DAU growth through in-app purchases Project Background
Good Pizza, Great Pizza (GPGP) is a simulation mobile game, released in 2016, that allows players to run their own pizza shop. Players take on the role of a pizza maker, managing the day-to-day operations of the shop, including making pizzas, taking orders, and managing finances. The game features a variety of customers with unique personalities and preferences, which adds an element of challenge as players try to keep up with their orders and make sure they are satisfied. GPGP has simple, colorful graphics and a playful soundtrack, making it an engaging and enjoyable experience for players of all ages.According to public sources, GPGP reached over 300 million downloads and at its peak, had 5 million Daily Active Users (DAU).About the Game
As an avid gamer, I was interested in learning about the mobile game industry so I connected with the Founder/CEO over coffee. In the one hour we chatted, I learned a tremendous amount about the industry and its challenges and opportunities. Perhaps the most interesting discussion topic was GPGP's goal of achieving 10 million DAU. A few weeks later, I had a follow-up with the Founder/CEO over lunch. A couple days prior to our discussion, I constructed this mini-case study to verify whether I, as a product manager, understood some of the problems he faced and whether my experience was transferrable to this industry.
Project Type: Product Case StudyDuration: 2 daysProduct Goal: Increase DAU to 10 million
To increase Daily Active Users (DAU), there are two main strategies that can be pursued simultaneously:A) Sustain DAU through in-game eventsB) Grow DAU through external factorsIn this case study, I focused on Path B as it holds the most potential for significant impact. Instead of relying on marketing or partnerships, I opted for a product-driven approach. During my research, I discovered several sources indirectly suggesting that boosting In-App Purchases (IAP) can improve the chances of being featured on the App Store or Google Play Store. This is important because not only does it bring in revenue, it enhances the app's visibility, leading to increased downloads and new user acquisition.The next question is - which of these new users make IAP? Well according to these data points, the most valuable users are those who download the app within the first 24 hours.
Approach
At this point in my case study, I stopped researching due to time constraints. However, I would like to acknowledge that this only scratches the surface. Other questions that immediately come to mind are: How can we further dissect who these users are that make IAP within the initial 24 hours of downloading the app?How can we optimize their experience to encourage and facilitate IAP?How can encourage future purchases?How do we keep them engaged and prevent churn?Are there pricing models or other strategies to consider?
Ideation
To identify valuable users who make IAP within the initial 24 hours of downloading the app, GPGP's Starter Bundle is an excellent starting point that we can iterate upon. This $1.99 bundle, available for a limited time once the user downloads the app, includes a Lucky Cat and a Plant (both decorative items), 100 Pizza Funds (to enhance in-game progress), and the permanent removal of forced ads. Goal: increase the attractiveness of the Starter Bundle to new users and encourage them to make a purchase?
Idea #1: Make Starter Bundle Discoverable
Home Screen Placement
There are only several scenes where users can access the Starter Bundle throughout their gameplay experience. This recommendation places a Starter Bundle icon on the home screen so it is one of the first thing a player sees when they open the game.Distinct Icon
The Starter Bundle is accessed through the transparent ‘Lucky Cat’ with a red exclamation mark. This icon is discrete and does not convey to players that it is a limited-time Starter Bundle. This recommendation prominently labels the icon with a distinct, call-to-action: ‘UPGRADE YOUR STORE’.Booster Category in the In-Game Store
During gameplay, users access a store to purchase in-game items. From this screen, there is no way to purchase the Starter Bundle. This recommendation includes a ‘Boosters’ category to remind users that as they upgrade their in-game store, they can also purchase the Starter Bundle to further accelerate their gameplay progress.Before
After
Idea #2: Change Starter Bundle
Include Value-Added Items in Starter Bundle
GPGP gameplay follows a timeline that is measured in days. During Day 1, users quickly experience the inconvenience of manually spreading sauce over the dough. To address this pain point, the game developers developed the “Sauce Buddy” booster item, which automates the sauce spreading process.Currently, on Day 3 of gameplay, users are given a free trial of Sauce Buddy. However, on Day 4, the trial period ends, and users must return to manually spreading the sauce, reintroducing the initial pain point.Considering that users have experienced and appreciated the value of Sauce Buddy as a solution to their gameplay challenge, it is recommended to include Sauce Buddy in the Starter Bundle starting from Day 4. This allows users to access the Sauce Buddy functionality and enhances their overall gaming experience.Idea #3: Price Cut
Reduce Starter Bundle price to $0.99
This simple and straightforward recommendation serves as an experiment that can offer insight into user's purchasing behavior, which may serve useful in our goal of increasing IAP. By reducing the Starter Bundle price to $0.99, the following insights are gained:Price sensitivity: Determines how users respond to a lower price point and assess their willingness-to-payDemand elasticity: Evaluates whether price has an impact on the demand of Starter BundleConversion rate to future IAP: Measures the rate at which users who purchase the Starter Bundle go on to make additional IAP
Summary
Constructing and Implementing a Flywheel May Help
As a recent MBA graduate, my mind immediately gravitated towards a flywheel when I was told GDGP's goal is to achieve 10 million DAU. The reason is because the mobile game industry is notorious for having a high user churn rate, so there needs to be a system in place that not only replenishes the churned users but also grows and retains the user base.
For readers unfamiliar with the term, a flywheel is a concept that describes a connected system where positive outcomes in one area lead to positive outcomes in other areas, thereby creating a self-reinforcing cycle that drives success. Check out Amazon’s simple, yet powerful flywheel.
Inspired by this concept, I developed a flywheel model for GPGP that may be applicable to other mobile apps as well. It’s not perfect, but I hope it sparks thoughts on how this concept can be applied to mobile games.Appreciating Different Research Methodologies
As a product manager, my training emphasized the importance of research to inform product development. However, traditional research methodologies (e.g. user interviews, usability tests, etc...) are not always feasible. Here's a few reasons why:Large volume of users: With millions of online users, A/B testing is a more efficient method compared to individual user interviews and usability tests, allowing for quicker data-driven decision-makingWidely available feedback channels: Mobile apps have a wealth of user feedback channels through ratings, reviews, and forum discussions. While not as comprehensive as direct user interviews, they serve as valuable "good enough" feedback for understanding player sentiments and identifying areas for improvement.User expectations: In the mobile game industry, certain in-game events tied to holidays or special occasions (e.g., Thanksgiving, Christmas, St. Patrick's Day) are anticipated by players. These events are designed to keep users engaged and provide opportunities for targeted content releases, making them an integral part of game development and live operations.
During my lunch with the Founder/CEO of GPGP, I presented this case study and received feedback that affirmed the validity of my thought process as a product manager. Some ideas had already been internally discussed and rejected, while others were considered quick wins that could be tested and implemented through A/B testing. Additionally, the 'Price Cut' idea was an interesting concept that warranted further consideration and analysis.