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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