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Though in-app purchases account for almost half of all mobile app revenue, most players never buy anything in the mobile games they play.
However, gamers who make one purchase are likely to make another. Increasing these repeat purchases can significantly impact the profitability of your game. Learning how to calculate repeat purchase rate will help you identify opportunities to boost revenue and increase the lifetime value of your game.
Key Takeaways:
To calculate your repeat purchase rate, take the total number of customers who made more than one purchase during a specific time frame and divide that number by the total number of customers who made a purchase in that same time frame. Multiply the result by 100.
Example: If 1,000 customers made a purchase in the last 30 days and 200 of those customers made two or more purchases during that time, your repeat purchase rate would be 200/1,000 x 100 = 20%.
There are three main reasons to calculate your repeat purchase rate.
Profits for many gaming companies are declining due to increased competition and rising development and player acquisition costs. One way to reduce your acquisition costs is to make sure you generate as much profit as you can from the players you already have.
Loyal players tend to generate more revenue and have a higher lifetime value than other players. They can also be advocates for your game, attracting new players by talking about your game on forums and social media and sharing user-generated content.
Repeat purchase rate is a good measure of how loyal your player base is. If your RPR is low, that is a sign that you need to work on building a more engaged player base.
It costs about $35 to get players to make a first purchase in a mobile game. Since most player purchases are microtransactions, you need players to make many purchases to recoup that expense and generate profits.
Fortunately, it is easier and less expensive to convince players who have already bought something to buy something else. It is also critically important for your bottom line, since 97% of in-app revenue comes from repeat purchases.
Additionally, revenue from repeat purchases is more reliable than revenue generated by acquiring new players. When economic downturns happen, retention takes a hit but is less vulnerable than new player acquisition.
A small fraction of players generate the majority of the revenue for most games. The players who make repeat purchases are the most likely to be your biggest spenders. Identifying them can help you specifically target these players with your retention and monetization campaigns.
Now that you know how to calculate repeat purchase rate, what can you do to improve it? These tips can help.
If players aren’t having fun in your game, they probably won’t buy anything. Conversely, the more invested players are in your game, the more likely they are to make purchases.
The best thing you can do for your repeat purchase rate is to ensure your players are fully engaged and having a great time playing your game. This will motivate them to make first purchases and keep them playing long-term, providing the opportunity for repeat purchases.
You can’t get a second purchase if you don’t get a first purchase. Unfortunately, getting that first purchase is hard. Because most games are free-to-play, players tend to agonize over the decision to buy something because that first purchase represents a shift from playing a free game to paying to play.
The good news is that once players decide to make that first purchase, they are much less reluctant to make a second or third purchase. Encourage first-time buyers by offering items that appeal to new players, such as starter packs, virtual currency, and low-priced bundles. Emphasize items that players can use multiple times over one-use purchases so that players feel like they are getting good value for their money.
The more time goes by after a first purchase, the less likely players are to make a repeat purchase. Strike while the iron is hot by using push notifications, in-game messages, and email marketing to remind players to make another purchase. Offer enticements, such as discounts and bundles, to sweeten the deal.
Optimize your purchase process to ensure it is as easy and fast as possible. Eliminate unnecessary steps and keep players’ purchase information on file. Follow up with customers after they make a purchase and offer automatic purchases in the form of subscriptions.
Give players as many reasons as possible to want to make repeat purchases. Add more sinks to your game so that players use up consumable items and need to buy more. Create a loyalty program that rewards players with discounts, free items, and access to exclusive perks to encourage repeat purchases.
Keep an eye on your competitors, including non-gaming entertainment options, such as streaming services. Make sure your prices are competitive and offer good value compared to what else players could spend their money on.
Now that you know how to calculate repeat purchase rate, make the most of that information by working with Sonamine. Our engagement, retention, and monetization services can help you build a loyal, engaged player base that will generate repeat revenue. Whether you need help getting players to make that first purchase or want to improve your repeat purchase campaigns, Sonamine has a solution. Contact us today to get started.
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For a limited time until December 2024, Sonamine is offering a 60 day money back guarantee to OneSignal customers. Come experience the ease and simplicity of the First Time Spender Nudge package and watch your conversions soar.
