A.R.M Metrics Framework SE7EN Deadly Social Game Metrics

By: Albert Lai, Co-Founder/President, Kontagent

INTRO:

Select Customer List

And Hundreds More…

Jan. 2009 Jan-2010 Jan-2011

Used by Majority the World’s Largest Game Publishers

Ad Tracker, Viral Testing, Events, Funnels, V.Currency

Social Gaming Focused End-to-End Analytics Suite

Facebook Funded & Leading App Analytics Platform

INTRO:

Most Broadly Used Social Analytics by Developers

INTRO:

People Not PagesOLD SCHOOL:

“WEB ANALYTICS” = PAGESNEW SCHOOL:

“SOCIAL ANALYTICS” = PEOPLE

PAGEVIEWS

SESSIONTIME

EMAILADDRESS

COOKIE/IPADDRESS

EVENTS

VIRALPROFILE

FRIENDGRAPH &

INFLUENCEMAP

AGE &GENDER &LOCATION

Kontagent Analytics Suite

Increase Testing Velocity -> Faster Iterations -> Faster User Growth -> Improved Profits

ABOUT US:

End to End Social Analytics Platform

The Social Web

zz

ABOUT US:

“Web 2.0.11”

WEB 2.0 SOCIAL WEB

Sign-In

Discovery:

Distribution:

Analytics:

Optimization:

Single Sign-On(MS

Passport)Search

Aggregation

Pages

Data-Sampling OK

Social Sign-In

(FB Connect)Shared

Viral

Users

Need Per User Data

SOCIAL WEB SOCIAL WEBWEB 2.0

Sign In: Single Sign-On(MS Passport)

Social Sign-In(FB Connect)

Discovery: Search Shared

Distribution: Aggregation Viral

Analytics: Pages Users

Optimization: Data-Sampling OK Need Per User Data

ABOUT US:

Future of Discovery and Distribution

VIRALITY: DRIVES DISCOVERY + ADOPTION

PHISICAL• Buy: Shelf Space (Best Buy)• Sell: Shrink Wrap (Flight Simulator)• Dev. Cycles: Yearly• Methodes: Pre-Planned• Primary Competitive Advantages: Scale

DIGITAL• Buy: Traffic/Portal (Yahoo)• Sell: Ads, Downloads, Subs• Dev. Cycles: Months• Methodes: Agile/Iterative• Primary Competitive Advantages: Aggregation

SOCIAL• Buy: Viral Tools & Installs• Sell: Virtual Goods• Dev. Cycles: Hours• Methodes: Data-Driven• Primary Competitive Advantages: Viral Data Insights

PHYSICAL

• Buy: Shelf Space (Best Buy)• Sell: Shrink Wrap Software• Dev. Cycles: Yearly• Methods: Pre-Planned• Competitive Advantages: Scale

DIGITAL

• Buy: Traffic/Portal (Yahoo)• Sell: Ads, Downloads, Subs• Dev. Cycles: Months• Methods: Agile/Iterative• Competitive Advantages: Aggregation

SOCIAL

• Buy: Viral Tools & Installs• Sell: Virtual Goods• Dev. Cycles: Hours• Methods: Data-Driven• Competitive Advantages: Viral Data Insights

Viral Loop Engagement Loop

Existing User New User Existing User Existing User

INTRO:

Viral Loops vs. Engagement Loops

The ARM Funnel

ARM Model:

Acquisition, Retention & Monetization

ACQUISITION

RETENTION

MONETIZATION

zz

Framework:

Lifecycle Metrics and the ARM Funnel

WEB 2.0

SOCIAL WEB

Single Sign-On(MS

Passport)

Search

Aggregation

Social Sign-In

(FB Connec

t)Shared

Early Game Development Early Game Development

Mature Game

Development

Mature Game

Development

Mid Game Developmen

tx x x

x x

x

SOCIAL GAME LIFECYCLE

ACQUISITION

RETENTION

MONETIZATION USE

R LI

FECY

CLE

WEB 2.0

SOCIAL WEBSingle

Sign-On(MS

Passport)Search

Aggregation

Social Sign-In

(FB Connect)Shar

ed

Early Game Development Early Game Development

Mature Game DevelopmentMature Game Development

Mid Game Development

Traffic Virality Engagement Retention Revenue / LTV

x x x

x x x

x x x

-----------------------METRICS-----------------------

Avg. LT of a User

1 Day/WkCohort Retention

SOCIAL GAME LIFECYCLE

1 2 3 4

5

6

7

ARM

CAC K-Factor Sessions/User & Avg. Session Length

ARPU & ARPPU

% Paying Users

Framework:

