Introduction
Key Performance Indicators (KPIs) are essential metrics that help us track the performance of our video game companies. They allow us to measure how our business is doing in terms of profits, how our players are engaging with our games, and how many players we can retain over time. Here is a list of the top seven video game company KPI Metrics and how to track and calculate them:
- Monthly Active User (MAU)
- Average daily revenue per user (ARPDAU)
- User Lifetime Value (LTV)
- Average transaction size
- Player retention rate
- Average game time per user
- Revenue per employee
Monthly Active User (MAU)
Definition
Monthly Active User (MAU) is a Key Performance Indicator (KPI) that shows the total number of unique users who have interacted with a video game or application over a given period of time, usually a month. MAU is one of the most important metrics used to measure the success of a video game business, as it provides insight into overall user experience, engagement, and retention.
Benefits of Tracking
Tracking monthly active users is beneficial for video game companies as it provides valuable insight into the success of the game or application. MAU is an important metric for measuring the effectiveness of marketing campaigns, as well as overall user experience. Additionally, Mau can help game developers identify areas where improvements need to be made and provide a holistic view of the user base.
Industry Benchmarks
The industry average for MAU for video game companies is usually around 30%. However, this may vary depending on game type, platform, and genre. For example, a popular mobile game may have a higher MAU than a console game. Additionally, a game’s MAU can change over time, as it is affected by user engagement, retention, and other factors.
How to calculate
MAU is usually calculated by counting the total number of unique users who have interacted with a video game or application over a given period of time (usually a month). The formula for MAU is:
Calculation example
For example, let’s say a video game company has 1,000 unique users over a 30-day period. The MAU calculation would be as follows:
Tips and tricks
- Regularly track the MAU of your game or application to measure its success.
- Compare your MAU to industry benchmarks to better understand how your game or app is performing.
- Identify areas where improvements need to be made in order to increase user engagement and retention.
Average daily revenue per user (ARPDAU)
Definition
Average daily revenue per user (ARPDAU) is a key performance indicator (KPI) used in the video game industry to measure the success of monetization strategies. It is calculated by taking the total revenue generated during a day and dividing it by the number of unique users who made purchases during the same day. Arpdau is usually calculated on a daily basis and provides insight into the profitability of a game on a daily basis.
Benefits of Tracking
Arpdau’s tracking is beneficial for video game companies as it allows them to understand the profitability of their games on a daily basis. By understanding user-generated revenue, businesses can identify trends and adapt to their monetization strategies. This can help them maximize their revenue and profits.
Industry Benchmarks
The industry benchmark for Arpdau can vary widely depending on the type of game and its target audience. For example, casual games may have lower arpdau than more complex or premium games. Generally, a higher arpdau is considered more successful, but it is important to remember that the benchmark for each game may be different.
How to calculate
Arpdau is calculated by taking the total revenue generated in a day and dividing it by the number of unique users who made purchases in the same day. The formula for Arpdau is:
Calculation example
For example, if a video game company generated 0 in revenue on a certain day and had 100 unique users who made purchases, the Arpdau for that day would be . This can be calculated using the formula below:
Tips and Tricks for KPIs
- Follow Arpdau regularly to identify trends and adjust monetization strategies.
- Compare Arpdau to industry benchmarks to ensure the game remains competitive.
- Focus on increasing the number of unique users as well as the total revenue generated to maximize ARPDAU.
User Lifetime Value (LTV)
Definition
A user’s lifetime value (LTV) is a metric that measures the total revenue generated by a user of a video game company during the user’s relationship with the company. This metric is used to measure the profitability of user acquisition and to help video game companies optimize their user acquisition strategies.
Benefits of Tracking
Tracking a user’s LTV helps video game companies better understand the value of their users and make informed decisions about user acquisition and retention strategies. Tracking a user’s LTV also helps companies optimize their user acquisition campaigns and more accurately measure their return on investment.
Industry Benchmarks
The average LTV of a user in the gaming industry varies greatly depending on game type, platform, and region. Generally, the average LTV of a user ranges from .50 to .50.
How to calculate
LTV can be calculated by adding together the total revenue generated by a user during their relationship with a video game company. This can be calculated using the following formula:
Calculation example
For example, if a video game company has 10,000 users who generate a total of ,000 in revenue, each user’s LTV would be:
Tips and tricks
- Track a user’s LTV over time to identify trends in user engagement and revenue.
- Use the LTV metric to compare the profitability of different user acquisition campaigns.
- Compare your LTV metrics to industry benchmarks to identify opportunities for improvement.
Average transaction size
Definition
Average transaction size (ATS) is the average amount spent by customers in a single transaction. This metric is used to measure average customer spend, which can help understand the sales performance of a video game business. This is an important KPI for any video game business as it can help understand customer spending patterns and sales performance.
Benefits of Tracking
- It helps to understand customer spending patterns and sales performance.
- It helps to improve the video game company’s pricing strategy.
- It helps to understand the impact of promotions and discounts on the sales of the video game company.
