Noam: Create Incentives Advice | Launch | App Marketing | Udacity
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Noam: Create Incentives Advice | Launch | App Marketing | Udacity

So as a startup, when you want to implement an incentive plan into your
marketing plan, what do you need to do? So first of all, like everything,
it has to make sense. Your offering should be
part of your product, which means that your offering
should make sense to you and you need to encourage something
that you want your users to do. You want the offering to be precise for
your users, is something that offer money. It doesn’t have to be money,
it can also be virtual coins. Let’s say that I’m promoting
a virtual game, and if you’re going to invite your friends. I’m going to give you 50 coins. Okay. I don’t care about it, but
my users care about it, and they will eventually,
hopefully pay for it. So they think this is a good thing. So a few examples about how to
create great promotional plans. First of all PayPal,
they probably created the first and most famous promotional plans for
start ups. They basically paid the users to open
an account and invite someone else. Thinking the target was if you
open an account you get ten bucks into your account,
do whatever you want with it. If you’re inviting someone else,
you’re getting ten bucks and he’s getting ten bucks. And that helped them to go to about
100 million users in a very fast way. They obviously didn’t pay so
much money for so many people, they reduced it gradually from five bucks
to one buck, eventually to nothing. But that really helped
them go significantly. Another example that people may know
even better is the Dropbox example. They gave a lot of storage to their
users who invite other peoples so you could get a free account basically
of up to 12 gigs of free storage room. Back in the day. Back in the day was like three
years ago, four years ago. That was a lot to get. Today, I have like two tera and
I’m paying ten bucks. But that was huge and
people was competing each other. Who will get to their friends faster,
know to invite them and make sure that they will
accept the invitation. And both examples the people in
DropBox makes perfect sense. People, it’s all about the money, you’re
getting the money in your account, you can do whatever you want with it. And you can use it to buy on eBay for example, that was the best source
of growth back in the day. And for Dropbox. We’re a storage company. You’re getting free storage. Invite your friends. That had them grow to so many users, and people are still trying to
imitate those promotional trends. Another example is Zynga. When you’re inviting your friends, you’re getting virtual currency for
to see the games that they’re promoting. Not only Zynga, obviously, everybody
who creates games that has some kind of virtual currency in it,
let’s you do that. And by earning that virtual currency,
by earning those things that you want in order to pursue your dreams,
they can encourage this behavior. Another example is Lyft. Lyft is competing with Uber in many
geographies throughout the US and throughout the world. And Lyft wants to get more market share,
how can they do that? One of the strategies is to
pay you to ride with them. So let’s say I want to get from point
A to point B in Manhattan and this is a ride that will cost me with Uber
20 bucks, with a yellow cab, 15 bucks. Lyft will give you money
to ride with them so it will cost you five bucks,
or six bucks. In this way, they can encourage the
behavior that they want to encourage, that forming a habit,
if you associated Lyft with taking a cab by encouraging you and
giving you money to use them. One major thing that you need to be
very cautious about when you’re doing incentive problem is making
sure that your lifetime value, your LTV, is higher than your
customer acquisition cost, your CAC. A lot of companies tend to exaggerate with acquiring users,
focusing on growth, which is obviously the most important
thing for an early stage startup. As you grow, as you become more and more successful,
people take advantage of that. The math doesn’t make sense anymore. It was working for paper. But as you’re growing more and
more users, you don’t want to do it anymore because you want to encourage
them to actually pay for that data. You don’t want to make them dependent
on your specific dynamics and mechanics for earning virtual currency. That can be something very dangerous for a startup,
to be dependent on the incentive plan. And are focusing on
keeping the users engaged further the dynamics
of the product itself. One more thing is that incentives can only enhance
the quality of your product. It will not replace anything, so if your
product is great, the thing that you’re doing with incentives is encourage what
you hope that your users will be doing, that’s the final push,
that’s not the main thing. You push them to share,
you push them to activate, you push them to use it one time because
you know that once they use it for that one time they’ll be hooked,
but it won’t replace that product. It won’t replace that
user position structure.>>Okay so now that we’ve gone
over the general checklist for launch let’s explore ways
to get your app noticed.

About Ralph Robinson

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