Context
POPSHOP LIVE is a mobile-based, live-stream shopping platform that allows sellers to interact with their customers in real time. The app combines elements of live streaming and e-commerce, creating an engaging and interactive shopping experience for users. We run as a product team in Popshop live, collaborating with cross-functional teams.
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Insights & Opportunities
The biggest problem we are facing is what most customer-facing companies are going through, which is growth. The goal is to improve the referral program, to address the challenges of low referral rates, low conversion, and high Customer Acquisition Cost (CAC).
During a brainstorming session with the growth team, a standout idea emerged---Given that our marketplace primarily deals in collectible items, we suggest leveraging this appeal by including a real, tangible gift attached to the referral link. This would serve as an inviting incentive for prospective users, who would receive the gift upon joining our platform.
With this idea, we also need some data to validate our assumption.
After discussing the concept with our engineering team, we found we happened to have the resources to develop a test feature. We chose to introduce a small, in-session gifting feature that allows users to send presents to each other. The goal was to analyze any behavioral changes in those who received gifts.
We rolled out this test feature with a selected group of our top sellers. Initially, we viewed it as a niche addition that would be a 'nice-to-have'. However, the feature exceeded our expectations by fostering additional user interactions beyond their screens, generating over 1,300 gift orders in just one weekend.
Consequently, we have resolved to perform an in-depth analysis of the engagement changes related to this feature, with the aim of understanding its potential implications for our growth program.
We gathered watchtime data for gift recipients and compared it to the group’s 60-day average. The outcome presented a daily percentage change in watchtime relative to the 60-day average for the respective group
Among so many noises, the chart indicates a minor fluctuation concerning watchtime. However, the deviation is so marginal(1–2%) that it could be attributed to any number of unrelated factors, including platform events, promotional activities, or even weather conditions.
In order to see behavior change in different user segments, and also align our analysis with the growth program’s objective of increasing new active users, we refined the user segmentation into “Existing Users” and “New Users (60-day-old-or-less accounts who had received their first gift during this timeframe) ” A comparative chart is presented below.
As depicted in the chart above, there is a significant surge in watchtime for new users. This surge can be attributed to a combination of factors such as the excitement of being appreciated by community members, returning salutes, or converting into ready-to-shop users due to address requirements when receiving gifts.
Based on the available data at the time, receiving a gift appears to be a jump start for new users to participate in live-stream shows and has a sustainable increase in user engagement. This finding leads us to believe a similar engagement increase could also be replicated in the referral program. By integrating the gifting feature into the referral program, we anticipate a surge of new active users joining the platform.
Solution
Here is the User Journey Map that the Product and Growth Department proposes to improve the referral program.
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Product Research
User Journey
To gain a deeper understanding of the operational needs in our project, we have transformed a basic map into a comprehensive user journey.
Upon closely examining the journey map, it becomes evident that the majority of the steps involved are well-defined and fairly straightforward. However, two critical questions surfaced:
1. Where to get gift supplies?
2. How to fulfill gifts?
To address these outstanding questions, we have put forth several good potential solutions.
1. Where to get gift supplies?
A: Factory direct
B: Existing merchants’ hot sales items
2. How to fulfill gifts?
A: In-house fulfillment center
B: Third-party logistics (3PL)
C: Dropshipping
With different combinations, we have a total of 6 gifting solutions, here is the operation journey map for each solution
Each combination possesses distinct advantages and drawbacks. It is important for us to initially ascertain the project’s feasibility within our development and operational constraints while maximizing its potential within these boundaries.
To make an informed decision, we have conducted thorough research on the critical aspects of each solution, delving into Time & Cost, Fulfillment Speed, CAC, and Supply Volume. Click below for breakdown details if you are interested.
Click for details
Time and Cost Comparison
In any project, it is essential that we first compare the cost and deployment time associated with each potential solution. Broadly speaking, our objective is to roll out the feature within a timeframe of a month, while keeping the budget below USD $60,000.
The chart above visualizes our data indicating different dev times and costs. With our constraints, it becomes clear that we need to narrow our focus to the A-C and B-C solutions
For the next parts of our analysis, we will evaluate supply volume, CAC, and fulfillment speed. This will guide us in identifying the most cost-effective and sustainable strategy for maximizing user acquisition and satisfaction.
Comparing Supply Volume
In an effort to maximize the acquisition of new users, we have conducted a careful analysis of our purchasing power as a significant proportion of our allocated budget will be dedicated to gift supplies.
The chart below indicates how many gifts supply we can afford with each solution under the given ceiling budget.
The chart shows the A-C solution outperforms BC in by a significant 79% due to cost-effective direct manufacturer sourcing
Comparing CAC (Customer Acquisition Cost)
For long-term financial viability, it’s imperative to minimize our Customer Acquisition Cost (CAC).
As development costs are one-off and supply costs typically decrease with volume, we foresee a reduction in CAC as we scale our campaign. Although both solutions’ CACs are considerably lower than our current number, A-C is taking a big lead here.
Comparing Fulfillment Speed
Today’s customers, they’re all about instant gratification and getting things ASAP. Shipping speed directly impacts customer satisfaction, brand reputation, and overall business success.
A-C’s international factory dropshipping is significantly lagging with recipients expecting an average delay of 20 days compared to B-C’s domestic shipping. This is largely due to customs clearance delays at the time. This three-week delay could be the difference between excited unboxing and a string of frustrated tweetstorms.
Comparison Summary
We have this overall comparison table for all the areas we analyzed.
The charts and table above indicate that most of the solutions excel at larger scales. Considering our budget constraints and immediate needs, we chose to proceed with the B-C option, primarily due to its rapid deployment time, lower costs, and satisfactory CAC. Despite B-C falling short in gift supply volume due to its higher merchant price, the benefits outweigh this drawback.
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UX Design
UX Workflow
We use most of the existing components for the design in the workflow.
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UI Design
To save some time, I will show the UI in GIF first.
Send a gift
Qualified Popshop users will get a floating button, suggesting Referral Gifting is available. From there, they can browse an extensive range of the most welcomed items from gift catalogs and select suitable gifts for their friends based on their preferences, aesthetic inclinations, or personal style.
Claim a gift
After the gift recipients download and sign in to the app, a dialog modal will pop up for claiming the gift sent by their friends. Following the completion of the necessary information, the gift claim will be successfully processed, triggering an order confirmation to the associated merchant, thus prompting them to dispatch the order.
UI Views Screenshot
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Summary
In this case study, we aimed to integrate a ‘Peer-to-Peer Gifting’ feature into the referral program potentially boosting the platform’s growth. Our product research involves extensive user research and data analysis. Key findings led us to choose a strategy that balanced development time, and costs, as well as maximizing growth potential.
Following the launch of the referral gifting feature, we successfully onboarded nearly 4,000 new users within the first 3 weeks. The feature also took a giant lead in referral participation and an almost 300% increase in the conversion rate, demonstrating the success of the feature implementation. The new users through Referral Gifting Program are highly active with 56% more average watchtime compared to new users we get from other channels
Throughout the design process, we gained invaluable insights into various aspects such as user engagement, user segmentation, customer experience, and scalability. However, the most critical takeaway was data-driven decision-making. This approach was instrumental in evaluating multifaceted factors, revealing distinct advantages and drawbacks for each potential solution, thereby fostering informed and holistic decision-making.
Project Detail
Timeline: March 2023 — April 2023
Roles: Jackie Zhang (UX, Research, Animation)
Special Thanks: Lance Liu
Roles: Jackie Zhang (UX, Research, Animation)
Special Thanks: Lance Liu
