The universal formula for operations. Once you learn it, you can handle any performance target, no matter how big it is!

Performance goals can be achieved by improving the three factors of UV, conversion rate and average order value, combining on-site and off-site advertising, on-site stimulation, product optimization and promotion strategies.

When operating, you will encounter the following problems:

At the beginning of the month, your boss or immediate supervisor told you that you need to achieve a sales target of 1 million this month. When you receive such a performance target, your first thought is that you have no idea? No idea? No idea where to start?

Now I will teach you a universal formula that can be applied no matter how big the performance indicator is! The universal formula that all operation directors use!

Sales = UV * conversion rate * average order value

When you see this universal formula, you may think it is very simple, but you still don’t have any idea how to implement it.

Let me give you an example to help you understand this operating formula:

Hypothetical scenario 1: You are operating an operation on a certain platform. How do you apply this formula to perform performance breakdown and operational strategy analysis?

Take a sales volume of 1 million as an example. To achieve sales volume of 1 million, assuming a conversion rate of 30% and an average order value of 30, then 110,000 UVs are needed, or 3,703 UVs per day (new customers + old customers).

Take a sales volume of 1 million as an example. To achieve sales volume of 1 million, assuming a 20% conversion rate and an average order value of 100, then 50,000 UVs are needed, or 1,666 UVs per day (new customers + old customers).

The conversion rate and average order value here can be seen based on the platform's previous data, and can be slightly improved.

Since the performance target is 1 million, the performance achieved in the previous month may be only 800,000, so we need to improve in three aspects: UV, conversion rate, and average order value. Now we need to use the split operation approach and separate 2-3 points related to UV, conversion rate, and average order value.

In terms of improving UV:

① Increase off-site delivery to increase the number of new users. Off-site delivery can be an application market or a third-party investment and traffic cooperation channel, increase investment costs, and attract more new customers; for downstream channels or self-owned channels, increase investment hook costs, attract more new users, and do a good job of new user acceptance activities on the platform side.

② Increase stimulation within the site and increase repurchases from old users. Increasing stimulation within the site can be divided into product-side activities and preferential activities, which can be carried out according to the platform's own situation. The most important thing here is to notify in place and notify old customers through SMS, WeChat, Enterprise WeChat, etc.

To improve conversion rate:

① On the commodity side, you can use traffic-generating products, flash sales, and super flash sales to increase the quantity and intensity, and increase subsidies.

② Increase the frequency of product sorting and adjust the sorting logic. Adjust the sorting with high frequency and put products with high conversion rates or similar products that customers are interested in at the front.

③ Visually increase visual stimulation, sense of urgency, strength, highlight selling points, etc.

Increasing the average order value:

① Increase the discount of coupons by increasing the amount of large coupons. For example, the discount amount is increased from 2 yuan to 5 yuan, and the usage threshold is raised from 10 yuan to 20 yuan. This needs to be controlled and not too wide, otherwise the usage rate of large coupons will not be high, and it will not play a role in increasing the average order value.

② On the product side, you can increase the average order value through hot product combinations, X yuan for X pieces, and high-order hot products.

Through the above aspects, you can have a clear operational idea, and then implement it according to the actual situation of your platform. The most common operation method is the superposition of 2+3+2, because if you want good operation results, it is difficult to achieve a big improvement by relying on marketing in only one direction.

Hypothetical scenario 2: You are working in e-commerce operations at an e-commerce company. How do you apply this formula to analyze performance and operational ideas?

Take the sales of 1 million as an example. To achieve sales of 1 million, assuming a conversion rate of 10% and an average order value of 50, the PV needs to be 110,000, and the daily PV is 3703.

In terms of improving PV/UV:

① Increase natural traffic, increase store marketing and event marketing, including store marketing product coupons, store attention coupons, live broadcast exclusive coupons, new customer instant discounts, limited time and limited quantity purchases, store discounts, store discounts; event marketing registration platform event marketing, etc.

② Increase paid traffic, intensify standard promotion of products and site-wide promotion, and increase investment based on the ROI of the products.

In terms of improving conversion rates:

① Keywords in the title, refer to the titles of peers, and increase search

② The pictures are subdivided into main pictures, SKU pictures and detail pictures, which can attract attention, product selling points, dispel concerns, scene display, scene pictures, promotional pictures and price pictures. ③ Prices can be displayed through limited-time and limited-quantity discount prices.

In terms of increasing the average order value: on the product side, the same link is used for traffic-generating products and profitable products. SKU sales talk is used to guide orders for high-profit products. SKU guidance words are not limited to the store manager’s main recommendation, buy one get one free, great value, wholesale price, high cost performance, XX combination, etc.

Through the examples of the above platforms and e-commerce operation roles, do you have a more thorough understanding of our universal formula for operation? Let me emphasize the universal formula for operation again: sales = UV*conversion rate*average order value. Practice makes perfect. I hope you can get greater operation results.

Author: Insight;