Today we’re going to talk about a common problem that everyone has to deal with: ‘user churn’.
It would be great to know where users are leaving from.😢 Is there a way to do that?
We’ll explore the concept of ‘funnel analysis’ as a solution to understanding at what stages users leave and how it can be beneficial.
Now, let’s look at why funnel analysis is necessary and exactly how it helps.
1. What is a Funnel?
📚Dictionary DefinitionA funnel (marketing funnel) is an analysis and understanding of
why revenue occurs in marketing; it's also known as a marketing funnel. Every service and business sees a decrease in the number of users
as they progress to the next stage, forming a shape similar to a funnel.
① In a game, the “funnel” can be thought of as the “user’s journey through the game”.
From registering information to completing tutorials and leveling up. Some users will consistently progress through each stage, while others may complete a short journey without completing the tutorial.
② “Analyzing the funnel” means examining how users navigate the journey by observing their behavior at each stage.
It involves analyzing the user reach at each stage of the journey and considering, “Why do many users drop off at this stage?”. In this stage, qualitative analysis of problem segments are required.
③ Finally, “improving the funnel” is about solving the problems identified in (2). Give appropriate action to guide users to continue their journey in the game smoothly. From the user’s point of view, the funnel is the “journey of playing the game” and there should be no issues that hinder the gameplay on this journey.
2. Why Should We Analyze?
The importance of funnel analysis lies in two key aspects:
① Retention Improvement
② Revenue Improvement
Creating a game is about bringing joy to people, but sustaining it without guaranteed profitability is challenging.
Many games develop new content to increase retention and monetization strategies. However, the decision to continue with content or implement monetization depends on the individual user.
💡 Therefore, funnel analysis based on 'user behavior data' collected
through 'logs' is essential. Classifying users into groups based on where they dropped off, where they made purchases, etc. and analyzing the causes behind specific behaviors is critical.
*The classification criteria can be time (day, month, two months…) or game progress (level 1, 10, 15, 50…).
Once the causes are identified, balancing adjustments through updates or providing rewards at certain stages can improve the user experience. In the long run, this can increase retention and revenue.
Example Scenario:
(1) In game A, the funnel analysis revealed that there is a significant user drop-off at level 30. Only a mere 39% of users progress from level 30 to level 31. The development team becomes aware that there may be a problem at level 30.
(2) The development team takes some time to qualitatively understand the problems in this segment. (Typically done by a game designer or analyst.) Upon investigation, they find that level 30 is where the tutorial ends.
(3) Massive user churn occurs at the point where the tutorial ends. This provides insights such as “Oh, the disappearance of missions (tutorials) that consistently set goals for users may be the cause of user churn”.
(4) The development team then proceeds to update the game by continuously providing quests after the tutorial ends to ensure that users stay engaged.
(5) After the update, the development team performs another funnel analysis. They confirm that the dropout problem at level 30 has been solved.
3. Now, BACKND Supports Funnel Analysis!
We’ve always thought, “How can games shine in the marketplace?”
BACKND has consistently thought about the following:
💡
- With so much effort put into development, how can a game survive in the market for so long?
- How to prevent the churn of acquired users and increase the retention rate?
- How to run a game that satisfies both users and developers?
The common answer to these questions is to accurately diagnose and improve problems based on data.
Success in the gaming industry is most likely when games are run based on objective data rather than vague assumptions. And what helps in this decision-making process is none other than ‘funnel analysis’.
If you haven’t done any analysis yet, it’s not too late.
💡 Get started now with BACKND funnel analysis features.
To facilitate easier access and better utilization of the Funnel Analysis feature, we’re preparing a follow-up guide titled “BACKND: Unknown Fact! — Funnel Analysis with Examples Part.2” Look forward to it! Explore the [Back-end Funnel Analysis✨] guide now.
For easier access and better use of the Funnel Analysis feature, we’re preparing a follow-up guide titled to look forward to!
<BACKND: Unknown Fact! — Funnel Analysis with Examples Part.2>
Explore the [BACKND Funnel Analysis✨] Developer’s Guide now.
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