How Sony Online Entertainment Optimizes Player Relationship Management (PRM) with Predictive Analytics

Lisa NicklinSenior Director, Global CRM and eCommerceSony Online Entertainment

Nick LimCEOSonamine

Agenda

•Introduction to SOE and Sonamine •Market forces•What is Player Relationship Management?•SOE PRM program plan•SOE PRM program execution

Gamers dedicated to creating the best online worlds for players of all ages.

• Operate under the notion that every opinion matters and strives to build lasting relationships with its global community through meaningful feedback and two-way conversations.

SOE Believes…

•Everyone is a gamer at heart.•A game is more than just a game.•Our players are our extended family.•Creativity is the cornerstone of development.•Innovation is driven by experimentation.•Diversity drives success.

Sonamine offerings

•Advisory services to implement CRM• Workshops to build awareness and momentum.• Gap analysis and performance measurement• 12-18 month planning and oversight to achieve successful

organization adoption

•Technical services with advanced player scoring • ConvertSoon, ChurnSoon, PurchaseMoreSoon, InfluenceSoon

player segments• Building custom prediction models and operationalizing

them

© 2009-11 Sonamine LLC. Confidential and proprietary

More games and platforms for players to choose from

Free-to-Play Revolution

Free-to-Play Power law: 20% of payers convert after 20 days

For illustrative purposes only, not actual player data

What do these trends mean for developers and publishers?

•Many platforms competing for same slice of player attention•Many players monetize slowly over time•More than just focusing on game development, you must become good at managing your player relationship.

Elements of the player relationship

•Time•Understanding/knowledge•Communication•Give and take•FUN!!

Ecommerce Pillars

The game design – does it effectively weave in a need

to buy in all the relevant places?

Need

Nudge

Buy

The ecosystem of the play experience – does it

effectively promote what to buy at the right time? The purchase experience –

does it effectively convert in a non-intrusive way?

Key Goal – Monetization through Engagement

•Players should be entertained and want to stick around•Those who want to have an easy path to find and pay for what they want

What is PRM?•Detailed understanding of and relevant communication with players•Use of business intelligence and advanced analytics to segment users.•Appropriate/relevant interaction with different user groups•Continually improve relevance by using performance feedback loop

Applied player relationship management

•Find users still learning the game & give them the appropriate tips

•Find users likely to churn, give goodies to keep them around

•Find users ready to commit and convert, show relevant first time buyer offers

•Find payers ready to buy more, show upsell offer

A user segment is

•A group who share similar characteristics• Readiness to commit, life cycle stage,

knowledge of game, next likely action etc

•Distinct from other user segments

Sonamine scores,categorizes and ranks players into segments

View of all players Players grouped and ranked

High “Churnsoon” scores require Retention Action

High “ConvertSoon” scores good for first time buyer

promotions

High “PurchaseMoreSoon”

scores used for upsell action

Illustrative segments

PRM Communication Channels

A journey of a thousand miles begins with a single step!

•Phase 1 Goals – 6 Months• Internal PRM awareness and education• Create data pipeline for segmentation and

reporting• Create targeted in-game communication

delivery system• Define end-to-end PRM campaigns • Document process flow

Start cranking the flywheel… it’s a journey…

•Phase 2 Goals – 4 Months• Increase efficiency of PRM campaigns• Improve effectiveness via predictive scoring• Decrease campaign turnaround time• Onboard additional games• Add communication channels

PRM task force and teams•Project team

• Project manager• Sonamine Advisory• CRM Manager• BI director• Game producers• Game brand managers

•Governance• SVP Sales and Marketing• Senior Director, eCommerce and CRM• Sonamine Advisory

Data gathering and tools

•Game instrumentation and logs •Data warehousing

• Centralized storage and access

•Business intelligence tool• Segmentation• Reporting

•Sonamine predictive player scoring

Player Segmentation Criteria

•Payer status•Membership status•Engagement levels•Station Cash balance•Sonamine ConvertSoon™ scores•Sonamine PurchaseMoreSoon™ scores

Development of in-game messaging

•User segment list management tool•Messaging system with pop ups and click actions•Scheduling system to manage which messages are active and enabled•Matching messages to different user segments•Event tracking for reporting

Customer Service/Community

•Complete visibility for front line support•Complete empowerment – they can grant offers•Community messaging •Number of customer support calls related to PRM offers : 0

Think Big, But Start Small

•Set final vision, but break into achievable short term projects.

•Harmonize architecture of various components early (involve your architects early on)

Communicate to players

•Vocal community are committed players•Posted notice to entire forum group early on.•Test waters with segments that are less vocal such as low engagement and non-payers.

PRM Campaign Example

•Goal – test ability to drive 1st time purchase through awareness vs offer•User Segment : longer term players who are not yet payers•Offer : Additional Character Slot•Channel : In Game Popup •Duration : One week•16% CTR, 7.3% Purchase rate•Unexpected: awareness message worked better than discount offer

PRM Campaign Example

•Goal: Test ability to drive upsell incremental purchase•User Segment : longer term players, payers•Offer : Additional Character Slot•Channel : In Game Popup •Duration : One week•16% CTR, 37% Purchase rate

Key Learnings

•Communicate to players early

•Think big but start small

•Do not under-estimate amount and type of resources needed

•A journey, not a final destination

Contact

nick@sonamine.com