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10 Key Gaming Metrics to Monitor
- Retention, DAU (Daily Active Users), ARPU (average revenue per user), ARPPU (average revenue per paying user), Conversion rate, Churn rate, Depositors, Deposits, Dormants, and Lifetime Value are the 10 key gaming metrics that evaluate a game's overall health and its ability to keep users coming back daily.
- Retention is crucial to examine retention trends over time to identify when the game loses users. The first 24 hours of gameplay is the most significant drop in retention.
- DAU (Daily Active Users) provides insight into the game’s overall health and its ability to keep users coming back daily. Monitoring DAU helps to assess the effectiveness of in-game events, promotions, or new features.
- ARPU (average revenue per user) is often the first metric looked at for monetization. A low ARPU doesn’t always indicate a problem with the monetization strategy, as a low ARPU could simply mean there are many users playing the game.
- ARPPU (average revenue per paying user) is a crucial metric because it gives insight into repeat payers and their spending behavior. In gaming, most revenue comes from “whales” — the small percentage of players who spend significant amounts.
- Conversion rate — the percentage of users who completed a desired action over a certain period of time out of the total number of users. In gaming, this typically refers to the percentage of users who have made a purchase per day.
- Churn rate measures how many users have stopped playing the game. Unlike most other metrics, we want to see this one decrease.
- Lifetime Value (LTV) is difficult to estimate in gaming, making it a less useful metric. However, properly segmenting users based on behavior, spending habits, or characteristics like geography and age allows developers to tailor offers, in-game experiences, and promotions to specific user types.
- User segmentation strategies vary significantly from game to game and across genres. However, understanding these key metrics gives a strong foundation for making informed decisions, whether you’re developing a game or looking to invest in the industry.
- Each game is different, and success depends on various factors, including user base, genre, monetization strategy, segmentation mechanism, and more. Ultimately, the ability to track and adapt based on these insights is what sets successful games apart in an incredibly competitive landscape.
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