Hey — it’s Nico.

This is Behind Tactics 🧠, the Failory newsletter where I share the strategies behind the best startups.

In this issue:

• Apollo uses a gamified onboarding strategy to engage new users.

• By completing onboarding tasks, users earn in-app credits that allow them to use more features of the platform.

• The use of progress tracking and rewards turns the onboarding process into a fun, game-like experience.

• This helps users understand the platform's value and increases conversion rates.

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Let’s get into it!

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The Strategy

Free Credits

This week, I signed up for Apollo and was impressed by their smart onboarding strategy.  

It reminded me a lot of Hypefury’s onboarding discounts, which rewarded users for active engagement with the platform. Apollo does something similar, but instead of giving out discounts, they give you credits so you can try out their premium features.

When I signed up, I was greeted by an “Onboarding Hub” that laid out a series of tasks to help me explore the platform’s features. Each time I completed one of these tasks, whether it was configuring my account or downloading the Chrome extension, I earned in-app credits. 

This reward system made the process feel less like a chore and more like a game, motivating me to keep going. The more tasks I completed, the more credits I earned and the more premium features of the app I could try out.

It creates a positive feedback loop: the tasks help users learn how to get the most out of the product, while the credits motivate them to complete the tasks. As they earn and spend credits, they’re encouraged to explore more premium features, deepening their understanding of the product’s value.

It’s the same psychological trigger that Hypefury used in their onboarding process, where they tied engagement directly to rewards.

Gamified Onboarding

A big part of what makes Apollo’s strategy so effective is how they’ve incorporated gamification. It’s not just about earning credits; it’s about creating a system that feels fun and engaging for the user.

Take a look at the design of their onboarding hub:

In reality, these tasks are simply tutorials that introduce the platform’s basics. Usually, this kind of thing would be buried in a “Help” section that most users would skip. But Apollo has framed them as missions—much like in a video game— with their own rewards and a progress bar that tracks your completion.

This makes learning how to use the tool much more enjoyable. Instead of passively following a guide, you’re actively completing challenges. The idea of earning credits instead of a straightforward discount adds to this sense of gamification. These credits create a sense of ownership. Even though they’re free, they don’t feel that way.

Additionally, having credits just sitting in your account pushes you to use them. Not spending them feels like wasting money, which nudges users toward engaging with premium features. As a result, they’re more likely to get locked into the platform, potentially leading them to subscribe once the credits run out.

Should I?

Why This Works

• Incentivizes Engagement: Offering credits for using different features encourages users to interact with the platform in a structured way. This leads them to discover the platform’s real value, helping them reach their "A-ha" moment faster.

• Leverages Gamification: The gamified approach makes onboarding feel like a fun challenge rather than a set of boring tasks. The progress bar and continuous rewards push users to keep going.

• Capitalizes on Loss Aversion: Not using the credits feels like losing something valuable. This motivates users to spend their credits, leading them to explore the platform more and engage further with its features.

• Delays Decision Fatigue: Offering credits allows users to delay the need to make a subscription decision right away. They can explore the platform without the pressure of making an immediate financial commitment, leading to a more relaxed and engaged exploration.

• Reduces Perceived Complexity: Gamifying the onboarding process and breaking it down into manageable tasks reduces the feeling of being overwhelmed by a new tool. This is particularly important in complex tools like Apollo.

How to Apply It

• Design Task-Based Onboarding: Create an onboarding process that breaks down essential actions into small, manageable tasks. Each task should lead users toward discovering key features, gradually building their familiarity and comfort with the platform.

• Reward Meaningful Engagement: Offer rewards for actions that lead to meaningful engagement, such as setting up a core feature or using a high-value tool. The rewards should be linked to behaviors that demonstrate real use of the platform, not just surface-level interaction.

• Incorporate Progress Tracking: Add a visible progress bar or tracker to show users how far they’ve come in the onboarding process. This adds a sense of achievement and encourages users to complete the onboarding journey.

• Leverage Time-Limited Credits: Provide in-app credits or rewards that expire after a set period. This creates urgency, encouraging users to act quickly and make the most of their onboarding phase. Hyperfury did this exact thing with their limited-time discounts.

• Guide with Milestones: Instead of overwhelming users with all features at once, guide them step-by-step through key milestones. Once they achieve a milestone, reward them with credits or unlock new features to keep them moving forward.

Yes, But

• Risk of Overloading Users: Too many tasks or rewards can overwhelm users, leading to disengagement. If the onboarding process feels like a chore, users might abandon it altogether.

• Shallow Engagement: Offering rewards may encourage users to focus on completing tasks for credits rather than truly understanding the platform's value. This can lead to superficial engagement and high churn rates once the rewards run out.

• Dependency on Rewards: Users may become conditioned to expect rewards for engagement, reducing their willingness to pay full price. This could create long-term challenges in converting users to paying customers without continued incentives.

• Potential for User Fatigue: If the onboarding process drags on too long, users may lose interest before reaching the "A-ha" moment. Keeping the experience too task-heavy can cause fatigue and drive users away.

Keep Learning

Others Playing It

Several years ago, Notion had a similar onboarding strategy, rewarding users with $3 to $5 for completing various tasks.

In some ways, this approach was even more straightforward than Apollo’s, as users were rewarded with actual money credited to their Notion accounts.

Unfortunately, Notion discontinued this feature a while ago.

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That’s all for this edition.

Cheers,

Nico