Capacity growth of private domain operators: How to formulate effective private domain operation strategies

How can private domain operators formulate strategies reasonably and efficiently? How can they clarify private domain business goals and break down effective operation strategies based on business goals? In this article, the author has made an inventory and sorted out the cases. Let's take a look.

In the process of private domain marketing, as a trader, you need to formulate various private domain marketing strategies. But how to formulate strategies reasonably and efficiently? How to design appropriate gameplay, strategies, etc. based on actual business conditions and marketing scenarios. These all reflect the business capabilities of a trader. Therefore, today I will talk to you about it. Please note that the article is long, please read it patiently, I believe it will definitely inspire you.

1. Clarify private domain business goals and effectively break them down

1. Clarify private domain business goals

Any private domain operation strategy is to serve your private domain goals! Therefore, if you want to formulate an effective private domain operation strategy, you first need to clarify the specific private domain business goals. A reasonable business goal can not only ensure the effective implementation of the strategy, but also determine whether the strategy we formulate is really effective.

The business goals of private domain marketing can be roughly divided into two categories: one is data-related business goals, and the other is non-data indicator business goals. Let’s first look at the first type, data-related business goals.

Here, there are mainly two scenarios involved.

The first type: global private domain operation, which means that you are responsible for the entire process and the entire link, from attracting new customers to retention, conversion, and even final delivery. At this time, you are responsible for the entire private domain business, and the business goals it involves include overall GMV.

The second type is to focus on local business links, for example, you are only responsible for traffic links, responsible for user growth, or only responsible for existing users, improving their conversion rate, etc. This type of responsibility is only for specific business links, and the business goals that may be involved in this scenario are, for example, increasing the rate of joining the WeChat account to the social group to 80%, increasing the average customer price to 200, and so on.

Well, in addition to data-related business goals, there is also a non-data indicator type, such as exploring new business models, placing ads on some new public platforms, and exploring the specific traffic-driving effects. For example, live streaming is very popular now, so let's explore whether live streaming can bring new improvements to private domain conversions in private domain marketing.

In addition, there are also some phased events, such as achieving 100,000 paying users within a specified period. In this case, because it may involve investment and financing, many companies may give up the accuracy of target users in order to achieve this goal and get financing as soon as possible. So although there is a specific number here: 100,000! But its real business goal is not on this number.

In addition, there are things like new product launches. The entire process from early product research, user feedback collection, product function iteration, preheating, pre-sales, and final successful launch are all issues that need to be considered at this stage, so it may not be reflected by one or two data.

The same applies to the addition of some new requirements. For example, when a mini program is launched, your private domain operation may have been mainly based on the combination of WeChat and social groups. In order to meet the needs of some users or to facilitate users to place orders, a new mini program is developed. At this time, you need to do a test to see how the mini program affects the private domain business before and after it is launched, including cross-departmental collaboration with the product department, technical department, etc.

All of the above are non-data indicator business goals.

2. Effectively break down private domain business goals

After understanding the classification of private domain business goals, we can clarify specific private domain business goals based on our actual business. In order to ensure that the strategy we formulate can be effectively implemented, the next thing we need to do is called goal decomposition.

So how should the private domain business goals be broken down specifically?

For example: This month our goal is to achieve a GMV of 1 million. How do you plan to break it down? You might break this goal down into a task of completing 1 million in 20 days, with a daily goal of 50,000. This is the most commonly used method in many traditional fields, especially in sales. It is called task allocation. But is this breaking down? No! This is just splitting, addition and subtraction. To put it bluntly, you have only solved the problem of breaking down a big goal into smaller ones. For other team members, facing the goal of 150,000, they still don’t know how to start.

Therefore, we first need to realize that decomposition is not the same as splitting . In a sense, splitting is addition and subtraction, and the final landing point is still the indicator; while the real decomposition should be multiplication and division, and its final landing point should be the task. For team members, they face specific work and are responsible for tasks; as a trader and a manager, you are the one who is responsible for the goal, so you must break the goal into tasks. Once you break the goal into tasks and turn it into a multiplication and division relationship, you will find that your focus has changed.

Of course, this is not the end of goal decomposition! It is not difficult for most operation project leaders to decompose goals into specific tasks that can be executed! But the difference between people is mainly reflected in whether you can find problems and propose solutions at the same time. So in my opinion, a complete goal decomposition includes at least two things:

Split: Split the goal into its components that can ultimately be executed by team members;

Solution: Propose operational strategies that can effectively improve goals.

How to decompose the goals? The decomposition of private domain business goals with different attributes is different. First, let's look at the decomposition of data-related business goals : We can divide it into three steps:

Step 1: Find out the key factors affecting your goal

For example, when we are a private domain operator, our core evaluation indicator is GMV. At this time, we only need to see what key factors we need to grasp in order to increase GMV?

