best
 online worlds for players of all ages.
• Operate under the notion that every opinion
matters and strives to build lasting relationships
with its global community through meaningful
feedback and two-way conversations.
SOE Believes…

•Everyone   is a gamer at heart.
•A game is more than just a game.
•Our players are our extended family.
•Creativity is the cornerstone of development.
•Innovation is driven by experimentation.
•Diversity drives success.
Sonamine offerings
•Advisory      services to implement CRM
•   Workshops to build awareness and momentum.
•   Gap analysis and performance measurement
•   12-18 month planning and oversight to achieve successful
    organization adoption


•Technical      services with advanced player
scoring
•   ConvertSoon, ChurnSoon, PurchaseMoreSoon,
    InfluenceSoon player segments
•   Building custom prediction models and operationalizing
    them

                           © 2009-11 Sonamine LLC.
More games and platforms for players
to choose from
Free-to-Play Revolution
Free-to-Play Power law: 20% of
payers convert after 20 days




            For illustrative purposes only, not actual player data
What do these trends mean for
developers and publishers?
•Many  platforms competing for same slice
of player attention
•Many players monetize slowly over time
•More than just focusing on game
development, you must become good at
managing your player relationship.
Elements of the player
relationship
•Time
•Understanding/knowledge
•Communication
•Giveand take
•FUN!!
Ecommerce Pillars


                                    Nudge
        Need                                                          Buy
                               The ecosystem of the play
                                  experience – does it
                              effectively promote what to
The game design – does it        buy at the right time?      The purchase experience –
effectively weave in a need                                 does it effectively convert in
 to buy in all the relevant                                    a non-intrusive way?
           places?
Key Goal – Monetization through
Engagement
•Players should be entertained and want to
stick around
•Those who want to have an easy path to find
and pay for what they want
What is PRM?
•Detailed understanding of and relevant
communication with players
•Use of business intelligence and advanced
analytics to segment users.
•Appropriate/relevant interaction with different
user groups
•Continually improve relevance by using
performance feedback loop
Applied player relationship
management


 •Findusers still learning   •Findusers ready to
 the game & give them the    commit and convert,
 appropriate tips            show relevant first time
                             buyer offers


 •Find                       •Find
                                 payers ready to buy
      users likely to
 churn, give goodies to      more, show upsell offer
 keep them around
A user segment is

•A   group who share similar characteristics
     •   Readiness to commit, life cycle stage,
         knowledge of game, next likely action etc

•Distinct     from other user segments
Sonamine scores,categorizes and
ranks players into segments
                   High “Churnsoon” scores require
                          Retention Action

 View of all players                        Players grouped and ranke




                                                 Illustrative segments      High
                                                                         “Purchase
                     High                                                MoreSoon”
               “ConvertSoon”                                               scores
              scores good for                                             used for
              first time buyer                                             upsell
                 promotions                                                action
PRM Communication Channels
A journey of a thousand miles
begins with a single step!
•Phase   1 Goals – 6 Months
  •   Internal PRM awareness and education
  •   Create data pipeline for segmentation and
      reporting
  •   Create targeted in-game communication
      delivery system
  •   Define end-to-end PRM campaigns
  •   Document process flow
Start cranking the flywheel… it’s a
journey…
•Phase   2 Goals – 4 Months
  •   Increase efficiency of PRM campaigns
  •   Improve effectiveness via predictive scoring
  •   Decrease campaign turnaround time
  •   Onboard additional games
  •   Add communication channels
PRM task force and teams
•Project   team
  •   Project manager
  •   Sonamine Advisory
  •   CRM Manager
  •   BI director
  •   Game producers
  •   Game brand managers
•Governance
  •   SVP Sales and Marketing
  •   Senior Director, eCommerce and CRM
  •   Sonamine Advisory
Data gathering and tools

•Game  instrumentation and logs
•Data warehousing
  •   Centralized storage and access
•Business   intelligence tool
  •   Segmentation
  •   Reporting
•Sonamine    predictive player scoring
Player Segmentation Criteria

•Payer status
•Membership status
•Engagement levels
•Station Cash balance
•Sonamine ConvertSoon™ scores
•Sonamine PurchaseMoreSoon™ scores
Development of in-game messaging

•User segment list management tool
•Messaging system with pop ups and click
actions
•Scheduling system to manage which
messages are active and enabled
•Matching messages to different user
segments
•Event tracking for reporting
Customer Service/Community

•Complete visibility for front line support
•Complete empowerment – they can grant
offers
•Community messaging
•Number of customer support calls related
to PRM offers : 0
Think Big, But Start Small

•Setfinal vision, but break into achievable
short term projects.

•Harmonizearchitecture of various
components early (involve your architects
early on)
Communicate to players

•Vocal community are committed players
•Posted notice to entire forum group early
on.
•Test waters with segments that are less
vocal such as low engagement and non-
payers.
PRM Campaign Example

•Goal – test ability to drive 1st time purchase
through awareness vs offer
•User Segment : longer term players who are not
yet payers
•Offer : Additional Character Slot
•Channel : In Game Popup
•Duration : One week
•16% CTR, 7.3% Purchase rate
•Unexpected: awareness message worked better
than discount offer
PRM Campaign Example

•Goal: Test ability to drive upsell incremental
purchase
•User Segment : longer term players, payers
•Offer : Additional Character Slot
•Channel : In Game Popup
•Duration : One week
•16% CTR, 37% Purchase rate
Key Learnings
•Communicate     to players early

•Think   big but start small

•Do not under-estimate amount and type of
resources needed

•A   journey, not a final destination
Contact


nick@sonamine.com

GDC 2012 - How Sony Online Entertainment Optimizes Player Relationship Management (PRM) with Predictive Analytics

