The Biggest Mistake You Can Make In Analytics of Game
- 1. THE BIGGEST MISTAKE YOU CAN MAKE IN ANALYTICS OF GAME VASILIY SABIROV LEAD ANALYST & CO-FOUNDER
- 2. We love games. We understand the process of game development and the needs of game studios. From marketing to game design - devtodev provides you with valuable insights for any role and any side of game development. devtodev for game studios www.devtodev.com PRODUCER ANALYST ACQUISITION MANAGER GAME DESIGNER
- 4. ANALYTICS ALLOWS YOU TO EVALUATE the state of the project OPTIMIZE the project FIND bottlenecks IDENTIFY points of growth Many developers only pay attention to two basic indicators: ▧ VISITS Or installs. ▧ GROSS REVENUE The entire amount of income before any deductions are made. ANALYTICS IS IMPORTANT AT ALL STAGES OF PRODUCT DEVELOPMENT: BOTH BEFORE AND AFTER THE PRODUCT LAUNCH.
- 5. CASE: A SUDDEN DECLINE OF METRICS
- 6. WHY CAN THIS HAPPEN? THERE ARE SEVERAL POSSIBLE REASONS You don’t understand... ▨ product quality indicators ▨ retention indicators ▨ the structure of money ▨ bottlenecks ▨ traffic
- 7. YOU DON’T UNDERSTAND PRODUCT QUALITY INDICATORS ▨ Sessions per user - a user’s average number of sessions during some period of time ▨ Lifetime - the average number of days between the first and last app visit ▨ LTV - the revenue an average user generates during his or her lifetime ▨ ARPU - average revenue per active user ▨ ARPPU - average revenue per paying user ▨ Paying share - the share of paying users
- 8. INCREASING RETENTION BY 5% GROWS INCOME BY OVER 25% source YOU DON’T UNDERSTAND RETENTION INDICATORS A successful project must have good retention. Long-term retention is even more important than short-term retention, because the longer users use the app, the more likely they are to pay. ▨ Day 1 retention - “first impression” ▨ Day 7 retention - “main cycle” ▨ Day 28/30 retention - “metagame” ▨ Rolling retention
- 9. RULE 1. DISTINGUISH BETWEEN QUALITY AND QUANTITY METRICS ▨ Qualitative metrics = the quality of the product ▨ Quantitative metrics = the scale of the product ▨ Quantitative metrics (DAU, New Users, Revenue) must grow
- 10. RULE 2. QUALITATIVE METRICS USUALLY DECREASE WHEN YOU DON’T DO ANYTHING
- 11. YOU DON’T UNDERSTAND BOTTLENECKS ▨ EVENTS ▨ FUNNELS ▨ SEGMENTATION
- 12. TRAFFIC ANALYSIS ▨ CPI ▨ ROI ▨ PAYBACK PERIOD
- 13. YOU DON’T SEE THE STRUCTURE OF MONEY: USE SEGMENTATION
- 14. RULE 3. FIND THE CONVERSION BOTTLENECKS RULE 4. CONTINUOUSLY ANALYZE TRAFFIC. RULE 5. KNOW THE STRUCTURE OF YOUR MONEY
- 16. ▨ ARPU = paying share * ARPPU ▨ Revenue = MAU * ARPU ▨ LTV = F(retention, ARPU) First increase LTV, then add traffic. RULE 6. LTV BASED APPROACH
- 17. First increase LTV, then add traffic.
- 18. RULE 7. MODEL INCOME AND SEEK TO MULTIPLY GROWTH ▨ The cost of a user = 1 USD ▨ The user brings 1.1 USD ▨ We have 100 users. ▨ Let’s reduce the cost of one user to 0.9 USD Result: income doubles.
- 19. RULE 8. EXPLORE ECONOMY OF YOUR GAME ▨ game level / game location ◍ complexity curve ▨ virtual currency ◍ spent / earned / bought / stored in the account ◍ distribution among levels ▨ virtual goods ◍ in-game purchases / purchases for real money ▨ time
- 20. THE STRUCTURE OF CONSUMER BASKET ▨ Measure it: ◍ in general ◍ by levels ◍ by segments of users ▨ Search for unusual behavior, peaks and declines ▨ Correlate with price and availability ▨ Substitutes and complements ▨ Demand stability ▨ Basket dynamics
- 21. ABC-ANALYSIS
- 24. RULE 9. SEGMENT YOUR PLAYERS ▨ Paying / non-paying ▨ One payment / repeated payments ▨ Activated / unactivated ▨ New users / old users ▨ Frequent visitors / rare visitors ▨ Completed tutorial / skipped tutorial ▨ Source 1 / source 2 ▨ Entered the shop / didn’t enter the shop ▨ Combinations of different parameters
- 25. RULE 10. MONITOR INDICATORS ▨ How to save money? Start recording all expenses. ▨ How to lose weight? Start recording everything you eat. ▨ How to maximize a project’s revenue?
- 26. RULE 11. REVENUE IS NOT THE MAIN KPI FOR YOU It’s better to focus not on revenue. Game analyst should replace revenue chart with the set of curves: ▨ Retention curve; ▨ LTV curve; ▨ Economy balance curves; ▨ Complexity curve etc.
- 30. TO SUM UP ▨ yes, we need to maximize the revenue; ▨ no, we don’t need to look at the revenue every day; ▨ biggest mistake is to focus on quantity, not on quality; ▨ it’s better to increase quality metrics first; ▨ dig deeper to find bottlenecks and points of growth; ▨ analytics has huge set of tools to increase quality of your game.
- 32. In today’s highly competitive F2P market creating a good game is only a part of success. There are so many problems that developers have to solve during the app lifecycle. www.devtodev.com There are so many problems that game developers have to solve
- 33. THANK YOU! Vasiliy Sabirov lead analyst & co-founder www.devtodev.com sabirov@devtodev.com www.devtodev.com