AARRR Model: Mastering Gamification User Growth Strategy (Part 1)

We need a set of operational plans based on the AARRR model to refine actionable operational plans for each level of the conversion funnel around the three topics of growth cost, efficiency, and quality. The gamification growth strategy with the AARRR model + Octagonal Behavior Analysis Method as the theoretical framework came into being.

introduction

As the penetration of online Internet traffic becomes increasingly concentrated, products that occupy the minds of users are gradually taking shape, and few new products can continue to attract users. Not to mention maintaining a steady growth in daily active users, increasing the number of registered users is a difficult task.

This is a big problem in the KPI indicators of the product user growth department. Traffic is becoming more and more expensive, and the violent user growth strategy of the subsidy war type is obviously difficult to maintain the long-term connection between the product and the users, and the operating cost pressure of the product is also unbearable. In order to ensure maximum utilization of traffic, data-driven user growth strategies have emerged.

When it comes to data-driven user growth strategies, the A AR RR model cannot be ignored. We usually break down growth goals and summarize them into the "AARRR" conversion funnel model , namely: acquisition (acquisition of users), activation (stimulation of activity), retention (improvement of retention ), revenue (increase in revenue), and referral (communication and recommendation). In this funnel, some of the introduced users will be lost at a certain link, while the remaining users will reach the next link while continuing to use the app, and finally achieve conversion as they go deeper and deeper.

The meanings of the five links in the "AARRR" conversion funnel are as follows:

User acquisition: refers to allowing potential users to come into contact with the product for the first time, or can be more broadly understood as " attracting traffic ." There are various ways to do this, such as discovering through search engines , clicking on website ads, downloading after seeing media reports , etc.
Stimulate activity: After acquiring users, the next step is to guide them to complete certain "designated actions" to make them long-term active and loyal users. The “designated action” could be filling out a form, downloading a piece of software, posting a piece of content, uploading a photo, or anything else that enables them to use the product correctly and efficiently.
Improve retention: users come quickly and leave quickly. The product lacks stickiness, resulting in a constant influx of new users on the one hand, and their rapid loss on the other. Usually the cost of retaining an old user is much lower than the cost of acquiring a new user. Therefore, improving user retention is an important means to maintain product value and extend its life cycle.
Increase revenue: Business entities are all profit-seeking, and the vast majority of entrepreneurs are most concerned about revenue. Even free products in the Internet age should have their own profit model.
Communication recommendation: The rise of social networks has promoted viral transmission based on user relationships, which is a new way to promote products at low cost. If used properly, it may cause explosive growth.

In this article, we will not focus on data-driven " growth hacking " strategies, but let's think about a few questions:

The AARRR model emphasizes data-driven operational strategies, but if multi-dimensional user data cannot be obtained in the early stages of the product, how can we obtain multi-dimensional, high-value user behavior data at a low cost?
AARRR’s user growth model is straightforward and clear, but in addition to conducting operational analysis through long-term data monitoring, is there a growth plan with a shorter cycle, efficiency, and direct implementation?
The AARRR model provides a modular product growth solution, but each layer of the funnel will miss users who do not meet the target conditions. How can we directly find high-quality target users at the user acquisition layer?

The three questions focus on three important factors that should be considered when driving user growth strategies in product departments:

Growth cost: How to minimize product operating costs while acquiring the same number of users;
Growth efficiency: How to obtain the maximum number of product users in the same operating cycle;
Growth quality: How to increase the proportion of seed and high-potential users while acquiring the same number of users.

From this, it can be seen that no matter how much you understand the concept of the AARRR growth model, new operators or companies that lack scientific operation plans still have no idea where to start with the actual user growth strategy. Just like reading "Everyone is a Product Manager " can give you a thorough understanding of the position of a product manager, but it cannot help you become a real product manager.

Octagonal Behavioral Analysis

The Octagonal Behavioral Analysis Method helps game designers to design a product or a thing, including work, life, goal management, team management, etc., so that the product and our work and lifestyle can be implemented and popularized with greater strength, allowing people to use the product as if they were playing an interesting game, and gain happiness and a sense of accomplishment from it, ultimately helping the company achieve its business goals, thus achieving a win-win situation for all parties.

