When it comes to user behavior, understanding the patterns and trends of your customers over time is crucial for business growth. This is where behavioral cohorts come into play. By segmenting a group of users, game developers, marketers, and analysts can gain valuable insights into their customers’ behavior and make informed decisions on how to improve user experience, increase retention rates, and drive business growth.
The first day a user interacts with your game is often the most critical in determining whether they will continue using your product or not. Therefore, creating a positive experience from the start is essential for retaining customers. However, when it comes to analyzing data, looking at sign-up dates alone may not provide enough information to understand user behavior. This is where cohort analysis comes in.
The Power of Behavioral Cohort Analysis
By finding common characteristics and behaviors among a cohort of users, game developers can uncover actionable insights that can help improve their onboarding process and retention efforts. In simple terms, cohort analysis is the process of grouping customers based on their similar behaviors within a specific timeframe.
One common way to group users is through weekly cohorts, where users who sign up in the same week are grouped together. This allows game developers to track and compare the behavior of users who joined the game at the same time. For example, they can analyze how many users from each cohort are still actively playing the game after one week, two weeks, or even months later.
Another example that could track different behaviours could be a cohort of users that made their first purchase within a specific timeframe. By looking at this cohort, game developers can understand the effectiveness of different marketing strategies in converting users into paying customers.
These patterns and insights can help game developers make data-driven decisions when it comes to improving their onboarding process, creating effective marketing campaigns, and ultimately increasing revenue. Cohort analysis is a powerful tool that allows developers to track user behavior over time and identify where improvements can be made.
At Helika, we have implemented cohort analysis in our data analytics platform to help game developers gain a deeper understanding of their users. By segmenting users into cohorts and analyzing their behavior, our platform provides valuable insights that can guide developers in making strategic decisions for their game. With our team assisting you every step of the way, you can use cohort analysis while receiving human insights on practical implications for your game.
The Basics of Cohort Analysis
To conduct a cohort analysis, you first need to collect data on user behavior over time. This data can include key metrics such as user retention rate, revenue per user, and active users. Once you have collected this data, you can begin segmenting your users into cohorts based on a specific time period or behavior.
Next, you will need to create a cohort chart to visualize and compare the behavior of each cohort over time. This chart typically has the cohort on the x-axis and the metric being measured on the y-axis. By looking at this chart, you can easily identify any patterns or trends in user behavior among different cohorts.
It is important to note that for accurate analysis, all cohorts should be of similar size and have experienced similar conditions within that specific time period. This ensures that any differences in behavior can be attributed to the specific time period and not other external factors.
This process is often outsourced to a data analytics platform, such as Helika, to ensure accurate and efficient analysis. By using a platform specifically designed for cohort analysis, you can save time and resources while receiving expert insights and recommendations. Many of our clients have found tangible benefits in terms of revenue and user retention by utilizing cohort analysis through our platform.
How To Use Behavioral Segmentation For Better Game Development
As you’re conducting cohort analysis, it’s important to consider how you can use this data to improve your game and user experience. One effective method is through behavioral segmentation.
Behavioral segmentation involves dividing your users into groups based on their behavior within the game. This can include actions such as time spent playing, level progression, in-game purchases, and social interactions with other players.
By analyzing these behaviors within each cohort, you can better understand the needs and preferences of your players. This information can then be used to tailor the game experience to different segments, increasing user engagement and satisfaction.
For example, if a certain cohort shows a high level of in-game purchases but low social interactions, you can focus on creating more opportunities for social interactions within the game to increase engagement and retention. As a result of this analysis and implication, game developers can make data-driven decisions to create a more personalized and enjoyable experience for their players.
Understanding Your Customer Base
Before diving into behavioral cohorts, it’s important to have a clear understanding of your customer base. This includes demographics, behaviors, interests, and any other relevant information. By knowing your customers on a deeper level, you can better target and tailor your game development efforts.
Types of Cohorts in Gaming
There are many different types of cohorts that game developers can analyze. Some common examples include:
- User Groups: These can be categorized by factors such as gender, age, or location.
- Active Users: Focusing on this group can help identify trends and patterns among your most engaged players.
- New Users / Acquisition Cohorts: Analyzing the behavior of new customers can provide insights into the effectiveness of onboarding processes and new user experiences.
- Churned Users: Understanding why certain users stop playing your game can help improve retention efforts.
Common Mistakes When Analyzing Cohorts
As with any data analysis, there are some common mistakes that can occur when examining cohorts. Ignoring the “Why” is the first and most common mistake. It’s important to not only look at the data itself, but also try to understand why certain patterns or trends are occurring. This can help inform future decisions and strategies. Despite loving data here at Helika, we understand that it’s not the only piece of the puzzle.
Another mistake is not tracking or analyzing enough data points. It’s important to have a wide range of data in order to get a comprehensive understanding of your customer base. This can include information such as game preferences, time spent playing, and in-game purchases. That’s what our data specialists are trained to do here at Helika, ensuring that we have a holistic view of our players.
Understanding the time period of your cohorts is also crucial. Are you analyzing weekly, monthly, or yearly cohorts? Different time frames can provide different insights and it’s important to choose the most relevant one for your game and goals.
For example, if it’s a weekly cohort and you notice a spike in engagement during a specific week, you may want to replicate those strategies in the future. Was there a boost in advertising or a new feature that was released? These are important factors to consider when analyzing cohorts.
There are typically three general problems that our past clients faced before working with us. The first is a system that gathers the data. Second, an informed specialist to guide the team on exactly what type of data is needed, what’s relevant and what’s not. And finally, how to practically use cohorts to improve upon the gameplay itself, leading to higher retention, engagement and ultimately revenue.
Final Thoughts
Whether you’re trying to increase customer retention, improve monetization strategies, or enhance player engagement, behavioral cohorts provide valuable insights into your customer base. By closely examining the behavior and characteristics of different user groups, you can make data-driven decisions that lead to a more successful and enjoyable gaming experience for all players.
By continuously studying and analyzing these cohorts, you will be able to stay ahead of trends and adapt your game to meet the ever-evolving needs and preferences of your audience. This proactive approach can ultimately lead to a more loyal customer base and increased success for your game.
As a reminder, working with Helika can help streamline this process and provide valuable insights into your customer cohorts. Feel free to contact us and we can discuss how we can create a customized solution to meet your goals. Keep experimenting, learning, and improving – your players will thank you for it!
