What is a Customer Retention? Importance and Strategies

Customer Service, User Retention

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Posted on February 26, 2025
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Imagine you’re deep into a boss battle in your favorite game—your fingers flying over the controls as you dodge enemy attacks and strategize your next move. When you’re about to land the finishing blow, a glitch disrupts your momentum. Instead of letting frustration take over, an intelligent in-game support system swoops in, resolving the issue instantly so you can get back to leveling up. This seamless experience isn’t just a gamer’s dream—it sets the gold standard for customer retention.

VIP customers are everything in the gaming world. Lose them, and they’ll quickly jump ship to a competitor. The secret to keeping these high-value players? Proactive customer management.

In this blog, we’ll explore the critical role of customer retention in the gaming industry, sharing actionable strategies to boost player engagement and loyalty. We’ll also highlight how innovative player support technologies drive retention and long-term business growth. 

What is Customer Retention?

Customer retention is quantified in gaming as the ratio of returning players to total downloads. By applying a customer retention rate formula, you can calculate this essential KPI and gain valuable insights into your game’s health. Marketers typically focus on Day 1, Day 7, and Day 30 retention, though some extend tracking to Day 360 or even Day 720 to maximize customer lifetime value (CLV).

Getting players to download your game is a huge win, but keeping them engaged is the absolute boss level. At its core, customer retention is the percentage of players who keep returning and telling you if your players are truly hooked and enjoying the experience.

Simply put, customer retention measures how effectively a business keeps its customers over time. It indicates that customers stick around, make repeat purchases and drive long-term loyalty.

High retention drives repeat revenue and turn casual players into lifelong advocates, boosting overall client retention. Low retention? It’s a signal to adjust your player support design to improve customer retention and ensure long-term success.

Importance of Customer Retention

Customer retention is a long-term strategy that fuels sustainable growth. Did you know that exceptional customer support can turn up to 85% of one-time clients into loyal brand advocates? When your support service shines, you drive repeat purchases, boost customer lifetime value (CLTV), and cultivate a community of loyal advocates who fuel word-of-mouth referrals.

Of course, meeting today’s support demands isn’t always easy. Players expect seamless, personalized help across every channel—without having to repeat themselves. Overcoming these challenges means integrating advanced tools and proactive strategies that deliver the quick, tailored support players crave. When you nail this, you create a community of loyal customers who drive growth through consistent engagement and powerful word-of-mouth referrals.

How to Measure Customer Retention

Measuring customer retention is key to understanding how well your game keeps players returning. Let’s break down the core metrics : 

Retention Rate

Customer retention rate is the percentage of customers who continue doing business with your company over a specific period. It’s a key indicator of customer satisfaction and loyalty, revealing how effectively your business keeps its customer base engaged over time.

For gaming companies, the customer retention rate translates to the percentage of players who return to your game after their initial download. This metric shows how well your game holds players’ interest and builds lasting loyalty, often leading to increased in-game spending and repeat engagement.

Formula: 
Customer Retention Rate (%) = Number of customers at the end of period customers acquired during the period​ )/  Number of customers at the start of period ×100

In Gaming: 
Customer Retention Rate (%)= Number of players active on Day X​ / Number of players who installed on Day 0 ×100

Customer retention is often measured on Day 1, Day 7, and Day 30. For example, if you start with 1,000 players and 400 return on Day 1, your Day 1 retention rate is 40%. Higher retention rates correlate with better onboarding, engaging gameplay, and practical customer support.

Churn Rate

The churn rate represents the percentage of customers who stop doing business with your company during a specific period. It’s a crucial indicator of customer satisfaction and loyalty—when churn is high, customers leave, often due to poor service or product experience.

Regarding gaming, the churn rate measures the percentage of players who stop engaging with your game during a specific period. The formula is similar to the general one but is often applied to the player base from installation.

Formula: 
Churn Rate (%)= Number of customers lost during period​/ Number of customers at start of period ×100

In gaming: 
Churn Rate(%) = Number of players lost during period​/ Number of players who installed on Day 0×100

For example, if you start with 1,000 players at installation (Day 0) and 300 stop playing within a given period, your churn rate would be 30%. This metric helps you identify how many players are dropping off, signaling potential issues with game engagement, onboarding, or support that must be addressed. 

Net Promoter Score (NPS) 

NPS measures customer satisfaction and loyalty by asking how likely customers are to recommend your product or service to others. It’s a powerful metric for predicting word-of-mouth referrals and long-term loyalty.

Formula: 
NPS=% Promoters−% Detractors 
(Customers rating 9-10 are Promoters, and 0-6 are Detractors.)

