New York start-up Gondola has announced that today marks the launch of its Dynamic Pricing Engine - a system which allows developers to automate the price of their IAPs.
The engine works by taking historical and real-time data to fine-tune prices based on each individual customer, generating a unique and targeted cost for every player.
Made to measure
The firm is convinced that this system of individually-tailored pricing will increase both player engagement and revenue.
Indeed, based on data gathered while the engine was in its beta phase, Gondola has reported greater rate of conversion and revenues experiencing an average boost of 12 percent.
"Unlike physical goods with inventory constraints, developers have an unlimited supply of virtual goods and IAPs at their disposal at no marginal cost," said Niklas Herriger, co-founder and CEO of Gondola.
"Our Dynamic Pricing Engine can help developers improve engagement and revenue without additional investment in new content.”
Best of both worlds
André Cohen, co-founder and CTO of Gondola, has also been keen to point out that the benefits of the Dynamic Pricing Engine don't stop with developers - players will get a superior experience, too:
"If a player finds himself struggling through a level, our Dynamic Pricing Engine can identify that player to temporarily reduce the prices of specific virtual goods or IAPs so that he can move forward in the game," he said.
"By utilizing prices to craft a better game experience, we’re creating a win-win situation for players and developers alike.”
For more information on the Dynamic Pricing Engine, you can visit the Gondola website.