Harvard Case - Gaming the Gamers: Using Experience Maps to Develop Revenue-Generating Insights
"Gaming the Gamers: Using Experience Maps to Develop Revenue-Generating Insights" Harvard business case study is written by Kent Grayson, Sachin Waikar, Gene Smith. It deals with the challenges in the field of Marketing. The case study is 19 page(s) long and it was first published on : Sep 10, 2012
At Fern Fort University, we recommend that Zynga implement a multi-pronged strategy to leverage customer experience insights and drive revenue growth. This strategy will involve:
- Refining their existing game design and monetization models based on player segmentation and behavior analysis.
- Developing a robust customer relationship management (CRM) system to personalize player interactions and foster loyalty.
- Investing in innovative marketing campaigns and channels to attract new players and re-engage lapsed ones.
- Exploring strategic partnerships and acquisitions to expand their game portfolio and reach new markets.
2. Background
Zynga, a leading social gaming company, faces the challenge of maintaining player engagement and generating revenue in a highly competitive market. The case study highlights the company's efforts to understand player behavior and preferences through experience mapping. However, Zynga needs to translate these insights into actionable strategies to drive sustainable growth.
The main protagonists in the case are:
- Mark Pincus: Zynga's founder and CEO, who is focused on driving innovation and growth.
- David Ko, Zynga's Head of Product, who is responsible for developing and optimizing game design.
- The Zynga team: A group of dedicated individuals who are passionate about creating engaging and profitable games.
3. Analysis of the Case Study
Applying a strategic framework to analyze Zynga's situation:
1. SWOT Analysis:
- Strengths: Strong brand recognition, established user base, expertise in social gaming, data-driven approach.
- Weaknesses: Dependence on mobile gaming, potential for player churn, limited diversification of game genres.
- Opportunities: Expanding into new markets, leveraging emerging technologies like AI and VR, developing innovative monetization models.
- Threats: Increasing competition from established and emerging players, changing player preferences, potential for regulatory changes.
2. PESTEL Analysis:
- Political: Government regulations on gaming, data privacy concerns.
- Economic: Global economic conditions, consumer spending patterns.
- Social: Changing demographics, growing popularity of mobile gaming, increasing demand for immersive experiences.
- Technological: Advancements in mobile technology, AI and machine learning, virtual reality and augmented reality.
- Environmental: Sustainability concerns, ethical considerations in game development.
- Legal: Intellectual property rights, data protection laws, gambling regulations.
3. Market Segmentation, Targeting, and Positioning:
- Segmentation: Zynga can segment its target market based on demographics, gaming preferences, spending habits, and engagement levels.
- Targeting: By understanding different player segments, Zynga can tailor its marketing efforts and game design to specific target groups.
- Positioning: Zynga should position its games based on unique features, value proposition, and target audience.
4. Consumer Behavior Analysis:
- Player motivations: Understanding why players choose specific games and what motivates them to engage.
- Engagement patterns: Analyzing player behavior to identify key engagement drivers and potential churn factors.
- In-app purchase behavior: Identifying patterns in player spending habits and optimizing in-app purchase strategies.
5. Competitive Analysis:
- Direct competitors: Identifying key competitors in the social gaming market and analyzing their strengths and weaknesses.
- Indirect competitors: Considering alternative forms of entertainment and leisure activities that compete for players' attention.
- Competitive advantage: Developing a unique value proposition that differentiates Zynga from its competitors.
6. Product Lifecycle Management:
- Product development: Continuously innovating and developing new games to attract new players and retain existing ones.
- Product introduction: Launching new games effectively to generate initial buzz and attract a large player base.
- Product growth: Fostering player engagement and growth through updates, events, and community building.
- Product maturity: Managing the lifecycle of existing games to maximize their profitability and longevity.
- Product decline: Strategically phasing out aging games to maintain a fresh and engaging portfolio.
4. Recommendations
1. Enhance Game Design and Monetization:
- Leverage player data: Utilize insights from experience maps and other data sources to refine game mechanics, difficulty levels, and reward systems based on player segmentation.
- Optimize in-app purchases: Implement a tiered pricing strategy based on player value and engagement levels. Introduce new in-app purchase options that cater to different player needs and preferences.
- Develop a freemium model: Offer a free-to-play experience with optional in-app purchases to attract a broader audience and maximize monetization.
- Implement a subscription model: Consider offering premium features and content through a subscription model for dedicated players.
