Computer Support Blog

The video games industry has been experimenting with new business models over the last several years.  These models have included downloadable content to add to already released games as well as “freemium” models where a game is free but users can purchase items or upgrades within a game. However, these models are not foolproof and many game companies have had trouble optimizing their product to get the most out of their market.  Cool person in technology Dr. Dmitri Williams founded his startup NinjaMetrics to give game companies analytic tools that allow them to get the best return on investment for their social games.

Williams calls his company’s main product Katana.  Katana is analytics software that measures the users of a social game based on a variety of data points.  The program takes these data points and calculates how much specific gamers are worth to games long-term on a monetary basis.  Williams means for this data to help game companies target their best customers in order to gain the maximum return on their games in the long run.  In theory, Williams’s product could also help a company identify why customers stop playing its game and help them fix the cause.  For example, if customers that receive online tech support for the game often don’t spend money afterwards, a company could invest in improving that aspect of their business to retain more customers.

Williams and his company calculate two different values to estimate how much a user is worth to a game company.  The first is the lifetime value, or “LTV”, of a user and the second is their “social value”.  Williams’s product calculates lifetime value based on a player’s habits in the game.  From these habits, Katana estimates how much that individual is likely to spend on extra content over the course of time.  Social value analyzes how often a person mentions a game on social media and what they say about it.  This social value represents how much approximate money from others a player is worth, based on their social networking influence.  Game companies must have a social presence to calculate players’ social value through Katana.  If a company needs help with social networking, they should contact a business IT support service for help.

Before founding NinjaMetrics, Williams spent over a decade doing online metrics research and received his doctorate from the University of Michigan.  He has also spent time in his academic career specifically covering games as a media.  This makes him uniquely qualified for his current position at NinjaMetrics.

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Filed under: business, startups