The problem of one-shot customers

[Sir Whiskers]

Zar, there's one option you did not mention which I believe would be very do-able (though likely to cause considerable consternation at first) - charge an annual subscription fee for the material currently available for free on their website.

When advertising revenues crashed (three years ago?), many websites stopped operating. A few moved successfully to a subscription model, offering just enough free material to draw visitors, while reserving the majority of their "product" for paying customers. WOTC currently gives away an enormous amount of free material - short adventures, npc's, monster write-ups, and so forth. I've wondered more than once how much this must be costing the company and if they will continue to do so. By the way, for everyone on these boards who feel WOTC is only some greedy capitalist company out for every dollar they can squeeze from us, consider for a moment just how much they give away for free. Yes, the website helps build the hobby somewhat, but any realistic cost-benefit analysis would clearly show it to be a cost center.

I can already hear the cries of outrage if WOTC ever does this, but if WOTC needs more revenue to maintain DnD (whatever version), I'd prefer this option to the others already mentioned. Understand - I don't *want* this to happen. I just don't believe any of the other options listed above are realistic.

 

[Zaruthustran]

The "mix" in product mix

I think WotC current strategy is sound and wise:

Core books. The Three Books and a limited number of supplements will satisfy traditional RPG gamers. They can count on a strong version release every five years or so.

Collectable Miniatures: This product line serves three purposes. 1) recurring reenue. 2) Expands D&D brand. 3) takes away market share from competitors.

Online game: proven recurring revenue. As a professional game analyst (and longtime player) I think WotC would be wise to avoid another EverQuest clone and instead develop a MMORPG with party-based functionality that truly evokes the feel of D&D adventure. Something like what Mythica or WarCraft Online are trying to do with their spawnable single-party dungeons. And the game should absolutely include DM functionality, as well as the ability to take a break from your PC for awhile so you can play as a monster in someone else's (or your own) dungeon.

Free content: WotC should continue to support its website and should continue giving away free stuff. This feeds the brand and gives gamers a place to "hang out" online. You know how local game stores are dieing out? Well, one big reason for that is because you can get the camaraderie of the FLGS online, 24/7.

Not that I think WotC is doing a 100% stellar job. I see many areas of improvement, including:

Public Relations. Matt is doing a fine job with his preview articles, and the website is nice, and certain designers are vocal, and the 3.5 update and Miniature previews are well and good... but the image of Wotc as uncaring corporate behemeth persists. WotC has an image problem.

Community. WotC could do a better job leveraging the gamer community. There are plenty of rules experts here and elsewhere, plenty of talented writers. A few more contests, or more structured support of user-created content would be much appreciated. And Customer Service support costs could be lessened if more gamers knew about places like ENWorld.

Opportunity. WotC is part of Hasbro. So where is Hasbro's marketing might? Where is the D&D Cartoon, were are the D&D Miniatures in boxes of Captain Crunch? Where are the product placements in movies and videos? The D&D PHB in the maytag advertisement is a step in the right direction, but more could be done. Vin Diesel, Jack Black, sportsmen, and other celebrities play D&D--why doesn't WotC take advantage of this? And I can't wait for WotC to start leveraging it's other brands, with regards to D&D Miniatures. I really hope the seize the opportunity to make the core D&D Miniatures mechanic the "d20" of miniatures games.

-z

 

[Emiricol]

I don't think WotC has professional PR or Corporate Communications person(s) on staff. At least, if they do, they don't do much in the way of PR. They need someone who knows *PR* right underneath the marketing director.

 

[Morrus]

D&D has one big problem: a giant customer base that buys exactly once, then vanishes.

But how is that different to any product other than regular necessities (food, fuel etc.?). Vast numbers of companies survive on exactly that model.

 

[drothgery]

Re: Re: The problem of one-shot customers

But how is that different to any product other than regular necessities (food, fuel etc.?). Vast numbers of companies survive on exactly that model.

Err... no. You don't have any choice about getting more food (other than growing or hunting for your own) or fuel (other than doing without a car).

Even with books, movies, video games, and toys, you eventually lose interest and want a new one.

But you can play D&D for years with 4 players who own nothing but a PH and one DM who also owns a DMG and an MM. WotC's basic problems are
1) How to get players and DMs to buy stuff regularly.
2) How to increase the size of the RPG market.

 

[Morrus]

Re: Re: Re: The problem of one-shot customers

Err... no. You don't have any choice about getting more food (other than growing or hunting for your own) or fuel (other than doing without a car).

Even with books, movies, video games, and toys, you eventually lose interest and want a new one.