- It helps to understand the impact of marketing campaigns on customer spend.
Industry Benchmarks
The average transaction size of a video game company can vary depending on the type of video game, the company’s pricing strategy, and the region of the world in which the company operates. Generally, the average transaction size for a video game company is between and .
How to calculate
The average deal size can be calculated by dividing the company’s total revenue by the total number of deals. The formula for calculating the average trade size is:
Calculation example
Suppose a video game company has a total revenue of ,000,000 and a total number of transactions of 100,000. The company’s average transaction size can be calculated as follows:
Tips and tricks
- It is important to track average transaction size over time as it can provide insight into customer buying behavior.
- It is important to compare the average deal size with industry benchmarks to understand if the company is performing better or worse than the industry average.
- It is important to analyze the impact of promotions and discounts on the average transaction size.
- It is important to analyze the impact of marketing campaigns on the average transaction size.
Player retention rate
Definition
Gamer retention rate is a KPI metric that measures the number of gamers who actively return to a video game within a certain period of time after initial launch.
Benefits of Tracking
Tracking player retention rate helps a game developer identify how effective their game is in terms of user engagement and loyalty. It helps monitor customer satisfaction, identify customer needs and trends, and measure the success of new content, features, and updates.
Industry Benchmarks
The average player retention rate ranges from 20-30% for mobile games and up to 70-80% for premium PC and console titles. It is important to note that industry benchmarks vary and can be affected by factors such as genre, platform, and target audience.
How to calculate
The formula for calculating player retention rate is as follows:
Calculation example
For example, if a game had 1,000 players at the start of the period and 800 players at the end of the period, the player retention rate would be calculated as follows:
Tips and tricks
- Focus on understanding the reasons behind a low retention rate, such as lack of content, issues, or bugs.
- Monitor the retention rate of different user segments, such as gender, geographic location, or device type.
- Use A/B testing to identify the most effective content, features, and updates to increase player retention.
- Track retention rate over different time periods to understand user behavior and identify trends.
Average game time per user
Definition
Average Play Time Per User (APTU) is a Key Performance Indicator (KPI) that measures the average time each user spends playing a video game. It is used to track engagement, measure user enjoyment of the game, and provide insight into the effectiveness of game design.
Benefits of Tracking
Tracking average playtime per user is a great way to better understand your game’s performance. of improvement. Additionally, it can provide an indication of how long users can stay engaged with your game, which can be useful for marketing and monetization strategies.
Industry Benchmarks
The average play time per user will vary depending on the type of game and the platform on which it is available. Generally, the higher the game quality, the longer the average play time per user. For example, some multiplayer games may have an average play time of around an hour, while casual single-player games may have an average play time of around 10 minutes.
How to calculate
Calculation example
For example, if a game was played for a total of 200 hours by 10 users, the average play time per user would be 20 hours.
Tips and Tricks for KPIs
- Regularly monitor average play time per user to identify areas for improvement.
- Compare the average playtime per user to other games of the same genre and platform to determine if your game is performing well.
- Analyze how average playtime per user changes over time and make adjustments to game design accordingly.
- Use average playtime per user to optimize monetization strategies.
Revenue per employee
Definition
Revenue per employee (RPE) is a key performance indicator (KPI) used to measure the efficiency of a company’s workforce. It is calculated by dividing the company’s total revenue by the number of its employees. RPE is an important metric for video game companies because it provides insight into how the company is using its resources.
Benefits of Tracking
Tracking RPE helps video game companies identify areas where they can improve efficiency and productivity. This is a useful metric for measuring the efficiency of company operations, as it reveals the amount of revenue generated by each employee. Additionally, tracking RPE can help video game companies benchmark their performance against industry benchmarks.
Industry Benchmarks
The average RPE for video game companies is ,000, according to a Gartner survey. However, this number can vary greatly depending on the type of game and the size of the company. For example, the RPE for smaller independent game studios is typically much lower than larger AAA game developers.
How to calculate
The EPR is calculated by dividing the company’s total revenue by the number of its employees. The formula for RPE is:
Calculation example
For example, if a video game company has total revenue of million and 50 employees, its RPE would be:
Tips and tricks
- In addition to tracking EPR, it can be useful to also track other KPIs such as revenue per hour and total revenue.
- It is important to follow the EPR over time to look for changes or trends that may indicate a need for improvement.
- ERP can be useful in identifying areas of the business that need more resources to increase efficiency.
Conclusion
By tracking the top seven video game company KPI metrics, companies can get an idea of the effectiveness of their marketing and operational strategies, how their players are engaged with gaming, and a user’s lifetime value to their game . By using key performance indicators, video game companies can better understand how their business is performing and what areas they can work on to increase player engagement and drive financial success.
- Home
- Monthly Active User (MAU)
- Average daily revenue per user (ARPDAU)
- User Lifetime Value (LTV)
- Average transaction size
- Player retention rate
- Average game time per user
- Revenue per employee