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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.Here are practical examples and behavioural psychology examples to retain users and drive revenue.
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When acquiring customers isn’t enough:
Harnessing gameplay to keep them coming back again and again
Nicholas Lovell, GAMESbrief
Nicholas Lovell, GAMESbriefAuthor, How to Publish a
GameDirector, GAMESbriefClients include Atari, Channel
4, Channelflip, Firefly, nDreams and Rebellion
@nicholaslovell / @gamesbrief
I’ll get some visitorsSome who visit will registerSome who register will
subscribeSubscribers will spend an
average of £10 per monthI’ll put my Maserati on order
1% convert = £1,000.00
1% convert = £10.00
Say each costs £0.10
Only if the average user stays for 100
months!
How most people start
ARM yourself Hoping for the best is not good enough, you
need to ARM yourselfACQUISITION: 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 gameplayMost developers focus on one of these All three are really important
The funnelUsers
Profits
The equations
Why the funnel mattersThe funnel matters because it is your entire
businessTo emphasise that, we need Equation I
CPA < LTV = good businessCPA > LTV = trouble
Where:CPA is cost to acquire a userLTV is the Life Time Value of a user
You can improve your business by decreasing CPA or by increasing LTV
The old Holy Grail: viralityA viral business can be an insanely profitable
businessCPA 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 friendB = Number of friends they inviteC% = Percentage of friends who accept the invitation
If viral coefficient > 1.3, time to order the Maserati
Viral businessesTRUE FALSE
Virality != spamViral businesses add value to their users through
virality, not just to themselvesChasing virality is a fool’s errand; chase
retention instead
The new Holy Grail: RetentionBuying customers is expensiveBuying customers is necessaryPouring customers into a leaky bucket is stupidErgo: Retention is the new Holy GrailAnd the most forgotten
How to chase retentionRetention is in your control: it is all about
gameplayAsk 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 techniquesSocial proofReciprocityCommitment / consistencyAuthority LikeabilityScarcity
ConclusionRETENTION is a gameplay issueThink 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
