Pretend that your company is a fantasy kingdom, like Narnia or Westeros, and invent your currency. A user will then be able to gain tangible benefits from actions using it. This currency can later be converted into real and therefore provide users with specific tangible bonuses. You may also keep it inside the system, thus allowing users to personalize the service by changing the appearance of the application or adding additional functions and other features.
Returns to the product will increase
The accumulation of internal currency within the service returns the user to it. For one thing, users know they can spend the currency on various privileges. For another, the process of accumulation and collecting itself brings out pleasant emotions and creates a bond.
The average purchase size will go up
Connect the virtual currency issuance to the amount of money spent by customers. That will make them slightly increase their average purchase size to earn it. Be sure to specify the number of coins the customer will receive next to the item. This will further motivate them to purchase.
The number of purchases will increase
When the virtual currency is connected to the number of purchases made, the number of them will increase. Customers will be more likely to choose your service among others since they will accumulate additional bonuses in it.
The users' engagement level will increase
If you own several services, distribute virtual currency among them. Let the users earn and spend currency on an omnichannel basis. That will help you increase the number of active users in all of your services.
Key Performance Indicators
Analyze the retention rate of new customers and the return rate of established customers after the implementation of internal currency. That is one of the main indicators you have to track.
average purchase size
When the average purchase size increases, that means the mechanic positively affects the purchase price in the shopping cart.
number of purchases
An increase in the number of purchases will indicate whether customers are ready to spend the earned points in the future and whether they tend to return to the service.
number of cross-sales
Track the number of customers switching from one of your services to another and the number of purchases in the affiliated services.
amount of currency spent
Let users utilize virtual currency. Sometimes customers might earn it but not spend it.
How to apply the Potion
Involve analysts and connect KPI to the customers' targeted actions
Be sure to connect the currency to purchases. If you need to lower new customers' engagement costs, encourage users to leave feedbacks and share their promo codes with friends. Develop a super-detailed table relating your business' KPIs to those targeted actions that could contribute to their changing.
Set up a system to monetize targeted actions
One unit of currency must reflect its real value since you will be giving away actual tangible bonuses. Therefore, the total amount of currency that can be earned in a given period should not exceed the average expense for retaining a client. Consider then what type of actions you will issue currency for. Be sure to connect it to certain goods and services. You may also issue currency for implicitly beneficial actions of customers. For instance, reviewing, reposting, or creating the content. Provide customers with various options to spend this currency on. The currency can be converted into a discount for the next purchase or grant delivery privileges. If you own several services, distribute virtual currency among them, as stated above.
Inform your customers of new features
Using all available marketing channels, promote the new program to current and potential customers. It is advisable to implement currency information in the form of icons in front of each service, product, or action for which the customer can receive currency. The process of using the currency should also be clear and easy.