nine insights into loyalty for mobile gamers

A Joint Research Project

The Nine Insights into Loyaltyfor Mobile Gamers

November 26, 2012

Friday, November 16, 12

OBJECTIVEMobile gaming is the single most popular category in mobile applications. With over 250 developers, 37m gamers in the U.S.1 and 129,538 mobile games in the iTunes app store alone2, the overall market size is simply massive. In fact, Juniper Research recently projected that the global mobile games market will be worth $18.3 billion by 2016.

Given the ultra-competitive nature of this market, developers, brands and agencies must invest in gamer loyalty programs in order to stay ahead of their competitors and drive revenue.

2. Source: Reported Directly from Apple iTunes as of September 20121. Source: Newzoo Research and Analytics Mobile Gamer Study 2012


http://148apps.biz/app-store-metrics/




METHODOLOGY‣ Online survey with 1,515 respondents conducted between October 9-11, 2012

‣ All respondents were between 18-74 years of age and smartphone owners (iPhone, Android, Windows, or Blackberry devices)

‣ 75% of respondents played games on their mobile phone (1,137). Of these, they were classified into two groups based on how much they typically pay for mobile games

Group 1: Free mobile gamers (typically only play free mobile games) – 766 respondentsGroup 2: Paid mobile gamers (typically pay something for mobile games) – 371 respondents


Q: WHICH OF THESE THINGS HAVE YOU DONE?

0%

15%

30%

45%

60%

30% 30% 30%27%

14%

51% 48%42% 41%

24%

Free mobile gamers Paid mobile gamers

GAMERS’ EXPERIENCE GOES FAR BEYOND THE GAME ITSELF.

INSIGHT 1:

EXPLANATION:

Paid mobile gamers, especially, are engaged with game-related content outside of the game environment, which implies a deeper connection to the gaming experience.

ACTION:

Make sure that your loyalty strategy compensates for all aspects surrounding a mobile game.

Played a game the day it was

releasedPurchased an

expansion pack (or additional content) for a

game

Read a wiki/community

board about a game I'm playing

Downloaded an app to help me with a game I'm

playing

Posted to a wiki/community

board about a game I'm playing


Q: HOW WELL DOES THIS DESCRIBE YOU?(TOP2 BOX AGREEMENT)

0%

15%

30%

45%

60%

40% 42%

30%

44%

58% 56%

45%

54%


MOBILE GAMERS MAKE GAMING A PART OF THEIR LIVES

INSIGHT 2:

EXPLANATION:Paid mobile gamers place value on the experiences the game provides.Opens the door for more opportunities for developers.

ACTION:

Encourage discovery, sharing, and deeper relationship within game titles.

I am always searching for new games to

play

I can discuss games I play in

detail with people

I have my favorite game

developers My friends and I play the same games


Q: HOW MUCH DO YOU TYPICALLY PAY FOR GAMES ON EACH PLATFORM?

0%

25%

50%

75%

100%94%86% 82%

38%

56%

10%

47%

7%


PAYING FOR GAMES (OR NOT) IS CONSISTENT ACROSS PLATFORMS

INSIGHT 3:

EXPLANATION:Paid mobile gamers are more likely to pay for games across platforms, while free mobile gamers are more likely to only play free games across platforms.

ACTION:

Most popular price range for both mobile and tablet gamers is $1-5

Social Network$0 Tablet

$0 On the computer$0 Console

$0


0%

15%

30%

45%

60%

25%

17% 18%13%

52%

36%41%

27%


PRICE OF GAME DIRECTLY IMPACTS INTEREST IN LOYALTY PROGRAMS.

As the price of the game increases, the interest in a loyalty program decreases, suggesting that a loyalty program alone isn’t enough to justify a higher priced game.

When developing a loyalty program for gamers, consider segmenting by game price.

Interest in loyalty for Mobile Game that costs $1.99

Interest in loyalty for Mobile Game that costs $4.99

Interest in loyalty for Mobile Game that costs $6.99 Interest in loyalty

for Mobile Game that costs

$14.99

INSIGHT 4:

EXPLANATION:

ACTION:

Q: HOW INTERESTED ARE YOU IN A FREQUENT PLAYER PROGRAM?


Q: HOW LIKELY ARE YOU TO PLAY A GAME THAT IS...

SIMPLY BECAUSE A GAMER ISN’T PLAYING DOESN’T MEAN THEY AREN’T LOYAL.

INSIGHT 5:

EXPLANATION:

Paid mobile gamers are loyal to the game itself and the game experience.

ACTION:

Developers must focus on storyline, content and rewards to keep engagement high.