Octagonal Behavior Analysis Composition

As shown in the figure above, the octagonal behavior analysis method uses the common octagonal shape plus the eight dimensions of core driving forces corresponding to each corner. These eight core driving forces can help us design a complete product in terms of product form and focus at different stages of user use, so that users are happy to use the product, so that the product can obtain the conversion of user value, form a constantly improving platform, and provide users with more high-quality products and services.

Due to limited space, we will give a brief introduction to the eight behavioral factors. Those who are interested can go to Baidu to search for specific concepts or cases.

1. Mission - epic meaning and sense of purpose

It means that human beings believe that what they are doing is more important than the thing itself, and they must work hard to achieve the goal in order to comfort their inner world.

2. Achievement – Growth and fulfillment

It refers to the driving force that makes us make progress, learn skills, achieve mastery, and overcome difficulties by using the product. Challenges are particularly important. Trophies and medals earned without challenges are meaningless.

3. Delegation - creativity and timely feedback

It drives players to immerse themselves in the creative process, constantly finding new things and trying different combinations. By constantly experiencing the creative process, while paying attention to the results of creation, and obtaining timely feedback.

4. Possession – Ownership and sense of ownership

It drives players to own or control something and be motivated by it. When a person has a sense of ownership of an item, he or she will naturally want to improve the various properties of the item. This driving force is the main source of human desire to accumulate wealth and is also the main driving force for players to accumulate virtual currency.

5. Social - Social influence and relevance

It is a collection of all social factors of people, including master-apprentice relationship, social identity, social feedback, partnership, and competitive relationship. Corresponding to respect and self-actualization in Maslow's hierarchy of needs theory.

6. Scarcity — Scarcity and Desire

People want something simply because it is rare or not immediately available. Including task mechanisms and game time limits, players cannot get rewards immediately, which will motivate them to return to this product as soon as they have the opportunity. Even if Honor of Kings limits the amount of time children can play the game, this may actually stimulate them to become more obsessed.

7. Unknown - Unknown and Curiosity

People are always attracted because they don’t know what will happen next. This is the driving force of unknown and curiosity. When something is outside of your normal pattern recognition system, your brain immediately goes into high gear to pay attention to this unexpected event.

8. Loss - Loss and Escape

We all don’t want bad things to happen. We don’t want our previous efforts to go to waste and we don’t want to admit that we have done useless work. Disappearing opportunities are also an effective application of this core driving force. For example: special offers, limited time sales.

How to use Octagonal Behavior Analysis to increase user growth

The Octagon Behavioral Analysis Method was first used for in-game user growth, allowing users to actively immerse themselves in the game scene while bringing commercial value to the product. The eight behavioral modules correspond to corresponding strategies based on user psychology as a reference standard. In addition to being used in game scenarios, they can also be extended and applied in other products.

According to the different characteristics of the eight driving forces, they can be divided into: left brain driving force VS right brain driving force, white hat gamification VS black hat gamification.

It can be understood as extrinsic motivation vs intrinsic motivation. Left-brain core drives tend to rely on extrinsic motivation, where you are motivated because you want to achieve something, such as a goal or an object. The core driving force of the right brain is mostly intrinsic motivation, such as using creativity and spending time with friends. It does not require any goals or rewards; the act itself is a reward.

In operations, we tend to become addicted to external motivations. These measures, such as red envelopes and vouchers, can help improve KPIs in the short term. Giving users direct benefits can lead to increased orders. But this approach is dangerous, as many studies have shown that extrinsic motivation can undermine intrinsic motivation. Once external motivation stops being provided in operational activities, user loss may occur.

One thing to note about the Octagon Behavior Analysis Method is that the core drivers at the top of the octagon are very positive motivations, while the motivations at the bottom are more negative. The core driver at the top is called white hat gamification, and the core driver at the bottom is called black hat gamification.

