Lifetime value (LTV) is one of the most important metrics for a game developer. It represents the total monetary value a single user generates over the course of playing a video game. This metric helps developers understand how well a game is performing and guides decisions around marketing investment and player retention strategies.
To stay profitable, game developers shouldn’t spend more on acquiring a user than they expect to earn from that user. Tracking customer lifetime value helps determine how much to invest in game marketing strategies and allows developers to better predict revenue. Despite being a vital metric, many developers still don’t give it the attention it deserves. While there are several ways to measure LTV, we’re going to share best practices to help you boost customer LTV for your game.
Choosing the right revenue model for your game is a key decision for any studio. Whether you go with free, freemium, or premium, the right model will depend on your business goals, the type of players you’re targeting, and your available budget for development and marketing. Let’s break down each model to see what might work best for your game.
The free model is all about ad revenue. Players can download and play the game for free, but the studio generates money by showing ads at certain points—whether it’s when the player opens the game or after completing an in-game action. This model works best when you have a large, engaged player base. The more users, the more opportunities to monetize through ads. The challenge, though, is getting enough players to attract advertisers in the first place. Building that player base is critical for success.
Freemium offers both a free and a paid version of the game. Free users get limited features, while paid users get access to premium content. This model helps reduce customer acquisition costs and boosts user engagement. By offering a free entry point, you lower the barriers for new players and avoid spending too much on marketing. Once you’ve earned your players' trust, you can upsell them on the benefits of the premium version.
With the paid model, players pay upfront either through a one-time fee or a subscription to access the game. This model works best when you already have a dedicated player base that’s willing to pay for a high-quality gaming experience.
However, the paid model can be expensive to implement, as it requires significant investment to develop the game and analyze player behavior. But if your customer lifetime value (LTV) is greater than your customer acquisition costs, this model can be very profitable in the long run.
Identify the channels driving the most player acquisition and focus on scaling these high-performing sources. For example, if your Meta Ads are delivering the majority of downloads, allocate more budget to those campaigns to drive additional traffic to your app store page. Optimize your game’s title, description, and visuals to boost visibility and improve conversion rates.
If you see a spike in downloads after an influencer features your game, it’s a strong signal to invest further in influencer marketing. Partner with niche creators who resonate with your target audience. Check out AtisfyReach to get the most out of your influencer strategy. If these partnerships are delivering cost-efficient installs, consider expanding to platforms like TikTok and YouTube, which offer ad formats designed for direct app installs.
The key is to double down on low-cost, high-impact channels that are easy to scale. If a strategy is too resource-intensive or slow to ramp up, set it aside for now and focus on the tactics that deliver faster, more efficient results.
Simplifying the onboarding experience helps players quickly understand how to engage with your game—reducing early churn. No matter how visually appealing or feature-rich your game is, if users don’t form the habit of playing, they’re unlikely to stick around.
Make the game as user-friendly as possible. Streamline the sign-up process by enabling one-click login options, such as connecting through social media accounts. The fewer the barriers, the faster users can get into the game.
The game should load quickly and require minimal interaction to get started. Features like auto-saving progress and allowing players to resume from where they left off improve the overall user experience and reduce drop-offs.
To introduce game mechanics gradually, consider implementing guided tutorials, visual cues, or tooltips in the early stages. You can also use tools like Firebase Remote Config to A/B test different onboarding flows.
The more time players spend in your game, the more likely they are to invest financially. That’s why it’s critical to design your game in a way that keeps players coming back. Building emotional and social investment through meaningful progression and community features can improve the retention rate.
Start by segmenting your game into levels that reward progress. For every level completed, offer players in-game rewards like coins, points, or collectibles. These can be exchanged for exclusive characters, skins, or power-ups—encouraging players to keep playing to unlock new features. Always auto-save progress so players can easily return and pick up where they left off.
To drive deeper engagement, let players share achievements via social media with a built-in share button. Create a dedicated community space—like a Discord group—where players can discuss gameplay, share strategies, and connect with others. You can also integrate social features directly into the game, such as co-op missions, real-time chat, or guild-based competitions. These create emotional investment and a sense of social accountability, both of which are powerful drivers of retention.
While your paid features may add real value to the game, introducing them too early—before players are invested—can feel intrusive and push them away. Instead of overwhelming them with paid offers during onboarding, give them time to engage with your game and enjoy the experience. Let them get familiar with the mechanics, build momentum, and feel the value of what they’re playing. Once players are emotionally invested and trust the experience, they’ll be far more open to exploring paid content.
This measured approach increases the likelihood of conversions and can improve the performance of in-game purchases over time—ultimately supporting long-term profitability. Modern monetization strategies can help you do this intelligently:
Bringing players back after a period of inactivity is just as important as acquiring new ones. Push notifications can be an effective re-engagement tool—but how you use them makes all the difference.
Avoid sending generic, mass messages. These often feel spammy and can lead to frustration—or worse, uninstalls. Instead, personalize your outreach. Use player data to craft messages that feel relevant and specific. This could include their username, in-game level, favorite characters, or the last feature they interacted with.
Beyond push notifications, consider running retargeting campaigns through platforms like Google Ads or Meta. Personalized creatives based on in-game behavior can help re-engage churned users outside the game environment—drawing them back in with targeted offers, updates, or content that reflects their past gameplay.
Understanding the analytics side of game marketing can be complex, but it’s crucial for achieving the results you’re aiming for. Navigating this space can be tricky, so here’s a guide to help you get started: The Game Dev's Complete Guide to Game Marketing Analytics.
Tracking LTV is now easier with tools like Google Analytics 4 (GA4). These platforms provide cohort-level data, funnel visualizations, and revenue breakdowns across different lifecycle stages—key insights for refining monetization strategies.
While video games are highly profitable, retaining players can be challenging. By optimizing acquisition channels and focusing on community engagement, you can significantly improve your lifetime value.
At Game Marketing Genie, we offer a range of services designed to help you understand your players, gain deep user insights, and develop a reliable engagement strategy. Get in touch with us today to leverage these insights and drive growth while enhancing customer retention.