Rewards for payments as a player retention tool
April 18, 2024•9 min
In a world where the boundaries between reality and the virtual world are blurring, online games have become more than just entertainment. They have turned into a reflection of our inner world, a place where we seek comfort, adventure, and even recognition. In this environment, in-game purchases (IAPs) hold a special place, and their popularity is not coincidental. They are key to understanding complex human emotions and motivations in the digital age.
Imagine a player exploring the expanses of a fantasy world. In their everyday life, they might lack a sense of control or the opportunity to demonstrate skills, but in the game, they find both. This is the basis for understanding why players so often resort to microtransactions. Autonomy and competence – two basic needs – are satisfied in the virtual world, and often this satisfaction comes through purchasing a new item or upgrade for their character.
However, there are other factors that make IAPs popular. The ease of making a purchase, for instance, plays a significant role. With a card linked to the gaming platform, everything is designed to make spending more and easier. It’s akin to a magic wand that can change the gaming experience with a single movement.
Yet, this same action can induce a sense of guilt in the player, especially when reality reminds of its presence. A dilemma arises: to continue investing in the game to justify the expenses already made, or to stop and possibly feel inadequate in the virtual world?
Game developers come up with new strategies to make IAPs more attractive. They play on human emotions, creating an illusion of exclusivity and urgency, promising unique opportunities that might slip away. Imagine an offer that says, "This is your only chance to get a unique skin!" or "Buy now, or you'll miss the best deal!" These methods elicit powerful emotional responses, from urgency and surprise to social pressure and the desire for progress.
All these factors together create a powerful system that keeps players in a cycle of microtransactions. However, this isn’t always negative. For many players, these purchases are a way to enhance their gaming experience and derive more enjoyment from the game. It's important for developers to find a balance between offering value and creating a healthy gaming environment.
Thus, the world of in-game purchases is not just a business model. It's a reflection of our desires, aspirations, and sometimes weaknesses in virtual reality. Sensible and conscious use of them can greatly diversify the gaming process and make it deeper, opening new horizons for both players and game creators.
Epic games store provides 5% cashback on all funds spent in the store. Cashback is credited to your rewards balance, which can be spent on purchases in the store. Cashback is converted into a discount. It is important to note that it is not real money that is credited, but virtual currency.
Events are also periodically held that offer increased cashback. For example - Black Friday, where the user will receive 2x more cashback for payments on the platform:
Steam Points Shop
The Steam Points system allows users to earn points for purchases on the Steam platform. These points can be used to purchase various items such as emotes, backgrounds, chat stickers, and more. Games must be owned to find games in the store, and items require a minimum of 2 hours of game time to purchase, preventing abuse of the return system. Not all games with emotions and backgrounds are presented in the store. Points are awarded at a rate of 100 points per dollar spent in the Steam store. Additionally, Steam Points can be used to reward other users for their contributions, such as screenshots, reviews, guides, and other content. The award is worth 300 points and the recipient receives 100 points. The award also earns the giver a community patron badge and the recipient receives a member badge.
Hero Wars
Each VIP level is permanent and grants various advantages. To increase it, players need to make purchases with real money to receive a certain amount of VIP points depending on the value of the purchase. If enough VIP points accumulate, the VIP level will increase. On the Mobile version of the game, reaching VIP Level 1 grants access to the exclusive VIP Shop.
Loyalty programs, cashback systems, and achievements do more than just increase player engagement. They impact key financial indicators. Loyalty programs can increase the average player's spending by 20-30% and contribute to an increase in the frequency of purchases, leading to a 10-15% increase in monthly revenue per user. Cashback for in-game purchases can increase the average spending by 20-25% and the frequency of purchases by 15-20%, making each expenditure more valuable to the player.
But the most powerful tool is the system of rewards and achievements. They can increase the total number of purchases by 25-30% and contribute to an increase in player retention. In a world where retaining a user is more expensive than acquiring them, such mechanisms play a key role in the long-term financial success of a game.
Thus, in-game rewards and loyalty programs are not just a way to stimulate additional spending. They are a way to create a deeper connection between the player and the game, giving each invested ruble, euro, or dollar additional value. In this new virtual world, where every step forward is noted and valued, players are not just paying - they are investing in their own unique journey.
Why Reward the User?
Continuing the discussion about the virtual world and real emotions, let's explore why rewarding purchases has become such an important element in the gaming industry. It's unsurprising that in a world where every action and choice matters, the impact of progressive rewards on user behavior is immense. After all, it's not just about virtual coins or skins - it's about the feeling of achievement and recognition. Imagine a player who sees each of their purchases bringing them closer to a new level or a unique reward. This creates a sense of progress, a powerful motivational driver. The player starts to value their account as a reflection of their efforts and investments. This ties them to the game much more strongly than any other motivational tools. Consider, for example, VIP systems in mobile games. Especially in genres where the depth of monetization is key, such as RPGs and RTSs, they have become an integral part of the gaming experience. Or take Steam with its loyalty program and store, where players earn virtual points for purchases that can be exchanged for cosmetic profile enhancements and games. Even Epic Games Store and Google Play Market are not left out, offering their own reward systems. Examples: Epic Games StoreEpic games store provides 5% cashback on all funds spent in the store. Cashback is credited to your rewards balance, which can be spent on purchases in the store. Cashback is converted into a discount. It is important to note that it is not real money that is credited, but virtual currency.
