yazino ice: 5 lessons for building a social games business

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TM 5 LESSONS FOR BUILDING A SOCIAL GAMES BUSINESS Real-world lessons in using social channels to attract, engage and retain users TM Hussein Chahine January 26, 2012

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Real-world lessons in using social channels to attract, engage and retain users. Presented by Hussein Chahine at the ICE conference in London on January 26, 2012.

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Page 1: Yazino ICE: 5 lessons for building a social games business

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5 LESSONS FOR BUILDING A SOCIAL GAMES BUSINESSReal-world lessons in using social channels to attract, engage and retain users

TM

Hussein ChahineJanuary 26, 2012

Page 2: Yazino ICE: 5 lessons for building a social games business

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ImmediateReal-time synchronous social games

Cross-platformGlobal, instant, and accessible to play anytime, anywhere at the flick of a button (web and mobile)

IntimateCloser to people than anybody else

Invite and play with friends Meet new, like-minded people In-game chat and mentoring Create private tables and challenge in tournaments

INTRODUCING YAZINO

We call this in-sync gaming

Page 3: Yazino ICE: 5 lessons for building a social games business

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If Nintendo Wii was... Free Global On your computer or phone Anytime, anywhere Instant & bite-size

AN ANALOGY

Page 4: Yazino ICE: 5 lessons for building a social games business

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LESSON ONE: BUILDING BUZZ AND FANS

Communication should be topical and relevant to encourage activity

Ask for interactions that generate news stories: likes, shares, comments, sends. These boost reach and page impressions which create awareness and social influence

Allow fans to openly comment and interact

Combine traditional CRM with social media. Like-gated Facebook landing tabs grow fans quickly

Page 5: Yazino ICE: 5 lessons for building a social games business

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LESSON TWO: CREATING SOCIAL CONTEXT

Make use of the sense of belonging that communities inspire

Building a high degree of social context creates a much stronger intrinsic motivation in players and increases retention

Page 6: Yazino ICE: 5 lessons for building a social games business

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LESSON THREE: CHOOSING THE RIGHT TOOL FOR THE JOB

Define the role of each channel. Facebook users are different to Twitter users, who are different to Google+ users

We are building Yazino.com as a social channel in its own right

Page 7: Yazino ICE: 5 lessons for building a social games business

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LESSON FOUR: THE SOCIAL FEEDBACK LOOP

Communities are about two-way interaction. It’s not enough to just talk–social businesses need to listen

Leverage the community to develop existing and new products

Page 8: Yazino ICE: 5 lessons for building a social games business

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LESSON FIVE: ENGAGEMENT LEADS TO RETENTION

Creating a sense of belonging and status over time is an essential part of driving engagement

Reward investment in the community through product and social features: incentivised progress bar, avatar, leaderboards, achievements and chip bonuses

The power of recommendation is everything when creating a social destination

30% play for more than 6 hours

20% play for more than 16 hours

10% play for more than 31 hours

5% play for more than 46 hours

1% play for more than 72 hours

(per week)

Page 9: Yazino ICE: 5 lessons for building a social games business

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A STRONG COMMUNITY CREATES VALUE

By focusing on motivation a sense of belonging through positive game design, Yazino players play for longer and spend more

$0.30 $1 $1.50

Monthly ARPU for an average

performing social game on Facebook

Monthly ARPU for a high performing social game on

Facebook

Monthly ARPU for a Yazino player

Page 10: Yazino ICE: 5 lessons for building a social games business

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SECRET SAUCE FOR A SUCCESSFUL SOCIAL GAMING BUSINESS

Advertising cost

Virality is dying

More acquisition channels

Relevance gives virality

Relatedness

Lack of brand loyalty creates churn

Loyalty to friends and community Reduced churn

Relatedness

Less emotional engagement

Heightened emotional

engagement Live experience

Mastery Autonomy

Reduced motivation Greater motivation driven by live play

Mastery Autonomy

Business Challenge Business Goal Asynchronous Synchronous Need Satisfaction

AcquisitionNo. of players

Cost per player

Retention Churn rate

Engagement Playtime

Monetisation Revenue

Page 11: Yazino ICE: 5 lessons for building a social games business

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Hussein ChahineFounder & CEO, [email protected]@husseinchahine

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ANY QUESTIONS?