The Hidden Costs of Incentive-Based Growth - Deepstash
The Hidden Costs of Incentive-Based Growth

The Hidden Costs of Incentive-Based Growth

Incentive programs like referrals, free trials, and coupons may seem appealing, but they often attract users with lower lifetime value (LTV), poor conversion rates, and less engagement. These "incentivized users" typically contribute less to the business compared to organically acquired users, highlighting the need for a strategic approach to user acquisition.

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kerem

ぬ-shaped person: Passionate learner having diverse interests. Tech entrepreneur. Obsessive optimizer. Uncomfortably skeptic and curious. Suffering from tsundoku.

Great article that provides a critical perspective on the effectiveness of referral programs, free trials, coupons, and gamification in attracting quality users.

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