The Seven Deadly Sins of Game Monetization

1. Look at the Wrong Data:

Developers are usually concerned about their game monetization metrics such as Average Revenue Per User (ARPU), Average Revenue Per Paid User(ARPPU), and the percentage of payers.

However, it should be noted that looking at these numbers in isolation will be misleading. Furthermore, the life cycle phenomenon of the user in comparison to the game is often neglected which means that there is no or very little improvement towards the engagement of the users.

Apart from this, the fact that one size doesn’t fit all should be kept in mind which means that one particular strategy will not maximize the monetization in every scenario.

2. Not Optimizing For The New User Experience:

It is interesting how much of the difference the initial experience of a game or application can have on the user. This initial experience is not limited to the tutorials.

But it also includes the loading time, and how much effort the developers have put on the quality of their marketing strategy. The value of loading time is seldom underestimated.

3. Not Optimizing For High-Value Spenders:

High-value spenders are those who spend roughly around $1,000 in the game. These users generally contribute to around 90% of the total revenue of the developer.

Nevertheless, these users should not be taken for granted as they have a fickle nature and can get easily bored. Furthermore, these kinds of users don’t like limits, thus limiting how much the customer can spend in the game can put a cap on the revenue earned.

4. Not Segmenting Your Users:

If a company doesn’t apply the fundamentals of segmentation in its target market then it implies that the developers are using one strategy for an audience with different needs, attitudes are requirements.

Segmentation is no rocket science and in general, developers can make five groups which include new players. Churned players who need reengagement, highly engaged but not paying players.

Churned players who depict value-sensitive nature and who are highly engaged paying players.

5. Not Doing Sales The Right Way:

Having the right direction and perspective is essential for the growth of any company. The most flourishing businesses are those which are using their sales to create leads for potential customers.

It has been observed that those companies that focus on building their customer. Base is more successful as compared to those who optimize their revenue by focusing only on their current customers.

6. Not A/B Testing The Right Way:

Every developer knows that running the A/B test is important. But, while running these tests the population composition, the sample size, and the end results should be studied carefully.

An experiment that gives you insight for one day might not hold true for an experiment that has a span of two to three weeks.

7. Not Optimizing The Small Details:

The pricing strategy should be very carefully implemented. Things like creating optimal price points for local currency, offering lower price points for certain countries and offering packages which end in round numbers play a vital role in increasing the revenue. This indicates that constant testing and tweaking can improve the target audience conversion ratio.