CPA

CPA

CPA is a classic metric metric every marketer should know for their product. The Cost per Acquisition details the direct marketing costs to create a new user. The objective is obviously to have a CPA lower than your LTV in order to operate at a profit. CPA Formula The...
K Factor

K Factor

K factor can be complicated if you let it. We want to keep this metric very simple in this discussion but we will expand on it later. To define the concept of k factor – it’s the viral growth rate of users converting other non users into users. A k factor...
ARPPU

ARPPU

ARPPU (average revenue per paying user), calculated on a monthly basis is a similar number to APRU in that we’re determining the revenue per average user, but this is exclusive to users who are actually spending. As you would expect ARPPU is useless when looking...
Churn Rate

Churn Rate

Churn rate is the most depressing of the relevant metrics to be aware of. It represents the percent of your total users each month who leave the game. This is obviously a regular phenomenon as the life cycle of players is always finite. For clarity this metric can...
LTV

LTV

LTV (lifetime value) is another of the most important optimization metrics especially for any relationship game. The concept is to take the ARPU and multiple it by the average amount of time a player spends active in your game. The LTV is generally calculated in...
Relationship vs Transactional Games

Relationship vs Transactional Games

I want to have this message really clear before you read the following – neither of these strategies are “better” than the other. Both have their important place in gaming looking to position one as more beneficial for developers or consumers would...
ARPU Optimization

ARPU Optimization

I want to revisit a point I made earlier about ARPU. ARPU is the best indicator of how well your game design encourages users to purchase in game content when it isn’t required. Think about this carefully – users are choosing to spend more money on your...
ARPU

ARPU

If you’ve got any sort of marketing or analytic background you’ve likely heard of the important metric ARPU. The “Average Revenue Per User” is a critical metric to deal with when investigating your customer monetization strategy. ARPU is...
SimCity Community Challenges

SimCity Community Challenges

I’ve really enjoyed SimCity despite some of the features many would note as negative. The franchise is taking a serious new push into a heavily stylized system optimization kind of city builder which I don’t think is a bad move. While some of their...
Dungeon Keeper Microtransactions

Dungeon Keeper Microtransactions

At the time of writing this, people are still really angry about this issue. The release of the Dungeon Keeper in the app store has caused so many people to recant their decision and get rid of the pay to play application. I too am angry at the execution of this, but...