What is the North Star metric for a campaign to incentivize dormant users with a $10 credit?

Introduction

Incentivizing dormant users with a $10 credit is a critical campaign for reactivating disengaged customers. To effectively measure the success of this initiative, I'll follow a structured framework covering core metrics, supporting indicators, and risk factors while considering all key stakeholders.

Step 1

Product Context

The $10 credit campaign targets users who haven't engaged with our platform for a significant period, typically 3-6 months. This initiative aims to reignite their interest and encourage them to return to active usage.

Key stakeholders include:

1. Dormant users: Seeking value and motivation to re-engage
2. Product team: Aiming to increase user retention and lifetime value
3. Marketing team: Looking to optimize campaign effectiveness
4. Finance team: Monitoring the cost-effectiveness of the incentive

User flow:

1. Receive campaign email/notification
2. Click through to redeem $10 credit
3. Browse products/services
4. Make a purchase using the credit (potentially with additional spend)

This campaign aligns with our broader customer retention strategy, complementing other initiatives like personalized recommendations and loyalty programs. Compared to competitors, our $10 credit is slightly more generous, potentially giving us an edge in reactivation efforts.

In terms of product lifecycle, this campaign is in the growth stage, as we're actively working to expand our active user base and increase engagement.