How to build a user growth system?

This is a sharing on "How to build a membership level system for a user growth system". It is mainly divided into specific construction steps and key points that need to be paid attention to in the process. I hope it can help friends in need. Without further ado, let’s get straight to the point.

1. Key points

No matter what kind of growth system is built, it needs to be based on the product business model and core behaviors, and it is best to form a complete closed-loop link.

Guide users to experience services → stimulate users to continue using services, develop habits, and form stickiness → ultimately generate (continuously generate) revenue conversion.

Taking a service tool product as an example, its closed-loop link may look like this:

2. Construction method (key points)

Now that the purpose has been clarified and the focus has been found, how should it be built specifically? Especially for a platform that has not yet accumulated a large amount of user data, how should it build a user system at this time? In fact, it can be summarized into three steps: set growth tasks → establish membership levels → set membership benefits.

Let’s break them down one by one.

1.1 Setting growth tasks

1.1.1 Sorting out tasks

1.1.1.1 How to set up tasks?

First, clearly define the purpose and goals of establishing membership levels, and then set and plan tasks based on the goals (it must be based on goals, not just for the sake of doing it). If the goal is to increase functional activity, the key behavior of the corresponding task should be strongly related to functional activity. If the goal is to directly promote purchases, the corresponding task can be directly or indirectly linked to payment.

1.1.1.2 Task Classification

It can be divided into novice tasks, daily tasks, and other tasks (required for irregular activities), as shown below:

• Newbie tasks: register, complete personal information, bind WeChat, etc.
• Daily tasks: check-in, active functions (such as visiting, reading, posting, commenting), promoting consumption
• Other tasks: Participate in questionnaire surveys, participate in xx activities...

Tasks can also be classified according to actual product characteristics. Taking the Internet of Vehicles industry as an example, the following is shown:

• Basic tasks: registration, completing information, signing in, etc.
• Intelligent driving tasks: using the automatic parking function, using the 360-degree cruise function, etc.
• Smart cockpit tasks: listening to music, listening to FM, using car navigation, etc.
• Other tasks: Participate in xx activities...

1.1.1.3 Task Completion Conditions

The conditions for completing the task can be set based on the daily data of platform users and the ultimate goals they want to achieve. For example: on video platforms, you can get a reward of xx points only after watching for 30 minutes continuously; for another example: on e-commerce platforms, you can get a reward of xx points only after completing the order payment, and if a refund is generated, the reward will be withdrawn.

Generally speaking, most tasks should not be too difficult so that they can play a role of continuous motivation; but they should not be too simple either, so as to avoid wasting costs and ultimately bringing no actual results. Although this is what is said, it is still difficult to design it reasonably in actual operation. The product or operation personnel need to think about it according to the actual situation.

1.1.1.4 Reserve space for expansion

Especially for products in the growth or start-up stage, as the product develops, some new features will definitely be added and the activity of the features will need to be improved. At this time, it is necessary to extend and expand the incentive tasks, but avoid doing it too frequently.

1.1.2 Task Weight

After the tasks are sorted out, weights can be set and allocated based on the importance of the corresponding behaviors of the tasks and the difficulty of users achieving them.

It is important to focus on whether the weights between behaviors are reasonable. For example: if the weight of improving personal information behavior is 5, then the weight of daily sign-in must be much lower than 5.

1.1.3 Task Growth Value

Generally speaking from a psychological point of view, when you gain wealth, the larger the value, the greater the perception. Therefore, after the weight comes out, it can be expanded N times based on the weight value, so that users can have a stronger sense of receiving incentives.

1.1.4 Task Cap

It is necessary to limit the number of incentives based on the characteristics of the task, so as to achieve effective incentives while avoiding the risk of being fleeced by users.

For example, in community products, if there is no upper limit on tasks such as posting or making comments, users can post and comment endlessly, ultimately producing low-quality or invalid content.

1.2 Establishing Membership Tiers

1.2.1 Determine membership level

• Industry reference: You can refer to the industry or competitors to see how many levels of membership they have. You have to believe that since someone in the industry has already created it and it is running well, it must have some merits. However, remember to evaluate it in conjunction with your own product to avoid only learning the dregs and eventually coming up with a membership level that is completely incompatible with your own product.
• Evaluate your own products: If the platform is in the growth stage, it is recommended that there should not be too many levels (levels 5-7 are actually the same); if the platform has a richer incentive task and has certain historical data as support, then the levels can be divided a little more finely based on the data (levels 8-9 are also acceptable).

Attached are several screenshots of the platform membership levels, you can simply refer to them:

1.2.2 Calculate the growth value range of each level

Below is a practical example to share with you how to calculate and establish the growth value range for each level.

Set the fastest number of days required for upgrade: Assuming there are 7 levels of membership, set the fastest time required for users from 0 to LV7 to upgrade: 1 day, 7 days, 1 month, 3 months, 5 months, 1 year, 2 years. That is, for a new user to upgrade to LV7 and become a Black Diamond member, it will take at least 2 years, as shown in the following table:

Estimated behavioral engagement: Based on the characteristics and difficulty of the task, estimate (or derive from historical data) the frequency (or engagement) of users participating in completing each task during the seven time periods mentioned above.

Calculate the growth value range: Combine the growth value and participation of each task incentive to calculate the growth value required to reach each level from LV1 to LV7, and thus obtain the growth value range.

1.2.3 Establishing the validity period of membership level

It is important to set a validity period for membership levels to prevent users from becoming inactive after achieving certain achievements but still enjoying high-level benefits. The general membership level is valid for 1 year. After expiration, the new level will be matched based on the score in the past year (it can be set based on the actual situation of the platform). The following is the membership validity period of a certain platform, for reference only:

• Membership validity period: valid for one year after the upgrade. After the level expires, the user's membership level will be readjusted based on the growth value of the past year;
• Member downgrade: After the membership level expires, if the upgrade conditions are not met, it will be downgraded to other membership levels in sequence, and the validity period of the membership level will be updated according to the downgrade date.

1.3 Setting member benefits

• Design principles: follow 4 principles: "Rights have actual value", "Rights at different levels are differentiated", "Use rights to promote consumption/activity and form a closed loop", and "Rights costs are controllable".
• Sort out existing benefits: open-loop or closed-loop benefits are both acceptable, but closed-loop benefits are best, as this can encourage users to be more active on the platform or generate conversions.
• Match benefits to each level: Low-level members also need to have certain attractive benefits, so as to encourage new users to participate in the incentive system of upgrading membership levels; higher-level benefits should preferably have one or two exclusive benefits that show their noble status.

3. Final Thoughts

PS: Let me remind you again that any product and operation strategy will definitely be continuously iterated, so after the V1.0 membership level system is put into use, iterative optimization can be carried out based on the actual data after implementation (user feedback), strategic goals or changes in product function focus. However, it should be noted that each iteration should not overturn the previous major rules, and after the iteration it is best to make users feel that they can get more benefits or get benefits faster, so as to better promote the healthy growth of users. Therefore, the first version of the design rules are crucial!

PPS: This is my first sharing. If there is anything wrong, I hope my colleagues and friends will correct me. I hope we can grow together and become better in an atmosphere of mutual help.

Author: Yoko xixi

Source: Yoko xixi