Repeat Customers Drive 97% of the In-App Revenue for Games

Gaming apps are generally far more profitable than other types of apps, and in game purchases are a huge driver of this trend with all things having been considered and taken into account. It turns out that the vast majority of revenue that goes to gaming apps comes from repeat purchases. As much as 97% of in app revenue for games comes from such repeated buys, which suggests that once a user has made a purchase they are more likely to make another one.

A study by Adikteev showed that only 36% of gamers will make only one purchase within the app. In contrast, 64% said that they are likely to make purchases repeatedly. With all of that having been said and now out of the way, it is important to note that game app developers are using several methods to drive increased sales of in app products. These includes push notifications that can raise awareness about premium or paid features than might have been the case otherwise.

This is not to say that gaming apps can obtain consistent revenue without doing some precise targeting. Gamers are far more likely to make a repeat purchase during the first two weeks of playing the game. 51% make a purchase on the first day, a further 25% in the first week and just 9% more in the subsequent week.

Targeting gamers soon after they have made a purchase can really drive up revenues for gaming apps because of the fact that this is the sort of thing that could potentially end up enticing gamers to spend more. There is a 77% chance that a gamer will repeat a purchase within the first week, and it drops to 54% in the second week. By focusing on the right demographics, gaming apps can eke out ever more efficiency from their revenue streams.

A combination of email marketing and push notifications is critical here, since not all users will allow notifications to come through. Studies have consistently shown that the best methods need to be multifaceted lest some users slip through the cracks and avoid purchasing anything.

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by Zia Muhammad via Digital Information World