increasing the conversion rate from sign-ups to first purchases
work created at praso in 2024
As we explored new acquisition channels, a referral program was created following standard market practices. Customers were rewarded with cash incentives for each successful referral, while the referred clients received a generous coupon to try Praso. Initially, we were optimistic about this approach; however, it quickly became clear that it wasn’t driving the desired results:
The cash reward model did not resonate with our customer base.
The coupon, while generous, failed to convert new users into active buyers.
Realizing we needed to pivot, we sought to understand our customers better and find a more effective incentive structure.
a shift in strategy
Instead of offering cash rewards, we began rewarding customers with discounts on key value products. Although the discounts were lower than the previous coupon rewards, the perceived value was higher, and users resonated with them.
However, we still faced challenges: users were not downloading the app, and the selected items did not necessarily appeal to every customer segment.
the welcome offer solution
To address this issue, we created the Welcome Offers Flow. New customers could choose three offers from a curated selection of nine items. This approach not only made the offers more appealing but also catered to a broader range of customer segments, encouraging users to care about the selection.
Additionally, we developed a flow for both the app and the web to facilitate selection. However, if the offers are activated in a mobile browser, the first purchase with the discounts can only be completed on Praso's mobile app. This approach ensures that every user has the best experience possible and encourages app downloads.
results
The implementation of the welcome offers led to a remarkable 130% increase in the conversion rate of referred users from sign-up to first purchase. Subsequently, we decided to expand this strategy to various acquisition channels, where the welcome offers also played an important role, increasing the conversion rate for organic users by 170%.
While I contributed to the design and implementation of the welcome offers, the success of this initiative was a collective effort. Each team member brought unique insights and expertise, allowing us to create a seamless and effective solution that resonated with our clients.