The Importance of Retention Analytics in the Gaming Industry
Retention is a key metric in any industry. Retention is the number of customers that continue to come back to a company's store, website, video game site, etc.... The strategies and tactics that a company employs to retain customers is also used in effect to reduce the number of customer defections.
The process of retention begins the moment a customer first engages a company/brand and continues through the lifetime of that relationship. Attracting and retaining customers is not just related to a company's products and/or services but directly related to the way it provides services to its customers and the reputation and brand image that is created for that company. This brand image attracts and creates a community and is essential for the continuing process of both retaining existing customers and attracting new ones.
Providing customers with minimal or adequate services and products is not likely to significantly effect customer retention. Customer retention is achieved by exceeding customer expectations. This creates loyal advocates for your brand. Delivery of a consistent high standard of customer services will create and retain loyal advocates for your brand. This will differentiate your company from it's competitors and keep your customers coming back for more services in the future.
Retention is of significant importance in the Gaming Industry, especially when engagement in your companies website, online communities surrounding your brand, online games, game purchases, in game purchases and more are essential to driving video game companies profit. Your companies analytics strategy should place significant focus on "Retention" metrics. Promotions and outreach should focus on reaching new target markets, customers and more. But research has shown that not only does it take less time, money, effort and marketing campaigns to retain existing customers but research by John Fleming and Jim Asplund state that existing customers that are engaged in your brand generate 1.7 times more revenue than the normal customer. Utilizing data analytics to identify what your customer retention percentage is, the demographics of these customers, what sources they are coming from, what games are they playing and on what devices, their ARPU (average revenue per user) and more is essential to increasing your companies ability increase customer retention and drive their business forward.