0%

18%

35%

53%

70%

51%43%

66%

54%


From a developer/

company I like

Part of an active community of

players

Gamedeveloper Game

genre

0%

20%

40%

60%

80%

19%

68%

6%

19%

36%

72%

10%

30%

Wiki/community boards

Store/purchase

games from

IMPLIED LOYALTY

Q: WHICH OF THESE DO YOU CONSIDER YOURSELF TO BE A

LOYAL CUSTOMER?

STATED LOYALTY


0%

15%

30%

45%

60%

34%27%

41%45%

28%33%

24% 24% 22%

51%47% 46%

43% 41% 39%36%

31%26%


NOT ALL GAME GENRES ARE SUITABLE FOR LOYALTY PROGRAMS

Interest in having a specific game genre be a part of a loyalty program is highest for the most popular game genres for each group.

Paid Gamers most interested in loyalty program for Action Genre, Free Gamers most interested in Puzzle Genre.

Action

INSIGHT 6:

EXPLANATION:

ACTION:

Q: WHICH TYPE OF GAME WOULD YOU BE MOST INTERESTED IN BEING A PART OF A

FREQUENT PLAYER PROGRAM?

AdventureStrategy

PuzzleRPG

ArcadeFPS

SimulationMystery


LOYALTY PROGRAMS CAN ENCOURAGE PLAY DURING SLOW TIMES

Most common time to play games (across all devices) is during weekday evenings. Slowest time is on weekends.

Offer incentives for completing levels or gaining achievements during specific slow time periods.

INSIGHT 7:

EXPLANATION:

ACTION:

Q: WHICH OF THESE WOULD YOU CONSIDER DOING IN ORDER TO EARN POINTS?

0%

15%

30%

45%

60%

25%

17% 18%13%

52%

36%

14%

27%


Gamers that would consider completing certain levels of the game to earn points

Gamers that would consider completing certain achievements of the game to earn

points

Gamers that would consider spending

certain dollar amount on games to earn

points

Gamers that would consider posting/contributing to a community to earn points


FREE GAMERS LESS LOYAL IN ALL CATEGORIES BEYOND MOBILE GAMING

Although Free and Paid gamers belong to about the same number of loyalty programs on average, Free mobile gamers are less loyal to companies than Paid mobile gamers.

Focus loyalty program primarily on Paid mobile gamers.

INSIGHT 8:

EXPLANATION:

ACTION:0%

23%

45%

68%

90%

59% 57% 56%

69%75%

57%

69%76%

62% 62%70% 73% 77%

63%

74%82%

Airline Hotel Restaurant Gas station Credit card Retailer Game Related Store Bank


Q: HOW LOYAL ARE YOU TO THIS COMPANY THAT IS PART OF THIS FREQUENT PURCHASER PROGRAM?

(TOP2 BOX AGREEMENT)


For both Free and Paid Mobile gamers, earning points to redeem for products is the most important ‘want’ for a loyalty program.

However, Paid mobile gamers rank receiving Free in-game items as more important than Free mobile gamers; Free mobile gamers find free real world items more valuable. Points to the value that Paid mobile gamers place on the gaming experience.

Both groups are less excited about programs that base rewards on their ability to earn achievements in the game.

EXPLANATION:

COMMON WANTS FOR MOBILE GAME LOYALTY PROGRAM

INSIGHT 9:

1. Earning points to redeem for products

2. Free real world items

3. Free in-game items

4. Rewards based on levels passed

5. Receive discounts on products

6. Rewards based on achievements earned

FREE MOBILE GAMERS PAID MOBILE GAMERSRank Order of Wants for Mobile

Game Loyalty ProgramRank Order of Wants for Mobile

Game Loyalty Program

1. Earning points to redeem for products

2. Free in-game items

3. Free real world items

4. Rewards based on levels passed

5. Receive discounts on products

6. Rewards based on achievements earned


If you can’t monetize a gamer on one platform, you likely won’t be able to on any platform.

Mobile gamers most loyal to game titles, which makes investing in the game itself critical.

KEY TAKEAWAY 1:

KEY TAKEAWAY 2:

KEY TAKEAWAY 3:

Dedicated loyalty mobile gaming programs have distinct business value, but targeting the right mobile gamers is key.

Important to remember that the game experience goes far beyond the game itself, marketing is crucial.

KEY TAKEAWAY 4:

KEY TAKEAWAY 5:

KEY TAKEAWAY 6:

Loyalty programs not only encourage playing new games, but increasing gameplay of games that have already been downloaded.

Don’t try to monetize gamers all at once. Important to think about customer lifetime value. Focus on moving gamers up the pricing ladder.


Thank You.


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