Events are also periodically held that offer increased cashback. For example - Black Friday, where the user will receive 2x more cashback for payments on the platform:
Steam Points ShopThe Steam Points system allows users to earn points for purchases on the Steam platform. These points can be used to purchase various items such as emotes, backgrounds, chat stickers, and more. Games must be owned to find games in the store, and items require a minimum of 2 hours of game time to purchase, preventing abuse of the return system. Not all games with emotions and backgrounds are presented in the store. Points are awarded at a rate of 100 points per dollar spent in the Steam store. Additionally, Steam Points can be used to reward other users for their contributions, such as screenshots, reviews, guides, and other content. The award is worth 300 points and the recipient receives 100 points. The award also earns the giver a community patron badge and the recipient receives a member badge.
Hero WarsEach VIP level is permanent and grants various advantages. To increase it, players need to make purchases with real money to receive a certain amount of VIP points depending on the value of the purchase. If enough VIP points accumulate, the VIP level will increase. On the Mobile version of the game, reaching VIP Level 1 grants access to the exclusive VIP Shop.
Loyalty programs, cashback systems, and achievements do more than just increase player engagement. They impact key financial indicators. Loyalty programs can increase the average player's spending by 20-30% and contribute to an increase in the frequency of purchases, leading to a 10-15% increase in monthly revenue per user. Cashback for in-game purchases can increase the average spending by 20-25% and the frequency of purchases by 15-20%, making each expenditure more valuable to the player.
But the most powerful tool is the system of rewards and achievements. They can increase the total number of purchases by 25-30% and contribute to an increase in player retention. In a world where retaining a user is more expensive than acquiring them, such mechanisms play a key role in the long-term financial success of a game.
Thus, in-game rewards and loyalty programs are not just a way to stimulate additional spending. They are a way to create a deeper connection between the player and the game, giving each invested ruble, euro, or dollar additional value. In this new virtual world, where every step forward is noted and valued, players are not just paying - they are investing in their own unique journey.
What Types of Rewards Should You Choose?
Continuing the theme of the virtual world and the impact of rewards on user behavior, let's take a closer look at what can be used to reward a player for their investments and purchases. After all, choosing a reward is not just a gesture of appreciation; it's a strategic decision that can significantly affect user engagement and loyalty. So, what kinds of rewards do games and gaming platforms offer? Game Items, Currencies, Resources: This can be anything that directly affects gameplay: from magical swords to virtual gold coins. These rewards assist players in their pursuit of progress in the game, speeding up character development or enhancing the gaming experience. Cashback in the Form of Points or Real Money: This type of reward gives players the freedom of choice. The points or funds received can be used to purchase new games, their additions, or other items within the gaming ecosystem. This not only increases loyalty but also encourages players to make further purchases, as they feel that each of their contributions is returned to them in some form. Achievements, Unique Skins, Emoticons, Gestures, Collectible Cards: These intangible rewards play into social interaction and self-expression in the gaming world. Unique skins or gestures allow players to stand out, show their status and achievements to other participants. Collectible cards can be part of a broader game strategy where collecting complete sets brings certain advantages or simply the satisfaction of completing a collection. Such a variety of rewards satisfies different needs and preferences of players. Some look for direct benefits and progress in the game, others for the pleasure of collecting or the opportunity to express their individuality. Each type of reward contributes to creating a deep and multifaceted gaming experience. Returning to the financial aspect, it’s worth noting that effectively designed reward systems increase not only player satisfaction but also their willingness to continue spending in the game. In a world where every contribution brings a visible result, whether it's a new item or a unique skin, players feel a greater connection to the game and its community. Thus, rewards for purchases in games are not just a way to say "thank you" to players. It’s a complex and finely-tuned system that takes into account the psychology, preferences, and motivations of users, turning each purchase into part of a larger and more engaging story of their participation in the gaming world.How Can Xsolla Help in User Motivation?
In a world where games are becoming increasingly complex and rich, user motivation plays a key role. Here, Xsolla comes to the rescue, offering a range of innovative purchase reward tools that not only increase sales but also create a deeper connection between players and games. Progressive Reward System: This powerful tool includes a reward system where users receive prizes for reaching certain spending levels. Imagine a player who gets closer to the next coveted prize with each investment. This system becomes particularly effective when a time limit is added - for instance, spend a certain amount in a month to receive an exclusive prize. This creates a sense of urgency and an exciting race for rewards. Loyalty Program with Cashback: Xsolla offers two options: rewarding every purchase with game currency or creating an additional currency that can only be spent in a special bonus showcase. The first option offers freedom of choice, while the second creates a sense of participation in something exclusive. This not only increases loyalty but also makes each purchase more significant. Bonus Items for Purchases: This method is a classic and effective way to increase sales. When users know they will receive an additional item for free with a purchase, their motivation to buy significantly increases. It can be anything from an exclusive skin to additional game resources, making each transaction more appealing. Xsolla has many other mechanics and tools in its arsenal, already used in various company solutions. Thanks to a wide range of possibilities, Xsolla allows combining different types of rewards and experimenting with them to find the perfect solution for each specific game and its audience.The Importance of Working With User Motivation
In conclusion, it’s worth noting that in a constantly changing market with increasing development and traffic acquisition costs, working with user motivation becomes not just important but critically necessary. Reward strategies, such as those offered by Xsolla, allow not only to increase sales but also to build long-term, emotionally rich relationships with users. In a world where motivating is much cheaper than attracting new users or bringing back those who have left, such an approach becomes key to successful and sustainable growth. Written & Published By Pavel Savkin, Senior Product Owner, GameTech: Monetization at XsollaFeatured articles
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