How can an APP build a complete user growth system?

A complete user system is like raising a child, watching him grow up little by little from the age of 0. Product managers and operations planners can perceive the user's behavior from the time they first use the product, to their retention for a week, to their final becoming a loyal user, or ultimately leaving the product. They can develop corresponding growth and incentive plans based on the user's behavior. A good growth system can motivate users to use the product to a great extent or increase the frequency of use of a certain function. A good user growth system is also a sign of a mature product.

For Internet users, growth systems can be said to be found almost everywhere, such as QQ's yellow diamonds and experts, Meituan and iQiyi 's points and growth values, Didi 's Didi coins, JD 's Jingdou, and Alipay's own Sesame Credit . They appear in various forms and are sometimes called points systems , gold coin systems, or user incentive systems.

1. Competitive product case analysis – Taking Tencent Video as an example

To understand what the user growth system specifically is, let’s first look at a case analysis. We selected the leader of the video industry – Tencent Video for analysis.

First of all, there is the "achievement system". You can see that Tencent Video awards medals or titles to users based on their number of views, such as rookie, actor, superstar, etc. If you are a member user, there will be a separate VIP level system, and a ranking list will be introduced to compare with friends and all users, and then all of this is summarized as the "achievement system". The achievement system divides users into different levels, and they can only be upgraded after reaching a certain standard. There are generally more level settings, just to allow users to continue to use the product. For example, the highest level designed for QQ is 144, which is about 58 years. It can be said that the bigger the product manager's heart is, the higher his level will be...

The second part summarizes it as a wealth system , including wallets and malls. In the user's wallet, there will be virtual currencies such as V-coins, diamonds, and card coupons. Users can use these wealth to redeem coupons, physical prizes, or participate in lucky draws in the mall, which is an incentive for users from the perspective of interests;

The third part is summarized as the social system, which is built through interactive behaviors between users, including likes, posts, barrages, sharing, following, etc. Points are obtained through these interactive behaviors. At the same time, the constructed social system can emotionally maintain and motivate certain behaviors of users. This part is difficult to do, but for Tencent, which has a natural social gene, it is very easy.

In summary, the three major systems of achievement, wealth and social interaction can be summarized as forming a fluid closed loop to promote user growth through spiritual motivation, interest motivation and emotional motivation.

2. What is the User Growth System?

As mentioned above, the user growth system is actually a very complex system with many names, and may include multiple subsystems such as the gold coin system, point system, and medal system. To avoid confusion, the system mentioned in this article is collectively referred to as the user growth system, and the user growth value is uniformly called "points" for easy understanding. So the question is, what exactly is the user growth system? There are three ultimate questions in life: Who am I, where do I come from, and where am I going. Similarly, our user system also faces these three major questions: What are points, where do points come from, and where do points go?

By comparing and analyzing various concepts, we believe that the user growth system is simply a set of game rules designed to enable users to continue using the product. A complete and mature user system can classify users, carry out refined operations, promote new customers and consumption, and realize the commercial value of the platform. At the same time, it can also allow users to gain emotions and benefits from it, thus achieving a win-win situation between the platform and users.

So how do we build a user system? There is a set of recognized principles, including a sense of mission, achievement and progress, creativity, possession, social interaction, curiosity, etc., which come from Yu-Kai Chou's game design framework - the HOOKED model. His theory comes from the study of game mechanisms. The eight keywords in the figure below represent eight different core driving forces. There are many analyses and discussions about these on the Internet, so I won’t elaborate on them in detail. They can be used as a reference:

3. How to design a user growth system

Let’s take a look at the specific design steps and see how the user system is built step by step (taking video products as an example).

1. Design steps

The first step is to define the product business goals and why we do this; then build a model for user classification , plan user growth paths, and design usage scenarios; finally, when we reach a high stage, implement tiered operations for users , involving three modules: point acquisition, point consumption, and user operations , forming a flowing closed loop from entry to exit. The following figure is a design step flow chart:

2. Goal setting and user modeling

For a product or platform, establishing a user system must be based on a core goal , which we just mentioned, that is, user segmentation, achieving precise operations, and providing better services for high-value users . Well then, what kind of users are called high-value users? For video products, there are several dimensions: on-demand, long viewing time, high purchase frequency, ability to promote product form improvement, and high platform attention. If he is also a well-known and authoritative user, then his value will be even greater. Based on these goals, we have corresponding user behaviors , including login, on-demand, on-demand duration, payment, interaction, etc., and from this we derive an integral model for the user growth value , which is the sum of these and multiplied by the growth coefficient. The so-called growth coefficient is the user attribute, such as the identities of celebrities and KOLs mentioned just now, and then calculated based on weighted algorithms. Then comes the most critical step, which is to divide the entire user system into a pyramid structure according to the score, including new users, ordinary users, core users, and seed users . Of course, this division is not absolute. This part is the cornerstone of the entire system. As for how to define these four types of users and how to operate and maintain them after classification, it will be discussed in detail below.

