Free Player Retention Guide Get Now
In 2024, the free-to-play mobile games market was worth $117.7 billion. The ease with which players can access free-to-play games has led to millions playing them across multiple genres. Some of the most popular video games in the world use the free-to-play model. Games like Roblox and Subway Surfers regularly gather over 100 million users monthly.
The free-to-play model is an enticing opportunity for game developers as there is a low barrier to entry for users. At the same time, there is still a huge potential to generate revenue through monetization strategies such as in-game purchases, mobile ads, and subscriptions.
However, while a successful free-to-play mobile game can generate a huge amount of revenue, well-designed monetization strategies are necessary for it to succeed. On average, only 5% of free-to-play mobile game players engage with monetization systems.
It’s not as simple as throwing in a few in-app purchase options. A good monetization system should enhance the player experience and strike a balance between generating revenue – without losing your loyal player base.
Non-spending players play a significant role in the health of your mobile game. While they don’t directly contribute to revenue generation, non-spending users can still generate valuable revenue through reward and interstitial ads.
Similarly, non-spending users can help build a community around your mobile game, contributing to organic growth. For example, social media posts can attract new users. Non-spending users are vital for keeping games alive, especially in multiplayer scenarios.
So, while it’s tempting to try to convert all non-spending players, it’s worth noting that they play a crucial role in the health of any mobile. However, converting just 5% of all your non-spending users can lead to significant returns on investment.
Before you can begin converting non-spending players to paid players, it’s worth understanding why players will not engage with purchases within free-to-play mobile games.
There are primarily two distinct reasons why a user will be a non-spending player. The first is economic; players may not have enough disposable income to spend on mobile games; this can be particularly common if a mobile game only has expensive options available to the player.
The second reason is a psychological barrier. Players may feel there isn’t enough value on offer from in-app purchase options. Players may also simply be happy with what they receive from the free version of the game and see no reason to spend any additional money.
Once understood, you can also analyze non-spending player behavior to see where players disengage from monetization options. For example, it could be as simple as players dropping off before encountering monetization options.
While non-spending players play a key role in any successful mobile game’s life cycle, converting just a small fraction can greatly increase mobile game revenue.
Paid users increase revenue directly by making actual payments in-game. They also tend to have higher retention rates and are likelier to participate in community-based competitions, such as competitive leaderboards. Furthermore, Paid users are nearly six times more likely to make purchases again, which can help provide an important source of recurring revenue.
This conversion results in a significantly higher lifetime value for each user. Once a player pays for the first time, they are likely to play the mobile game for a longer time and, therefore, continue to make purchases over this time.
Similarly, an increased conversion rate from free users to paid users can result in an increased average revenue per user across a mobile game's entire user base. For example, if a free-to-play mobile game with 1 million active users and a 2% conversion rate, only 20,000 players make in-app purchases. If each paying user spends an average of $10 monthly, the game generates $200,000 in monthly revenue.
If the conversion rate were to increase to 4%, the number of paying players would double to 40,000 while the average spending per payer would remain the same. As a result, the game's monthly revenue would also double to $400,000 without acquiring a new user.
While there is no universal method for converting non-spending players into paying customers in free-to-play mobile games, game developers can use a few techniques to maximize conversion rates.
A player's first experience downloading a free-to-play mobile game can greatly affect their engagement. If the onboarding process is confusing and long-winded and doesn’t adequately highlight the value of premium features, then a player is likely to drop off before even considering making in-game purchases.
A good onboarding sequence should first guide players through core game mechanics, introduce their long-term progression goals, and explain how premium features and add-ons can help them achieve them.
By integrating monetization elements smoothly into the onboarding process, players become familiar with premium features before considering purchasing.
It can also help to give players a free trial of a premium item or currency to experience the value of premium products from the beginning of their journey.
Candy Crush Saga is a notable example of a well-made onboarding sequence. This game introduces new players to its mechanics through simple, interactive tutorials that provide quick wins. These tutorials effectively demonstrate the game's core mechanics and engage players from the outset.
In-app purchases are the primary source of monetization revenue for most free-to-play mobile games. However, practical In-App Purchases are more than just an option to “pay-to-win.”
Purchase options should cater to Non-Spending Players, and IAPs should lower the psychological barrier that may prevent them from spending money.
For example, first-time purchase incentives, such as large discounts or special bonus offers, can encourage players by making them feel that the offer is too good to pass up.
