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Retention vs. Churn

Retention is the number of customers that continue to come back to a company's store, website, video game site, etc. In the Gaming Industry retention begins the moment a customer first engages a company/brand and continues throughout the lifetime of that relationship. Attracting and retaining customers is not simply related to a company's products and services. Retention is directly related to the way a company provides services to its customers as well as the community and image that has been created surrounding a company's brand.

Churn can be thought of as roughly the opposite of retention. Churn is a calculation of how many players who were playing your game at the beginning of a specified time segment and are no longer playing.

The reality is that nothing in this world lasts forever, so the goals is to minimize churn as opposed to trying to eliminate it.

A Gaming Company's business model and user play strategies effect churn calculations and its impact on overall revenue. In a subscription based game, Churn Rate can be a fairly straight forward calculation. A free to play style game Churn Rate calculation has more variables and will reflect a revenue loss based on individual players spending patterns.

Strategies that focus on minimizing the churn rate for "whales" (high spenders) and focus on delivery of a consistent high standard of customer services will create and retain loyal brand advocates and increase retention.

A Gaming Company analytics strategy should place significant focus on minimizing "Churn" and improving "Retention" metrics. Pacific ERP can help provide the one on one attention needed to customize data service integration and analytics for your company's specialized business intelligence needs.

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