Ironically, when it suits their purposes, these same clowns (the SOME I referred to) will also point out that 80% of your total revenue comes from 20% of your existing customers, but they usually drag that cliche up as justification just prior to a major Marketing/Sales Department downsizing. "New money is the best money" is a mantra I have heard for years.
Sadly (and I speak from over 40 years of experience) some (I said SOME) Management teams consider existing customers as already captured and not worth the effort. This effort seems pretty clearly aimed at an influx of new players from the Steam partnership that won't have the patience or commitment to grind up through the lines and just want to have all the cool ships NOW, NOW, NOW. reducing costs (note the decline in the quality of their customer service department) and generating revenue (more and more premium ships that are actually copies of existing ships with minor tweaks). All efforts will now be directed at two things. Marketing costs and staff will be trimmed and avenues for free (also called "earned") media and exposure are explored and exploited (Facebook, Social Media, Twitter). Focus shifts from developing and improving the game (although there will still be minor tweaks now and then) to adding content that will generate revenue. This means that it's time of development and introduction (stage 1) and rapid growth and expansion (stage 2) is over and now the chief focus will be to milk it for as much revenue as possible to recover costs incurred in stage 1 & 2.
Third is Mature and Fourth is Decline.Īs I have pointed out several times WOWs is now what is called a "mature" product". First is Research, Development and Introduction.
There are four stages to a products lifespan. This type of thing comes from the top and is very predictable.
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