When it comes to launching a successful mobile game, many developers prioritize retention over monetization, thinking that once they've established a predictable retention curve, they can focus on generating revenue. However, this approach overlooks the crucial link between the two metrics.
Retaining players is indeed challenging in today's competitive mobile gaming landscape. According to recent statistics, only 25% of top-performing mobile games achieve an average 28-day retention rate of just 4%. This means that developers must find innovative ways to keep players engaged and coming back for more.
The Flywheel Effect
The world's most successful publishers understand that retention and monetization are not separate entities, but rather two interconnected components. A well-optimized IAP pricing structure can improve retention among paying players, while a loyalty program can stimulate repeat purchases and maximize long-term LTV. When balanced, these elements create a flywheel effect that generates a positive feedback loop, driving engagement and revenue.
Correlated Metrics
It's not just mobile gaming; in many industries, growth and monetization are intertwined. As former growth executives from HubSpot, SurveyMonkey, and Thumbtack aptly put it, "It's not about growth or monetization, it's about how monetization feeds growth as part of a holistic system."
To achieve success, game publishers must treat retention and monetization as correlated metrics rather than sequential tasks. This means optimizing IAP pricing structures to improve player engagement and loyalty, ensuring that every possible earning opportunity is seized at launch.
Featured Launches
Getting featured in the app stores can be a game-changer for mobile games. When this happens, DAU counts skyrocket, bringing unprecedented visibility and potential revenue. However, launching with a half-baked IAP pricing strategy not only misses immediate earnings but also neglects the opportunity to establish long-term relationships with loyal players.
AI-Powered Pricing Optimization
By leveraging machine learning models and data analytics, developers can optimize their IAP pricing structures for maximum revenue and engagement. At Wappier, we use this approach to deliver exponential value by marrying retention and monetization goals. Our global pricing optimization and automated loyalty programs are designed to drive revenue from a better retained player base starting at launch.
To learn more about how our AI-powered solutions can help your mobile game succeed, click the button below to get in touch!