The most popular games on the market attract millions of players, yet only about 5% of players make in-game purchases. To increase revenue, companies must attract more players or convince existing players to make more purchases.
Because attracting new players is expensive, finding ways to improve your repeat purchase rate is one of the most cost-effective ways to boost revenue.
The repeat purchase rate is a measure of how many customers make at least one additional purchase after their first. To calculate RPR, divide the number of customers who made multiple purchases within a specified time frame by the total number of customers.
The rate at which customers make repeat purchases is important for several reasons.
It is easier to get players who have already made at least one purchase to make another purchase. While only 5% of total players make a first purchase, about 27% of players who have made a purchase make a second purchase.
About 49% of players who have made two purchases will make a third purchase, and 62% of players who make three purchases will go on to make additional purchases. The higher your repeat purchase rate is, the less time, money, and other resources you must spend trying to attract new customers and convince non-paying players to make a first purchase.
When customers make purchases, they provide you with a variety of useful information. Your marketing team can use this information to more effectively market your products. This makes repeat buyers easier and less expensive to market to.
Players who make multiple purchases tend to have higher levels of customer satisfaction and brand loyalty. Loyal customers play games and continue to make purchases for longer periods resulting in higher lifetime values.
Loyal customers also tend to tell their friends, family, and social media contacts about your product and post user-generated content, such as reviews and gameplay footage, online. This attracts new customers to your game through word-of-mouth advertising.
Repeat customers tend to make larger purchases than first-time buyers. They are also more likely to spend money during key sales periods, such as major holidays. As a result, you will generate higher average profits for each purchase from a repeat buyer than you will for first-time customers.
Your priority is to provide players with the best possible gameplay experience. If players do not continue to play your game, they will not make purchases.
Make sure the onboarding process shows your game in the best light and reduces friction for new players. Consistently add new content to keep your game engaging. When you have done everything you can to optimize the player experience, you can then focus on tweaking the purchasing process.
Players need a reason to purchase in-game items. Sinks are how players use virtual items in your game. Giving players more ways to use their purchases increases their motivation to make repeat purchases.
If players feel like their first purchase was a hassle or they didn’t get their money’s worth, they aren’t very likely to make a second purchase. Increase your repeat purchase rate by optimizing customer touchpoints to ensure that the purchasing process is as frictionless as possible.
Make sure your in-game store design features easy entry, enticing window shopping, and reasonable prices. Ensure players understand how to navigate and use the store.
Follow up with customers after a purchase. Make sure they understand how to use the item they bought and allow them to tell you about anything that didn’t go smoothly with the purchase process so that you can fix it.
Provide top-notch customer support. Players who feel like they can easily remedy any issues they have by contacting your support team are more likely to make additional purchases.
You can’t have repeat purchasers without getting players to make that first purchase. Boost your repeat purchase rate by featuring offers that are appealing to first-time buyers, such as new player starter packs, virtual currency, and low-price bundles.
Utilize push notifications and email campaigns to alert customers when you have something new for sale or remind them that a promotion or limited-time offer is about to end. Keep these messages short, relevant, and beneficial, and don’t send them more than one or two times per day.
Reward players for making repeat purchases by offering discounts, free items, early access, and other perks. Consider implementing a loyalty program. However, be judicious with your discounts. If you overuse them, you may incentivize players to only buy when something goes on sale.
Take advantage of machine learning to identify customer preferences and purchasing patterns so that you can better personalize and target your marketing campaigns to the players who are the most likely to buy. Use artificial intelligence tools to learn more about your customer’s interests on channels that you do not own and tailor your marketing and in-game offerings to those interests.
Sonamine offers engagement, retention, and monetization services that can help you generate first-time purchases and improve your repeat purchase rate. We also provide advanced analysis to help you tailor your marketing campaigns and in-game offers. Contact us online to get started.
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