Product Operation: How to increase repeat purchases through a points system?

When operating points , do you also encounter such troubles: points can indeed improve daily activity and retention, but the conversion rate of sales indicators such as completed orders and GMV is very low. How to increase repeat purchases through the points system?

1. Core of Points Operation

First of all, what is the core of points operation?

By offering attractive points benefits, users are guided to generate valuable behaviors throughout the entire points chain, thereby achieving target user behavior conversion, namely user activity, retention and sales.

It can be summarized into two points:

• Design of integration link;
• The design of points benefits;

2. Solution/Case

So, what is the points link that can generate user repurchases?

From Plan 1 and Plan 2, it can be seen that whether the points chain can move towards the repurchase/shopping stage is mainly influenced by the design of points rights in the "redeeming points" stage.

Therefore, there are generally three ways to design the points redemption process:

Scenario 1:

The redemption of commodity rights is mainly non-owned commodities or free commodities. Users leave after redemption, and there is no guidance for the purchase of owned commodities. The core purpose of this plan is to improve activity and retention.

Advantages:

As long as there are clearly attractive products in the points mall, users can redeem them through the accumulation of non-shopping behaviors (such as check-ins, browsing, etc.), which will significantly improve activity and retention.

Disadvantages:

• If there are no attractive products or the redemption threshold is too high, it will not guide user behavior and thus have little impact on active indicators.
• It is possible to accumulate a large number of users who are active but do not contribute significantly to sales;

Because what we want to discuss is how to increase repeat purchases through the points system, so we focus on the following two solutions:

Scenario 2:

In the redemption of commodity rights, the main method is to use coupons for the platform's own products, which is conducive to enhancing the value of platform coupons and increasing the utilization rate of coupons, and avoiding the low utilization rate and conversion rate of coupons caused by the platform's excessive issuance of coupons; at the same time, the coupons for the platform's own products are used to guide users to repurchase, and realize the behavioral guidance of "redeem only when needed" for the platform's own products. The core purpose of this plan is to improve retention and sales conversion.

Advantages:

The points link is simple and easy to understand (behavior->earn->redeem->purchase), the user's understanding cost is low and the redemption purpose is very clear. Users will contribute and take actions only because they need discounts, thus achieving conversion between retention and repeat purchases.

Disadvantages:

It is not suitable for 0->1 projects that are in urgent need of active users, but is suitable for stages where there are a large number of existing users who are in urgent need of sales conversion.

Case: Ele.me points link and points rights design.

The overall link is simple and clear, and the user's goal is clear. As long as the specified behavior is completed according to the platform task, the corresponding coupon can be obtained, and the next purchase will be more favorable. That is, when the user needs a more favorable 5 yuan general red envelope, he must complete the specified behavioral task to obtain it.

There are two categories of user discussions:

1) Active users who shop less frequently and are price-sensitive:

As long as you complete the task of watching short videos for a total of 10 days each month without shopping, you can get 500 Foodie Beans. You can use 500 Foodie Beans to redeem a 5 yuan general red envelope, which contributes to monthly order completion and improves the monthly order completion retention rate, which not only satisfies the activity but also increases repeat purchases.

2) High frequency users who have completed orders:

Taking paid foodie card users as an example, in the absence of task rewards, they can get 100 foodie beans for every 20 yuan of actual payment. That is, after completing 5 orders (greater than 20 yuan), they can get 500 foodie beans and exchange them for a 5 yuan general red envelope, thereby increasing the monthly order completion frequency of medium and high-frequency users.

Scenario 3:

Plan 3 = Plan 1 + Plan 2: It is a comprehensive redemption mall for non-proprietary goods/free goods and proprietary goods. The use of free goods redemption can achieve short-term user growth and activity. When user habits are gradually formed, the number of free goods can be reduced, and the focus can be on redeeming coupons for proprietary goods to achieve sales conversion.

Case: FamilyMart FA MiLi APP points link and points rights design.

When the FamilyMart FA MiLi APP was first launched, it was in a cold start-up phase and urgently needed offline users and Jixiang Card APP users to transfer to the FA MiLi APP. Users only need to download and continue to sign in to get free products. The categories of free products are quite rich and very attractive.

So I studied the sign-in rules and got some free stuff:

The sign-in cycle is 7 days. You can get 6FA grains by signing in continuously for every 7 days. Generally, the more attractive free products are concentrated in the exchange of 12 to 15 FA grains, which means they can be obtained by signing in continuously for 14 to 21 days.

When it was first launched, there were a lot of free products, which could be obtained by signing in continuously. The main focus of this stage was to increase activity and retention:

Due to the daily sign-in and login of the APP and the guidance of the coupon path, I gradually developed the habit of "Before going to FamilyMart, I will check the coupon channel of the APP to see if there are any discounts", thus achieving their operational goals.

3. Summary

Solution 3 can achieve the conversion between activity and sales by adjusting the number, weight or proportion of free product coupons and own product coupons. That is, when activity needs to be improved, the weight of free product coupons can be increased; when sales need to be improved, the weight of own product coupons can be increased, or even the free product coupons can be cleared.

Author: Yu Xiaoyu

Source: Yu Xiaoyu Operation Notebook (ID: yuxiaoyuyunying)