The games industry is one of the leading markets of the digital economy and using loyalty programs for gaming is a powerful strategy. Gamers, people who point out playing games on the platforms such as mobile devices, games consoles, or PCs, are the main target audience of the games market. In this article, we will explain the ways in which loyalty programs for gaming are revolutionizing the games industry.
The Games Industry
Today, App store revenues are primarily shaped by gaming apps, increasing the competition for developing the most creative games between gaming companies. That’s why providing users seamless and secure experiences became much more important. Developers can push more on building top grossing online games similar to Pokemon Go and Clash of Clans, however, in order to strategize this process, understanding the trends in the gaming industry and the challenges in marketing and sales of games is quite necessary.
Besides all these, there are other methods to increase your revenues. Have you ever thought about using loyalty and rewards programs for your business? According to a report from Facebook, 77% of people are considered brand loyal. Most of loyalty and rewards programs are designed to engage more customers with the brand as well as retaining others. For instance, 65% of Gen Zers want to get a lot for their money with discounts, coupons, and a rewards program, as it is stated in the report of National Retail Federation.
Knowing that loyalty and rewards programs are profitable for gaming businesses, here, we listed various facts that give the answer to the big question. How are loyalty programs revolutionizing the games industry? Keep on reading and find out how:
Loyalty Programs for Gaming
1. Grow Your User Retention
User retention is one of the key strategies to gain more profits. If your company does not have enough users, it is hard to monetize your game effectively. Did you know that increasing your retention rate by 5% can increase profits by 25% to 95%? Based on this, Loyalty and Rewards programs are the best solutions for companies to increase their retention rate.
Koyne Marketing’s report shows that existing customers are 50% more likely to try new products, and spend 31% more than new customers. In the games industry, loyalty programs are effective to develop a stronger incentive to attract first time payers while keeping the already existing ones.
2. Turn Your Players into Communities
Users always look for a new experience in gaming. It is indeed more of the creative side of developing games, however, in the digital era, users are more connected than ever. For that reason, if you use the right strategies, you can turn your users into communities and benefit from word of mouth to attract new users.
With the rise of online gaming and mobile apps, the variety of games also increased and the competition is tougher. In this sense, loyalty and rewards programs are incredibly valuable as they assist companies offering digital goods and other prizes to turn core players into communities. Rewarding your users, you can engage them more with your product or services.
3. Reduce Payment Commissions
Latest developments in the financial technologies paved the way for using new monetization techniques. As a result, some payment channels are more profitable than others. To make a profit out of this, loyalty programs offer a different set of payment channels, and most of them are using the new monetization channels.
You can be effective in motivating your users into selecting your preferred payment channels and lower your commissions. In this case, by choosing the right loyalty solution program for your company, you can control your budget and payment process while making profits.
That’s it! With a completely managed loyalty solution program, you can grow your user retention, turn your players into communities, and reduce payment commissions while focusing your core business. As it is stated in the latest Global Games Market Report by Newzoo, the global games market will reach $137.9 Billion in 2018 with mobile taking 50%. It is time to strategize your marketing efforts and take one step forward-start with using loyalty programs for gaming.
Koomalooma Loyalty Solution for the Games Companies
Koomalooma is a complete loyalty program that works seamlessly for gaming companies across the web and mobile stores. With koomalooma you join a network of companies, your users get truly meaningful rewards. As a solution that manages the whole program, koomalooma delivers the rewards to your users so you can concentrate on your core business.
Koomalooma makes it effortless to reward your most loyal and valuable users. With koomalooma API you can issue points for a transaction, a friend referral or any other call to action. We take care of all the rest! We will track the points, and take care of the rewards in more than 80 countries.