Xuan
Zhang.
Temu E-Commerce Gamification
As a Growth Designer at Temu, I worked on an innovative approach to e-commerce revolutionizing the online shopping experience. Since our platform's launch in the United States in September 2022, Temu has rapidly become the most frequently downloaded app in the US. In less than a year, the platform already eclipsed 100 million active users in the US.
One of our key strategies involves leveraging the power of gamification to optimize user engagement, enhance loyalty, and ultimately drive sales. Gamification is a proven technique gaining traction in the e-commerce landscape, and we've implemented this approach to maximize the time users spend on our platform and boost retention.
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Referrals are the secret ingredient to winning the games.
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In Temu's e-commerce game, the key is to share the game with friends. When others use your referral link to download the Temu app and join the game, you increase your chances of scoring rewards, such as coupons or cash. It's a simple way to earn cool prizes by bringing more people into the game through your link!
Explore Temu Games
Cash Tree
Earn cash or free gifts
In the Temu Cash Tree game, users have the opportunity to win real money by shaking the cash tree. Users can increase their chances of shaking the tree by referring the game to friends or sharing it on social media.
Core Strategy
The gamified experience on Temu introduces challenges that intensify as users approach their ultimate goal. To successfully reach the final milestone, users are incentivized to invite friends to download the app and join the journey.
Reward as Incentive
User chooses a reward from available options.
Play Towards Goal
User plays the game, aiming to reach a specified goal.
Referral to Friends
User refers the game to friends through invitations
Goal Achievement
User reaches the game goal, earning the selected reward
Benefits of Gamification
Cost-Effective Acquisition
The overall customer acquisition cost for Temu's placing orders exceeds $30, with $18 attributed to marketing expenses. Acquiring new users through games on social media channels significantly lowers Temu's average unit customer acquisition cost.
Data Collection
The interactions within the game contribute to the accumulation of valuable user data. This data provides insights into users' preferences and behaviors. By understanding user preferences, Temu can enhance its platform's ability to deliver personalized experiences.
Elevating User Growth and Retention
Innovative Design Strategy
AARRR Framework
Our design aligns with the AARRR Pirate Metrics framework, focusing on five vital user-behavior metrics: acquisition, activation, retention, referral, and revenue. We continuously improve the user experience based on results in each phase.
Additionally, we integrate Product Life Cycle (PLC) principles to inform appropriate design decisions across various stages. In the introduction stage, the design strategy focuses on cultivating users' perception of the product's value. The core functionality should not be overly complex to capture users' attention, emphasizing minimal steps and time to engage with users.
Acquisition
Activation
Retention
Referral
Revenue
A/B testing in Design
We iterated our design based on the data obtained from A/B tests.
New Design
For entirely new game strategies or versions, we allocate a small traffic percentage (e.g., 10%) to obtain quick and reliable data without requiring substantial traffic.
VS
Mature Ideas
Mature ideas, such as strategies that have already been applied in other games, we often create A/B testing with a 50% to 50% traffic split. Multi-variable testing is also occasionally employed for added insights.
Elevating User Growth and Retention
Product Design Ideas
Adaptive Functional-Based Page Design
To engage new users effectively, the homepage is structured into three main areas: the gaming section, rewards display, and product listings. The gaming section prominently occupies about 3/4 of the page, with the remaining quarter showcasing user rewards and product listings. Exclusive coupons are offered to new users to incentivize shopping. The game's objective is to captivate users, encouraging them to stay, place orders, and ultimately boost conversion rates.
For returning users, our focus shifts to utilizing daily check-in tasks to entice them back to the app and enhance retention. Accordingly, we strategically position the user check-in board at the bottom of the page to ensure visibility and encourage regular engagement.
For New User
The gaming section
We use a floating action button for new users to check in, recognizing that their priority lies in gaming and placing orders.
Daily check-in board
Product list
For Old User
The gaming section
Daily check-in board
Reward
Optimizing Engagement with the Sunk Cost Fallacy
In our game, we've integrated a strategic approach to maintaining player engagement by leveraging the sunk cost fallacy alongside our unique game mechanism.
When users initially run out of power, we offer a free power boost through sharing the game, tapping into the sunk cost fallacy as players are more likely to continue due to their investment in sharing. As they progress, replenishing power requires referring friends, further reinforcing their commitment to the game through social connections. This gradual increase in difficulty sustains engagement by compelling players to justify their investment of time and effort, enhancing the overall gaming experience
Home - free power
1st sharing task
Sharing successfully
Home - no power
2nd sharing task
Time-triggered Popup to Boost Retention
When a user stays in the game for more than 3 seconds, a popup will appear, indicating additional rewards. Once the user clicks the CTA button, users can claim extra gifts such as coupons or free items. The goal is to boost retention by providing additional incentives
Below are four pop-ups designed for this scenario, each with unique elements and copy. We conducted A/B tests for all design versions, and Version 3 had the highest click-through rate..
Homepage
Design 1
When user stays for more than 3s
This regular design emphasizes the Gift Elements
Design 2
This design emphasizes the title and the word "exclusive"
Design 3
A gift-giving scenario provides users with a more authentic experience
Design 4
In this version, gifts are delivered by balloons to enhance the element of fun
UI Design
Temu's Cash Tree game UI embraces a nature-inspired theme with vibrant colors resembling leaves and grass. The playful cat interacts with a lively tree adorned with animated leaves. This design not only adds a natural touch but also enhances user engagement, providing a visually appealing and immersive experience within the Cash Tree game.
Addressing Doubts, Ensuring Long-Term Success
Temu Game Controversy
Reflection
Many users are skeptical about Temu games, as it seems implausible for a new shopping platform to immediately claim that users can receive cashback or freebies by playing games. For new users, trust in the platform has not yet been established. Unlike the common use of e-commerce gamification for user retention, Temu adopts a mature model prevalent in China's e-commerce market, similar to its parent company Pinduoduo. The unconventional approach to acquiring new users outside of China requires time for the market to adapt.
The game's foundation lies in the sunk cost fallacy, where users, initially enticed by the ease of the early stages, find themselves increasingly committed as challenges intensify. For instance, claiming a free gift at 100 points appears enticing, with 90 points quickly achievable by inviting just 2 users. However, attaining the final 10 points requires recruiting 4-6 new users, introducing frustration, especially for those unfamiliar with such gaming dynamics.
Suggestions
To enhance Temu's long-term viability, refine communication on game mechanics, provide clearer guidelines, and ensure transparency. Aligning game dynamics with user expectations and fostering trust will mitigate perceptions of deception, reinforcing Temu's credibility.
