How to verify the red envelope fission and new customer acquisition in tool products?

Many products use red envelope activities to attract new customers , which is relatively rare in tool products. So, are tool-type products suitable for red envelope fission?

The red envelope fission activity that was prepared in June finally completed the launch and summary of phases 1 and 2 at the end of October. Taking advantage of this enthusiasm, I would like to share my review of the red envelope fission activity.

Although preparations began in June, due to the involvement of reporting, scheduling and other links, the actual time from the formal project launch to the completion of two iterations was only about one and a half months, and it was a great relief to encounter many pitfalls.

Why do we need to do red envelope fission

The company I work for is a weather unicorn that produces tool products. The department is responsible for attracting new customers and trying various user growth paths through various means such as personal promotion, information flow delivery, channel delivery, vest packages, and red envelopes.

An attempt to verify whether your own APP is suitable for red envelope fission

The reason for doing red envelope fission is that after measuring and comparing various types of operating activities, we found that red envelopes are a method worth verifying at this stage.

First there were Interesting Headlines and Toutiao Express, and then competitors gave important positions to red envelopes to attract new users. Users have been educated to have a high acceptance of red envelopes, and the cost of attracting new users is controllable. The number of APP users itself is large enough, so there is a reason to do it.

Although the final result did not meet expectations, it was only after actually doing fission that we knew whether it was suitable, with both data support and active users.

There is room for growth in users with fission tags in APP user portraits

There is room for attracting new users in the user group who meet the fission label, and facts have proved that this part of users does have fission attributes. However, not all users are interested in the weather. Such users are also quite sensitive to the amount of the reward red envelopes. Since this involves internal research data, it will not be released.

Before trying red envelope activities, you must first have an understanding of the user attribute stratification of your own APP, at least to know whether there is room for growth among the current active users.

Players in the industry who are engaged in fission activities

Fission under the market environment

In the market background of red envelope fission, the user scale in the sinking market is considerable and educated, but the cost of attracting new users also rises with the maturity of the education.

What is the purpose of red envelope fission? How to measure goals?

As a UG department, the purpose of red envelope fission is very clear: to attract new customers and retain them.

The calculation method for measuring the target is based on the click-through rate, sharing rate, new customer acquisition rate, new customer acquisition volume, and new customer acquisition unit price of the delivery entrance.

The pre-set metrics for the activity are:

The cost accounting of attracting new customers, retention quality, ROI, etc. must be calculated.

Among them, the cost of attracting new users is a known item, which is controlled based on the value contributed by the user during his or her life cycle, namely CLV. If the verification effect is to be conducted in the short term, the biggest disadvantage is that CLV will limit the maximum unit price for attracting new customers, which means there is not enough room for incremental testing.

The estimation of retention quality is based on comparative data analysis of various existing channels. The retention quality of each company varies, so you can make an estimate based on the actual situation. The methods are also different, so I will not go into detail here.

Since there was no conversion rate reference for similar activities in the past, various types of conversion click data were estimated based on reference values ​​of other market activities and industry conversions. The actual results were basically not much different from the estimated data.

After checking the information before making the estimate, I found that the new cost of Qutoutiao is 12 yuan per user, and the reward mechanism for user fission is 8 yuan, with a tiered price of 12 yuan at the highest. The reward for attracting a new user with the public data of Toutiao Express is 32 yuan, and various thresholds are set. In comparison, the price per user for attracting new users on our app cannot be lower.

Introduction to fission activities and product solutions

Everyone knows that although some red envelopes have large amounts, the threshold for cashing out is high. After all the hassle, you get nothing, which can really dampen your enthusiasm. Nowadays, the ways to play with red envelopes are similar. When the amount of the red envelopes has no advantage, the "red envelopes with no threshold for immediate withdrawal" and "simple gameplay" that users are relatively concerned about are used as promotional points.

Participation process: Old users on the terminal participate in the event - scan the code to invite new users - enter the invitation code - new and old users each receive a red envelope - withdraw cash immediately.

