What is KPI?

A KPI (Key Performance Indicator) is a quantifiable metric used to evaluate how well a game performs across core areas like engagement, retention, monetization, acquisition, and growth.

In game design, KPIs are not just business tools — they are feedback loops from real players, helping you understand if the systems you built actually work.

1️⃣ Definition

A KPI is a performance metric that tracks user behavior, financial health, or systemic outcomes of your game. It turns player data into meaningful signals that guide design, production, and LiveOps decisions.

📍KPIs don’t replace design intuition — they challenge it.

2️⃣ Why KPIs Matter

Function	What It Enables
Health Tracking	Are players staying, paying, growing?
Design Evaluation	Is onboarding working? Are loops sticky?
Monetization Tuning	Are offers fair and appealing?
LiveOps Impact	Are events boosting re-engagement?
Pitch/Funding Support	Can you prove success with real data?

📍Every KPI represents a player behavior. Understand the why, not just the number.

3️⃣ Common KPI Categories

Category	KPI	Description
Engagement	DAU / MAU	Daily / Monthly Active Users
	Sticky Factor	DAU ÷ MAU (0.2–0.3 is typical baseline)
Retention	D1 / D7 / D30	% of users returning after 1, 7, or 30 days
Monetization	ARPU / ARPPU	Revenue per (paying) user
	ARPDAU	Avg revenue per daily active user
	LTV	Lifetime value of a user
	Paying Conversion	% of players who make purchases
Acquisition	CPI	Cost per install
	K-Factor	Organic growth rate from virality/referrals
Churn	Churn Rate	% of users who stop playing over time
Session Metrics	Length / Count	Average time and frequency per session

📍Stickiness (DAU ÷ MAU) is one of the clearest signals of habit-forming loops.

4️⃣ KPIs That Inform Design

KPI	What It Reveals
D1 Retention	Was onboarding clear, rewarding, and bug-free?
Session Length	Does the core loop create depth or drop-off?
ARPPU	Are paying users finding valuable outcomes?
Churn Rate	Where do players leave — and why?
Stickiness	Are players returning daily out of habit or obligation?

📍Low D7 often signals grind, imbalance, or broken midgame motivation.

5️⃣ How Designers Use KPIs

Use Case	Design Application
Low D1	Simplify FTUE, improve onboarding clarity
High churn at level X	Tune difficulty, improve feedback, adjust reward pacing
Weak monetization	Rework offer presentation or item utility
Low session time	Refine loop rhythm, reduce friction, add short-term goals
Low sticky factor	Add dailies, meta-loop depth, progression clarity

📍Data without design analysis = noise. Design without data = guessing.

✅ KPI Design Checklist

Do you track KPIs per feature, not just globally?

Are KPIs tied to player motivation (not just revenue)?

Do you combine metrics with qualitative feedback?

Can KPIs answer why players stay or leave?

Are they tracked across platform, cohort, and region?

📍Your job is not to chase the KPI — it’s to build the system that naturally moves it.

Summary

Term	KPI (Key Performance Indicator)
What it is	A measurable signal of game performance or player behavior
Why it matters	Helps you validate systems, tune monetization, and reduce churn
Examples	D1 retention, LTV, ARPPU, session length, CPI
Design goal	Use KPIs to understand player behavior and improve your game meaningfully

📍A KPI is not a goal — It’s a question your game is constantly answering.