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What is the North Star metric for a campaign to incentivize dormant users with a $10 credit?

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Clarification

We are giving $10 credit to users who are not active in the last X months? Yes

What is the goal? To make them come back on the platform

Can they use this credit completely as a discount on the next ride? Yes

What is the definition of active? Didn’t come on platform for last 3 months

How are we communicating the credit amount? Through facebook ads

Is this a permanent credit or with an expiry? With expiry of 7 days

 

Goal

The goal is to make dormant users active. So, we want to check what % of inactive users became active. Point to note here is that we don’t want them to just take $10 credit and not come back again on Uber.

 

Value

  • Riders: Riders get value when they get trips at a lower price.

  • Drivers - Drives get value when they get more trips.

  • Uber - Uber gets value when it earns commission on completed rides.

 

NSM

100 users given $10 credit -> 50 users complete 1st ride within 7 days -> 20 users complete 2nd ride with 30 days

 

  • D7 reactivation % = # riders who booked first ride after getting credit / # riders who got credit

  • D30 retention % = # riders who did 2nd trip within 30 days of 1st trip/ # riders who did 1st trip

 

Other metrics to look out for:

 

  • MAU - Should increase as these dormant users will become active

  • Cost per incremental trip (commission - coupon)

  • ARPU - should increase if dormant users come back on the platform

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