Let’s take a very extreme example below, which is “bargaining among friends”. When it comes to gamification-like operations, Pinduoduo is the best and most successful. The gameplay of "bargaining with friends" seems simple and easy to understand, but in fact it covers almost all the behavioral points in the Octagonal Behavior Method.

Mission : "Bargaining with Friends" provides a goal for the initiator to complete the bargaining task within a limited time. The user's material desires tend to drive the user to complete the task, and the bargaining process will continuously strengthen the user's sense of mission.
Achievement : Achievement lies in the fact that users use their own connections to complete the bargaining task and successfully get the task prize for free. Achievement itself does not lie in receiving gifts, but rather in the material reflection of the value of the user's own network of contacts, giving the user a sense of accomplishment.
Possession : The prize picture and introduction details page drive users to own the product by completing the task.
Scarcity : The reminder that there are xx hours left to go keeps reminding users that prizes are scarce and they must complete the bargaining within the time limit. Improve users' sense of urgency and involvement.
Escape : Escape lies in two aspects. On the one hand, users can avoid the traditional way of purchasing to get prizes; on the other hand, the task prizes are selected and provided by the platform, allowing users to avoid the process of actively screening and purchasing products and directly reach the purchasing behavior.
Unknown : Having cut XX yuan is a known factor for users during the task process, but how much money can be cut at the end of the task is unknown. Curiosity about the unknown drives users to participate in the task.
Social : As the name suggests, "friends" bargaining is based on the logic of WeChat social chain. Without the friend relationship social chain, the task cannot be carried out. At the same time, the use of social chains has also raised the threshold and fun of activities.
Authorization : Users who help their friends bargain create their own user value for this bargaining activity. The amount of money cut off by different users is different, and the amount of money cut off by each user is brand new, which is the mystery of creation.

By using the Octagon Behavior Analysis Method to review Pinduoduo's "Bargaining with Friends" gameplay, we found that from an in-depth exploration of Pinduoduo's gamified product logic, it can be seen that most effective user growth operation activities essentially utilize the Octagon Behavior Analysis Method based on different user behavior factors. The more flexible and comprehensive the use, the more significant the user growth effect. The best example is the "bargaining with friends" approach, which applies the Octagon behavioral analysis method to the extreme.

AARRR model + Octagon behavior analysis method, gamification user growth

The above example serves as a stepping stone to introduce how Octagon Behavioral Analysis can be applied to operational growth activities. The example of "bargaining with friends" is just a review and analysis from the perspective of the Octagonal Behavior Model. Now we will analyze from the dimension of a universal user growth model and link the Octagonal Behavior Analysis Model with the AARRR Growth Model. Now we combine the Octagonal Behavior Analysis Method with the AARRR User Growth Model to conduct an in-depth analysis of each layer of the funnel conversion model:

1. Get layer

(1) Traditional method

Acquire users from various channels (such as search engines, self-media such as WeChat and Weibo headlines, website advertising, offline activities , exhibitions, industry fairs, etc.). Naturally, the number and quality of users acquired through each channel are different. At this time, the product team and the operation team must pay attention to the number and quality of users converted from each channel, and focus on those promotion channels with higher ROI.

The problem with the traditional approach is that it places the main focus of operations on channels, rather than locking in high-potential and target users in the early stages of operations. The ROI of promotion channels is certainly important, but the focus of ROI evaluation is to help the product find more interested users rather than users who can be converted.

(2) Octagonal Behavior Analysis Method: Achievement + Mission

In the user growth strategy based on the Octagon Behavioral Analysis method, the first user behaviors to focus on are achievement and mission. Achievement is an external factor, which is a measurable product or service that can be directly displayed to users. Mission is an internal factor. It is the vision that drives users to work hard to achieve the achievement after they measure the value of the achievement. There are two key factors here:

The value of achievement itself can be directly measured. It should not be too obscure or virtual. It is best to measure it in monetary terms.
The target user group must recognize the value of the achievement and be willing to contribute value to it in order to evaluate the value of the achievement.

