Part 7: What the Top 50 Games Do With In-App Purchasing That the Rest of Us Don’t
In the previous article in this series, we saw how teaching customers about your IAP items and how showing them how to use those items makes a big difference for the top 50. In this article, we’ll look at how the top 50 arrange their IAP offers to maximize customer satisfaction and revenue.
You need to give customers something to order. Certainly you need to give customers items that are appealing to them, but what we found was that as you add more items your catalog, you start making more money. For example, if you have 12 items in your catalog, chances are you’ll make about 45% more money than you would if you only had 6 to 10 items in your catalog. But it’s easy to get the wrong take-away from this data. I don’t want you to think “Holy cow, if I just put 10 more items in a catalog I’ll be in the top 50!” It doesn’t work like that. It’s true that the top 50 have larger catalogs, but they don’t show the entire catalog to the users all at once. They show the right offers to the right people at the right time. They show different items to people on day one than they show to people on day seven or day 30, and they are using their larger catalog to get that breath of offers. Again we see the top 50 differentiating offers to different groups of users.
Now while variety in terms of offers is great, variety in terms of price points is not so great.
Clarity About Value is Critical
Take a look at the data and you’ll find that the more price points you have the lower your revenue is going to be. This doesn’t happen because they aren’t good prices, this because they’re confusing. It is really hard to communicate the value difference of items between $.99 $1.99, $2.99 and $3.99. A confused customer doesn’t go out and buy the most expensive item. A confused customer doesn’t go out and buy the cheapest item. A confused customer doesn’t buy anything. If you have too many price points competing for a customer’s attention it can be hard to determine the value difference between the price points.
In the next article in the series, we’ll look at how the top 50 make it easy for customers to buy what they want.