How to build various user incentive systems?

User operation is to add a suitable user incentive system to the product, and top user operation is to make the product the best incentive for users.

There has been a strange phenomenon in Internet products in recent years. No matter what product it is, there will always be a points mall inserted into it, and then a membership system , asking users to sign in every day, resulting in the product becoming heavier and the mobile phone memory becoming less and less sufficient.

I must admit that the user incentive system has been a powerful means of user operation in past business practices. Since the advent of the Internet, the user points system of airlines and high-end hotels has encouraged users to continue using their products. However, it must be said that the user incentive system has been abused by many products. This article aims to bring everyone back to the right path.

When doing user operations, we must have rules. User operations do not mean that we can succeed by simply copying someone else's user points system and applying it to our own products. Good operations know how to assess the situation and adapt to local conditions. User incentives should be diversified. They should not only include points, achievements, and membership level systems. From the product icon to a small red dot, they are all organic parts of the user incentive system.

User incentives are a must for all products, but the various systems mentioned above are not necessarily the same. Let’s discuss this together.

1. Concept

1. What are user incentives?

Motivation is a management concept, which refers to the process by which an organization stimulates, guides, maintains and regulates the behavior of its members through designing appropriate external reward forms and working environment, using certain behavioral norms and punitive measures, and relying on information communication, so as to effectively achieve the organization's and individual goals.

Simply put, it is to give users something that will make them feel "good" and let them do something that can help our products achieve certain business goals. The three keys are to clarify “business purpose”, “incentive bounty” and “target behavior”.

This sounds a bit abstract, so let’s take a very simple example: a store is about to move, but there is still a lot of inventory in the warehouse that must be cleared out as soon as possible.

After analysis, we know that the current core business purpose is to encourage users to increase the number of single purchases as much as possible. Therefore, we proposed that users who purchased one more item could receive a photo of SNH48 to encourage users to buy more items.

Here, our business purpose is: clear inventory; the target behavior is: promote purchases; the incentive bounty is: SNH48 photo.

2. Carry out user incentives step by step

1. Determine current business objectives

(1) Determine the current stage of the product

At different stages of the product life cycle , the product's current business purpose and user composition will be significantly different. Operators should make different operating strategies based on the current stage of the product. We generally divide the product life cycle into the introduction period, growth period, mature converter period, stabilization period, and user churn period.

The following table shows the product life cycle and current life cycle of some apps:

(2) Classify users at the current stage and find the core user group

For the core business purpose of each stage of the product, there is always a part that helps us achieve it. We need to find these core users and motivate them to complete designated actions to enable our product to achieve the core business purpose.

Before that, we need to classify the users in the current product:

1. Find the “target behavior” that needs to be motivated

Here’s how I found these target behaviors:

(1) List the possible behaviors that users may take in the product

Every user interaction should be detailed as much as possible, such as: uploading an avatar, uploading a nickname, inviting friends, following a certain category of goods, adding items to the shopping cart, modifying the quantity of items in the shopping cart, etc.

(2) Work with the data analysis department to analyze the user interaction behaviors you listed and find those behaviors that have a correlation with the core business objectives.

For example: LinkedIn found that users who added 5 or more friends on the day of registration had a significantly higher retention rate than other users. Therefore, LinkedIn’s onboarding guide for all registered users is to recommend some friends they may know to them, and encourage them to add 5 friends as quickly as possible.

(3) Determine whether these behaviors need incentives

Regarding the behavior of "opening the APP", we often use "sign-in" to provide incentives. There has always been a debate: whether the "sign-in" function is necessary. We still need to adapt to local conditions and look at the products. We can do high-frequency e-commerce , games , and running apps. If we do Internet finance, we will be able to attract a lot of freeloaders .

1. Identify an effective “incentive bounty”

Behind every action taken by humans there is a motivation, which can be divided into external motivation and internal motivation. Internal motivations are those human instincts, such as socializing , exploring the unknown, etc., while external motivations are those incentives that require external grants, such as achieving success, obtaining scarce goods, etc.

First, let’s understand what motivates humans in psychology. We will introduce a model of gamification thinking - the Octagon Behavioral Analysis Method.

Gamification master Zhou Yukai believes that the reasons why people play games are basically inseparable from eight core driving forces, which is the "Octagonal Behavior Analysis."

