Paying Customer, not Necessarily a Retained Customer in Freemium Games

Abstract

Mobile games have become mainstream in the gaming market, generating revenue primarily through the Free-to-Play (F2P) model. The F2P business model influences game design and service methodologies, requiring new efforts to enhance player satisfaction through game services. The F2P business model has led to strategies aimed at early player conversion. To assess the effectiveness of early-stage conversion strategies, we analyzed data from an idle RPG game called “Dealers Only Squad”. We examined the relationship between the time taken from signing up to the game to making the first in-app purchase and retention, presenting findings on ‘Payer Retention’. Analysis has shown that a 1-day delay in the first in-app purchase improved average D+1 day retention by 0.29%-points and D+7 day retention by 1.35%-points. Based on these findings, the study suggests that in-app purchases made in the early stages can induce a negative gaming experience and increase churn rather than maintain retention, partially criticizing the effectiveness of early-stage conversion strategies. © 2024 Copyright held by the owner/author(s).