  • 1.
    How Sony OnlineEntertainment Optimizes Player Relationship Management (PRM) with Predictive Analytics Lisa Nicklin Senior Director, Global CRM and eCommerce Sony Online Entertainment Nick Lim CEO Sonamine
  • 2.
    Agenda •Introduction to SOEand Sonamine •Market forces •What is Player Relationship Management? •SOE PRM program plan •SOE PRM program execution
  • 3.
    Gamers dedicated tocreating the best online worlds for players of all ages. • Operate under the notion that every opinion matters and strives to build lasting relationships with its global community through meaningful feedback and two-way conversations.
  • 4.
    SOE Believes… •Everyone is a gamer at heart. •A game is more than just a game. •Our players are our extended family. •Creativity is the cornerstone of development. •Innovation is driven by experimentation. •Diversity drives success.
  • 5.
    Sonamine offerings •Advisory services to implement CRM • Workshops to build awareness and momentum. • Gap analysis and performance measurement • 12-18 month planning and oversight to achieve successful organization adoption •Technical services with advanced player scoring • ConvertSoon, ChurnSoon, PurchaseMoreSoon, InfluenceSoon player segments • Building custom prediction models and operationalizing them © 2009-11 Sonamine LLC.
  • 6.
    More games andplatforms for players to choose from
  • 7.
  • 8.
    Free-to-Play Power law:20% of payers convert after 20 days For illustrative purposes only, not actual player data
  • 9.
    What do thesetrends mean for developers and publishers? •Many platforms competing for same slice of player attention •Many players monetize slowly over time •More than just focusing on game development, you must become good at managing your player relationship.
  • 10.
    Elements of theplayer relationship •Time •Understanding/knowledge •Communication •Giveand take •FUN!!
  • 11.
    Ecommerce Pillars Nudge Need Buy The ecosystem of the play experience – does it effectively promote what to The game design – does it buy at the right time? The purchase experience – effectively weave in a need does it effectively convert in to buy in all the relevant a non-intrusive way? places?
  • 12.
    Key Goal –Monetization through Engagement •Players should be entertained and want to stick around •Those who want to have an easy path to find and pay for what they want
  • 13.
    What is PRM? •Detailedunderstanding of and relevant communication with players •Use of business intelligence and advanced analytics to segment users. •Appropriate/relevant interaction with different user groups •Continually improve relevance by using performance feedback loop
  • 14.
    Applied player relationship management •Findusers still learning •Findusers ready to the game & give them the commit and convert, appropriate tips show relevant first time buyer offers •Find •Find payers ready to buy users likely to churn, give goodies to more, show upsell offer keep them around
  • 15.
    A user segmentis •A group who share similar characteristics • Readiness to commit, life cycle stage, knowledge of game, next likely action etc •Distinct from other user segments
  • 16.
    Sonamine scores,categorizes and ranksplayers into segments High “Churnsoon” scores require Retention Action View of all players Players grouped and ranke Illustrative segments High “Purchase High MoreSoon” “ConvertSoon” scores scores good for used for first time buyer upsell promotions action
  • 17.
  • 18.
    A journey ofa thousand miles begins with a single step! •Phase 1 Goals – 6 Months • Internal PRM awareness and education • Create data pipeline for segmentation and reporting • Create targeted in-game communication delivery system • Define end-to-end PRM campaigns • Document process flow
  • 19.
    Start cranking theflywheel… it’s a journey… •Phase 2 Goals – 4 Months • Increase efficiency of PRM campaigns • Improve effectiveness via predictive scoring • Decrease campaign turnaround time • Onboard additional games • Add communication channels
  • 20.
    PRM task forceand teams •Project team • Project manager • Sonamine Advisory • CRM Manager • BI director • Game producers • Game brand managers •Governance • SVP Sales and Marketing • Senior Director, eCommerce and CRM • Sonamine Advisory
  • 21.
    Data gathering andtools •Game instrumentation and logs •Data warehousing • Centralized storage and access •Business intelligence tool • Segmentation • Reporting •Sonamine predictive player scoring
  • 22.
    Player Segmentation Criteria •Payerstatus •Membership status •Engagement levels •Station Cash balance •Sonamine ConvertSoon™ scores •Sonamine PurchaseMoreSoon™ scores
  • 23.
    Development of in-gamemessaging •User segment list management tool •Messaging system with pop ups and click actions •Scheduling system to manage which messages are active and enabled •Matching messages to different user segments •Event tracking for reporting
  • 24.
    Customer Service/Community •Complete visibilityfor front line support •Complete empowerment – they can grant offers •Community messaging •Number of customer support calls related to PRM offers : 0
  • 25.
    Think Big, ButStart Small •Setfinal vision, but break into achievable short term projects. •Harmonizearchitecture of various components early (involve your architects early on)
  • 26.
    Communicate to players •Vocalcommunity are committed players •Posted notice to entire forum group early on. •Test waters with segments that are less vocal such as low engagement and non- payers.
  • 27.
    PRM Campaign Example •Goal– test ability to drive 1st time purchase through awareness vs offer •User Segment : longer term players who are not yet payers •Offer : Additional Character Slot •Channel : In Game Popup •Duration : One week •16% CTR, 7.3% Purchase rate •Unexpected: awareness message worked better than discount offer
  • 28.
    PRM Campaign Example •Goal:Test ability to drive upsell incremental purchase •User Segment : longer term players, payers •Offer : Additional Character Slot •Channel : In Game Popup •Duration : One week •16% CTR, 37% Purchase rate
  • 29.
    Key Learnings •Communicate to players early •Think big but start small •Do not under-estimate amount and type of resources needed •A journey, not a final destination
  • 30.