Is it difficult to increase performance? That’s because you don’t know…

In today's highly competitive business environment, performance growth has become a major challenge for many companies and entrepreneurs. This article will reveal the five key factors behind performance growth: traffic, conversion rate, average order value, repurchase rate and user lifetime value.

Five elements of performance growth:

1. Increase the number of potential customers (traffic)

Five elements to acquire potential customers: target customers + channels + copywriting + bait (short-term benefits) + value (long-term value)

Clarify who your target customers are, and then use copywriting (titles) that can grab users' attention in channels where target users gather, and finally use attractive bait and value to attract traffic.

You need to list all the channels and methods to acquire potential customers. After listing them all, design an executable plan with focus and goals, such as whether the focus should be on online or offline, and how to do it online and offline.

2. Improve conversion rate

If you want to increase your conversion rate, you need to design a sales process.

The transaction process is divided into user journey design, user interaction design, and transaction path design

1. User Journey Design

From unfamiliarity, user knowledge, user interest, user attention, user familiarity, user recognition, user trust and finally to user purchase and user sharing.

2. User interaction design

From front-end traffic, content output, trust promotion, classification follow-up, user activation, transaction promotion, to the final fission sharing.

3. Transaction path design

From identifying you, remembering you, getting familiar with you, trusting you to purchasing you.

If you want to increase conversion rate, you must also understand how to design sales propositions in copywriting.

What is a transaction proposition?

The sales proposition is to give customers a reason to buy, a reason that they cannot refuse.

The closing proposition is a series of propositions designed around the product. You are not just selling a product, but selling a whole very tempting proposition, a solution, something that helps him realize his dream.

Why design a sales proposition?

Because the same product has different sales propositions and different sales rates.

If you want to increase your closing rate, you need to design a closing proposition that customers cannot refuse.

Six elements of transaction proposition

(1) Product benefits

• Describe the product's hot spots and unique selling points
• Describe the experience of using the product
• Describe the benefits of using the product, it must be good
• Analyze the pain before using the product. It must be painful.

(2) Shaping value

① Risk commitment, reducing user decision-making, ensuring zero risk or even negative risk

• Negative risk commitment: pay 100%, return 101% if not satisfied
• Zero risk commitment: pay 100, get 100 back if you are not satisfied

②Super gifts, gifts with great design value and valuable packaging of gifts

• The best gifts are those that are low-cost but of high value, such as virtual products such as knowledge products and services.
• Gifts can also be back-end products, similar to trial packages. If the gifts are used well, they will climb up your value ladder and buy products with greater value and higher prices.

(3) Promotional offers

There must be a reason for the promotion, why the discount is offered, and how big the discount is

(4) User Testimonials

Provide cases, user reviews and feedback, and make sure they are true

(5) Sense of urgency and scarcity

(6) Place an order immediately

Simple and smooth process with few steps

If you want to increase your closing rate, you must know how to design your sales proposition in the copy and think about why this proposition is hard to refuse.

The copy should emphasize the benefits and experience of the product (the experience after purchase and what you can get), rather than the product's functions and performance.

The prerequisite for a deal is to understand how to anchor the value.

When closing a deal, you can design gifts, as well as gift packaging and gift value anchoring.

A deal must make the customer feel that they have gotten a good deal, that the value far outweighs the price.

3. Increase transaction amount (average order value)

How to increase the purchase amount and get customers to spend more?

Combine consumption, follow-up sales, lock in customers, increase average order value, etc.

You can also design plans for discounts and gifts for purchases over a certain amount, as well as follow-up sales plans, to encourage customers to continue spending higher amounts.

You can also design a price-value ladder, where the higher the price, the higher the value, allowing customers to climb up the value ladder.

Each step provides customers with value beyond their expectations, and customers will climb up the value ladder you design.

4. Increase the number of transactions (repeat purchases)

Increasing the number of transactions means increasing the number of purchases and repurchases, allowing more customers to consume and allowing customers to consume continuously.

New customer turnover = number of potential customers × conversion rate

Repeat purchase volume of old customers = number of old customers × repeat purchase rate

Improve conversion rate and repurchase rate according to these two formulas.

5. Customer Lifetime Value

There are two elements to customer lifetime value:

The first is the repurchase rate, that is, to keep users buying. This requires building a product system, creating a product system that can be repurchased and purchased continuously, and continuously providing high-value, high-order products to customers. It is also necessary to continue to provide value to users, enhance trust, increase interaction, and strengthen intention.

The second is the sharing rate, which means that users are willing to forward your messages to their friends and introduce and recommend new customers to you.

It is difficult to close a new customer, but it is relatively simple if you can serve existing customers well, continue to provide them with products that exceed their expectations, and then let them refer new customers.

If 100 out of 1,000 customers are willing to introduce 2 customers to you within half a year, then you will have 200 more customers in half a year.

Among the 200 new people, 20 of them may introduce new customers to you within half a year, and the original old customers will continue to introduce them to you. This forms a positive cycle and a very magical growth, resulting in a doubling of users.

Then you should try to identify the key factors that influence your performance growth.

Try to collect and brainstorm no less than 10 key factors, such as traffic growth, product value, user experience, herd mentality, price, user recommendations, conversion rate, repurchase rate, sharing rate, and sharing conversion rate.

Secondly, the causal relationship between the factors is analyzed.

The causal relationship of key factors, such as product value → customer experience → traffic growth → business growth.

Because the higher the product value, the better the customer experience, the more referrals there will be, the more traffic will increase, and then the business will grow.

Then, for each key element, write down all the key influencing factors.

For example, factors that affect conversion rate include user needs, user trust, user recognition, copywriting, etc.

All the key influencing factors should be listed, and then these factors should be continuously improved and optimized.