If you want to grow your physical store business, don’t just focus on your own business.

Private domain growth needs to be combined with business operations, increase customer unit price, expand product categories, design product matrix, optimize customer journey, enhance experience, and implement precision marketing. Read this article to learn more.

Yesterday, a nail salon owner asked me how to do private domain. I looked through her circle of friends and my sixth sense told me that her average customer spending should not be high. As expected, it was more than 100. When I asked about the turnover, it was 100,000 a year. She has been doing this business for five or six years, and there has not been much change.

I asked her why she wanted to do private domain business. She said that she wanted to activate customers who had bought before but did not buy again. It is not wrong to think so, but how big a wave can you make if you only focus on your own small piece of land? Is it easier to activate silent/lost customers or to develop existing customers?

01

In fact, the problem of this business is not silent/lost customers. It is a small business. Even if the profit is 100%, it is only 100,000. Where is the problem? It is with people. Let's look at a formula: sales = traffic × conversion rate × average order value × repeat purchase/referral. If you want to grow, analyze these factors and find the factor that is most likely to be magnified.

It is unlikely to increase traffic, delivery cannot keep up, and the conversion rate is the same. It is difficult to repurchase. The frequency of customer consumption is relatively fixed. Referrals, like traffic, can only grow in a small range. Therefore, increasing the average order value is the way out. However, her current category and her own positioning determine that it is impossible to sell the original product at a high price, so she needs to find a product with high average order value and high profit. This product must be related to the existing business and meet the needs of the target population.

For example, skin care products, skin care, medical beauty, etc. are all fine. The first two can be done by yourself, and the latter can be recommended to medical beauty institutions for CPS commission. Like her, she has been doing physical business for five or six years, with a large customer base and high customer trust. She can increase sales and profits by adding categories. When doing business, don't always focus on the few products you have, think about what customers need.

As for women, all they care about is beauty, from head to toe, inside and out. If she doesn't buy from you, she will buy from someone else. It all depends on whether you can please her.

02

How to do it? Now that we have found the direction to break the deadlock, the next step is the method - how to do it. How to do it is divided into 4 sections:

1. Design product matrix to attract traffic, flow (trust), lock in customers, and profit
2. Design the customer journey, build relationships with customers, develop relationships, and design this path well.
3. Creating a good customer experience and serving customers well, giving customers good results and a good experience, this is the premise of all actions.
4. Do a good job in circle of friends marketing and market yourself through circle of friends. Don’t sell products, sell yourself, sell the atmosphere of life, sell beauty, sell emotional value, sell female awakening, sell what others want to become!

03

Finally, although this case is about a small physical business, it can be used as a reference for other physical stores and other businesses.

The private domain does not exist in isolation; it is part of business operations. Talking about the private domain without considering business operations is nonsense.

When doing private domain, we cannot simply talk about operation methods, but we must find the breakthrough point based on the actual situation of the business operations, and then solve certain problems through private domain.

Author: John Wu

Source public account: Dajiang Wu (ID: 833244) This article is by @ Dajiang Wu

Originally published on Operation Party, any reproduction without permission is prohibited.

The title image is from Unsplash, based on the CC0 protocol.