(3) Case

The product revenue of Baidu Encyclopedia is the number of entries written, so the "Tadpole Group" was established to use exclusive identities and writing privileges to attract and motivate users, and to produce larger and higher-quality entries in a more timely manner, which is consistent with the product revenue.

"Defending the power of knowledge" gives users a sense of mission, and writing entries brings users certain economic benefits and special identity identification, creating a sense of accomplishment for users. Baidu Knows hopes that users will help maintain content order, and has organized core users to form "Sesame Generals" whose responsibilities include transferring content management tasks such as classification, recommendation or encrypted answers, which is consistent with the benefits of the product.

2. Activate Layer

(1) Traditional method

After acquiring users, the next step is to guide them to complete certain "specified actions" to make them long-term active and loyal users. For example, posting pictures, updates, and any other actions that encourage them to use your product correctly and efficiently. The point of activation is guidance.

For example, traditional businesses: through in-store displays and active guidance by waiters, customers can immediately understand: where there are empty seats, where to get menus, how to use coupons, how to apply for membership cards, and how to get along when sharing a table with others. E-commerce platforms attract users to browse products and place orders on the landing page through registration instructions, channel page recommendations, banner images, coupon push, etc.

(2) Octagonal Behavior Analysis Method: Possession + Escape

The user growth strategy based on the Octagon Behavioral Analysis method focuses on guidance at the activation level, but the crux of the matter lies in whether the behavioral path that guides users to make decisions has a clear goal that users can reach. Therefore, first of all, we need to let users know that the goal is a product or service that can be obtained through certain means. At the same time, we need to take advantage of the user's desire to "escape" and tell users how to obtain it as quickly as possible. Here again, there are two key factors:

The goal of showing users must be products or services that users will want to have, and should not be too abstract;
The threshold for "escape" measures given to users should not be too high, and should be in the form of tasks that are within the user's capabilities.

(3) Case

Scheduled red envelope rain is a very common operation method. The core idea is to attract target users to visit at a fixed time and significantly increase traffic. But the red envelope rain gameplay also has problems:

The gameplay is single , users visit the landing page at a fixed time, and a large number of users leave after participating in the red envelope rain event, lacking a means to continuously utilize traffic;
The activity threshold is too low , and a large number of non-target users will not be activated by the activity after receiving the red envelopes, and a large part of the operating resources are wasted;

Let’s take a look at Tmall ’s recent million red envelope rain gameplay. First, a mechanism for inviting friends to increase the number of times was added. In addition to participating in traditional activities, users can also increase their game times by inviting friends to click. This is a manifestation of the "escape" mechanism, and "possession" of course refers to the red envelope itself. At the same time, the event also introduced a "surprise" red envelope rain mechanism. During the process of the previous "invite friends to increase the number of times" task, the user can invite 5 friends and activate another task reward, "surprise red envelope rain". Of course, you can also directly invite friends to start the surprise red envelope rain without inviting friends to increase the number of times.

After reviewing this operation, we can find that although it is a simple "red envelope rain" presentation, the operation logic behind it is very sophisticated. Two clues are used to drive the user's "possession" psychology, while three clues are used to drive the user's "escape" psychology. These clues are intertwined to activate the user, and the gimmick of awarding prizes at fixed times is equivalent to adding medium- and long-term operational gameplay to a short-term operational activity.

3. Retention layer

(1) Traditional method

First, take advantage of product reputation. If a product or service is outstanding, such as being really easy to use or convenient, etc., users will be very willing to recommend it to people around them, and it is often familiar people who introduce it to each other, so the user retention rate will be higher.

Secondly, by utilizing the users' potential needs, on the spiritual level, it is not the users' actual needs that are met, but the cultural spirit of the product or the company that inspires the users and gives them spiritual satisfaction. People have a feeling of nostalgia or enthusiasm for something.

Finally, and this is also quite common, by recommending and sharing with friends, you can get cash back, coupons, discounts, free products, etc., or if multiple people participate, it can be even better, etc. This is actually directly mobilizing users to invite friends to participate.

