Engage, Retain, and Monetize With Web Shop

XSOLLA WEB SHOP FOR MOBILE GAMES
ENGAGE, RETAIN,
AND MONETIZE
WITH WEB SHOP
Best practices for boosting revenue from your
online store with Xsolla Web Shop for Mobile Games
Xsolla xsolla.com/web-shop 1
CONTENTS
2022 MARKET CHALLENGES 3
• Universal Impact: Global Market Shifts 3
• Achieving Profit is Hard Work 4
A NEW DAY FOR VIDEO GAME MONETIZATION 5
BENEFITS OF A WEB SHOP FOR DEVELOPERS 7
BEST PRACTICES 9
• Engage Your Users 10
• Echo the Message at Multiple Touchpoints 10
• Create Customer Segments 11
• Define Multiple Methods to Drive Monetization 12
• Unify In-Game Commerce and Web Shop 14
EXAMPLES OF ENGAGEMENT, RETENTION, MONETIZATION 15
WHAT’S NEXT? 18
2022 MARKET CHALLENGES
Universal Impact: Global Market Shifts

The video game industry has long been a huge profit generator which is unlikely
to change anytime soon. While we anticipate consumer spending on video games
to grow to US$294.35 billion in 2026, in 2022, we did experience an unexpected
decrease due to global factors outside our industry's control.
Ongoing global health concerns, rising efforts in cyber security, and impactful shifts
in corporate policy created a collateral impact on gaming companies' operations
and revenue. Specifically, the issues were:
• Difficulties with user acquisition and monetization due to Apple's disruption

of the entire mobile ecosystem when it rolled out Apple Tracking
Transparency (ATT) and SKAdNetwork 2.0 in April 2021.
• People returned to former routines and activities after canceling all

restrictions related to Covid-19. The result for gaming was a noticeable
reduction in gaming activity as post-lock-down spending habits returned
to pre-COVID levels.
• Rising inflation affects consumers and companies alike. As players'

willingness to pay diminishes, advertising budgets decrease.
• Reluctance to process app stores payments in Russia – a response

to the conflict in Eastern Europe. In 2021, Russia ranked eleventh
in the global video game market.
Achieving Profit is Hard Work

Looking closely at primary expenses by game developers and publishers, we find
that roughly 66.5% of company spending applies to game development and
promotion, 30% funnels to platform fees, and only a tiny percentage remains
as a profit margin.
High competition, increasing user acquisition costs, rising development and

maintenance expenses, the added cost of analytics and marketing, and other
factors affect a company's revenue. Unsurprisingly, providing an optimal gaming
experience and making a profit isn't easy.
A NEW DAY FOR VIDEO GAME

MONETIZATION
Leading companies dealing with rising-cost items must seek new ways to generate
income. As we can see in the chart below, 30% of the costs are platform fees.
Many game companies feel that mobile stores charge too much. One such
company is Epic Games, which sued Apple last year for prohibiting the use
of its payment platform and requiring all in-app purchases to take place
via the App Store.
Following a 2021 court decision, Apple introduced new App Store Guidelines
that include several fundamental changes. One update clarifies that developers
can communicate with their customers about payment methods beyond
the App Store. Related to this, Apple added section 5.1.1. describing that apps may
ask for identifying customer information; however, the user response must be
optional and should not prevent them from choosing to pay through the App Store.
In addition, several countries identified ways to help mobile developers take back
control of monetization:
• Korea - Access to alternative payments: Apple informed App Store developers

in South Korea that they can now offer users alternative payment systems
in their apps. Developers must still pay Apple a 26% fee when using
a third-party payment system.
• Japan - App store exceptions: Apple announced it would allow 'reader' apps
like Netflix and Spotify to bypass Apple's payment system with their own.
Although the change is part of an agreement with the Japan Fair Trade
Commission, Apple said it would apply globally.
• European Union – Expanded monetization options: The European Commission

adopted the Digital Markets Act (DMA) and the Digital Services Act (DSA).
In response, Google will allow alternative in-app payments for non-gaming
apps with fees ranging from 12% to 27% and anticipates expansion to gaming
before the DMA goes into effect.
• USA - Epic vs. Apple: A group of attorneys representing thirty-five US states

