What Amazon Learned About Creating Rewards Campaigns - Mike Hines, Amazon
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Mike Hines of Amazon shared insights on creating effective rewards campaigns through the Amazon Appstore, highlighting their ability to boost subscriptions and engagement by offering tangible rewards. Key results showed that rewards significantly increased first-time subscriber rates, re-subscriber rates, and email open rates, with partner campaigns yielding even greater improvements. The talk emphasized that while rewards can drive desired actions, their effectiveness may vary based on context and should be tailored to specific customer behaviors.
What Amazon Learned About Creating Rewards Campaigns - Mike Hines, Amazon
- 1. KEYNOTE Mike Hines HEAD OF PARTNER SUCCESS AMAZON LONDON, UK ~ SEPTEMBER 4 - 5, 2019 DIGIMARCONUK.CO.UK | #DigiMarConUK DIGIMARCONIRELAND.IE | #DigiMarConIreland What Amazon Learned About Creating Rewards Campaigns
- 2. What Amazon Learned About Creating Rewards Campaigns Mike Hines | Amazon.com
- 3. Part 1: The Amazon Appstore Rewards Journey
- 4. What Is Amazon Appstore Similar to Google Play or Apple Appstore How customers can get apps for Amazon and Android devices
- 5. What are Rewards Campaigns Offering your customer a reward for taking a valuable action.
- 6. Amazon Appstore’s Goal Increase paid subscriptions to premium FireTV content
- 7. Why a Rewards Campaign? Rewards Campaigns… …don’t train users to wait for sales …can be targeted …can be used for much more than selling
- 8. Specific Goals • Generate more first time subscribers • Recover lapsed subscribers • Increase email open rate
- 9. What Appstore Did Wrote a service to run a Rewards Campaign Offer real world prizes sold and shipped by Amazon for completing actions
- 10. Based Rewards on CPA • Cost per Action is a smart way to think about rewards. • Makes sure the qualifying action is worth the cost of the rewards program.
- 11. What Appstore Did • Offered a $10 Amazon Credit to net new subscribers • Offered a $10 Amazon Credit to re- subscribers • Notified eligible customers • Sent out mail with the reward mentioned in the subject line
- 12. Amazon Appstore Results Generate more first time subscribers 5x more likely with offer than without
- 13. Amazon Appstore Results Recover lapsed subscribers 2x more likely with offer than without
- 14. Amazon Appstore Results Increase Open Rate on Mail 2x more likely when offer mentioned in subject line
- 15. These Results Got Attention Other groups at Amazon expressed interest
- 17. “I’ll bet this strategy works everywhere.” We made the service available to a select group of our partners
- 18. Partner Results +500% email click through +97% day 30 retention +291% registrations +117% increase in first time buyers +27% ARPPU
- 19. Partner Results Behind the numbers
- 20. In-App Purchase Rewards Zero COGS is a beautiful thing Increase In-App Revenue • Offer new customers a $24 reward on $50 package • Offer $24 reward to $50 customers if they buy $100 package
- 21. Duration of Results Increase Retention: Event Participation 2x increase in daily revenue for 30 days after rewards campaign ended
- 22. Interesting Observation: Rewards of Physical Goods creates a halo effect that lasts beyond the end of the campaign
- 23. Interesting Observation: Rewards get people to take key actions If key actions are sub-optimal, you don’t get benefits
- 24. Interesting Observation: Rewards can deliver great results Rewards rarely perform miracles
- 25. Part 3: What We Learned
- 26. “I’ll bet this strategy works everywhere.” Well….. Almost.
- 27. “I’ll bet this strategy works everywhere.” Well…almost Well suited Airlines, Banks, Coffee Shops, Restaurants Video Game Publishers Specialty shops, Seasonal Goods Charitable or Issue Organizations Lifestyle media Advertising Agencies Somewhat less spectacular Single up-front transaction, no repeat business expectation Sales work better here Mandatory transactions Paying taxes Required textbooks
- 28. Behavior to Reward Actions that Matter One Time Actions Sign up for a newsletter Make a reservation online Check your account on the mobile app Build Habits Reward repeated tasks Check luggage status on mobile for 3 flights Check your in-app mail every day for a week
- 29. Reward Economics Actions that Matter Pays for Itself each time Value of Action > Cost Per Action $50 Gem pack ($0 COGS, $50 revenue) Reward of $24 speaker ($24 CPA) Net Gain $26 per action. Pays for itself on average Aggregate Value of Actions > Total Campaign Cost Customers who get newsletter spend on average $50 more Reward $24 speaker Average gain over time: $26 per action
- 30. How to Announce Reward Actions that Matter Do X, Get Y Do X, Get Y. Explicitly announce the reward, either a one time reward or a habit building reward to the eligible cohort Delightful Surprise Unannounced reward • When a customer is doing the right thing • During high-abandon rate tasks
- 31. Reward Selection Cost per Action: Less Expensive (or exclusive) • One Time Actions • Simple More Expensive (or really exclusive) • Multiple actions over time • Complicated / hard / personal These are guidelines! You must do test campaigns to find the sweet spot.
- 32. Cohort Selection Pay for Itself • Everyone you can reach Easy / Immediate rewards • Pre-existing customers Delightful surprises • Paying customers doing good things These are guidelines! You must do test campaigns to find the sweet spot.
- 33. Good things to remember about Rewards Drive Actions that Matter Flexible • One time actions • Habits and Behaviors Retain Customers • Drive completion of high- abandon tasks • Reward good behavior Target Specific Cohorts • Target a specific group of high-value customers • Target new customers Effects of Real World Rewards • Sticky • Memorable
- 34. Reading List Chip and Dan Heath • Switch • The Power of Moments