7. 25 Add friction
• Game design is about taking
friction out
• Freemium design is about
adding friction
• GOOD fremium design is
about finding a balance – just
enough friction to encourage
some players to pay, without
ruining it for the rest of us.
12. What is the point of metrics?
• To connect game development and the
finances of making games
• To teach you about your players and your
game
• To help you make better decisions
KEEP IT SIMPLE
14. Beware vanity metrics
• A metric that can only go up is not useful
– Registered users is a particular culprit
– Yes, I’m looking at Bigpoint
• A metric that can’t be affected is not useful
– Track percentages, not absolutes, for quick results
• Vanity metrics impress dumb VCs and the
press
– But they don’t help you run your business better
16. 1 Feed the funnel
• To build a successful games
business, you must feed the
funnel
• Potential customers arrive at
the top. In the middle, you
convert them to payers.
• At the bottom, they become
long-term, high-spending
customers.
17. 2 ARM yourself
• A successful online game
must Acquire users, Retain
them (usually
overlooked!), and Monetise
them.
• All three aspects must be in
harmony.
• You need all three to build a
successful long-term
business.
18. 8 Avoid the leaky bucket
• Acquiring customers is both
hard and expensive.
• Once you get them, focus on
retention to keep them.
• Don’t worry about getting
new customers until you can
satisfy the ones you’ve got!
19. 3 Make it free AND expensive
PRICE
Revenue opportunity
Marketing opportunity
Demand
• Giving your content away for free is a marketing
opportunity.
• You have to find your revenue opportunity.
• Draw customers along the curve by offering them
things they truly value.
23. 6 key metrics
• MAUs
• DAUs/MAUs
• Retention rate
• Conversion rate
• Split into whales, dolphins, minnows
– ARPU
• Oh, and I have platform share but it’s not a metric
24. MAUs
• I start with 200k MAUs – an ESTIMATE
• If I were being more accurate, I would model
customer acquisition costs.
– Maybe in version 2.0
• You won’t get a sizeable audience without spending
money
– CPI on Facebook is $1.00 to $1.50, some say more
– Fiksu quoted $1.81 at Christmas 2011, down a little now
• BUT audience isn’t your primary measure of success
– Find a small, niche audience with great
retention, conversion and ARPU
– Stop thinking like traditional media
25. DAUs/MAUs
• Also known as engagement
• Bizarre stat
• Driven by what Facebook chooses to publish
• Odd result:
– MAUs easier for financial results, long term planning
– DAUs drive monetisation, more accurate snapshot
• Target: 0.15 (aka 15%)
• Ratio fell steadily through 2011
– Trip Hawkins said “FB games are shallow”
– I said “its just the summer”
• Facebook’s changes in 2011 bumped the
engagement ratio up again
26. Facebook engagement
Game Publisher MAUs DAUs DAUs/MAUs
1 Scrabble Gamehouse 330,000 130,000 0.39
2 Bejewelled Blitz PopCap 9,700,000 3,200,000 0.33
3 Pioneer Trail Zynga 3,500,000 910,000 0.26
4 Mafia Wars Zynga 1,600,000 400,000 0.25
5 Diamond Dash wooga 18,900,000 4,300,000 0.23
6 Treasure Isle Zynga 930,000 190,000 0.20
7 Farmville Zynga 22,400,000 4,500,000 0.20
8 The Sims Social Electronic Arts 15,500,000 3,000,000 0.19
9 Frontierville Zynga 360,000 60,000 0.17
10 Pet Society Playfish 5,000,000 830,000 0.17
11 Social Empires Social Point 6,100,000 940,000 0.15
12 Millionaire City Digital Chocolate 1,700,000 250,000 0.15
13 Empires & Allies Zynga 10,900,000 1,400,000 0.13
Source: Appdata
27. Retention rate
• I have an sighting estimate of 75%
• Churn rate = 1 – retention rate (i.e. 25%)
• Duration = 1 / churn rate (i.e. 4 months)
• Zynga has a duration of < 2 months.
• Very hard to get accurate benchmarks for retention
• My view: 75% is not average, it’s great.
• NOTE: Where you calculate retention from makes a
difference.
29. 6 Acquisition lasts longer than you
think
• The Acquisition process doesn’t end when I click
“install”!
• 20 million people every month take a look at Cityville
– and never return!
• You haven’t got a customer until they spend 20
minutes playing. Make sure those first 20 minutes
are your best stuff!
30. Conversion rate
• Should I look at it daily or monthly?
• I use daily
• When looking at benchmarks, try to work out what
conversion rates they are using:
– What percentage of daily users spent money?
– What percentage of monthly users spent money?
– What percentage of all users have ever spent money?
• Tiny Tower: 3.8% of users in the first six weeks
• ngMoco: 2% of DAUs
• Jetpack Joyride: 5-10% ever
• Temple Run: 1% of users
• Anything from <1% to around 20% is feasible
31. Whales, dolphins, minnows
PRICE
Revenue opportunity
Demand
• An approximation of the power-law
• Minnows: spend the minimum ($1), 50% of spenders
• Dolphins: a “middling amount” ($5), 40% of spenders
• Whales: spend a lot ($20), 10% of spenders
32. The importance of the power law
Revenue
($) (%)
Whales $ 36,000 44.4%
Dolphins $ 36,000 44.4%
Minnows $ 9,000 11.1%
Gross revenue $ 81,000
• Whales are 0.5% of your users; 44.4% of your revenue
• 89% of your revenue comes from your higher spenders
• Across the whole business:
– ARPU: $0.41
– ARPPU: $4.50
34. DISCLAIMER
• Your business will not look like this.
• You will not make $2,946,789 in year one
• Do not rely on this spreadsheet as an accurate
financial predictor
35. The practical use
• All game developers have too many ideas to
improve their game
• You need to prioritise
• Use the GAMESbrief spreadsheet to get a
snapshot of the headline areas of
Acquisition, Retention, Monetisation
• Identify which are below benchmark
• Work on those areas for the next sprint
• Move on
• Repeat
36. Conclusion
• You need metrics to make a successful F2P game
• They are useless unless you use them to make
informed decisions
– And then act on them
• It doesn’t even matter if my spreadsheet is right:
look for the improvement over time, not the
absolute number
• If the spreadsheet doesn’t fulfil your needs, change it
• (And if you want to, send it back to me, or tell me what you’ve
changed)
37. 26 Pre-register for the book
o http://www.gamesbrief.com/52-game-idea-bombs/
o THANK YOU FOR LISTENING
38. Thank you
nicholas@gamesbrief.com
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