voiced support of Epic as part of the appeal process in the Epic
vs. Apple trial. The US lawsuit decision opened opportunities for mobile game
developers to monetize beyond the App Store while still maintaining
a presence on popular platforms:
• Online payments. Players can now purchase in-game items and currency
and top up their accounts online.
• Marketing to players. Developers can now engage with current players

in multiple ways (social media, email, Discord, etc.) to drive traffic
and transactions to their web shop.
• UX Control. Developers own the user experience for their game within
a white-label digital store on their own branded website without needing
to send players to third-party sites to complete transactions.
The result of this sea change is newfound freedom allowing developers to go

beyond the traditional app stores and provide gamers with an expanded
experience outside the game itself.
BENEFITS OF A WEB SHOP

FOR DEVELOPERS
You can expand your reach, boost player loyalty, and maximize your profit potential
by making game-related purchases simpler and friendlier. An online store offers
many benefits to you and your customers. This ebook aims to help you achieve
a new level of connection with your players and make operations and marketing
much more convenient.
1. Create and grow your player base. Players log in and register for the web
shop with UserID via social accounts and other platforms. This allows
developers to collect information about players that would not be available
through purchases made in mobile app stores. With a web shop, you can
directly collect data from players, build a customer database, and interact
with them through mailing lists, retargeting, personalized offers, and more.
Some companies create special clubs and platforms for their players –
a sound method for collecting user data; for example, early in 2022, King
enticed players to join their King Club by offering unique rewards for Candy
Crush Saga and other games.
2. Increase the average purchase amount. The maximum payment for an in-app
purchase is $99.99. The maximum amount of a one-time payment on
the web shop depends on what price the game developer sets for their
in-game goods. Some developers create special offers for over $100.
The average check for such games is three times higher, and ARPPU is six
times greater.
3. Increase revenue across all platforms. For a period of nearly three months,
we analyzed user payments across several web shops. The data indicated
an increase in the number of payments made through the web shop and
the quantity of monthly paying users. On average, the monthly mobile game
income that companies received via their web shops averaged over 30%
of the total game income across all mobile platforms. The results were
directly related to how the store is implemented, what methods of user
engagement are used, and what combination of advantages and benefits
players receive when switching their payment to the web shop.
4. Increase the share of paying users. When users pay from your web shop,
they can choose their most convenient or favorite payment method.
Purchases made through the Apple Store or Google Play require a credit card
linked to the user's account. According to a 2021 report from Statistica,
credit card holders in Europe (on average) make up only 40% of the population
over fifteen years old. While a credit card requirement significantly reduces
payments within an EU audience, web shops offer users a wider choice
of payment options worldwide, thereby maximizing payment potential.
5. Maximize monetization efficacy. Your own web shop allows you to create
special offers and events that help raise your game metrics – such as
average revenue per user (ARPU), average revenue per paying user (ARPPU),
lifetime value (LTV) – and conversion rate. Data analysis shows that
with active engagement and by directing users to make payments through
an online store, your net revenue per purchase can increase significantly.
This happens for several reasons:
• The proportion of paying users increases due to a broader selection

of payment methods.
• Launching a web shop enables you to introduce multiple monetization

methods to a broad audience, including new players who have not
yet made a purchase and existing users who appreciate an expanded
selection of payment methods.
• Benefits, incentives, and rewards for players who make multiple

purchases improve sales – in stark contrast with games that do not use
web shop monetization.
BEST PRACTICES
It's hard to see the future and predict the next great gaming moment, but having
the right partner with the most sound advice can help lift you to the next level.
Whether you are planning – or already running – a web shop for your game, here
are some sound recommendations to help boost your web shop metrics and make
the experience more convenient and valuable for both you and your players.
An analysis of various options for implementing web shops showed that

a well-thought-out strategy for engaging, retaining, and monetizing users allows
game developers to:
• increase the percentage of paying users
• increase the number of payments by creating valuable offers

and offers with unlimited prices
• increase their income by introducing additional monetization

mechanics through the web shop
Conventionally, creating an effective strategy can be divided into multiple stages:
1. determine ways to engage users in the web shop
2. echo the message where users live and play
3. choose methods for retaining and monetizing users
4. create a unified monetization system in the game and on your web shop
Let's look at each stage in more detail.
Engage Your Users