Generally speaking, the calculation formula of GMV is GMV=UV × purchase conversion rate × average order value. This is known as the golden formula in the e-commerce ecosystem. As a private domain operator, we need to know that in different scenarios, the same formula may be affected by different factors in different usage scenarios.

For example, in private domain traffic, UV is not just the number of store visitors, but should refer to the number of users reached in the private domain; and the purchase conversion rate should be the payment conversion rate reached in the private domain (number of purchasers/number of people reachable in the private domain)

So here, the calculation formula for the core indicator should be: GMV = number of private domain reached users (UV) × private domain reached payment conversion rate × average order value, of course, also including the frequency of repurchases.

Step 2: Conduct secondary positioning based on a key factor

After we find out the key factors that affect the core indicators, we need to further look at whether these key factors can be further split. For example, the UV factor can actually be divided into two parts: stock and incremental. Another example is the purchase conversion rate, which mainly includes the first purchase of new users and the repurchase of old customers.

In other words, when we do the secondary positioning, we look at the key factors determined in the first step, see what other factors affect these factors themselves, and then split them up.

Step 3: Identify user touchpoints

After we have identified the key factors that affect the core indicators and further split them, we need to implement this indicator to the level of tasks that can be executed. In a previous article, I said: In today's marketing, in the context of new consumer scenarios, user touchpoints are the foundation of everything.

So we just need to find out which key user touchpoints are included under each factor. Just find them one by one, that's it!

After finding the key user touchpoints under each factor, we have the operational handles. The next step is to see how to use these handles to formulate corresponding strategies and implement them to the final execution level.

The above method of decomposing business goals is mainly for data-related business goals. The decomposition of non-data indicator business goals can be roughly divided into two steps:

Step 1: Make a fundamental judgment first

What do you judge? Is your business goal measurable and acceptable?

For example, for a new product launch, this kind of phased business matter, except for the relatively clear data indicators in the cycle, the other indicators are actually quite vague. In this case, we need to first determine whether this business goal can be measured? For example, we need to know what the purpose of this new product launch is? Is it to increase sales? Or to increase the volume? If it is to increase sales, is the sales volume the main criterion for acceptance, or the number of users? If it is to increase the volume, is it based on user feedback or media discussion? And so on.

For this type of non-data indicator business goal, you can only further analyze it in the following process after you have determined its specific acceptance criteria. You can also use this to judge whether this thing is done well or not.

What if it is a project that cannot be measured or accepted? At this time, we need to do one thing, which is to list the key elements of the matter. For example, the development of new SKUs, because the expansion of SKUs must involve the product department, and may also involve procurement and supply chain links. This matter must not be handled by the private domain department alone. At this time, we need to communicate with the product and other relevant departments to see if there is a corresponding SKU plan? Does the procurement and production team have a product schedule? Then through cross-departmental communication and consultation, we can clarify the main responsibilities of our private domain department in this matter, and then formulate corresponding acceptance standards based on this.

Step 2: Decompose business goals

Once we have made all non-data indicator business goals measurable and acceptable, the second step is to break them down in the same way as data-related business goals. First, find out the key influencing factors of the goals, then position them based on the key factors, and finally find the corresponding user touchpoints to formulate targeted strategies.

OK, the above is the formulation and breakdown of goals for different types of private domain businesses. Next, let’s talk about how to formulate effective operation strategies based on the goal breakdown.

2. Decompose according to business goals and formulate effective operation strategies

As we said before, the decomposition of goals can actually be divided into two things: decomposition, that is, finding problems and knowing the factors that affect the core indicators. The other thing is to solve these problems by formulating corresponding operation strategies.

We also need to make a distinction here. When formulating specific operational strategies for data-related business goals and non-data indicator business goals, their methods and approaches are different.

1. Develop specific operational strategies based on data-related business goals

In response to this type of situation, when we formulate specific operational strategies, we can roughly divide them into three steps:

Step 1: Sort out the paths that may be involved in business goals

For example, if we want to improve the "conversion rate" indicator, after breaking down the target, it can be divided into new customer first order, old customer repurchase, etc. Among them, we formulate specific strategies for the first order of new customers. At this time, we need to draw out the entire path of new customers from the public domain to the private domain traffic pool, and then to the final conversion.

Step 2: Determine specific operational methods based on the path

For example, I can increase the number of new users by planning a community fission, or increase the user conversion rate by planning a promotional event, or I can analyze competitive products to see how other competitors do it and see if I can learn from them, etc. These are all specific operational methods.

Step 3: Create a timeline to achieve your goals

Because there are many things to do in the whole process, we need to draw up a timeline to think about what needs to be done on the first day or the first week, what needs to be done on the second day, and then estimate how long it will take to achieve the business goals.

The above is a method for formulating specific operational strategies for data-related business goals. In order to help you understand it more deeply, I will use a simple case to further explain it.

