Royalty points never get old as a growth hack. But I think the absence of friction, as you highlight, is key. That's what I guess I haven't seen as many D2C brands at least pull off. Thanks for putting this together Angele :)
Your point on contextual rewards via the "Select Discount" was insightful. It seems to me that the clearer connections you can make between in-platform rewards to real life affordances, the more impactful the intervention. This concept has sparked off a thought experiment in my head. A lot of apps use badges as a way of enhancing retention within their respective products. These badges, in theory, are meant to provide personal (you've progressed in your journey) and social (other people have a signal that you are a pretty important person) utility; however that's where it ends. What if badges were tied to some real-world utility - e.g you've just received a learner's badge - this qualifies you for 20% off on your next Amazon order; additionally - here are the potential badges that you might earn based on your activity so far (and the associated reward). You could even potentially have users choose a real life reward e.g Amazon discounts, and each badge received would make the user eligible for a certain percentage off across that dimension. This is me mainly thinking out loud - great article!
I’m actually not sure. Revolut is now profitable, and it’s probably cheaper to use reward with the RevPoints as an acquisition, engagement and retention tool than many other methods
I like how you broke down the user experience and the strategic moves behind it. Great insights!
Royalty points never get old as a growth hack. But I think the absence of friction, as you highlight, is key. That's what I guess I haven't seen as many D2C brands at least pull off. Thanks for putting this together Angele :)
💯, companies spend so long optimising checkout conversion rates that they wouldn’t want to add an option if it might create additional friction
For sure! But it’s like even the sign up flow sucks and makes me want to give up on royalty points😛
Your point on contextual rewards via the "Select Discount" was insightful. It seems to me that the clearer connections you can make between in-platform rewards to real life affordances, the more impactful the intervention. This concept has sparked off a thought experiment in my head. A lot of apps use badges as a way of enhancing retention within their respective products. These badges, in theory, are meant to provide personal (you've progressed in your journey) and social (other people have a signal that you are a pretty important person) utility; however that's where it ends. What if badges were tied to some real-world utility - e.g you've just received a learner's badge - this qualifies you for 20% off on your next Amazon order; additionally - here are the potential badges that you might earn based on your activity so far (and the associated reward). You could even potentially have users choose a real life reward e.g Amazon discounts, and each badge received would make the user eligible for a certain percentage off across that dimension. This is me mainly thinking out loud - great article!
Why do I have a feeling that this is subsidies with VC money, and when financial pressures inevitably arise, users will get squeezed? 😅
I’m actually not sure. Revolut is now profitable, and it’s probably cheaper to use reward with the RevPoints as an acquisition, engagement and retention tool than many other methods