Fission effect is not good? Maybe the user rewards are not done well.

This article will explain the five categories of user rewards: cash, coupons, physical items, cards and points, and tell you how to use each category of rewards to achieve the best results.

Many operations partners and marketing partners will have such voices:

• Why is it that even though I have given out ip honeX as a reward, there are still not many people participating in my event?
• Why is my paid conversion rate still low even though my prizes are so generous?
• Why is it that even though I have offered the best prizes within my budget, the user fission effect is still not good?

In fact, many details of fission activities will determine the effect of fission. How to reward users is such a very important detail.

First, classify user rewards into: cash, coupons, physical items, cards and coupons, and points.

So, how do you reward users during fission activities?

Below I will explain each of these categories of rewards and tell you how to use each category of rewards to achieve the best results.

Cash

Routine

Unless the wool comes from the sheep, don't use cash easily. Rich companies please skip this section, because spending money to attract users is actually quite effective, but you need to have money. (Operation Meow & Marketing Chicken’s inner thoughts: The boss is unwilling to spend money every day, and he wants me to attract new customers , what can I do?)

As the saying goes, the wool comes from the sheep, and the most common example is the course distribution that is common among knowledge-based paid products. In the fission activity of bringing in new customers, if you want to reward customers with money, it must comply with a formula: the amount paid by new users > the amount rewarded to new and old users . This is the only way to reward the sheep with their wool.

It's not just about paying for knowledge. If users need to be rewarded with cash, then old user A invites new user B, and user B completes a payment on the platform, then users AB will be rewarded with cash.

Coupon

In fission activities, this type of prize is very common and is also a very important type of reward. As for how to give coupons to users, I will not elaborate here. You can review my articles for historical information , 10 ways for old customers to bring in new customers.

Why are coupons so important?

Because when coupons are used as a fission reward, this reward itself can also increase user payment rate and repurchase rate.

The timing of distributing coupons in fission activities is also quite particular. Let me give you an example.

Shenzhou Private Car Case

How to play: Old customers can bring new customers. After new users complete their first ride, they will each receive a 60-yuan special car coupon.

Coupon distribution time: When a new user completes his first ride, coupons are distributed to new and old users, that is, coupons are distributed to new and old users at the same time.

Analysis: After the operational goal of bringing in new customers is achieved, the role of coupons for both new and old users is to increase the repurchase rate, that is, users take the bus again.

Another way of thinking about the distribution time point: In the more common fission activities on the market, the coupons are distributed when the new user completes their first purchase, but let’s compare the following two distribution time points.

1. Old users bring in new ones, new users register, and both new and old users will receive coupons.
2. Old users can bring in new users. When a new user registers, he/she will get a coupon. When a new user makes his/her first purchase, old users will also get a coupon.

It can be seen that example A is similar to that of Shenzhou Special Car, and they are also distributed at the same time. B is different, B is dispatched asynchronously.

A's analysis: For old users, it can increase the repurchase rate, and for new users, it can increase the first payment rate. However, this method has a risk, which is that old users may cheat.

Analysis of B: B is used to optimize the cheating risk of A. New users invited by old users can immediately get coupons, thereby effectively increasing the first payment rate of new users. For old users, new users can get coupons after consumption, which can also increase the repurchase rate of old users.

Summary of distribution time points: There are two types of coupon distribution time points: simultaneous distribution and asynchronous distribution . It is also recommended to distribute it to new users after they complete their first consumption, which can effectively increase the repurchase rate of new and old users. In order to increase the first payment rate of new users, coupons can be distributed asynchronously.

Scope of application

It is important to note here that e-commerce products, services, paid course products, etc. can all use prizes such as coupons, but products with higher value are not suitable for such prizes. Because the value of the goods is high, the impulse and emotion in the user's purchasing decision will be greatly reduced, and coupons stimulate users' impulse and emotional consumption through various activity packaging.

So what kind of prizes are used for items with higher value?

I will explain it to you below.

Physical

For physical prizes, the most popular one should be iPhone, right?

But if any of my friends finds an iPhone for free if they bring in a new employee, please tell me. I want to participate in the event and want to get the bargain together with them.

Physical prizes are actually very awkward. When doing fission, it is impossible to give an iPhone to each new and old user. Giving other physical prizes of low value may make it difficult to stimulate old users to attract new users. The most important thing is that physical prizes have a disadvantage - even with the same prize budget, the fission effect will be different due to different prize selections.

This sounds like an opportunity, but in reality it is an uncontrollable risk that fission activities need to avoid. Because to ensure that physical prizes are effective, an operator needs to fully understand the users. Just by changing the operator, the effect of this activity will be completely different.

Scope of application

Suitable for high-value goods . When you are trying to attract new customers by giving them physical items, or even an iPhone. The sales office in our community is running this activity where old owners bring in new owners. If a community owner recommends someone to buy a house, the owner can get an iPhone. Therefore, this type of fission activity of high-value commodities. The purpose of giving physical gifts is more of a customer care, because customers will not repurchase.

Cards and coupons

Card and coupon categories mainly include: telephone recharge cards, JD shopping cards, coffee coupons, etc. This type of prize is still not recommended for fission activities. Because this is similar to physical prizes, such as giving coffee coupons, but users may not drink coffee, so it cannot effectively motivate old users to split.

Applicable scope: Similar to physical prizes, applicable to high-value goods.

Points

Finally, let’s talk about points-based prizes. This is the prize I most want to recommend to everyone besides coupons, because through the points prize, we can actually achieve any goal we want. Points are nothing more than increasing points and consuming points.

We use the case of Xiaomi to illustrate how point-based rewards should be used.

Xiaomi Case

Ways to earn points:

Points are obtained through a complete task system, as can be seen in the picture: different points can be obtained by completing various tasks.

For example: how many points are rewarded for new registration, how many points are rewarded for users who pay to buy products, how many points are rewarded for users who make repeat purchases, how many points are rewarded for users who bring new users to register for products, and you can also earn points through various activities and lotteries. Therefore, the way to obtain points is destined to attract new traffic , generate fission, convert points into paid users, and generate repeat purchases.

Points consumption:

Currently, Xiaomi’s points are mainly used for raffles, but in fact, this is also the practice of a complete points mall. Points can be exchanged for goods, points can be used as cash, points can be redeemed for many prizes, points can be used for lotteries, etc.

Therefore, the points activity prize connects the task system and the points mall. Of course, the cost of building the points system will be slightly higher for enterprises in the early stages. However, I still recommend that companies need to gradually build up a points system , because points are the universal prizes among event prizes and can be used in any way.

summary

There are many details that need to be controlled in fission activities, and it is definitely not as simple as the few gameplay templates of old customers bringing in new customers.

To summarize: in fission activities, rewards cannot be given randomly to users. There are monetary rewards and physical rewards.

Let’s rank the recommended levels of rewards: points > coupons > cash > cards > physical items .

Source: 2 Minute Marketing