Game Design

How Player Segmentation Generates More Sales

Written by
Mike Moran
April 6, 2023
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Learn how player segmentation can improve monetization in your mobile game. Discover how dividing players into groups based on demographics, behavior, and attitudes can help you tailor in-game purchases and advertisements to specific player groups. By optimizing your game design and offering the right products to the right players, you can enhance engagement, retention, and revenue generated by the game. Although player segmentation comes with its challenges, implementing an effective strategy can help you create a fair and enjoyable game experience for all players. Read on to learn more.

Player Segmentation Yields Stronger Monetization

Mobile game developers must monetize their games to keep their businesses afloat. But how do they do it effectively? One answer is player segmentation. Tom Hammond, CEO at UserWise, and Sam Abbott, Head of Monetization at Rec Room, explore how player segmentation can lead to stronger monetization in your mobile game.

You can listen to the interview here:

What is Player Segmentation?

Player segmentation is the process of dividing players into groups based on similar attributes. These attributes can include demographics, behavior, and even their attitudes towards the game. The purpose of player segmentation is to better understand and cater to each group's specific needs and preferences.

How Can Player Segmentation Improve Monetization?

Player segmentation is an essential aspect of game development that can positively impact monetization. The process of player segmentation involves dividing players into distinct groups based on their in-game behaviors and preferences.

One of the primary advantages of player segmentation is that it allows developers to tailor their in-game purchases and advertisements to specific player groups. For instance, players who are more likely to make in-app purchases can be shown more lucrative offers, while players who are less likely to make purchases can be shown more affordable options. By leveraging player segmentation, developers can ensure that they are offering the right products to the right players, thereby enhancing the overall revenue generated by the game.

"You can't just look at the average. You really need to look at each individual segment and figure out where that segment is finding value in the game." - Sam Abbott

In addition to this, player segmentation can also help developers optimize their game design. By understanding each group's preferences and needs, developers can make changes that will better align the game with those groups. This can lead to increased engagement and retention, which in turn can lead to more monetization opportunities. For example, developers can customize in-game events and challenges based on the preferences of each group, thereby making the game more appealing to a wider range of players.

Overall, player segmentation is a crucial tool that developers should leverage to maximize their monetization potential. By dividing players into distinct groups and customizing the game experience accordingly, developers can enhance engagement, retention, and revenue generated by the game.

Challenges of Player Segmentation

Player segmentation can be a valuable tool for game developers, but it is not without its challenges. One of the biggest challenges is determining which attributes to use for segmentation. Developers need to strike a balance between having enough attributes to create meaningful groups, but not so many that it becomes difficult to manage. However, this is just the tip of the iceberg when it comes to the challenges developers face with player segmentation.

Another challenge is ensuring that each group is treated fairly. Developers must ensure that they are not excluding certain groups from certain features or in-game purchases, as this can lead to player frustration and ultimately hurt monetization. However, there are other challenges that developers face when implementing player segmentation.

"In terms of how we think about segmentation, it's really about breaking down player behavior by the actions that they're taking within the game." - Sam Abbott

For example, another challenge is ensuring that the segmentation is not too generic. If the groups are too broad, then the developer may miss out on key differences between players that could be useful in creating a better game experience. Additionally, developers must also ensure that they are not using attributes that are too specific, as this can lead to a lack of segmentation and make it difficult to create meaningful groups.

Lastly, it is important for developers to continually reassess their segmentation strategy to make sure that it is still effective. As the game and player base evolve, the segmentation strategy may need to be adjusted to better fit the changing needs of the players. By keeping all of these challenges in mind, game developers can create a player segmentation strategy that is effective and fair for all players.


Player segmentation is an effective tool for improving monetization in mobile games. By dividing players into specific groups based on similar attributes, developers can better understand each group's preferences and needs. This allows them to tailor their in-game offerings and optimize their game design for maximum engagement and retention. While player segmentation does come with some challenges, the benefits are well worth the effort.

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