Review: How to effectively build a user incentive system!

A product will go through four stages: seed stage, growth stage, maturity stage, and decline stage. Building an incentive system can extend the length of the product cycle and increase user stickiness.

The author has two years of experience as a product manager in an Internet finance company, going through the seed stage and the growth stage, and his job tasks have been adjusted several times. During the development stage, he participated in the establishment and promotion of the incentive system, and continuously iterated and improved it. This chapter focuses on reviewing the sign-in lottery system of the incentive system from planning to implementation.

Why do we need incentive systems?

Any product will go through the seed stage, growth stage, maturity stage, and decline stage as shown in the figure below. We certainly don’t want users to enter the decline stage quickly.

The incentive system can extend the length of a product's entire life cycle and effectively improve user stickiness.

We think from two perspectives: user value and product value;

1. User Value

The incentive system can extend the user life cycle and increase user activity; during the product development stage, as the user scale increases rapidly, there is an urgent need to carry out tiered operational management of users.

At the same time, it improves user activity, increases user stickiness, and obtains user value. For example, video websites have acquired a large number of users in the early stage, and can allow users to earn gold coins based on the length of time they watch videos. Gold coins can be exchanged for goods. Only by increasing activity can you get more benefits.

1. Product Value

By satisfying the spiritual/interest needs of users, users can continuously contribute to the product along the set product route, thereby enhancing the product value and further contributing to the product.

1. Differentiate users by level, bring traffic to the product, set corresponding level rights and interests, and adjust operation strategies for users of different levels;
2. Screen loyal users and provide them with better services.
3. Accumulate and obtain user behavior data to provide data support for subsequent product marketing.

Under what circumstances is it appropriate to build an incentive system?

• High-frequency, low-intensity products are more suitable for incentive systems: shopping, community, social networking, and games;
• Low-frequency, high-intensity products are not suitable for the incentive system: 12306 tools, house purchases, car purchases.

Three types of incentives

1. Honor incentive type:

Points system, identity authentication, competitive ranking, grade system, credit system;

1. Emotional motivation:

Interaction incentives and platform incentives;

1. Benefit incentives:

Privileged offers and benefits redemption;

The incentive system is a means for users to use the product more.

How do I build a user incentive system ?

Analyze users and identify roles

What types of users are there in the product and what are their respective roles?

There is only one type of user in the financial management side of mutual financial products: investment users. These users are subdivided into positive and active users who invest a large amount and follow the 80/20 principle; there are novice users who try out a small amount; there are extremely conservative users who are worried about risks and wait and see;

My target users are logged-in users. Regardless of whether they are registered or not, they can open the sign-in after registration to understand the rules and then enjoy the benefits of sign-in.

Analyze user behavior

Which user behaviors should be incentivized and which are harmful?

Users should be encouraged to log in, register, invest, sign in, and receive rewards. The rewards obtained after signing in should be used to encourage users to log in to the APP frequently, thereby continuously increasing the cost of user abandonment.

Confirmation means

Is the incentive a time-accumulated incentive? Or is it one-time incentives, local incentives, global incentives, incentive costs, development costs, labor costs, operating costs, and consumption budgets?

Why should I create a sign-in system?

1. After the 2.0 version was launched, user activity tended to be stable, with no significant improvement;
2. Through backend data analysis and channel analysis, the conversion rate and retention rate remain stable and are in urgent need of further improvement;
3. Further improve the new user investment conversion rate.

Therefore, based on the platform's resource (personnel, budget, and planning) configuration, the following goals were set:

1. Improve the activity of the APP (this time only the sign-in function is added on the mobile terminal);
2. Extract behavioral data of user groups at different levels and divide them into tags in the background to facilitate marketing;
3. Improve the new user investment conversion rate and user stickiness; double the original;

Actions that users need to complete:

• Encouraged behavior 1: Log in to the APP and click to sign in;
• Encouraged behavior 2: lucky draw;
• Encourage behavior 3: users redeem goods with points they earn;

Users use the investment red envelopes and interest rate coupons they receive when investing; users receive: reward points, prizes such as interest rate coupons and red envelopes from lucky draws, etc.

Help users transition to deep users.

Type of incentives used

Sign-in points system.

The platform has strong tool attributes and adopts material incentives, so it emphasizes material incentives and spiritual incentives. Due to budget constraints, incentives are based on probability.

Incentive rules

Incentive worth name: points.

Behavior for obtaining incentive value: log in and sign in.

You will get points by logging in daily and clicking on the homepage to sign in. Signing in on 1/11/21/31 of each month will give you a chance to win a lottery without points or other material benefits.

Incentive value consumption rules: redemption in the points mall will consume points, and lottery will consume points.

As shown below:

Users can make up for yesterday's sign-in, but this requires consuming points. By signing in every day, they can get 5 points (as shown in the picture, points are obtained after successful sign-in).

Do good things and leave your name behind

1. Users will get a surprise when they sign in every 1 day. In the picture above, they will get a 0.5 interest rate coupon. Users need to click to receive it before it can be transferred to their account. There is a receiving action to inform users that the platform has issued benefits. It is an extra benefit given by the platform.

2. Users can view the points they have earned and the rewards given by the platform in their sign-in records, which encourages users to continue to sign in;

1. On the sign-in page, there is a lucky draw button. When users click it, they will enter the lucky draw. The lucky draw includes lucky draw tickets and points. There is a 100% chance of winning.

1. Today's lucky draw has a rolling list of the user names and prizes of the day's lucky draw, which constantly tempts users to participate in the lucky draw, consume points, and get rewards;

2. My records: You can view my historical lottery records;

3. Click the lucky draw button and after turning it for 2 seconds, prizes will be given randomly, as shown below:

There are two different feedback pop-up windows for the lottery:

Backend operation data statistics

After completing the sign-in and lottery reward system, we must continue to track and compile statistics on the data. We have added a statistical function to the background, which can monitor user data in real time according to the budget situation and adjust the winning probability at any time.

As shown above:

The background records the number of people logging in every day, the number of people participating in the check-in, the number of people participating in the lottery, the number of people winning prizes, the distribution of prizes, etc.

Compare the user activity before the online sign-in system was launched, and compare it with the original goal:

• New user conversion rate and retention rate increased by 45% and 56%;
• User activity increased by 33%;
• The number of people using apps increased to 86%;
• The number of users who take advantage of the service has increased by 70%.

A large number of new users only register but do not invest, and sign in every day. In the later stage, we will focus on these users and conduct user marketing.

This is just a sign-in and lottery system. Next time we will share the process from 0 to 1 of the user system, the user level system, and the points mall project.

Source: Fatty