The Cannibalization Effect of Incentives - Deepstash

The Cannibalization Effect of Incentives

Incentive programs can prematurely "pull forward" users who might have discovered the product organically, incurring unnecessary costs. This phenomenon highlights the delicate balance between incentivizing new users and allowing organic growth through word-of-mouth, which often brings in higher-intent users at no additional cost.

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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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