Improving User Retention via “Loss Leader”
See how we implemented key strategies to keep users engaged, satisfied, and coming back for more!
Last updated
Was this helpful?
See how we implemented key strategies to keep users engaged, satisfied, and coming back for more!
Last updated
Was this helpful?
A UK-based FiveM roleplay server owned and managed by a long-standing creator on Tebex wanted to increase user retention on its server and Tebex store. More recurring players and customers would presumably lead to an increase in revenue and server popularity.
The most common way would be to invest in “votes” on the FiveM Server List, a site/place to see the most popular and exciting FiveM Servers, sorted by the number of “votes” a server has. - Put simply: A server with more votes - is more visible. This can become a costly bidding war (Upwards of $30,000 per month) that may not result in a return if another server owner outbids you.
Generally, the team believed that it’s best to focus on improving revenue on current existing users rather than new users because of the potential cost mentioned above. Gaining new users on a FiveM server is costly, requiring some introspection and discussion on how to keep costs minimal and profits high.
During the Success Team and the creator’s monthly calls or “MBRs” (Monthly Business Reviews), it was understood that tackling this issue with a proven industry-standard strategy was prudent. How can a store increase user engagement (both on the server and Tebex store) without excessively spending on direct marketing?
The Tebex Creator Success Team understands the importance of market trends and keeping up to date with strategies, especially in an industry as fast-paced as e-commerce.
An example of how Success keeps up to date and understands market trends is through a regularly scheduled, relevant literature club. In this club, the team researches industry-recommended reading material, discusses it, and garners insights to implement on the accounts with which they meet.
One idea that proved useful in this particular instance and is the basis for this case study is a concept called “loss leader”. A well-known sales strategy that is commonly implemented, specifically in wholesale and groceries, to increase the number of customers and retain them by association with great deals/prices.
The concept is to lure the potential customer with a tempting deal, often at a “loss”, to get them to physically visit and “lead” them into the store and create a habit or a reason to browse other aisles/products.
The UK Supermarket Chain Tesco’s “Meal Deal” - which is, put simply, a heavily discounted lunch made up of a sandwich, a snack and a drink of a customer’s choosing. Making lunch much more convenient than making it yourself and without excessively spending at a fast food establishment creates a habit of people going to Tesco every lunch for a filling lunch at an affordable price. Making it an easy choice in terms of time and price for the average person in education or the workplace. In general, the “Meal Deal” uses discounted and convenient lunches to incentivize and gain more recurring customers who will likely purchase other things while in the store out of convenience.
Figure 1: A player spinning the in-game wheel
This concept, in theory, solved the issue of achieving higher customer retention without being too costly and it was therefore implemented on the creator’s store and server.
A locale players frequent during their game session is the Casino - where people virtually gamble with in-game currency hoping for a “quick buck”. A common game design mechanic (See Fortnite Daily Challenges or Call of Duty XP Challenges) offers the player a daily reward or a challenge to incentivize them to return to the game daily—a feature that didn't exist before on creator's store or server.
Figure 2: The daily spin on the webstore
The daily spin and Tebex package took the creator 2 weeks to implement, and the numbers spoke for themselves.
The daily spin package was available to redeem once per day and went live between September 30th and November 29th (60 calendar days).
“(It was) just this second announced, and people are all coming over for the free spins.” - The creator
The Spin Wheel campaign encouraged players to visit the store regularly to claim their free token for in-game use. The data suggests that this initiative successfully established a habit of store visits, as reflected in consistent engagement and spending trends.
Figure 3: Comparison of total non-free purchases of 60 day period before free spins and after free spin implementation
During the promotion period, free spins were redeemed 5,032 times out of a total of 7,164 transactions, leaving 2,131 purchases made separately from the free spins. In comparison, the previous 60 days saw a total of 1,667 purchases. After implementing the free spin promotion, the DrillUK store experienced a 27.83% increase in revenue-generating purchases compared to the previous quarter.
Figure 4: Screenshot sent from server and store owner about the popularity of newly implemented free spin
December (post-campaign) retained 70 players, with 3,549 transactions, generating £27,301.13.
January saw a player increase to 96, with 1,162 transactions sold but revenue climbing to £30,018.83.
Another effect was the website usage. between September 30th and November 29th, the amount of sessions increased by 32.61%.
The store also saw an immediate increase in revenue of 4.957% Month over month.
(Data taken from Microsoft Clarity)
The creator has significantly improved its store and server through regular collaboration with the Creator Success team, gaining expert guidance and strategic insights. Tebex’s ongoing support has helped track progress, refine strategies, and boost player retention, driving community growth and long-term success.
Matthew and the team agreed that this concept was worth exploring. The creator added a free daily spin to the game server and a package in the Tebex store for players to redeem on the server for an additional spin.