A post on what to implement from the 10 part-series: What the Top 50 Games do with In App Purchasing that the Rest of Us Don’t

By Mike Hines (@MikeFHines)

In the previous article in this series, we wrapped up our study of what the top 50 apps do with IAP that the rest of us don’t.  Over the last 10 weeks, we delivered a significant amount of data and suggestions, and it can be a bit daunting to figure out where to start. This week we’ll give you some ideas on where to get started by highlighting the top 3 practices that might make the biggest difference in your game.

Know Who Your Best Customers Are

Use your favorite analytics package and learn about how your customers play and buy within your app.  It’s our experience that 80% of an average game’s downloads won’t be active after 7 days, and that 3% of downloads from the Amazon Appstore turn into paying customers. And it’s those customers who stay with you over one week that will drive 74% of your total game revenue. This exclusive group of customers is your loyal following. Treat them like gold!

What now?

Identify the players that:

• Are still playing your game after 7 days (74% of your revenue)
• Are still playing your game after 30 days (they will pay 60% more for IAP items)
• Have made 3 or more purchases (they will generate 64% of your revenue)
• First day purchasers (37% of all paying players will buy on day 1)

Differentiate the IAP Items You Show Your Best Customers

If you’re showing your best 30 day + customers the same IAP catalog that you showed them on day 1, you’re likely leaving demand unfulfilled, and you’re probably not making the best use of IAP.

When creating new IAP items for your good customers, do NOT just add these items to the same IAP catalog you show your first day users! You want to keep the catalog clear and un-cluttered for beginners, as well as offer the enticement of a catalog that changes for your veteran players.

To fine tune what items work best in each IAP catalog, find an A|B Testing API that you can use to get real-world data on each IAP catalog.

What now?

• Create a new instance of your IAP dialog box that can you can show to your best customers.
• In this new IAP catalog, put:
  • More expensive IAP entitlement items (weapons, armor, and other non-consumables)
  • Larger soft-currency or power-up discount packages
  • Unique skins available only to your best customers

Display the Value of Each IAP Item to Your Customer

If your IAP catalog doesn’t have a benefit (like BONUS % in this catalog), you may not be making the reason to buy clear enough for your customers.

If you’re selling a sword instead of coins, the customer will want to know how much more damage it will do, or what villains it will decimate as opposed to those enemies that their current sword won’t scratch. Make the benefit clear, and you’ll make more sales and have happier customers.

What now?

• Look at your existing IAP items and of each item ask: Why would a player want to buy this?
• Put the answer in the IAP dialog box (Bonus 50%, 5% more damage, etc)
• Or put an information button on the item that will show more details

Wrap Up

I hope you’ve enjoyed this series, and are starting to see improvement in your IAP monetization as a result. For more insights on how to keep users engaged and boost revenue check out our free eBook, “In-App Purchasing Lessons from the Top 50 Game Developers”.

In the mean time, I’d love to be working on the next subject you’d like to learn more about or see data about. Let me know, and ping me on Twitter @MikeFHines.

Ready to Submit Your App or Game?

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• Click here to register for free as an Amazon Developer. 
• Click here to download the Amazon Mobile SDK. 
• Click here to submit your app