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Mastering Retention Podcast

The Fundamentals of Monetization Part 2

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https://www.youtube.com/watch?v=gdrBCtkLTE4⁠

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🎙️ Mastering Retention Podcast Episode: Part Two of Monetization Series with Remi Spagnol from Hyper Hippo

Host: Tom Hammond, Co-founder of UserWise

Guest: Remi Spagnol, Managing Director of Games at Hyper Hippo

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🌟 Introduction

In this second part of the Monetization Series on the Mastering Retention Podcast, host Tom Hammond continues his conversation with Remi Spagnol from Hyper Hippo. They delve deeper into first-time payer conversion, exploring strategies to encourage initial in-game purchases and the psychology behind monetization in free-to-play games.

🛠️ Understanding First-Time Conversion

🔄 Definition:

First-Time Conversion refers to converting a non-paying player into a paying player.

It's crucial because once a player makes an initial purchase, they are significantly more likely to spend again.

💡 Importance:

Retention Boost: Players who spend are often more engaged and have higher retention rates.

Revenue Growth: The initial purchase can lead to a chain of future purchases, increasing the player's lifetime value.

🎯 Challenges in Achieving First-Time Conversion

🚧 Psychological Barriers:

Players often approach free-to-play games without the intent to spend money.

Convincing players to pay for something they can get for free requires strategic design and value proposition.

📉 Low Conversion Rates:

Industry benchmarks suggest that only about 1-5% of players convert to payers.

Conversion rates vary by genre, region, and player demographics.

💡 Strategies for Maximizing First-Time Conversion

🔄 Integrated Monetization:

Seamless Integration: Monetization should be a natural part of the gameplay, not an afterthought.

Recurring Opportunities: Provide consistent, logical spending points throughout the game.

🎁 Offering Clear Value:

Simplify the Purchase: The value of the first purchase should be easily understood with minimal explanation.

Desirable Rewards: Offer items that enhance the player's experience, such as exclusive content or significant power-ups.

🧪 Creating a Need:

Educate Players: Introduce consumables or features during gameplay to showcase their benefits before offering them for purchase.

Timing is Key: Present conversion opportunities when players are most likely to appreciate and understand the value.

🧠 The Psychology Behind Conversion

🛍️ Impulse vs. Strategic Purchases:

Impulse Buys: Simple, immediate rewards that require little knowledge about the game (e.g., cosmetic items).

Strategic Buys: Purchases that require a deeper understanding of the game mechanics.

🎨 Vanity Items:

Appeal to Emotions: Cosmetic items can be powerful converters because they require minimal explanation and tap into players' desires.

⏳ Early Conversion Opportunities:

First Session Conversion: Aim to present compelling offers within the player's first gameplay session.

Leverage Initial Excitement: Players are more open to spending when they are excited about a new game.

🛍️ Designing Effective Conversion Offers

📦 Conversion Packs:

Best Value Offers: Provide significant discounts or bonuses to make the initial purchase irresistible.

Limited-Time Availability: Use timers to create a sense of urgency and encourage immediate action.

🎯 Targeted Segmentation:

Dynamic Offers: Tailor offers based on the player's progress and behavior to meet their specific needs.

Avoid Overcomplication: Keep offers simple to prevent overwhelming new players.

💰 Price Anchoring:

Establishing Value: Show standard prices alongside discounted offers to highlight savings.

Strategic Comparisons: Use multiple offers to guide players toward the desired purchase through perceived value.

🔄 Encouraging Repeat Purchases

📈 Importance of Re-Conversion:

Players who have made a purchase are more likely to spend again if they had a positive experience.

🌟 Enhancing Gameplay:

Post-Purchase Satisfaction: Ensure that spending enhances the player's enjoyment and progress.

Continuous Value: Introduce new, valuable items or features to keep players engaged and willing to spend.

🗓️ Optimal Cadence:

Regular Opportunities: Provide consistent reasons for players to make additional purchases.

Event Timing: Use in-game events and updates to introduce fresh content and spending opportunities.

📺 The Role of Ad Monetization in Conversion

🆓 Lowering Barriers:

Ads offer a way for non-spending players to support the game and receive benefits without spending money.

⚠️ Potential Pitfalls:

Interference with Conversion: Excessive or intrusive ads can negatively impact the likelihood of players making in-app purchases.

Balanced Approach: Use rewarded ads strategically to complement, not replace, purchase options.

📝 Best Practices for Conversion Offer Presentation

👀 Visibility and Clarity:

Prominent Placement: Use pop-ups or featured sections to ensure players see the offers.

Clear Messaging: Use straightforward language and visuals to convey the offer's value.

💎 High-Quality Visuals:

Professional Design: Invest in polished graphics and animations to make offers more appealing.

Call-to-Action (CTA): Include a compelling CTA button with action-oriented text like "Buy Now" or "Get Offer."

⏰ Sense of Urgency:

Limited-Time Offers: Use countdown timers to encourage immediate decisions.

Exclusive Deals: Highlight that the offer is unique or only available once.

🛡️ Avoiding Common Monetization Mistakes

🚫 Overcomplicating Offers:

Too many items or complex bundles can confuse players and deter purchases.

❌ Negative Reinforcement:

Avoid making ads or monetization feel like a punishment or annoyance to the player.

🔄 Over-Reliance on One-Time Purchases:

Ensure there are ongoing monetization strategies beyond the initial conversion to sustain revenue.

🎟️ Battle Pass and First-Time Conversion

🔥 Popularity and Recognition:

Players are familiar with the Battle Pass model, which can lower the barrier to the first purchase.

🎮 Encouraging Retention:

Battle Passes reward continued play and can enhance player engagement over time.

⚖️ Considerations:

Retention Dependency: Battle Passes are more effective in games with strong long-term retention.

Potential Drawbacks: May reduce the likelihood of additional purchases if not designed carefully.

📊 Measuring Success and Continuous Improvement

📈 Data Analysis:

Track conversion rates, repeat purchases, and player behavior to identify areas for improvement.

🕵️‍♂️ Qualitative Feedback:

While quantitative data is crucial, gather player feedback to understand their experiences and perceptions.

🔄 Iterative Testing:

Continuously A/B test offers, pricing, and presentation to optimize conversion rates.

📝 Conclusion

In this insightful episode, Remi Spagnol shares expert strategies for enhancing first-time payer conversion in free-to-play games. By understanding player psychology, integrating monetization seamlessly into gameplay, and designing compelling offers, developers can effectively encourage initial purchases and foster long-term engagement and revenue growth.

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📞 Connect with Remi Spagnol:

LinkedIn:

Remi's Profile⁠

(Note: Please verify the link as it may not be accurate.)

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