Just imagine: such an intangible thing as games can actually fascinate you so much, you can imagine how magical these eight core driving forces are.

Eight motivational factors

1. What motivates users to do what we want?

(1) Using our products has an epic sense of mission

Example: Cao Cao Private Car

The points system of Cao Cao Private Car is named Carbon Bank, which expresses that the points are not just ordinary points, but the carbon you reduce for the earth. It complements the environmental protection concept of Cao Cao Private Car's pure electric vehicles and gives the use of this product an epic sense of mission.

Caocao Carbon Bank

(2) Continuous use of our products can bring a sense of accomplishment and progress

Example: Game ladder and rank

Because of the popularity of Honor of Kings , we discovered a new profession - game substitute. When we win a game, we can see that our rank has risen by one level, which is a great motivation for users. So some users, in order to continue to satisfy their sense of accomplishment, give their accounts to these substitute players to help them gain points.

Chicken Ladder

(3) Come and use our products to unleash your creativity

Example: QQ Show

Our generation has all had some exposure to QQ Show. It is an interesting game where users can use their creativity to match clothes for their virtual characters to give their virtual characters a special image. If doing something allows us to continue to be creative, we will become addicted to it.

(4) From today on, I have a new user and you have a new favorite.

Example: Ant Farm

Ant Farm is actually a user task system. Users can buy feed and clothes for the chickens by completing certain tasks. This has many more advantages than the traditional task system. Humans are naturally inclined to attach great importance to and become addicted to things that they define as their own. When this chick is defined as yours, you will pay more attention to it. From another perspective, this increases your relationship with Alipay .

(5) In order to make my friend happy, I started using your product

Social interaction is the most effective of the eight user incentives. There are three types of social activities that people often engage in: altruism, sociability, and showing off.

We have noticed that many Internet products have the function of bringing in new users, which means that if I invite a friend to use the product, both parties can benefit. This is taking advantage of the user's altruistic psychology. The sociable mentality is that if my friends are all using a certain product, I will join in to have something to talk about with them. This often happens in university dormitories. After two classmates in a dormitory start playing a certain game, the game will soon spread to the entire dormitory.

（6）Scarcity and Desire

Diamond is the biggest lie in this world, it is just carbon and has no meaning, but due to its scarcity and the meaning it gives to love, it becomes a luxury product. It’s interesting how people crave scarcity, and sneaker fanatics queuing up all night to buy limited edition shoes is a good example.

In a product, creating some scarce content is a good user incentive. For example, Vipshop ’s inventory of most products is limited, and their popular products will be quickly sold out during big sales.

(7) Exploring the unknown

Example: Tencent Sports

Tencent Sports users can obtain K value by signing in, watching games, recharging, etc., and the K value can be used to make the game more exciting. From ancient times to the present, people have been keen on guessing and even gambling on the results of sports games. I think this is our human desire for unknown results. Through K coin guessing, users are guided to collect K coins, thereby increasing user activity.

3. Key points in the design of the member incentive system

1. Level system

Visualized levels are an intrinsic motivation for us. When there is a hierarchy system in our lives, people will have the internal drive to push themselves to strive for a higher level. During the slave society, the rulers established a strict hierarchical ruling system, including the military rank system in the army. People never get tired of this hierarchical game that has been passed down for thousands of years.

The design of the hierarchy system needs to consider the following factors first:

(1) Level ladder and differentiated level benefits: Design a differentiated benefits system to make high-value users feel happy continuously and motivate low-level users to upgrade.

Design points:

How many levels are considered appropriate?

This depends on different products. Generally speaking, the more frequently a product is used, the more corresponding levels it should have. But a problem arises at this time. There are too many levels, and we have no way to make differences between each level. So we will classify several small levels into one large level, and users within this large level have the same rights and interests.

Level differences and benefits:

Generally speaking, there are two approaches: the first is to solve different pain points of users. For high-level users, we can help them solve more pain points. Another routine is that we provide different degrees of solution to the same pain point. For example, for low-level users, we provide free shipping for purchases over 100 yuan, while for high-level users, we provide free shipping for purchases over 50 yuan.

(2) Level measurement indicators: There is a number to measure this level, preferably one that is related to the company's own products, such as Taobao 's "naughty value"

Design points: The naming of this value is very important because there are too many products with a tiered system nowadays. In order for users to remember the loyalty system corresponding to your product, you need a name that matches the product.

