Introduction
In the fast-paced world of casual gaming, deciding which games to scale can feel overwhelming. With multiple titles in soft launch, how do you determine where to invest your marketing budget? Making the right choice can mean the difference between a hit game and a costly flop.
Analysis
Understanding the signals that indicate a game’s potential is crucial. Early indicators can help you identify which games are worth scaling and which should be shelved. Ignoring these signals can lead to wasted resources and missed opportunities.
Why This Matters
Many gaming companies struggle with the “scale or kill” decision. Without a systematic approach, you risk investing in games that won’t deliver a return. This can drain your budget and hinder your overall growth.
Solution
To make informed decisions, implement a structured framework that focuses on key performance indicators (KPIs), testing strategies, and market analysis. Here’s how to approach it:
1. Early Indicators
- Track Key KPIs: Monitor metrics like Day 1 (D1), Day 3 (D3), Day 7 (D7), and Day 30 (D30) retention rates. These will give you insight into player engagement.
- Evaluate Monetization Potential: Assess in-app purchase (IAP) performance and ad revenue early on to gauge financial viability.
- CPI Testing: Experiment with Cost Per Install (CPI) across different geographies to find the most cost-effective markets.
2. Testing Framework
- Testing Duration: Typically, a testing period of 30-60 days is ideal to gather enough data for analysis.
- Budget Allocation: Allocate a specific percentage of your marketing budget to each game based on its initial performance.
- Market Selection: Choose diverse markets for soft launches to understand different player behaviors and preferences.
- Iterate vs. Kill: Balance between making improvements and deciding to discontinue a game based on performance metrics.
3. Scale Decision Factors
- LTV/CAC Ratio: A strong Lifetime Value (LTV) to Customer Acquisition Cost (CAC) ratio (ideally 3:1 or higher) indicates a game is worth scaling.
- Retention Metrics: Consistent retention rates above your threshold metrics signal a game’s potential for growth.
Actionable Tips
- Set clear KPIs for each game and review them regularly.
- Use A/B testing to refine your monetization strategies.
- Engage with your player community to gather feedback and insights.
- Document your learnings from each game to improve future decision-making.
Conclusion
By implementing a structured approach to the scale or kill decision, you can make informed choices that drive growth. Focus on early indicators, establish a solid testing framework, and evaluate your scaling factors carefully. Remember, the key is to be data-driven and responsive to player feedback.