+2% Day7 retention can bring +30% more revenue!

Here is an interesting simulation of the impact of a +2% increase in Day7 retention in mobile games.

For each case, the hypothesis is:
- UA of 50K new players per day for 30 days.
- we suppose that Day60 retention is down to zero,
- we calculate the figures (DAU, revenue...) on 90 days.

Case 1 = Casual game, with a 1 € CPI and  a 0,30 € ARPDAU

REF: retention = 35% day1, 15% day7, 4% day28
=> Revenue - Cost of UA = 738 K€ (LTV = 1,49 €)

If you manage to increase Day7 by 2% (and Day28 by 1%):

HYP: retention = 35% day1,  17% day7,   5% day28
=> Revenue - Cost of UA = 952 K€ (LTV = 1,63 €)

That's 214 K€ more revenue (+29%)

Case 2 = Hyper-casual game, with a 0,20 € CPI and a 0,10 €  ARPDAU

REF: retention = 40% day1,   10% day7,   2% day28
=> Revenue - Cost of UA =  244 K€ (LTV = 0,36 €)

If you manage to increase Day7 by 2% (and Day28 by 1%):

HYP1: retention =  40% day1,  12% day7,   3% day28
=> Revenue - Cost of UA = 334 K€ (LTV = 0,42 €)

That's 90 K€ more revenue (+36%)

 

So spending time acquiring the right players is important, but in casual and hyper-casual games players are very diverse.

Using Machine Learning to better tune your game difficulty and providing real-time player personalization (thus increasing retention and LTV) can bring an important increase of revenue for a very low cost.

Here is the increase of revenue using askblu.ai:

Case 1 (casual game):  214 K€ more revenue, minus 8 K€ (cost of askblu.ai)
that's 206 K€ more cash for the studio ! (+28%).

Case 2 (hyper-causal game): 90 K€ more revenue, minus 6 K€ (cost of askblu.ai) that's 84 K€ more cash for the studio ! (+34%)

 


Also published on Medium.