SINGAPORE / ACCESSWIRE / February 24, 2020 / Giving cash back is a relativity new concept to users and has become the trend in China and globally. They see it as a strategy for growth hack, bringing quick user expansion in a short time period. For users, it can be seen almost like a bribery fund, of course, that encourages them to use a product.
At the end of 2019, Chinese Internet giant Bytedance launched its new program Top Hero. It isn’t just one product but a collection of three individual social media applications, Watermelon Tube, Toutiao and TikTok that allows users to participate in live broadcast, video sharing and user created content. And for whoever answers right or invites friends to join can receive real cash in their accounts. This is not the sole example as Tencent Tube has launched similar events, where users can be rewarded cash if they watch videos or invite friends to download their app.
According to Chinese tech media company 36kr, the Top Hero program will issue 1 million RMB for each live quiz session at night and half a million for the noon session. This amount is not even considered as a high prize with Tiktok setting a 500 million RMB prize and short-video platform Kuaishou setting a 600 million RMB prize.
The strategy of cash back or cash prizes appears to have been successful in help popular brands increase their overall growth. It creates a viral effect among users and nonusers allowing for a far-ranging market saturation. However, there seems to be a lack of incentives for users to continue using these products. Data collected by third party applications so that the download rate and active user rate will decline significantly after the cash back events.
This short-term marketing strategy determines its short life cycle, and if companies want to retain users for the long term, one single marketing event will not make much difference. Simply handing out incentives, airdropping money, to users will attract also attract a large amount of non-targeted users. Which are users who would not normally be attracted to the application and are only there to reap the short-term benefits. This contributes further to the fall off active users after events like these.
The “airdrop” under the blockchain technology, through its own token economic model, has shifted into a brand-new way for user growth. This new token model allows users to receive tokens issued by DAPP from their active contributions such as sharing content and interacting with other users. It can extend the life cycle for the airdrop model by attracting users continuously with incremental and consistent rewards.
App developers can receive more advertisers since the MAU rate has increased and the advertiser would be more willing to promote themselves on a platform since users will be rewarded if they watch ads. DAPP developers, advertisers and users can be merged into a healthy and developing ecosystem, creating a win-win situation.
In August 2019, a decentralized photo social media DAPP called Tata was merged and integrated into the Acorn Protocol,a social protocol layer based on TTC blockchain,and joined its Acorn Alliance, where all apps can integrate with its blockchain technology. The result is an application can offers users social rewards within the product and the whole Alliance. Unlike another social dapps, Dapp Tata not only reward users by their content contribution but also their social interactions and reputations.
As a part of the Acorn Alliance, multiple apps are available to the user that nearly unlimited scenarios for rewards that can be used amongst all DAPP applications within the Alliance. And the important part is the token rewarded by Dapps can be inter-exchange and utilized among all dapps, which creates a wild range of real-life application scenarios and that is the biggest issue many projects are facing. In this way, the “cash giving” hacker growth strategy will not be one time thing but continuously proceed.
Data released by Tata after it was integrated into the Acorn Protocol shown, the total download amount and the MAU has increased dramatically, attracting users from China and globally. This is helped propel Tata closer becoming an internationally trusted application. And this result helps Acorn protocol begins to prove the feasibility of its token-based economy model.
TTC Foundation website: https://www.ttc.eco/#/
Acorn Protocol website: http://acorn.eco/
SOURCE: TTC Foundation
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