First of all, you need to determine which segments of users (paying versus new
players) you would like to bring to your web shop. We recommend that you involve
your entire game audience. By offering the most convenient payment methods,
your online store can turn a non-paying player into a paying one. Paying users
are more likely to continue making purchases in the future. According to our recent
research study, about 60% of players make two or more purchases through
a web shop.
Echo the Message at Multiple Touchpoints

The first step is to notify users about your web shop and encourage them to pay
there. Unfortunately, the rules of app stores prohibit direct links to the point
of purchase from within your game. Therefore, savvy companies leverage
the following audience touchpoints and methods to connect with customers
and inform them about their game. You can choose several that are appropriate
for your players.
• Button or section on the main site for the game. Some companies provide
a link to their web shop in the primary navigation or define a section
with a web shop on the game's core website.
• Blog article. Most companies write an article on the game's blog, which
describes in detail how to log in to the web shop, what benefits the player
receives, and provide a link to the web shop. They also post a link to this
article in the game's news section. Because this is merely a link to the blog,
not the shop, it is in full compliance with the requirements and rules
of app stores.
• Social networks and forums. Companies actively use social networks such
as Discord, Reddit, etc., as well as their own game forums to spread
information about their web shop.
• Influencers. If you work with influencers, you can leverage their reach
by requesting a combination of a game review and promotion of current
player offers available exclusively through the web shop.
• Email distribution to users. If you have a database of your player email

addresses, then you can send them an email detailing the benefits of using
the web shop with a link.
• Direct messages. Tailored direct messages via in-game chat or messaging

are personal and effective, if written in a way that minimizes conventional
"marketing speak."
• Retargeting paying users. You can set up an advertising campaign targeted

at paying players with a link to a web shop page with special offers.
Xsolla retargeting partner Adikteev can help with this. Learn more
in our recent blog post.
Create Customer Segments

You can use several methods of user identification in your online store, including
authorization through social networks or email; however, most companies use
UserID – often a unique combination of username or email plus password
or custom-generated IDs. This allows game developers to collect data from their
user base, then repurpose it to promote special offers and new games.
Define Multiple Methods to Drive Monetization

Many ways to engage, retain, and monetize users in a web shop exist. Most
methods are similar to those used to drive in-game sales and game subscriptions:
• Bonus items • Web shop progress plan,

VIP or loyalty program
• Discounts
• Subscriptions
• Promo codes and coupons
• Daily/weekly/monthly deals,
• Custom bundles including free deals
• Personalized deals and offers • Special events
• Specific offers • Offers with a price

and limited-time offers above $99.99
We analyzed methods of engagement, retention, and monetization from twelve

web shops. Based on our analysis, we can draw the following conclusions:
• Online game stores with the best user retention and monetization typically
use two to six methods of engagement and monetization concurrently. Also,
the frequency and percentage of repeat purchases in such shops are higher.
• 50% offer bonuses or discounts when players buy through their online shop.
Players quickly understand the benefits of purchasing through this platform
and, over time, anticipate bonuses or price reductions for game currency
and in-game items from developers.
• More than half of web shops use special and limited-time offers to improve
monetization.
• 25% of web shops post offers with price points above $99.99.
• 25% of online stores use a VIP or loyalty program, typically doubling

the number of transactions. This rewards system enables you to give users
additional benefits without reducing the cost of currency and items available
for purchase.
• Two games in our research developed a progress rewards plan that gives
players advantages as they advance inside the game. This incentive
maximizes the quality of the game experience and encourages users
to return to the game to continue their progress.
• Another pair of online stores leverage personalization - offers optimized

to a specific user's (or group's) characteristics and increase the likelihood
of a purchase. In addition, as players progress and master new content,
offers and opportunities are presented, spiking player satisfaction,
engagement, and web shop usage.
• Only two out of twelve web stores mirror identical sets of currency
and goods to their in-game shops.
Unify In-Game Commerce and Web Shop

