$$$$$$

$$$

+530Hours

Game Sessions+73

80%

0.1

$$

Social ValueMeasuring the True Value of a User and Their Social Influence on Others

The old way to calculate lifetime value focuses on individual spending.

The new way of calculating LTV recognizes the influence customers have on others.

Old Way

Calculating lifetime value is about identifyingyour most valuable customers.

New Way

Lifetime Value

$5

Bob buys a widget from Acme Widget Co. for $5.

Bob’s lifetime value is $5.

Bob’s asocial LTV is still $5 dollars. In other words, his personal spending

is still the same.

However, Bob’s Social Value, the spending caused by his influence, is

much greater.

Lifetime Value + Social Value= True Total Value

$25 $5$20

But what if Bob influences 4 of his friends to also buy a widget from

Acme Co?

If $20 of revenue was generated due to Bob’s evangelism, isn’t Bob more valuable as a customer?

Individual lifetime value Social Value True Total Value.

+ =

The Social Value Equation

“Understanding Social Value helps companies aquire, monetize & retain the customers who are contributing the most to their bottom line.”

Identifying Social Whales

Salespeople know that “whales” are the rare, big customers who spend the most money.

In gaming, these legendary players are the tiny minority and it is always smart to know who they are.

By understanding your players’ social networks and the spending habits within them, you are able to detect which

players wield an outsized level of social influence.

These Social Whales drive spending among others. They are your super-influencers.

When they play, OTHERS PLAY MORE. When they buy, OTHERS BUY.

For any one of them, you get incFor any one of them, you get increased revenue created out of thin air thanks to their social connectedness and their personalities.

Old Way

?

New Way

Social Whale

$100asocial LTV

$500Social Value

$

$

$$

Social Whales are Everyday Users

They represent about 10% of players/users - however, Spending as a result of their social influence represents about 10%-40% of ALL spending.

Social Whales don't always spend the most but they do influence the most spending.

$$$Total Users10%

Social Whales

All Spending10% - 40%

Social Value

www.ninjametrics.com

© 2014 - Ninja Metrics®

Ninja Metrics® offers a SaaS and enterprise based predictive analytics and automated social graph analysis platform that helps game and app

developers. Katana®, our Social Analytics Engine is a product of eight years of research into predictive analytics and the effects of social influence by a

world-class team of scientists.