Another way IAPs can incentivize players to make their first purchase is to make these purchases feel more optionable than necessary. For example, optional cosmetic items like skins can create a low-pressure entry point for players to make their first purchase.
Free-to-Play game Fortnite has generated billions of dollars yearly from skin purchase options alone.
Rewarded ads refer to the option for in-game users to watch optional ads in return for in-game bonuses such as currency. These can act as a gateway for non-spending customers as they build the habit of players using premium features without making a financial commitment.
Dream League Soccer, a free-to-play football simulator, allows users to watch optional ads to generate in-game currency players can use. This introduces non-spending players to transactions to gain access to premium features.
Another strategy game developers can use is to create a sense of scarcity or urgency regarding the IAPs they offer. By offering limited-time discounts or even rare items, non-spending users want to take advantage of them as they fear missing out on a good deal.
For example, Pokemon Go, a popular free-to-play app, hosts limited safari zones that offer discounts to users worldwide.
Implementing a subscription model can also lower the barrier to entry for non-spending users. The upfront cost of subscription-based benefits such as battle passes or VIP modes can help make the purchase easier for those who are hesitant to buy.
Furthermore, by providing an ongoing sense of value from the subscription, such as through continued benefits or consistent access to perks like ad-free modes, it’s often easier for non-spending users to see how making a purchase will enhance their game experience over the long run.
Clash of Clans’ Gold Pass: Supercell’s incentivizes spending by providing significant time-saving benefits, making it highly attractive for players looking to progress faster.
Customizing the IAPs you offer non-spending users can help lower the barrier they face before making their first purchase. For example, something as simple as a first-time discount may result in a user engaging with your offer.
Similarly, if you analyze player behavior, you can provide dynamic and personalized pricing options, which may increase the likelihood of them making a purchase. For example, if a player continually uses a certain game mechanic, then offering an enhancement at a discounted rate will provide more value in their minds.
Building your free-to-play mobile game with competitive features such as leaderboards, clans, social interaction, or a competitive multiplayer aspect can also help encourage players to spend.
These competitive features naturally influence users' desire to increase their status within the game. Offering IAPs that help them increase their ranking or perform better in multiplayer games will increase the likelihood of a player making a purchase and lead to 2.7 times higher retention rates.
Randomized mechanics such as loot boxes or Gacha (a system in which players spend in-game currency to receive randomized rewards) can be incredibly effective at converting non-spending players into paid users. The idea that one small purchase can lead to players receiving rare or valuable items taps into what’s known as the variable-ratio reward schedule. This is where users experience a greater sense of reward and anticipation when they don’t know the outcome of their purchase, resulting in a greater sense of perceived value.
Furthermore, by offering a certain number of free rolls for non-spending users, they can become familiar with the game mechanics.
However, it’s worth noting that to ensure a player makes repeat transactions, it’s worth balancing their luck so they do feel some reward. For example, pity systems where a player receives a rare item after a certain number of rolls can ensure that the player doesn’t lose faith in the mechanic.
Rewards based on engagement can also help convince non-spending players to make purchases. For example, if you have a system that rewards players for daily log-ins with free items or in-game currency, they will become familiar with the reward process. However, if this is limited to once every 24 hours, then a sense of urgency is created, which can encourage players to purchase to bypass the 24-hour limit.
The success of any free-to-play mobile game depends on its monetization strategy. While game developers can implement many things, it’s worth measuring the success of their monetization techniques.
As previously mentioned, by tracking the Average Revenue Per User, game developers can track the success of their monetization techniques. Furthermore, things like conversion rates or the percentage of free players who become paid players can identify how their monetization strategy is working. This can be further isolated to the success of single mechanics such as randomized loot boxes.
Furthermore, developers can track the long-term retention of paid users through statistics like retention rate and churn. These statistics track how long newly paid users keep playing and whether they make a repeat transaction. This can indicate that monetization mechanics need to provide more value to the customer.
If you're looking for data-driven insights and AI-powered monetization solutions to optimize your conversion rates, Sonamine can help. Contact Sonamine today to start turning more free players into paying customers.
For a limited time until Mar 2025, Sonamine is offering a 60 day money back guarantee to Braze customers. Come experience the ease and simplicity of the First Time Spender Nudge package and watch your conversions soar.
For a limited time until Mar 2025, Sonamine is offering a 60 day money back guarantee to Braze customers. Come experience the ease and simplicity of the First Time Spender Nudge package and watch your conversions soar.