Depending on the company's goals, a web shop can function as a full-fledged tool
for increasing game income via the web and third-party platforms.
We analyzed a group of games within the same genre and how the launch of a web
shop affected their income levels. We did notice a pattern: Games that actively
use various engagement, retention, and monetization methods on both web
and platforms did not experience a significant decrease in revenue from mobile
devices. These companies' revenue grew each month for an average lift of 35%.
This rise is due to several factors:
• The game actively converts non-paying users into paying users,

both in the game and web shop.
• Players who have not previously paid in the game see an enticing offer
on the web shop and decide to pay.
• Unique web shop offers motivate paying players to return to the web shop
and buy more often.
• Loyalty programs allow companies to increase the average purchase amount

and number of payment transactions.
Choosing monetization methods that suit your gameplay and customer base is key
to success. Try to sync in-game revenue drivers with your web shop's monetization
approach to complement each other and maximize profits.
For example, create events where players receive special rewards in the web shop
for advances they make inside the game, thereby connecting the game and your
online store. This way, the game and shop are perceived as one brand with
a seamless experience.
EXAMPLES OF ENGAGEMENT,
RETENTION, MONETIZATION
Here are several actionable ways to drive web shop engagement, retention,
and monetization toward your goal of increasing revenue.
1. A gift when a player first enters the store. During their first visit
to the web shop, give the user a gift in their (authorized) account. It's a great
way to encourage first-time online store visits and motivate them to return
and make an initial purchase. This even encourages paying and non-paying
players to consider using the web shop and contributes to word-of-mouth
between players about the experience in your store.
2. A special event that celebrates your web shop opening. Include a special
event with the launch of your online store. Present visitors with various
offers (and different expiration dates,) including several high-value deals
that players will find hard to ignore – e.g., a bundle for $0.99. Make sure
it's a combination of items/currency that would cost players several times
the amount if they purchased the elements separately within the game.
A rock-bottom-priced offer serves multiple purposes:
• Links your game to financial benefits for players. Users perceive

high-value offers as beneficial – from beginners and non-paying players
to veterans, whales, and cohorts.
• Increases conversion. A difficult-to-resist offer increases the volume

of paying players in a game, especially if time-limited and universally
appreciated by all players.
• Demonstrates speed and ease of purchase. Craft an offer that is so

irresistible to players that they cannot walk away without purchasing,
which in turn demonstrates how fast and easy the web shop is.
In addition, all purchases and rewards appear in the game on the player's
account in a few seconds. A player receives his first positive purchase
experience, which brings him additional benefits. One unique offer removes
all possible objections and fears of using a web shop for purchases.
• Incentivizes future purchases. If your store has a system for issuing

special points or a loyalty program for paying players, receiving special
points for a purchase can prompt future purchases.
3. Exclusive offers. Create exclusive offers and bundles worth over $99.99.
This will increase the user's average purchase amount, plus ARPPU and LTV.
4. Personalized offers. Consider adding personalized bundles and offers

for more targeted monetization and to increase the likelihood of purchases.
Customizing deals according to user or group criteria can be time-limited
to trigger fear of missing out (FOMO) and increase overall retention.
Personalization can be based on player game level (progress,) payment
status (paying or not,) or paying player type (minnows, dolphins, whales,
or super whales).
5. Daily/weekly/monthly offers. Implementing daily, weekly, or monthly offers

(paid and free) can influence users to revisit regularly and check
for especially appealing deals.
6. VIP/Loyalty programs. Exclusive programs provide players additional benefits

without shifting the game's main inventory prices. Some games promote
a single VIP or loyalty program for their in-game store. In contrast, others
create loyalty programs exclusively for their web shop, motivating users
to purchase repeatedly higher priced items.
Developers can execute VIP/loyalty programs in many forms. Some developers

introduce special "milestone" points; others favor unique currency a player receives
for purchases made on their web shop. Either approach can motivate players
to return to the game to "spend" their VIP treasures. Here are examples of each:
• Milestones. Unique points are spendable after completing a series

