[casual_games] Club Penguin's Conversion Rate

[Erin Hoffman]

Hi James -- this taken into consideration, do you know of available
figures that specifically compare unique visitors : downloads :
purchases for casual sites? I don't typically see that figure, only
instead the usual 'conversion' percentage.

In the case of Club Penguin or similar, there's another layer of
difference also that may equate loosely to download -- registration.
Not all visitors to a CP-type will register, so #unique visitors
doesn't equal registered free users. But you're right that there'd
still be a discrepancy on the download count in that one unique
visitor may result in multiple downloads, whereas on a F2P site it
will generally result in only one registered account -- though at
least on GoPets we found frequent instances of multiple account
registrations from a single user, which is going to be dependent on
whether your game mechanics incentivize users to register multiple
accounts (to farm resources, for instance).

How would you recommend separating these factors to generate a fair
comparison? #unique visitors : purchase/subscription?

--Erin

On Tue, Feb 24, 2009 at 4:24 PM, James C. Smith <james at reflexive.net> wrote:

> You are comparing conversion of two different things.  On the case of Club

> penguin you are measuring purchases per visor but for downloadable games you

> are measuring purchase per download when you should really looking at

> purchases per visitor if you want to compare it to Club penguin.

>

>

>

> Let’s say 10 visitors come to your sight, and they each try 5 games, and

> then 1 guys buys one of those games.  So you had 50 download and 1

> purchase.  You only converted 2% of your downloads but you converted 10% of

> you visitors.

>

>

>

>

>

> I believe many visors do try several games before deciding which one to

> buy.  Measuring purchases per download makes it seem like this is a bad

> thing.  Measuring purchases per visitor or average revenue per user (ARPU)

> are much better ways to compare to subscription plans.

>

>

>

> --James

>

>

>

> -----Original Message-----

> From: casual_games-bounces at igda.org [mailto:casual_games-bounces at igda.org]

> On Behalf Of Erin Hoffman

> Sent: Tuesday, February 24, 2009 3:56 PM

> To: casual_games at igda.org

> Subject: [casual_games] Club Penguin's Conversion Rate

>

>

>

> Hi all,

>

>

>

> I don't think Club Penguin is traditionally identified as a "casual

>

> game", but I know there are a few marketers on the list who might have

>

> access or thoughts on these statistics.

>

>

>

> The customary conversion rate for casual games is 1% -- 1 in 100 free

>

> downloads will convert to a purchase. This tends to also apply where

>

> casual games intersect the F2P MMO market. Club Penguin, however,

>

> converts at a rate of 5.8% -- they maintain around 700,000 paying

>

> users out of 12 million account holders, and these subscribers also

>

> "over-spend" on Club Penguin goods, averaging between $50-70 per year

>

> on Club Penguin purchases.

>

>

>

> Is there any research or existing thought on why Club Penguin converts

>

> at such a large rate? I realize it's so far considered an aberration

>

> (a 'hit'), but what all could be contributing to its unnaturally large

>

> conversion rate? Is it strictly a matter of demographics?

>

>

>

> Thanks very much,

>

> Erin

>

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