A high NPS suggests that players are satisfied and willing to act as brand advocates—an essential factor in driving organic growth and reinforcing customer retention.

Customer Lifetime Value (CLV)

CLV represents the total revenue a customer is expected to generate over their relationship with your company. It’s a vital metric linking customer loyalty to long-term profitability. 

Formula: 
CLV= Average Revenue per Customer (ARPU)×Average Customer Lifespan

In gaming: 
CLV=Average Revenue per User (ARPU)×Average Player Lifespan

In gaming, customer lifetime value (CLV) represents the total earnings you can expect from a player throughout their entire engagement with your game—covering everything from in-app purchases and subscriptions to ad revenue. 

A high CLV shows that your players stay with your game longer and consistently boost your revenue over time.

Engagement Metrics

Engagement metrics are the heartbeat of your game, revealing how many players are active and how deeply they interact with your product. Some key engagement metrics and see why they matter so much in gaming:

  • Daily Active Users (DAU) and Monthly Active Users (MAU):

These metrics show the Number of unique players who engage with your game daily or monthly. They help you understand the size and vitality of your active community. A high DAU compared to MAU—often called the “stickiness” ratio—indicates that players return frequently, a positive sign of intense engagement.

  • Average Session Length:

This metric measures how long players spend in each session. Longer sessions typically suggest that players are immersed in the game and find it engaging. If players spend more time per session, your game mechanics and content interest them.

  • Frequency of Play:

This looks at how often players return to your game. Whether they’re logging in multiple times a day or just a few times a week, high frequency is a solid indicator of player commitment. It can also inform you about the effectiveness of your game’s incentive structures—like daily rewards or time-limited challenges—that encourage repeat play.

  • Time Between Sessions:

Measuring the intervals between sessions gives insight into player habits. Short intervals indicate that players are highly engaged, while longer gaps signal potential churn. This data can help you optimize push notifications or in-game events to encourage more regular play.

  • Stickiness (DAU/MAU Ratio):

This ratio helps you understand how consistently players return over a period. A higher ratio means your monthly active users engage with your game daily, a strong signal of a loyal and engaged audience.

For example, if session length drops while DAU remains stable, it might be time to re-examine your game’s content or difficulty curve. Conversely, a high stickiness ratio can reinforce that your retention strategies are working well, ultimately boosting overall customer lifetime value (CLV) and driving revenue growth.

6 Customer Retention Strategies to Ace the Game

Keeping your players engaged is about delivering support that feels part of the game. Let’s explore some proven strategies that can help gaming companies like yours create unforgettable customer support experiences. 

1. Provide Exceptional Customer Service at Every Touchpoint

Providing exceptional customer service in the gaming industry requires a multi-faceted strategy that centers on personalization and seamless support. It begins with tailoring every interaction to the individual player. Players also demand round-the-clock assistance, making 24/7 availability essential. Whether through automated bots or live agents, immediate support ensures no player is left waiting, no matter their time zone. One of our clients, SYBO’s Subway Surfers, achieved a CSAT score 4.3.

Plus, gamers interact across various channels—from mobile and websites to messaging apps and social media. Omnichannel support unifies these platforms, so players never have to repeat their issues as they transition between channels.

Since gaming is a global experience, offering support in multiple languages is critical. With built-in multilingual capabilities, tools like Helpshift can enable your team to communicate effectively with players in their native languages, further enhancing overall satisfaction and retention.

2. Proactive Customer Support

Proactive customer support is a game-changer in boosting player retention. It means not waiting for issues to arise but anticipating customer needs before they escalate. For example, by monitoring in-game behavior, you can proactively identify and address standard stumbling blocks, ensuring players never feel stranded during a critical moment. 

Another such example is post-purchase follow-up. After a player makes an in-app purchase or upgrades their account, a timely check-in can transform a routine transaction into a personalized experience, reinforcing their decision and building loyalty. 

Empowering your team with the right technology ensures they have the insights and tools to deliver proactive, practical support. 

3. Create an Engaged Customer Service Team

Creating an engaged customer service team drives customer retention in the gaming industry. Start by investing in continuous training—providing your support agents with an intuitive workspace and a robust knowledge base. This helps them stay current on best practices and new game features, enabling them to deliver personalized, adequate support consistently.

Equally important is fostering a customer-centric culture. Advanced automation and AI-driven workflows can ensure that every interaction is handled with the customer’s unique context in mind, reinforcing that the player’s experience is your top priority. By utilizing tools like automated ticket routing, multilingual support, and real-time performance analytics, your team can respond swiftly and efficiently to player needs. These practices boost internal team engagement and elevate the overall player experience, turning casual players into loyal, long-term advocates.

