New User Incentive Journey

OVERVIEW

During our redesign of the discount code application process, we discovered a valuable segment of our user base: new customers. We've made it a priority to ensure a seamless experience for these users when using discount codes.

Business Problem

“A significant portion of new users abandoned their first purchase due to delivery fees or the complexity of applying discount codes. Many users viewed competitors as more appealing due to free delivery offers and straightforward promotional structures.”

Data Gathering

To deeply understand the problem, I collaborated with various teams and conducted multiple rounds of research. Key questions included:

Step 1: Owner Interview

My questions were aimed at finding out what the marketing team's main purpose is and what problems it has encountered in the past.

Step 2: Data Dashboard Review

I asked for conversion rates for each step to understand where most abandonment and churn occur.

You can generally compare these two funnels (left: General funnel | right: New Users):

Step 3: User Interview (Call)

When we reached out to 15 new users who had abandoned their purchases in the early stages to understand their issues, we found the following:

Problem Statement

After carefully analyzing all those data, I finally breakdown problems into these things.

BREAKDOWN OF PROBLEM

🥬 They need an element to remind them of us!

Sending a one-time discount code to users almost never created sufficient motivation for them to return. Moreover, a single purchase was not enough to build a habit of buying from our platform.

Setting Success Metrics

🔸 Order frequency

🔸 Retention

🔸 Qualitative Feedback

Ideation

The challenge here was to motivate users to make their first purchase on the Snapp Express platform and, subsequently, to continuously remind them with small nudges so they would return and make future purchases. The main goal was not just to increase new users, but also to retain and engage them, using their activity to attract even more new users.

Reviewing Ideation

I sat down and thought carefully. Just as new users needed excitement to make a purchase from our platform, we also needed to get them accustomed to us and build their loyalty. I wasn’t looking for a temporary solution, so I decided to use nudges!

Lessons

Defining an MVP

Although it may seem straightforward, there were many steps that I was overthinking. I was proposing ideas for features that could simplify the problem, but I was also trying to expand its scope, which wasn’t really necessary. I learned how to define and adhere to an MVP plan for a feature, and how to incorporate my ideas as next steps in a design document.

Target Selection is Crucial

In reviewing the data for this project, I realized that I cannot implement a single solution for all users to increase the conversion rate of discount codes. I need to divide users into two distinct groups and design behavior based on the user type.