How to Build a Merchant Level Incentive System from Scratch: A Baidu Case Study

Introduction

User incentive systems are crucial in digital product operations for driving activity, retention, and revenue. Common incentives include points, coins, levels, coupons, gifts, and lotteries. This article uses Baidu's merchant level system as a case study to illustrate design ideas for B2B products.

Project Background

There was no complete merchant level framework. From the platform side, diverse client industries and uneven promotion capabilities made segmentation difficult. From the client side, merchants lacked clear positioning and growth paths. From the user side, inconsistent merchant quality hindered decision‑making. A comprehensive merchant level system was needed.

Deriving Design Goals

We analyzed goals from three perspectives. The platform aims to help merchants locate service gaps and receive targeted optimization, improving quality and stickiness. Merchants seek more privileges to boost conversion. End‑users want lower decision cost and higher trust.

Implementation Plan

1. Platform Perspective – Building the Expression System

Organize information hierarchically, link each level with its privileges and services, and present it clearly so merchants can quickly understand differences.

2. Merchant Perspective – Strengthening Perception and Defining Paths

Enhance visual and interactive cues to highlight the importance of levels, and construct a clear growth path through privileges, tasks, level upgrades, and increased benefits.

3. User Perspective – Building Trust

Expose merchant levels on the C‑side (search pre‑card, marketing page header, shop page header) to help users quickly identify high‑quality merchants, reducing decision cost and increasing confidence.

Benefit Review

The platform achieved precise operation by segmenting merchants and providing tailored services. Merchants experienced higher activity and quality, while C‑side users benefited from clearer trust signals, leading to a noticeable CTR increase. Some merchants reported weak perception of certain privileges, indicating future research needs.

Conclusion

Building a merchant level system is a complex, cross‑functional project involving technology, algorithms, product, and operations. The core goal is to raise the proportion of high‑quality merchants and improve operational efficiency. Continuous iteration based on feedback is essential for optimal results.