Report: 56% Of Virtual Goods Buyers Are Repeat Customers

sg200According to a new report published by Social Gold, 56% of virtual goods customers make repeat purchases. This comes on the heels of their partnership with, where Social Gold will be used as the virtual currency for the site’s 550 games and 57 million players. The report also discusses the average spend per customer. I’ve attached the Social Gold image below, which highlights some of the key statistics.

On games that use Social Gold, we can see the average customer spends $60 on microtransactions during their time on the game. In this case, customers would refer to anyone who spent any money on the game, and wouldn’t include the high percentage of players that don’t engage in an y microtransactions at all. This is certainly a high number, and has something to do with Social Gold’s great one-click payment system. Social Gold has a great in-Flash interface, which ensure that payments/microtransactions don’t break the game flow. We’ve been seeing the interfaces improve for payments over the year, with TrialPay implementing a similar system, and it surely has lowered the barrier to monetary transactions in games.

Another interesting statistic is that of players that pay for Social Gold, over half (56%) make repeat purchases, and then another 25% make more than two purchases. This represents a very low churn rate, as users continue to not just use the service, but pay for the service. The timing of the statistics are not given, but the area of churn and percentage of users who monetize are the most important statistics to measure the financial health of these social games. Social games rely on a 80/20 model, where 80 percent of users play freely, while the 20 percent of more active users pay for the service. It is important to monetize those users as well as possible, and this explains the very heated war between companies like TrialPay, Social Gold, Offerpal and others.

Social Gold: Users' Spending Behavior in Social Games