7 Deadly Metrics of the ARM Funnel

K-LTV

The 7 Deadly Social Metrics

ARM Metric #1ACQUISITION > CAC (CUSTOMER ACQUISITION COST)

TRENDING:Up

TYPICAL:$1- $3

MEASURE:Traffic K-FactorTraffic X-Day Retention Traffic ARPUCPM/CPC/CPI

ACTION:A/B Test: Creative, Targeting, Source Leverage X-Promotion

1

TRENDING:Flat to down

TYPICAL:Overall K-Factor0.05-0.20Invite CTR: 10-20%

MEASURE:AKA: Viral LoopAvg. Branching FactorMsg/User * CTR

ACTION:A/B Test ContentA/B Test Flow/Timing

2

ARM Metric #2ACQUISITION > K-FACTOR

TRENDING:Flat to Up

TYPICAL:Mins: 10+Sessions/User: 1.7-2.2Day 1 Retention: 10-35%

MEASURE:“User Activation”Visits / User / DayTime Spent Per Visit

ACTIONS:Funnel Test ActivationTest Visit Freq. Vs. Time Spent

3

ARM Metric #3RETENTION > SESSIONS/USER & AVG. SESSION LENGTH

TRENDING: Up

TYPICAL: D1: 25-30%W1: 10-15%

MEASURE:Ideally CohortedCareful Mixing New & Old Users

ACTION:A/B Test Game MechanicsA/B Test Flow / Funnels

4

ARM Metric #4RETENTION > 1 DAY + 1 WEEK RETENTION

TRENDING:Up

TYPICAL:Depends

MEASURE:Engagement LoopDecay Rate / Half Life

ACTION:Test GameDynamic as it Relates to TheEngagement Loop

5

ARM Metric #5RETENTION > AVG. LIFETIME PER USER

TRENDING:Up

TYPICAL:ARPPU: $2-10+ARPU: $0.01-0.05

MEASURE:Revenue / DAU# Transactions /DAU$ Transactions

ACTION:A/B Test Item PricingA/B Test Flow/TimingTrack Sources/Sinks

6

ARM Metric #6MONETIZATION > ARPU, ARPPU

TRENDING:Up TYPICAL:1-3%

MEASURE:Demographics of Paying Users

ACTION:Watch Demo & Traffic SourceLoop Data back to Ad Targeting

7

ARM Metric #7MONETIZATION > % PAYING USERS

VIRALITY (BRANCHING FACTOR):

[1/(1-k)]

X

ARPU:[ARPU per Day]

X

RETENTION:[Avg. # of Days Engaged]

KLTV

ARM MetricKLTV > VIRAL LIFE TIME VALUE

WEB 2.0

SOCIAL WEBSingle

Sign-On(MS

Passport)Search

Aggregation

Social Sign-In

(FB Connect)Shar

ed

Early Game Development Early Game Development

Mature Game DevelopmentMature Game Development

Mid Game Development

Traffic Virality Engagement Retention Revenue / LTV

x x x

x x x

x x x

-----------------------METRICS-----------------------

Avg. LT of a User

1 Day/WkCohort Retention

SOCIAL GAME LIFECYCLE

1 2 3 4

5

6

7

ARM

CAC K-Factor Sessions/User & Avg. Session Length

ARPU & ARPPU

% Paying Users

Framework:

7 Deadly Metrics of the ARM Funnel

K-LTV

See the 7 Deadly Social Metrics in Action

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Contacts

• Kontagent 55 Hawthorne Street Suite 610 San Francisco, CA 94105

Tel: 1 (415) 766-6500 E-mail: albert @ kontagent.com Support: support @ kontagent.com