Must Have Metrics for Game Product Manager

In the competitive realm of gaming, monitoring key metrics through comprehensive dashboards is crucial for success. By tracking these metrics, developers and marketers can gain insights into player behavior, optimize game features, and enhance player retention. Here are seven must-have dashboards and metrics in my opinion every gaming company should utilize.

1. Stickiness

Think of retention as checking if your game has enough appeal to bring players back after their first visit. It’s like throwing a party and seeing who comes back for the next one. High retention means players liked the game enough to return, which is crucial for any game's long-term success.

Stickiness, on the other hand, measures how much players actually want to hang out at your party on a regular basis. Are they just popping in and out, or are they really engaging and sticking around daily? High stickiness means your game is part of their daily routine, much like checking social media or reading news apps. It shows the game is engaging on a day-to-day basis.

Formula:

Stickiness=(DAU/MAU)×100        

2.Engagement

Continuing with the party analogy, it’s like having a big crowd at your event, which is great, but the real question is: What are they doing? Are they just milling around, or are they dancing, playing games, and chatting with others? Engagement metrics help you figure out not just who came, but what they actually enjoyed at your party.

Imagine your party has a variety of activities—from a dance floor and a karaoke machine to board games and a photo booth. By tracking which activities each guest participates in, you get a clearer picture of what’s really popular and what’s just taking up space.

By analyzing engagement metrics alongside monetization KPIs, you can balance out what features need more attention or improvement and which ones are effective at keeping users happy and active.

Low Engagement Rate may suggest that the event or feature is not appealing or too difficult. To address this, review the design and functionality of the feature. Consider simplifying the user interface or increasing rewards to boost engagement. Gathering user feedback directly related to these features can also provide valuable insights for improvement.

Formula:

Engagement?Rate=DEU/DAUx100 and group by feature.        

IMPORTANT NOTE — It's crucial to define specific point which define engage user, as not all actions within a game/feature indicate meaningful interaction. For instance, merely entering a room shouldn't automatically count as engaged user but after passing the first level can be. When setting up your dashboard, ensure you establish clear criteria for what constitutes genuine user engagement. This will help you gain accurate insights and effectively enhance user experience.

3.Average Revenue Per User by Income Source

ARPU is a critical financial metric that measures the average revenue generated per user, helping identify the most lucrative aspects of your game. Segmenting ARPU by different income sources (e.g., direct purchases from offers, hard currency, battle pass) can reveal how different revenue streams contribute to overall income and highlight any cannibalization effects.

Formula:

ARPU=Total?Number?of?Users / Total?Revenue and group by income source. 

Use revenue from each source and divide it by the total number of users to see the distribution between sources for the overall ARPU and see total.        

• Low ARPU: If ARPU is low, it may indicate that monetization strategies are not fully optimized or that the product is not effectively engaging users in spending. To enhance ARPU, consider refining in-game purchase options, adjusting pricing strategies, or introducing new, compelling content or features that encourage further investment. Thanks to grouping by income source you will see the weakest parts and most promising one.

4. Churn Rate

Understanding user retention is crucial, but it's equally important to identify why and when users leave your game. Churn rate measures the percentage of users who stop playing the game within a specific period. A low churn rate is essential for long-term success, as it indicates a stable user base. To effectively reduce churn, analyze the latest activities, statuses, and profiles of users who have left. Identifying common patterns or issues that may be causing users to leave can provide valuable insights into potential improvements to enhance user retention and lower the churn rate.

Churn Rate = (users at?the beginning of period - users at?the end of period) / users at?the beginning of period * 100%        

• High Churn Rate: A high churn rate might suggest issues with game difficulty, lack of engaging content, or user dissatisfaction. Addressing this may involve analyzing user feedback, adjusting game mechanics, enhancing user support, and regularly updating content to maintain user interest.

5. DAU by Cohorts

Analyzing DAU by specific cohorts (for example by spending behaviour) helps identify trends and behaviors among different segments of your player base. Additionally, creating a special cohort will help you to adjust and plan your LiveOps based on the amount of users in each pool.

• Identifying At-Risk Cohorts: If certain cohorts show declining DAU, targeted interventions such as special events or promotions can be used to re-engage these users. Analyzing the specific characteristics or behaviors of these cohorts can also provide insights into why they may be disengaging.

6.Time to First Purchase

Analyzing Time to First Purchase across your game provides key insights into the effectiveness of your monetization strategies and how quickly new users see value in making a purchase. By measuring this metric, you can adjust your marketing and in-game economy to better suit player expectations and purchasing behavior.

Time to First Purchase=Time of First Purchase?Time of Install.        

7.K-Factor

The K-factor measures the viral growth of the game, indicating how many new users each existing user brings in through social interactions or referrals. A high K-factor is indicative of a game's ability to leverage its user base for organic growth.

K-factor=Sent?Invites×Conversion?Rate

• Low K-Factor: If the K-factor is low, consider improving social sharing features, enhancing referral rewards, or creating more community-driven events. Encouraging users to engage with friends can naturally boost this metric.

Example of K-factor Calculation:

Assume each user sends out an average of 20 invites and the conversion rate (the rate at which an invite converts to a new install) is 10%. The K-factor would be calculated as: K-factor=20×0.10=2

This means each existing user generates, on average, 2 new users. This K-factor can be used to predict growth patterns and assess the effectiveness of the game's viral marketing mechanisms. Implementing features focused on K-factor can reinforce your user acquisition with organic users that you get for FREE! Which means increasing your ROAS (Return on Ad Spend)

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