The figure below is a more detailed user level table. The levels are divided according to the user's viewing, payment and other behaviors, corresponding to different privileges, different products, and different detailed scores. It should be noted that when setting the scores, the subsequent operation situation must be taken into consideration. It is not a snap decision. It requires a mature computing system as support, and predicts risk points and formulates corresponding risk mechanisms. Otherwise, an inappropriate user growth system will not only fail to achieve a win-win situation for users and platforms, but may also hurt users' emotions and thus lose platform interests. Just for reference:

After the design process is clear and the user growth model is built, according to the above process, we will describe in detail a complete cycle of the user growth system from entry to exit through the three major modules of points acquisition, points consumption and user operation.

4. User Growth System – Points Acquisition

1. Behavior of earning points

User levels are divided according to the points they have, so working backwards, how do you get points? As usual, let’s set goals first and be goal-oriented. Still taking the video business as an example, it can be divided into five core goals: maintaining daily activity, increasing activity, increasing payment, cultivating three-end users, and attracting traffic to other business lines. Then the corresponding user behaviors are derived: daily activity, by logging in and signing in to get points, sign-in is further divided into continuous, cumulative, etc.; to improve activity, it is necessary to give viewing rewards, duration, type, day, cumulative, etc., different behaviors have different points; others include purchase rewards, distinguishing between single points, monthly packages, annual packages, etc.; for business line traffic, for example, following public accounts , downloading other business line products to get points, etc.

2. Rules for earning points

The above are all behaviors for earning points. The figure below shows the detailed rules and scores for earning points. The same is true for the user level rules above.

5. User Growth System – Points Consumption

After obtaining a certain amount of points, users can exchange the points for corresponding items according to their respective levels, which is the so-called point consumption. The uses of points can be summarized as follows:

• Functional privileges: such as no ads, product-related function expansion, birthday gift packages, more experience points for a single operation, reaching the event participation threshold, etc.
• Resource priority: such as official popular recommendations, priority recommendation to participate in official activities, increased winning rate of activities, priority customer service processing, etc.;
• Visual differences: avatars, nicknames, decorative elements, login dynamic effects, etc.
• Exchange for cashback: (limited time/first come, first served) exchange for gifts, participate in lucky draws, get cashback for shopping mall consumption, etc.

1. Goals and behaviors for point consumption

Conventionally, we are goal-oriented. What is the goal to be achieved by spending points? In other words, why do we want users to spend points? What kind of benefits do we hope users will gain from spending points?

Guide users to spend points by setting goals, for example:

• On-demand: redeem on-demand coupons, for example: 500 points to watch "Wolf Warrior 2"
• Payment: converted into cash, used as a discount when ordering packages or a la carte;
• Active: Sign in; redeem event tickets; fan group activities;
• Function expansion: Use points to unlock special functions, such as using points to vote for stars on Tencent Video;
• Small wins big: fun lottery;
• Traffic diversion: For example, TV points can be exchanged for mobile movie tickets or third-party merchandise vouchers;
• Reduce costs: automatic failure, reduce accumulation, and recover operating costs;

It should be noted that there is a problem faced by the points redemption method: if the value of the goods that can be redeemed for points is high, it will increase operating costs; if the value of the free redemption is too low, it will be difficult to attract users; a compromise plan is needed to weigh the interests of all parties. In addition, the "automatic expiration" point is also very important. It may be that the initial design was not carefully considered, leading to problems in subsequent operations. A product manager complained: "Now the backend points value is as high as more than 1 billion. If converted according to 100 points = 1 yuan, once users redeem them in a concentrated manner, the losses caused will be immeasurable." In fact, as long as the points are set to expire, this problem can be avoided, just like China Mobile's M value, which will be reset to zero at the end of the year.

