Importance of Identifying Paying and Non-Paying Users
Every business has to make profit, right? Unfortunately, when it comes to freemium games, not every player is a payer. In fact between 95-98% of players can be identified as non-paying.
This means that if you want to “make a buck” out of the majority you should consider ads as a monetization tool. Segmenting your players into separate paying and non-paying cohorts can help you a great deal to determine what offers to present to each individual group.
Purchase Drivers
For the non-paying cohorts you should identify the appropriate downtime spots in the gameplay, where rewarded ads and interstitials can be implemented and always be mindful not to interrupt the user experience.
You can check our Rewarded Video Best practices and our Offerwall Guide for tips on these topics.
You can check our Rewarded Video Best practices and our Offerwall Guide for tips on these topics.
For the paying cohorts it is important to monitor the average amount paid per transaction and the frequency of transactions from your historical data and adapt the offer prompts because a user is most likely to convert on an amount close to what he/she paid in the past.
Pro Tip: Use the most recent information for transactions (4-6 weeks).
Keep in mind that as players progress their behavior can also change, so you should make switching between cohorts possible.
Get to Know Your Users!
Segmentation is vital when you want to learn more about your audience and add a personal touch to your product.
Optimize your Content with Engagement Segmentation
Of course, the segmentation according to purchases is not the only one out there. Another very popular way to segment your users is by engagement.
But no two apps are made the same, so depending on your individual case a high engagement might mean a different thing.
Engagement Metrics
The most common metrics to track with your users are:
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- Time spent using the app or game
Engaged users will spend more time with your content. Even if they do not progress for some time, this means they are accepting the challenge and trying. If the time without progress becomes too long you might consider reducing the difficulty to avoid churn. - Use of a certain game section
This can give you an insight into which parts of your product are used the most. In case that some sections are never visited, you can consider highlighting them or removing them if needed. - Activity in the community
Some users are motivated by the interaction with the community. They will appreciate to be recognized in the group. - Competitive Behaviour
Some people are born competitors and it brings them joy to be successful or to have the highest score.
- Time spent using the app or game
Segmenting your users by engagement gives you invaluable insights on how to optimize your content to the preferences of your user cohorts and can be used to re-engage users who are starting to lose interest.
If You Don’t Segment – You’re Missing Out.
Whether your goal is to improve your content, optimize revenue or identify potentially interesting users, it really is a must.
Identify Relevant Groups with User Segmentation
While segmenting by engagement and purchases may help you sort out your revenue streams and optimize your content, other segmentation criteria can help you identify the relevant users early on in the process.
Identifying the users with potential early on helps you set your priorities and put more effort in the higher earning streams.
Relevant Users According to
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- Technographic segmentation
This includes creating user cohorts according to technical parameters like: device type, browser, operating system, software used, display size etc. - Geographic segmentation
You can separate higher income / pay countries from lower ones and make tiers with a different monetization mix.
Pro Tip: Exert caution when removing rewarded ads entirely for certain paying user cohorts as it might be perceived as punishment. - Acquisition channel segmentation
By analyzing your historical data you might be able to spot dependencies between acquisition channel and quality of the users and create different progression paths for each individual group. - Behavioral segmentation
You can create a desired behavior progression profile and create cohorts depending on which users match the desired actions in the first day after installation (D1), first seven (D7) or first month (D30).
- Technographic segmentation
Forecast Future Changes to Your KPIs.
Knowing your audience better will help you predict more accurately the dynamics of your cohorts.
Always Test your Methods
User segmentation doesn’t need to be 100% custom tailored and you can use many of the best practices to your advantage. It is always important to A/B test which approaches work best for your particular product and audience.
You can A/B test pretty much everything like: creatives, personalized offers or call-to-action text.
All it takes is creating 2 versions, which differ only by one feature and comparing which one scores better results. ayeT’s Offerwall also supports traffic splitting, which can help you find out which layout is most appreciated by your users.
You can A/B test pretty much everything
A/B tests can be very useful when trying out a new ad unit integration. You can place it in 2 different spots, test it with your live audience and make a data-driven decision after the end of the experiment.
A/B tests are invaluable for optimizing the pace and capping of your ads and offers.
Another popular solution is to use FOMO (fear of missing out) and randomly show Rewarded Video prompts between levels which provide the opportunity to earn extra in-game currency.
Pro tip: You can use A/B testing to determine which placements appeal the most to your particular audience.
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