Alex Moukas, wappier

Users Acquired... Now What? Mastering Your Game's Loyalty & Pricing

(White Nights Conference St.Petersburg 2018)
The official conference website — http://wnconf.com

Transcript

1. 1 1 Users Acquired... Now What? Mastering Your Game's Loyalty & Pricing Optimizing User Quality after Acquisition
2. 2 Geek by Training & Serial Entrepreneur • 5 Companies • $1B+ Exits • 12 Mobile Tech & AI Patents • 50+ Publications At 17: Started my 1st company At 22: AI @ MIT At 25: FCI, Sold to SAP At 28: Velti At 33: London AIM IPO At 38: Mobclix Acquisition At 39: NASDAQ IPO At 40: Top 10 Global Leader in Mobile, Business Insider Now: wappier, changing the Mobile Gaming World Friends call me Moux! Introductions Founder & CEO
3. 3 3 The Mobile Gaming World in numbers …
4. 4 4 The Market In-App Purchase Revenue to double to $139b in 4 years Market was <$1bn 10 years ago. Games are responsible for ~80% of total mobile app revenue today. Large Revenue Concentration Only 2% of Players Make Purchases. 2.5% of that 2% (5bps) is responsible for >50% of revenue. Freemium Games Rule! More than 90% of gaming revenue is driven by games that are free to download and offer in-app purchases.
5. 5 5 The Problem & The Opportunity Most Gaming Publishers and Tech Providers focus on new user acquisition and ads Revenue optimization through gameplay (larger dragon = sell larger sword), re-engagement No systematic way of optimizing revenue through processes and systems Plus building the “plumbing” and store integration it requires to manage thousands SKUs Minimal focus on International Markets outside the Top-5 Markets have different pricing elasticities and currencies - no localization of pricing Closed-loop automated machine learning system that automates revenue optimization They are not optimizing revenue from existing customers Localized and dynamic pricing based on market and individual consumer characteristics For the first time in history, 50-people companies are called to manage 50m consumers!
6. 6 The Future Moving Beyond Typical Marketing Automation with Machine Learning, Predictive Analytics, and Deep Data Pooling
7. 7 What We Should be Focusing On Dynamic Pricing, Bundling & Next Best Action Auto-adjust pricing of in-app items based on local currencies & consumer propensity to buy Creates bundles based on negatively correlated goods and Next Best Action to Optimize LTV Automated Loyalty & Retention Programs Enhance Customer Lifetime Value Dozens of Loyalty Tactics, IAP rewards optimization 1-1 Consumer experience reduces churn, increases revenues Use Machine Learning and Predictive Analytics to optimize in-app revenues and improve retention
8. 8 Case Studies
9. 9 9 Recent Case Study with one of the biggest sports games development companies in the world shows how Regional Pricing Auto-Adjustment can impact a game’s monetization KPIs. Results show that adjusting the pricing of In-App Products across different regions of the globe can result in 49%-126% Average Revenue per Daily Active User Uplift! Case Study Target different users with different prices based on local exchange rates and demand / supply curves.
10. 10 10 Pricing Methodology
11. 11 11 The Index Discovery of the supply & demand curves / price elasticity for each in-app purchase item, across all countries: • Green bar is the system- recommended new price, compared to the baseline price (US=100%) • Blue bar is the expected revenue impact of the updated price (original revenue in that country=100%) • Grey line is the expected transactions impact (number of units being sold) of the updated price
12. 12 Update the pricing policy for all countries or for selected countries by selecting either the “Maximize Revenue” or the “Maximize Payers” toggle. Our Revenue Management & Optimization Platform then auto- updates all prices, and continues to update them, until finding the optimal price point for each country and each in-app product! The Platform Regional Pricing Auto-Updates
14. 14 14 The Uplift +122 % +43% +66% The analysis compared the results from the optimized prices of the 1-Month Pilot to the default prices of the previous 3 months. Results show that wappier's Regional Pricing Optimization increased the game's Average Revenue per Daily Active User from 43% to 122%!  125% Uplift in Daily F2B Conversion  167% Uplift in Transactions per DAU  120% Uplift in Daily F2B Conversion  229% Uplift in Transactions per DAU  200% Uplift in Daily F2B Conversion  248% Uplift in Transactions per DAU
15. 15 15 Loyalty is about creating a personalized relationship with your customers. There is no “one size fits all” approach when it comes to Loyalty. Each and every user counts and needs a tailored reward and offer. Results show that providing loyal users with a personalized Rewarding System can increase Retention and Average Session Time per Player by 35% to 52%+! Case Study Utilizing a Rewarding Loyalty Scheme that will reward users for being loyal to the game and will make them come back to it!
16. 16 The User Experience Maira is a member of the XO-TO Loyalty program. She can access her Loyalty Card as a slide-in overlay on top of the game and collect points from gameplay actions, seamlessly. New item available to redeem! Maira Won 380 Points Maira redeems points. Loyalty Management Loyalty Program Maira manages her Loyalty Points via the main menu.
17. 17 Over 30 pre-configured Tactics, proven to optimize each user’s LTV individually, are ready to be deployed to specific users based on their behavioral patterns and propensity to reach the desired outcome! Out-of-the-box Automated Personalized KPI driven Ready to launch Improve Gameplay Progression • Let the engine set clear objectives and rewards for your users by adding Quests, Instant Rewards, Objectives and Achievements all triggered by key gameplay events. Want to increase your level 25 conversion rate? Enable a Quest! Improve Engagement • Focus on creating great features and let the engine boost engagement through Daily or Weekly Draws, or enable Leaderboards and turn on the competition with PvP Challenges. Want to drive even more engagement? Enable Loyalty Chat or Tier System! Improve Retention • Enable the most hooking Daily Bonus. The Point Boosters are also a great way to get users back to the game. Enable Happy Hours, Wild Wednesdays and Weekend Bonuses based on the multipliers our machine learning algorithms recommend. Improve Monetization • Flash Sales, Bundling, Coupons and Vouchers are all proven tactics to improve monetization and retain your users. We know how important Whales are so let our engine pick which Tactic is the perfect one to use, and when. The Tactics section in wappier’s Management & Optimization Console. Out of the Box Tactics
18. 18 Creating a Quest
19. 19 19 43% 55% 14% 25% x2.5 Impact 46.7% Day 1 Retention 10.54min Session Time per Player 0.25% F2B Conversion 10.75 Transactions per Payer $162.5 ARPPU for Retained Users After Point Boosters • Happy Hour • Wild Wednesdays • Mad Mondays • Weekend Bonus • Come Back! • Level 55/70 • 5 days inactive • It’s your 1st day! • 1 Year Loy-versary! • Birthday Bonus Engagement Features • Quests • Achievements • Daily Bonus • Wheel of Fortune • Tier System • Draws • PVP Challenges • Leaderboards • Leagues • Chat Instant Rewards • Low Value Item • Med Value Item • High Value Item • Tier Upgrades • Bundles of Items • Coupons & Vouchers • Flash Sales • Watch videos for Goodies What happens after enabling a Personalized Rewarding Loyalty Scheme that utilizes wappier’s Machine Learning Technology? 32.6% Day 1 Retention 6.8min Session Time per Player 0.22% F2B Conversion 8.6 Transactions per Payer $65.32 ARPPU for Retained Users Before Our Tactics The Impact
20. 20 Questions?
21. 21 21 Thank you! For more info visit www.wappier.com linkedin.com/in/moukas