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.
Analysis Approach
I'd like to outline my approach to ensure we're aligned on the key areas I'll be covering in my analysis.
Step 1
Clarifying Questions (3 minutes)
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.
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.
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.
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.
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.
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