But you can play D&D for years with 4 players who own nothing but a PH and one DM who also owns a DMG and an MM. WotC's basic problems are
1) How to get players and DMs to buy stuff regularly.
2) How to increase the size of the RPG market.

Amazing how a question beginning with the word "How?" can be answered with the word "No".

I *know* you don't have a choice about food or fuel - that's what I said. That's why I included them in my short "exception" list of things you have to buy again and again.

My position that there are many products which you only buy once. The board game "Monopoly", for example. Others which you buy very infrequently - a new car, a new stereo, a new TV. I would wager that, generally, gamers buy those less frequently than they buy new RPG books.

How many times do you buy a stepladder, a washing machine, a toaster? Every few years? About the same number of times you've bought an edition of the PHB? I've bought 4 PHBs in my life (1x1E, 2x2E and 1x3E). I've bought one stepladder, two stereos, two TVs, 1 washing machine, 2 toasters.

You isolate D&D, but lump all other books, games, toys together, then propose that people buy "books, games and toys" more often than the game D&D. Yeah, of course - people will always buy "electronics" more often than a new digital camera; they'll buy "vehicles" more often than a Ford Escort; they'll buy "kitchen appliances" more often than toasters. The comparison doesn't work for me, because you're not comparing like for like.

Not that I'm saying WotC has the perfect stategy or anything like that. I'm just pointing out that the single-purchase customer is capable of supporting other areas of commerce. I'm no expert on economics or business theory, and I agree with you that D&D probably works differently, thus my original question - how is this different to those other products?

 

[Saeviomagy]

Re: Re: Re: Re: The problem of one-shot customers

Amazing how a question beginning with the word "How?" can be answered with the word "No".

Hey - be fair. The no was addressed to the trailing statement on the question and it also obviously missed out the "other than" in the question itself...

How many times do you buy a stepladder, a washing machine, a toaster? Every few years? About the same number of times you've bought an edition of the PHB? I've bought 4 PHBs in my life (1x1E, 2x2E and 1x3E). I've bought one stepladder, two stereos, two TVs, 1 washing machine, 2 toasters.

First up there is the market size - more people buy toasters than play D&D. Add that to the fact that if one person in a household wants a toaster, then they probably have to buy one. If one person wants to play D&D, then they can wait for their buddy to buy one.

Not that I'm saying WotC has the perfect stategy or anything like that. I'm just pointing out that the single-purchase customer is capable of supporting other areas of commerce. I'm no expert on economics or business theory, and I agree with you that D&D probably works differently, thus my original question - how is this different to those other products?

I think a better comparison is probably D&D and artwork. Primarily because people value a D&D book at less than they value a CD player or microwave. Consumer electronics have a very high profit margin almost purely because the average buyer hasn't a clue about how they work, or what they cost to manufacture.

Yet everyone seems to be able to look at an RPG book and say "it's not worth $30", even when confronted with the evidence.

 

[RangerWickett]

WotC could try having more major events, things that everyone will want in on because they look super-cool. Much like huge numbers of us flock to see summer blockbusters, WotC could release one super-adventure every winter around Christmas-time, perhaps bundling new rules that people will want to get their hands on in the same book/box.

For some groups, the GM will want to see what all the fuss is about and will buy the adventure by itself. In other groups, a player will want the Cool New Thing (TM), and will ask his GM to buy the set, and then the GM will consider running the adventure, or at least parts of it. Finally, in some groups, the players will have heard from their friends online how cool the adventure was, and they'll want to play in it too.

Of course, aside from cloning Piratecat and putting him in a box, I don't know how to make games so cool that people have to buy them. Return to the Temple of Elemental Evil apparently did a pretty good job, though, so maybe just come up with something similar. Have a trailer of animation online to show people how cool it is, and make it like an Anime Music Video (AMV), which can be really cool.

 

[hong]

Re: Re: Re: Re: The problem of one-shot customers

I've bought one stepladder, two stereos, two TVs, 1 washing machine, 2 toasters.

Come the revolution, you'll be first against the wall!


Hong "which, of course, is why you buy a stepladder" Ooi

 

[Numion]

Yet another way to solve the problem is to transfer your customers to a "collectable" game model. WotC is exploring this idea with D&D Miniatures.

I'm not too confident this will work. They're trying to make their RPG customer pay for the miniatures many times over with the random packaging. Instead they should be trying to market those to a whole new customer segment.

There just isn't enough incentive for DMs to buy loads of random minis to get the ones they need for their adventure. Mt:G is different. Each player gets his own cards in a competitive environment, where everyone gets the cards to play. In D&D the DM buys minis (ok, players may buy one or two for their own char), and he isn't competiting with the minis (hopefully).