2. Rules for points consumption

Rules for point consumption, setting the point values ​​required for redemption of goods with different attributes, and setting limits on the number of times goods can be redeemed

6. User Growth System – User Operation

Now that the user growth system has been established and the behavioral rules for users to acquire and consume gold powder have been basically perfected, we will enter the advanced stage of the user growth system: implementing tiered and refined operations for hierarchical users. User operation is to increase revenue, reduce costs, promote active conversions , and maximize user value.

1. Build a pyramid-shaped user operation system

(1) New users:

Definition: Users who have just started or have never used the product are at the initial stage of understanding the product;

Function: The base of user growth and open source users;

Operation: convey the value of the product and cultivate users’ usage habits;

(2) Ordinary users:

Definition: High frequency of use, more on-demand viewing, no or occasional payment behavior;

Function: A huge number of content consumption users are the base of effective users of the entire product and the source of active users;

Operation: Use the 80/20 principle to screen and convert new users into active/ paying users through universal activities;

(3) Core users:

Definition: Intensive use users, high-frequency on-demand and paying users;

Function: It activates the atmosphere, promotes old users and brings in new ones, and is the main force for content consumption and interaction;

Operation: Focus on planning online activities with high participation and physical rewards, supplemented by benefits and privileges. Dedicated personnel are responsible for routine operations to ensure team activity and mobility;

(4) Seed users:

Definition: Highly loyal and highly contributing users who are willing to interact and share in addition to paying for basic on-demand products;

Function: Improve product stickiness, KOL authority and popularity, and even participate in product design decisions;

Operation: relationship maintenance, achieving emotional and financial satisfaction; 1V1 introduction and maintenance;

Of course, the classification of user levels is not absolute, nor is it limited to the above-mentioned types; it depends on the specific circumstances.

2. User growth path and hierarchical operation

We have been talking about the user growth system. Since it is "user growth", how do users need to grow? This requires product managers to plan the growth path for our users in advance.

We formulate different operation strategies for users of different levels, and slowly guide users to grow into what we want them to be, just like a cultivation game, which enables a user who has never used the product or is trying out the product to gradually develop usage habits. User needs are constantly met , so that they develop feelings for the product and eventually become loyal users of the product or brand. Realize phased and periodic user operations.

3. Comprehensive operation management

The user growth system is huge and complex, and requires corresponding management modules and background support:

(1) Activity Management:

• Create tasks, modify, and shut down; manage online and offline (timing function), delivery, and recommendation;
• Points redemption, movie ticket redemption, membership redemption; crowdfunding, lucky draw, questionnaire;
• Management of winning probability in activities;
• Risk control (preset prize reminders, multiple prize short position reminders, run reminders, manual enforcement, etc.);

(2) User management:

• User identity settings (membership, level, points, membership validity, channels , etc.);
• User expansion details (account number, profile picture, points details, mobile phone number, payment account number, delivery address, etc.);

(3) Mall management:

Prize related: product name, quantity, picture, value, level of authority;

Prize pool risk control: setting the probability of winning, empty prize reminder, run reminder, and manual enforcement;

4. Data support management

User growth system, how to calculate points? How is user level calculated? What indicators are used to evaluate the effectiveness of the growth system? …Problems like these require a powerful data management system to support:

VII. Summary

A complete user system is like raising a child, watching him grow up little by little from the age of 0. Product managers and operations planners can perceive the user's behavior from the time they first use the product, to their retention for a week, to their final becoming a loyal user, or ultimately leaving the product. They can develop corresponding growth and incentive plans based on the user's behavior. A good growth system can motivate users to use the product to a great extent or increase the frequency of use of a certain function. A good user growth system is also a sign of a mature product.

To sum up, here are some points:

(1) 80/20 rule: For each product, 20% of customers actually bring 80% of the profits, so capturing core customers is the key. What is a core customer? It is the classification and collection of users and the classification of their values, that is, user level;

(2) Loyalty determines revenue: If user loyalty is very low and users can easily leave, it will be difficult to create value for the product or platform. It is because of the value of this platform and the services it provides that your product will create the relevant value and profits it deserves;

(3) Old users & new users: Attract new users and retain old customers. After classifying users, the next step is to build value. Different labels are determined for the behavioral data of different sub-databases of users, and targeted points promotion plans are designed based on the labels.