Gondola Platform Lets You Automate Variable Pricing for Virtual Goods and IAP’s
|Richard Harris in Monetize Sunday, April 5, 2015|
Gondola has announced the launch of its Dynamic Pricing Engine which allows game developers to automate the pricing of virtual goods and in-app purchases (IAP).
Gondola’s dynamic pricing technology leverages historical and real-time data to gain insights on user behavior. Its Dynamic Pricing Engine simultaneously runs millions of multivariate tests to fine-tune the prices of virtual goods and IAPs. Optimizing information developers already have, Gondola automatically generates unique prices for every player, thereby increasing engagement and ultimately boosting revenue.
“The prices of virtual goods and IAPs in freemium games have a direct impact on the overall experience and life-time value of each player,” said Niklas Herriger, co-founder and CEO of Gondola. “Unlike physical goods with inventory constraints, developers have an unlimited supply of virtual goods and IAPs at their disposal at no marginal cost. Our Dynamic Pricing Engine can help developers improve engagement and revenue without additional investment in new content.”
Gondola’s Dynamic Pricing Engine focuses on three core components:
- Analyzing user behavior
- Dynamically computing prices for virtual goods and IAPs
- Setting tailored prices for individual users
Once Gondola is live within a game, the Dynamic Pricing Engine will gradually begin to test the effects of various prices for the same good on players with different levels of in-game progress.
With the data analyzed during its beta period, the company reports that the introduction of real-time dynamic pricing reduced user churn rates, significantly improved conversion, and boosted revenues on average by 12%.
By predicting how specific scenarios or events can affect pricing and conversion, Gondola aims to help game developers adjust their virtual economies and find ideal price points.
“In addition to the benefits delivered to game developers, Gondola’s pricing model tailors a personalized experience for each player,” said André Cohen, co-founder and CTO of Gondola. “If a player finds himself struggling through a level, our Dynamic Pricing Engine can identify that player to temporarily reduce the prices of specific virtual goods or IAPs so that he can move forward in the game. By utilizing prices to craft a better game experience, we’re creating a win-win situation for players and developers alike.”
Read more: http://www.gondola.io