The larger the retention base and the more core users there are, the greater the number of people and possibilities of recommendations. However, when it comes to improving user retention rate , there are several points that need to be noted: 1. We are trying to attract new users without improving the quality and calculating the costs; 2. We do not have a convenient sharing function; 3. We directly use material and tangible rewards to encourage users to share. These all require attention.

(2) Octagonal Behavior Analysis Method: Authorization + Unknown

For user growth strategies based on Octagon behavioral analysis, the key to retention lies in two-way drive from both the product level and the user level. From the product side, users should be authorized with a system mechanism that allows them to actively create and receive instant feedback, allowing them to continuously contribute value to the product. The more value users pay, the longer they will stay in the product and the more likely they will become core users. At the same time, at the user level, we create unknown exploration scenarios and motivational feedback for users to inspire them on a spiritual level. Authorization or creation is a closed-loop system with the unknown. The more unknown factors the platform outputs to users, the easier it is for users to create, and more unknown factors will be triggered while creating. Here again, there are two key factors:

The creative capabilities and scope authorized to users should be within the controllable range of the platform, with authorization boundaries and thresholds set;
The drive for unknown elements should be continuous and renewable, rooted in every level of demand in the process scenarios created by users.

(3) Case

The case this time is still Tmall... The Ideal Cat Paradise event was a classic operation activity before Taobao . This activity made good use of the "authorization + unknown" octagonal behavior analysis method. The main ways to play the Ideal Cat Paradise activities are:

Open the Taobao app, shake your phone to enter the event page, click "Go to the store to grab red envelopes" or enter any brand store to participate in the game to receive red envelopes/cat food, shopping allowances; or directly enter the event page to adopt a cat at random ;
You can randomly get red envelopes or shopping allowances and cat food when visiting brand stores. At the same time, there are built-in mini-games on each store page, and you can trigger accidental tasks by participating in the games.
Raise a cat to 8KG, adopt the next one, and after raising 3 cats, you can participate in the gold coin competition on June 6, 11, and 18 to grab a red envelope of up to 618 yuan. At the same time, you can open a big treasure chest by visiting 10 brands.

Through the above-mentioned activity gameplay, we can see that, first of all, the activity authorizes users to have a power: "Adopt a cat randomly". The adoption of the first cat is random, but the adoption of subsequent cats can be chosen by the user according to his or her own wishes. At the same time, in the cat house, users can also choose props to dress up the cat, take photos of the cat, and other creative behaviors. The act of raising a cat is turned into a creative nurturing game, while still retaining the pet elements that touch the user's emotions.

When raising a cat, the cat needs to complete certain tasks as it grows, such as paying attention to the store, participating in activities and games, in exchange for cat food. Driven by the psychology of empowerment, users will take the initiative to complete various tasks, and the unknown factors interspersed in each task will drive users to continue to participate in other activities. For example, when you follow a store and enter the store details page, you will see randomly triggered mini-games on the channel page, such as "Catch the Cat's Tail" and "Grab Cat Food". After users participate in the game and receive random rewards, they will browse store merchandise and even place orders in a continued scenario. There are many other ways to play like this in the Cat Paradise event.

The more subtle aspect of the Ideal Cat Park activity is that it does not reduce the cat-raising game to the traditional closed-loop gameplay of following a store to exchange cat food and then raising a cat, because users are very fragile in terms of fatigue, and simply raising a pet can easily make users bored. Therefore, the activity set up gameplay goals at multiple time points. If you raise a certain number of cats, you can participate in the red envelope rain event. Combining the octagonal behavioral analysis gameplay of "authorization + unknown" with "possession + escape", on the one hand, physical rewards are used to drive user retention, and on the other hand, different distribution times are used to alleviate the time nodes where users are prone to fatigue during the activity, thereby ensuring the retention rate throughout the entire activity cycle.

Due to limited space, the conversion layer and how to improve user growth strategies in terms of quality, efficiency and cost will be discussed in the next article. Interested readers can continue to pay attention.