of advancements and arriving at a critical milestone. Once the player
achieves multiple goals and collects a certain number of points, a reward
is triggered. The more points the player scores by reaching milestones,
the more prizes he will get.
• Exclusive web shop goods. Rewards come to the user in the form of unique
currency that can only be spent on exclusive items and amazing offers
in the web shop. This is incredibly impactful with high-achievers
and competitive gamers - it triggers their desire to obtain an exclusive
product through their achievement, increases their involvement in the game,
and satisfies their sense of accomplishment.
Moreover, the message of exclusive goods availability can spread via

word-of-mouth, arousing other players' curiosity to visit the store and preview
the VIP goodies. Premium rewards available only in the web shop may also
encourage gamers that have historically only purchased in-game to consider
paying through the web shop.
WHAT’S NEXT?
By utilizing these tips, and with the right approach to development, implementation,
and ongoing strategy of a web shop, a company can:
• increase revenue by reducing platform and app store fees
• multiply the number of paying users
• boost the average transaction size
• Improve player engagement and retention metrics
We’re here to help! Xsolla Web Shop is a full-fledged tool for increasing your game’s
income. To earn more beyond the app stores, read more info on Xsolla Web Shop
or contact our team of experts with questions or to get started.

Engage, Retain, and Monetize With Web Shop

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XSOLLA WEB SHOP FOR MOBILE GAMES

A NEW DAY FOR VIDEO GAME MONETIZATION 5

BENEFITS OF A WEB SHOP FOR DEVELOPERS 7

EXAMPLES OF ENGAGEMENT, RETENTION, MONETIZATION 15

2022 MARKET CHALLENGES

Universal Impact: Global Market Shifts

• Difficulties with user acquisition and monetization due to Apple's disruption

• People returned to former routines and activities after canceling all

• Rising inflation affects consumers and companies alike. As players'

• Reluctance to process app stores payments in Russia – a response

Achieving Profit is Hard Work

High competition, increasing user acquisition costs, rising development and

A NEW DAY FOR VIDEO GAME

• Korea - Access to alternative payments: Apple informed App Store developers

• European Union – Expanded monetization options: The European Commission

• USA - Epic vs. Apple: A group of attorneys representing thirty-five US states

• Marketing to players. Developers can now engage with current players

The result of this sea change is newfound freedom allowing developers to go

BENEFITS OF A WEB SHOP

• The proportion of paying users increases due to a broader selection

• Launching a web shop enables you to introduce multiple monetization

• Benefits, incentives, and rewards for players who make multiple

An analysis of various options for implementing web shops showed that

• increase the percentage of paying users

• increase the number of payments by creating valuable offers

• increase their income by introducing additional monetization

Conventionally, creating an effective strategy can be divided into multiple stages:

1. determine ways to engage users in the web shop

2. echo the message where users live and play

3. choose methods for retaining and monetizing users

Let's look at each stage in more detail.

Engage Your Users

Echo the Message at Multiple Touchpoints

• Email distribution to users. If you have a database of your player email

• Direct messages. Tailored direct messages via in-game chat or messaging

• Retargeting paying users. You can set up an advertising campaign targeted

Create Customer Segments

Define Multiple Methods to Drive Monetization

• Bonus items • Web shop progress plan,

• Personalized deals and offers • Special events

• Specific offers • Offers with a price

We analyzed methods of engagement, retention, and monetization from twelve

• 25% of online stores use a VIP or loyalty program, typically doubling

• Another pair of online stores leverage personalization - offers optimized

Unify In-Game Commerce and Web Shop

• The game actively converts non-paying users into paying users,

• Loyalty programs allow companies to increase the average purchase amount

• Links your game to financial benefits for players. Users perceive

• Increases conversion. A difficult-to-resist offer increases the volume

• Demonstrates speed and ease of purchase. Craft an offer that is so

• Incentivizes future purchases. If your store has a system for issuing

4. Personalized offers. Consider adding personalized bundles and offers

5. Daily/weekly/monthly offers. Implementing daily, weekly, or monthly offers

6. VIP/Loyalty programs. Exclusive programs provide players additional benefits

Developers can execute VIP/loyalty programs in many forms. Some developers

• Milestones. Unique points are spendable after completing a series

Moreover, the message of exclusive goods availability can spread via

• increase revenue by reducing platform and app store fees

• multiply the number of paying users

• boost the average transaction size

• Improve player engagement and retention metrics

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