The picture below is the interface during the first phase of the launch (the entry launch interface and APP-related words are blocked, and the actual launch interface has been adjusted). Friends who have participated in the event probably already know what the product is, so I won’t say it out loud.

Although the process looks simple, there are many inevitable pitfalls in the actual operation. I hope that products that will do such activities can learn from the experience:

1. Login before or after

The original fission logic tries to simplify the user participation steps as much as possible, so that users can quickly participate in the fission and receive red envelopes. However, considering the rapid iteration and verification online, H5 technology is used to achieve it. However, H5 has many security risks, server pressure and other problems. Ultimately, the login will be advanced, resulting in a very high loss rate of participation in the activity, which is equivalent to blocking users outside the door.

The actual participating users selected in this way, in addition to the original login users of the APP, indeed include a group of free-for-all users, who are also the fission seed users selected by the activity. However, compromising product logic due to external technical reasons is actually an unwise choice. There may be other ways, but they have not been thought about deeply.

Many red envelope distribution activities generally place the login at a later stage, guiding users to participate first and then log in to receive the rewards.

There are endless debates internally about the issue of pre- and post-login placement, but we have not verified the conversion of post-login placement. If you have experience with post-login placement, we can share it with you.

1. Enter invitation code to add process

The invitation code is used to bind the relationship between the inviter and the invitee. H5 technology does not interact much with the APP itself, which makes it impossible to track the invitee, so the invitation code is needed for identification. For users who did not enter the invitation code or receive the red envelope after downloading, it is necessary to use tracking technology to identify whether they are new users attracted by the event. Pay attention! The maturity of new user tracking technology has a great impact on the final new user acquisition effect.

When attracting new users, the Android version can automatically identify new and old users, reducing the number of steps required to enter invitation codes; iOS cannot track them, and it is currently unknown how to crack this.

1. data! data! data!

The funnel data required for the test phase should be simulated and prepared in advance. It is best to have demo data for the conversion in the test phase.

In most cases, the focus during the testing phase is on the core indicator data of the funnel, but when double-checking the data, other embedded data may be involved, and this type of data is easily overlooked. No matter how thorough the preliminary preparations are, there will still be some missing data when analyzing the activity after it goes online. Even data that has been checked repeatedly may occasionally not be reported successfully after it goes online. Therefore, it is necessary to verify repeatedly before going online.

If the data backend is a self-developed statistical platform, it is more conducive to diversified data analysis; if it is a third-party platform, special attention should be paid to reporting points, and it is better to report more points rather than omit any.

Optimization direction

After the first phase was launched, conclusions were drawn from data on various activities. Through the funnel, targeted improvements and optimizations were made for points where conversions did not meet expectations and for which there were optimization plans.

After the launch of Phase 2, the data at each targeted point has improved to varying degrees. However, due to time constraints, the Phase 2 optimization did not involve adjustments to the backend logic.

After the adjustment of the interaction logic, the entrance login is adjusted to first enter the activity introduction page, and then participate in the activity and log in.

The interface after Phase 2 optimization is as follows:

The focus is on optimizing the entry point login with a lower churn rate. It is not the best solution, and the improvement in data effect is not obvious, but it is an improvement in user experience.

The "red" element of red envelopes is added to each interface to enhance the visual sense and significantly improve the optimization effect of the overall data.

Summarize

Overall, tool products are still suitable for fission activities. However, it is not recommended to use red envelopes as the core or main channel for attracting new customers. If there is a budget, it is more appropriate to invest in them over a long period of time.

New users attracted by red envelopes may not be users required by the product, which will have a certain impact on retention. Of course, retention is also related to the product itself. Retention data still requires long-term observation and the cultivation of certain habits for new users.

There are endless theories of various growth methods, but the theories still need to be combined with practice to verify their effectiveness. The growth method that is suitable for product A may not be suitable for product B. Clarify your growth indicators, try different methods, and verify them quickly. It is better to practice once than to say more.

The conversion data involving products is relatively sensitive so I avoided mentioning it. Analyze specific problems specifically. The conversion data standards for different product life cycles and different types of apps are different. I hope everyone can practice with their own data and find effective growth paths.

Author: Stranger

Source: Stranger