JD.com calls it “JD Value”, Taobao calls it “Taobao Value”, and airline points are mostly called “mileage”.

How to determine how much growth value is needed to be rewarded for each level increase?

The level system does not exist when the product is launched. The level segmentation decision is best made according to the current user distribution and future development plans. A more reasonable upgrade method is a pyramid design, which means that it is very easy for low-level users to upgrade, but very difficult for high-level users to upgrade.

There are only three levels of flying pigs, which are also designed according to the pyramid.

(3) Upgrade reminder: In the business world, anything you do to benefit the other party is ultimately for the purpose of achieving your own goals. If we don’t make a big fuss to tell users that they have obtained new rights and interests, how can users remember us?

Design highlights: multi- channel push.

Use multiple channels both on and off the site to inform users that they have been upgraded to the next level and publicize the latest user rights after the upgrade. After the user upgrades, a floating layer or personalized splash screen can be popped up, or the user can be notified by sending an in-site message or text message.

1. Points system

Points are a rebate mechanism. Every time a user uses a product according to a specified path, they will receive a certain amount of virtual currency. Virtual currency is generally only allowed to be used in the current product.

(1) Obtaining points

The way to obtain points is similar to the way to obtain the "level measurement indicators" mentioned above. Most of them are when users continue to complete an action that supports the commercial purpose of the product, such as: continuous purchases can earn points. Then cooperate with users to complete certain designated tasks, such as the user's first login, first order, and posting orders and comments on purchased items.

There are several common ways to earn points on the Internet:

Social:

Daily login or sign-in;

Share to get points or forward to get points;

You will get points based on how much time you spend online every day.

E-commerce:

Consumption can earn corresponding points;

Evaluate products to get corresponding points;

Get points by posting your orders;

Points are earned for satisfaction ratings.

Let’s go back to what we said above. We need to incentivize indicators that are highly correlated with the core growth indicators and business purposes of the product.

(2) Consumption of points

Redemption of points: redeem coupons within products, redeem product peripherals, and even involve an outsourced points mall supplier to provide various gifts.

Gamification of consumption: You can design a big turntable, points-based exciting game wins and losses, etc. in the member club to allow users to consume points and recover costs.

(3) On-site operation of the points mall

Phase 1: When the points mall is launched, the value of points should be fully publicized, and the value comparison between points and physical gifts should be publicized in a prominent position on the site.

The second stage: When users start collecting points, they need to learn to control costs, such as resetting points at the end of each year; and setting up some points recovery items, such as points guessing and points lottery.

The third stage: When the points mall has reached a certain level of activity, we can consider using the points mall for monetization, such as: using points to purchase with cash, exchanging points for partner trials, etc.

1. Mission and achievement system

The task and achievement system is another type of points system. The points system rewards virtual currency with cash value, while the task system rewards social currency with no cash value. Mainly, after meeting certain conditions, users can obtain some virtual medals. Virtual medals mainly represent the “sense of ownership” and “sense of progress and achievement” mentioned above.

Therefore, the design points of the achievement system are as follows:

(1) A good-looking achievement medal

We have had a collecting habit since we were young. Do you remember the Water Margin cards of Little Raccoon? Do you still remember the exquisite painting and description of the characters’ stories?

Yes, it is them, because they are beautiful and interesting enough that aroused our collecting habit back then. Therefore, those medals representing the achievement system must be carefully designed by illustrators to make them attractive enough to users.

The badge of QQ is simple and beautiful

(2) Have a sense of climbing and hierarchy

For the same achievement, we can set several levels and mark them with bronze, silver, and gold, so that users can feel a sense of climbing when completing achievement tasks. At the same time, the achievement system should become more and more difficult, and the achievement medals should become more and more exquisite.

The Honor of Kings medal has three levels: gold, silver and bronze

Summarize

User incentives permeate every aspect of the product, and the incentive system is a specific form of presentation. The user incentive system includes: growth level system, points virtual currency system, and task medal system.

In addition to the system, product details and optimization of marketing copy also play an important role in user motivation. When creating a user incentive system, don’t do it just to get the job done. The essence is to promote user activity and achieve our current core business goals. The user incentive system must be based on data and continuously adjusted and optimized using data.

The last sentence summarizes the whole article:

Excellent user operation is to add a suitable user incentive system to the product, and top user operation is to make the product the best incentive for users.

Source: Jianshu