Tiered Rebate System for Online Game Revenue Optimization
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Solution Overview
Problem
Players in online games face disincentives to purchase virtual items at full price after promotional periods end, leading to reduced revenue for game operators.
Innovation Solution
Implementing a tiered rebate system that rewards users based on spending frequency, velocity, and total amount spent during a promotional period, providing calculated percentage rebates or specific rebate amounts upon conclusion of the event time period.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If a promotional discount is offered for a limited time, then sales during the promotion increase, but players feel regret after the promotion ends and are reluctant to pay full price
Solution Approach 1:
The system performs preliminary actions by offering promotional discounts to build player engagement and spending habits during the promotion period. Simultaneously, it prepares the rebate mechanism in advance that will compensate players after the promotion ends, ensuring continuous purchase willingness without waiting for the next promotion cycle
Solution Approach 2:
The system implements feedback by tracking player spending during promotions and providing personalized rebates after the promotion ends. This feedback loop demonstrates to players that their promotional spending is valued, converting their post-promotion regret into actual rebate rewards and maintaining their willingness to pay full price for future purchases
2Ease of manufacture
If a simple flat discount promotion is used, then implementation is easy, but player engagement and revenue maximization are limited
Solution Approach 1:
The promotion system is segmented into multiple components: the initial promotional discount phase, the spending tracking phase, and the post-promotion rebate phase. This segmentation allows the system to maintain simple implementation at each stage while achieving complex engagement goals through the coordinated interaction of phases
Solution Approach 2:
The system dynamically changes parameters such as rebate percentages, spending thresholds, and time frames based on player behavior data. This allows the promotion to adapt to different player segments and spending patterns, significantly enhancing engagement and revenue without requiring complex real-time decision-making infrastructure
Data Source
AI summary
One aspect of the disclosure relates to providing a tiered rebate system in an online game. The users may spend over a certain time period and based on spending during that time frame, receive a certain amount of what the user spent back. Thus, the user receives a tiered rebate which may correlate to one or more of user spend frequency, user spend velocity, a total amount spent, and/or any other metrics.