 4. Use Customer Feedback to Improve Continuously

Using customer feedback to drive continuous improvement is essential for keeping your game fresh, and your players engaged. Start by actively gathering insights through regular customer surveys and reviews—these tools reveal what your players love and highlight areas that need refinement. When players see that their voices lead to tangible improvements, they feel valued and more connected to your brand. This listening, acting, and informing cycle sharpens your game and support processes and transforms casual players into loyal advocates.

5. Reward Loyal Customers with Exceptional Service

Rewarding loyal customers with exceptional service is a powerful strategy for transforming high-value players into long-term brand advocates. For VIP customers, dedicated support is key.

Imagine giving VIP players early access to new features, special in-game bonuses, or personalized promotions only available to them. Features like in-app messaging make it simple to deliver these exclusive perks seamlessly. You can also schedule automated, customized notifications to alert VIPs to these special offers, ensuring they never miss out.

This approach turns satisfied customers into passionate advocates, driving higher retention and boosting overall revenue in a competitive market.

6. Implement Self-Service Options for Convenience

Self-service options represent a game-changing strategy that boosts convenience and enhances customer retention. AIDIS, the Japanese publisher of Critter Crew, achieved a 90% FAQ deflection rate using Helpshift, enabling players to resolve simple inquiries independently. Within three months, automation reached 60%, climbing to 96% within a year, allowing the support team to focus on complex issues and attain a 4.5 CSAT score. 

Interactive FAQs and chatbots further elevate the experience, offering immediate, real-time support while guiding users through troubleshooting steps or resolving problems on the spot. 

This approach reduces wait times and liberates human agents to focus on complex issues, keeping players engaged and ultimately driving higher satisfaction and long-term loyalty.

Boosting Customer Retention using Helpshift

Enhancing player retention in the gaming industry requires a support system that is both efficient and seamlessly integrated into the gaming experience. Helpshift offers a suite of features designed to meet these needs:

  • In-Game Support Integration: Helpshift’s support is embedded directly within your game, allowing players to seek assistance without leaving their session. This integration ensures that players receive timely help, maintaining their engagement and satisfaction.
  • AI-Powered Self-Service: With AI-driven smart articles and FAQs, Helpshift instantly empowers players to find solutions to common issues. This self-service approach reduces the need for direct agent intervention, allowing players to resolve problems quickly and continue enjoying the game.
  • Multilingual Support: Helpshift’s platform supports over 150 languages, ensuring players from diverse linguistic backgrounds receive assistance in their preferred language. This global reach enhances player satisfaction and retention across different regions.
  • Omnichannel Communication: Helpshift facilitates seamless communication across various platforms, including PC, console, VR, and mobile. This cross-platform capability ensures that players receive consistent support, regardless of their device.
  • Discord Integration: Recognizing the importance of community engagement, Helpshift integrates with Discord, allowing for real-time player support through this popular platform. This integration fosters a sense of community and provides immediate assistance to players.

Gaming companies can use Helpshift’s comprehensive support solutions to enhance player satisfaction, reduce churn, and foster a loyal player base. The platform’s seamless integration, AI-driven support, and multilingual capabilities make it an invaluable tool for improving player retention in the gaming industry.

FAQ:

What is a reasonable customer retention rate?

A greasonablecustomer retention rate varies by game type but generally falls between 35-40% for Day 1 retention, 15-20% for Day 7 retention, and 5-10% for Day 30 retention. For subscription-based games or live-service models, retention rates should be higher, with monthly retention above 50% being a strong benchmark. High retention indicates that players are engaged, enjoying the game, and finding value in returning.

What is a customer retention program?

A customer retention program in gaming is a structured approach to keeping players engaged over time. This includes:

  • Daily rewards and login bonuses to encourage return visits
  • Live events and limited-time challenges to create excitement
  • Loyalty programs or VIP perks for long-term players
  • Personalized in-game offers based on player behavior
  • Proactive customer support that resolves issues quickly before they lead to churn

Successful retention programs focus on continuous engagement and rewarding player loyalty.

What are the 3 R’s of customer retention?

In gaming, the 3 R’s of customer retention are:

  1. Retention – Keeping players engaged with fresh content, progression systems, and live updates.
  2. Revenue – Encouraging in-game purchases, subscriptions, and ad engagement by providing value-driven monetization.
  3. Relationships – Building strong connections through community management, responsive support, and social gameplay features.

Mastering these three areas ensures a long-term player base and sustained revenue growth.

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