Gamer retention is an essential metric for game publishers because it reflects players’ engagement within the game, their interest, and their level of loyalty. A higher retention rate generally means that users are more engaged, which leads to a lower churn rate and more monetization opportunities.
Mobile games spend $15 billion a year on player acquisition, but over 90% of these players are usually gone by Day 30. According to GameAnalytics, the top 25% of mobile games only see an average retention of 4% after 28 days. Day 1 retention caps out at 35% for the best performing titles, while the industry average comes in at 25%. Moving to Day 7 this number drops to around 11% for the best and 6% for those on average.
Here’s what this looks like graphically:
It’s called the retention curve. Reducing this churn has a huge impact on the business. Every game publisher should have as a top priority to flatten this curve to the extent possible. Industry experts cite a lack of investment in retention marketing as a key issue. Acquisition is so expensive that not investing in retention greatly increases the risk of business failure. That’s because retention means more players are exposed to in-game monetization strategies more often. Here is the basic revenue formula:
Retention = Monetization
Retention + Monetization = >LTV
>LTV => >Revenues
acQyr eXchange (QX) has a retention solution you should consider. QX is a turnkey loyalty and cashback rewards platform to increase retention and LTV of your game’s most profitable players. To keep players playing longer and more often (retention), and to watch more rewarded ads and make IAP (monetization), we enable you to offer players cash rewards in your game through our platform.
You determine the behaviors you want to incentivize and reward, then we do the rest:
QX rewards players based on the offers you set up. Offers will usually come from these categories: monetization activity, engagement behavior, competitions, and user acquisition. Sample offers could include:
Monetization activity This is a cashback rewards strategy. You’ll be receiving revenue from these activities and rewarding players in cash, so it’s basically self-funding. The objective is to increase revenue-generating behavior.
Engagement behavior These offers encourage game loyalty in the form of more playtime and exposure to monetization. Consider these rewards as an internal marketing strategy to increase revenues with existing players.
User acquisition Word-of-mouth is the most powerful marketing tool for gaining new users at a negligible cost.
Do cashback and loyalty programs work? They’ve been around for over 70 years and approximately 90 per cent of retail companies have a program in one form or another, so they must be working.
Before a person downloads your game or starts playing it, they’ve been a retail consumer for many years. The average American participates in over a dozen loyalty programs. So, they’re familiar with the incentives and rewards for joining one. Based on 70 years of retail experience and research, here are some positive results of offering a loyalty program:
Based on these proven results, the acQyr eXchange turnkey loyalty and cashback rewards platform can be your retention solution. It costs nothing to partner with us and you only pay for performance. This is the next big thing in growing your business and revenues by retaining more players longer.
If you have any questions or want to learn more about partnering with QX to introduce our retention program into your game, please contact Bill Wilson, QX CMO, at email@example.com.