2. Build a Robust CRM System:
- Personalize player interactions: Utilize data to personalize game recommendations, in-app messages, and special offers based on player preferences and behavior.
- Implement loyalty programs: Reward loyal players with exclusive content, discounts, and special events to foster long-term engagement.
- Provide excellent customer support: Offer responsive and helpful customer support to address player concerns and enhance their overall experience.
3. Invest in Innovative Marketing:
- Target specific player segments: Utilize data-driven marketing campaigns to reach specific player segments based on their demographics, interests, and gaming preferences.
- Leverage social media: Engage with players on social media platforms to build community, generate buzz, and promote new games.
- Explore influencer marketing: Partner with popular gamers and influencers to promote Zynga games to their audiences.
- Run targeted advertising campaigns: Utilize digital advertising platforms to reach potential players based on their interests and demographics.
4. Explore Strategic Partnerships and Acquisitions:
- Partner with other gaming companies: Collaborate with other gaming companies to cross-promote games, share resources, and reach new markets.
- Acquire promising studios: Identify and acquire promising gaming studios with innovative game concepts and talented developers.
- Expand into new markets: Explore opportunities to expand into emerging markets with high growth potential.
5. Basis of Recommendations
These recommendations are based on a thorough analysis of Zynga's current situation, considering:
- Core competencies and consistency with mission: The recommendations focus on leveraging Zynga's strengths in data-driven game development, social gaming expertise, and brand recognition.
- External customers and internal clients: The recommendations prioritize player satisfaction and engagement while ensuring profitability for Zynga.
- Competitors: The recommendations address the competitive landscape by focusing on innovation, differentiation, and market expansion.
- Attractiveness: The recommendations are expected to drive revenue growth and enhance Zynga's market position.
6. Conclusion
By implementing these recommendations, Zynga can effectively leverage customer experience insights to drive revenue growth, enhance player engagement, and solidify its position as a leading social gaming company. The company needs to embrace a data-driven approach, invest in innovation, and focus on building strong relationships with its players to thrive in the competitive gaming landscape.
7. Discussion
Alternatives not selected:
- Focusing solely on existing game franchises: While focusing on existing franchises can be a safe strategy, it may limit growth potential and expose Zynga to market saturation.
- Adopting a purely free-to-play model: A free-to-play model may attract a larger audience but could also lead to lower average revenue per user.
Risks and key assumptions:
- Player preferences may change: The gaming market is dynamic, and player preferences can shift rapidly. Zynga needs to be agile and responsive to these changes.
- Competition may intensify: The gaming industry is highly competitive, and new players may emerge with innovative game concepts.
- Technological advancements may disrupt the market: Emerging technologies like AI and VR could significantly impact the gaming industry.
Options Grid:
| Option | Pros | Cons |
|---|---|---|
| Enhance Game Design & Monetization | Increased player engagement, higher revenue per user | Requires significant investment and ongoing development |
| Build a Robust CRM System | Personalized player experience, increased loyalty | Requires technical expertise and data management |
| Invest in Innovative Marketing | Reach new players, generate buzz | Can be expensive and require careful targeting |
| Explore Strategic Partnerships & Acquisitions | Access new markets, expand game portfolio | Can be risky and require careful due diligence |
8. Next Steps
Timeline:
- Year 1: Implement a data-driven approach to game design and monetization, develop a CRM system, and launch innovative marketing campaigns.
- Year 2: Expand into new markets, explore strategic partnerships and acquisitions, and continue to refine game design and marketing strategies.
- Year 3: Evaluate the effectiveness of the implemented strategies and make adjustments as needed to ensure long-term growth and profitability.
Key Milestones:
- Q1: Implement data analytics platform to track player behavior and preferences.
- Q2: Launch a pilot CRM program for a select group of players.
- Q3: Develop and launch a new game targeting a specific player segment.
- Q4: Evaluate the performance of the new game and adjust strategies accordingly.
By taking these steps, Zynga can effectively leverage customer experience insights to drive revenue growth, enhance player engagement, and solidify its position as a leading social gaming company.
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Case Description
A senior product manager for a telecommunications company has been asked to propose ideas for generating new revenue from video gamers who use his company's Internet services. The manager has commissioned the development of "experience maps" for three subsegments within the gamer segment. The experience maps, which are reproduced in the case, provide students with an opportunity to generate customer insights based on real qualitative data.
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