Should King prioritize daily active user growth or increase average revenue per user?

Introduction

The trade-off between prioritizing daily active user growth and increasing average revenue per user is a critical decision for King's product strategy. This scenario involves balancing user acquisition and monetization, which are both essential for sustainable business growth. I'll analyze this trade-off by examining the product ecosystem, potential impacts, key metrics, and experimental approaches to inform a data-driven recommendation.

Step 1

Clarifying Questions (3 minutes)

• Context: I'm assuming we're discussing King's flagship game, Candy Crush Saga. Is this correct, or are we considering King's entire portfolio?

Why it matters: Different games may have different user bases and monetization strategies. Expected answer: Focus on Candy Crush Saga. Impact: Would tailor analysis to specific game mechanics and user behaviors.

• Business Context: Based on recent market trends, I'm thinking our revenue growth might be slowing. How urgent is the need to increase revenue in the short term?

Why it matters: Helps balance short-term revenue needs with long-term user growth. Expected answer: Moderate urgency, aiming for sustainable growth. Impact: Would influence the weight given to immediate monetization vs. user acquisition.

• User Impact: I'm considering the different player segments we have. Can you share any insights on which user segments are currently driving the most revenue?

Why it matters: Helps identify potential targets for increased monetization or growth. Expected answer: Power users generate most revenue, but casual players are the majority. Impact: Would inform strategies to either convert more casual players or focus on retaining power users.

• Technical: Thinking about our current infrastructure, how easily can we implement personalized experiences for different user segments?

Why it matters: Affects our ability to tailor strategies for user growth and monetization. Expected answer: Moderate capability, with some limitations. Impact: Would influence the complexity and scope of potential solutions.

• Resources: Considering our current team structure, do we have dedicated resources for both user acquisition and monetization optimization?

Why it matters: Affects our ability to execute on both fronts simultaneously. Expected answer: Limited resources, need to prioritize. Impact: Would inform the feasibility of pursuing both strategies concurrently or sequentially.