Gaming companies have so many rich opportunities to increase customer lifetime value. Beyond smart pricing strategies and strategic subscription models, here are some of the best ways gaming companies can move beyond simple market research to nurture existing customers and increase their CLV.
What’s At Stake?
Gaming is a multiple billion dollar industry. Statistics suggest that up to 50% of that revenue comes from smartphone gaming. With 2020’s stay-at-home orders, mobile gaming exploded, and now, mobile gaming is worth over $25 billion in North America alone.
Time spent on mobile devices has outpaced television in the United States, and gaming comprises the lion’s share of mobile activity and consumer spend, and at least half of all mobile users play games on their device. Gaming is as popular as music streaming and dominates the time people spend on their devices — second only to social media and communication apps.
Game producers need a reliable strategy to attract new users and keep engagement high with existing users. And while 21% of all apps are only used once in a six-month period, gaming apps experience a higher reinstall rate than other types — about 55% higher.
Increasing Gaming CLV — The 5 Best Strategies
The gaming industry needs creative engagement strategies to keep consumers coming back for more, especially now that gaming-as-a-service is on the rise. Here are some critical tactics gaming companies can use.
Ask for advice
A company’s biggest fans and biggest detractors are valuable treasure troves of information for the next initiative. User-generated data is a valuable source of insight for everything from game improvements to marketing plans, but companies shouldn’t forget to ask users directly for advice.
Video games offer thriving communities. They’re rich in discussions and opinions in ways that other types of apps can’t recreate. When gaming companies take user advice and shout out credit, it could be the engagement boost the game’s community needs to keep playing.
Feature the community
Video games used to be all linear, but this is changing. Instead of a story arc with a beginning, middle, and end, games function on a loop or open-ended experience. This provides the perfect fodder for engaging users by featuring community members for different achievements. Building and nurturing these communities are behind some of gaming’s biggest recent successes, including Roblox.
With no clear end to the game, new benchmarks include moving up leaderboards, gaming a certain amount of time in a row, unlocking new achievements — all perfect reasons to feature community members.
As more gaming companies turn their products into services rather than searching for the next smash hit, incentivizing continual play through features could help move the needle from casual gameplay to regular time investments.
Leverage customer behavior analytics
Asking for advice nurtures relationships and provides visibility for the gaming community. Behavior analytics gives companies clues for what customers really want.
Let’s explain. People don’t always know how to communicate what they want or need, but the behavior will tell a company so much about what its customers truly value. With a reliable data strategy that delivers deep insights into users, companies can innovate new products and services or revamp existing ones.
Data also allows companies to launch new gaming services that people may not even know they want yet. With solid analytics, gaming companies stay one step ahead of users to provide valuable experiences and keep users engaged in gameplay.
Users expect a smooth transition when they download or sign up for a new product or service. An excellent onboarding strategy helps connect players to the game’s universe and reduces friction for getting started.
From there, using behavior analytics to provide suitable choices reduces the decision fatigue that can cause uninstalls. Analytics provides insight into how customers use apps and services and where potential roadblocks occur. For example, if a gaming company loses most installers during the instructional phase of gameplay, they know where to focus for retention purposes.
An omnichannel strategy allows users to manage their investments in the game from multiple avenues. Uniting their user experience across all platforms — think capturing perks from interacting on social media through the game — reduces friction and encourages community.
Go beyond purchases
Transactional behavior and install/uninstall metrics are important but only part of the picture. Users are both customers and players, so companies must leverage analytics in ways that consider both. For example, if a customer has been working on one level for an extended period of time, sending a notification for a booster pack or special ability could help them beat the level and reinvigorate their love of playing.
Analytics can also incentivize users to return to the game. If a player suddenly stops signing in, a targeted incentive, such as a coupon code or special edition virtual product, could trigger the player to open the game back up. Once that happens, the company has the chance to create interest once again.
Building a strategy for customer engagement
Video games are lucrative but keeping players on the platform can be a tricky task. Blending pure analytics with the human element of community nurturing and communication could help improve overall CLV.
CleverTap offers a suite of services designed to study your customers, provide deep level insights into what they need and want, and help build a reliable customer engagement strategy. It’s time to find out how our tools can help drive long-term growth and retention.