Oldie Is Goodie: Effective User Retention by In-game Promotion Event Analysis

Key insights

5 takeaways

01
In-game promotional events for the MMORPG AION increased active user counts by 18% and cumulative users by 19% during a two-week period in early 2016.See it on page 3
02
Promotional events are more effective at preventing churn among existing players than at acquiring new users, with the highest impact observed among mid-level players and those active during daytime hours.See it on page 1
03
While promotional events increased the number of unique buyers by 150%, the total frequency of individual purchase transactions dropped by 10%, indicating a shift away from high-frequency spending.See it on page 3
04
To optimize business outcomes, developers should segment event strategies by targeting daytime players for retention efforts and nighttime players for revenue generation.See it on page 5
05
The study, based on 54 million server-log data points, defines churn as a lack of login activity for a period of two to six days.See it on page 2

Summary

This analysis examines the efficacy of in-game promotional events in mitigating user churn within the Massively Multiplayer Online Role-Playing Game (MMORPG) genre. The primary thesis posits that while promotional events are effective at retaining existing users, their impact varies significantly based on specific user characteristics, including character level, item purchasing frequency, and typical game-playing time bands. By evaluating these variables, the study provides a framework for game companies to optimize marketing strategies to maximize both retention and profitability.

The research utilizes a server-log based methodology, analyzing approximately 54 million data points from the MMORPG AION. The dataset covers a two-week period in early 2016, during which four concurrent promotional events were active. The study defines churn as a lack of login activity for a period of two to six days. Key findings indicate that promotional events successfully increased the number of active users by 18% and cumulative users by 19%. Notably, these events were most effective at engaging mid-level players and those who typically play during daytime hours, suggesting that such promotions are better suited for churn prevention than for the acquisition of new users.

A significant, counterintuitive finding involves item purchasing behavior. While the number of unique buyers increased by approximately 150% during the event period, the total frequency of individual purchase transactions decreased by 10%. This suggests that while events successfully broaden the base of participating users, they may shift spending patterns away from high-frequency purchasing. The study concludes that game companies must tailor events to specific user segments—focusing on daytime players for retention and nighttime players for revenue generation—to achieve a balanced and sustainable business model.