Case Study:

This is an online education institution that has a new series of courses to promote and sell. Its key business goal is to increase the paid conversion rate of the courses. Its entire operating model, in simple terms, is to first use trial classes through various channels to attract users, aggregate users into the community, and then make a conversion in the community. The user education process is carried out through a 3-day check-in method. As long as the user completes the 3-day trial class, or insists on checking in in the community for 3 days, he can get an extra coupon for the complete series of courses to purchase this complete series of courses.

The picture above is a simple user path.

Because its core business indicator is the paid conversion rate of the course, the key is to improve this indicator, which mainly includes orders from new users and old users, that is, those who are already paying students and may be interested in the newly launched series of courses. Here we mainly focus on new users. That is, after the goal is broken down, its secondary positioning is to expand on the point of the first order of new users.

Based on this operating model, let's first sort out the business paths related to improving the conversion rate of new users, which can generally include the following five parts:

1. Group entry rate: users join the group, see how high the group entry rate is
2. Activation rate: After users join the group, how many people will participate in the learning and how many people will check in.
3. Learning rate: It is to see how many users can persist, for example, how many users give up after one day of learning, and how many users can persist in learning for three days.
4. Collection rate: refers to the collection rate of coupons. All users who insist on learning and checking in for 3 days can receive a coupon for free. It depends on how many users collect this coupon. Normally speaking, the more coupons are collected, the more obvious the final conversion improvement will be.
5. The last one is the final paid order conversion rate for this series of courses.

Okay, so this is about the key indicator of new user conversion rate, the key paths it may involve, and some of the main influencing data indicators above.

Next, we need to determine the specific operational methods for these five links.

For example, if we want to increase the rate of joining the group, we need to think about what kind of bait should be set to attract users' attention? What content should be highlighted in the copywriting and posters? How to introduce the core highlights of this series of courses, and whether the 3-day learning and coupon activity we planned can make users interested in participating.

For example, if we want to increase the activation rate, we may need to think about how to write group announcements, how to set up automatic reply texts, how to make self-introduction templates, how to keep the community active, etc. after users enter the community.

As for the improvement of learning rate, we can think about whether a coupon alone is not enough to motivate users to continue learning? What kind of learning benefits should be set up? In addition, how to urge students to study and check in? Can the learning threshold of students be effectively lowered, including how to improve the interaction between students.

Finally, regarding the coupon collection rate, we need to combine the data to see how many people have persisted in checking in for 3 days to study, have all these people received the coupons? Why are there still people who have not received them? Is it because they didn’t see it or for some other reason? How should we effectively remind users to collect them, etc.

The final conversion rate can be compared with the number of coupons received to see whether all students who received coupons eventually paid for the order. Why did those who received coupons not place an order in the end? Is it because the coupon amount is too small, or after the trial class, they feel that the content is not valuable enough and not worth placing an order? Then we can make strategic adjustments based on these situations, including giving feedback to the product department so that they can optimize the content of the series of courses.

The above are the five key links in the path that affect the key business indicator of new user conversion rate, and a summary of what specific operational measures should be taken.

The last step is to draw up a timeline. Since this is an activity of 3-day trial class + learning check-in, we can set the time to, for example, 5 days.

Day 1: We did a warm-up activity, including attracting new members to the community.

Days 2 to 4: Start learning by checking in the community

Day 4 and Day 5: Let’s make a concentrated transformation.

Then every day, from morning to night, make a specific time breakdown plan. For example, the method of community learning trial classes is mainly community sharing, which is concentrated at 8 pm. So in the morning, you may need to make a preview of the sharing activity, and before the sharing activity starts, you need to have a user interaction. Then after the study that day, there may be homework, so you need to urge students to submit the homework on time, etc.

We list all the things that need to be done and make a plan on a timeline, including the scripts, copywriting, posters, etc. that need to be prepared every time we interact with users.

OK, the above is an example of the overall process of data-related business goals, from goal breakdown to specific operational strategy formulation.

2. Develop specific operational strategies based on business goals that are not related to data indicators

For this kind of situation, when formulating an operation strategy, we can also divide it into three steps:

1) Sorting out the company’s current business

First, we need to sort out the company's current business, see why we need to do this, and what resources are available to support this.

2) Competitive product analysis (reference for peer strategies)

Look at your peers or competitors to see if there are any business models you can learn from and see what specific methods they use to implement them.

3) Breakdown of key elements

Sort out the key elements that can help achieve the goal, and break down these key elements.

Similarly, for easier understanding, I will explain it in detail through an example:

Case Study:

Background: This company is a fitness club with nearly a hundred offline stores across the country. These stores are not necessarily self-operated, and some are franchised. In addition, its main online business is the sale of fitness-related products and outdoor products. It has flagship stores on JD.com and Tmall. There are more than 200 SKUs in the e-commerce category, which can be sold through private domain marketing. The main tools and carriers it currently uses in the WeChat ecosystem include mini-program malls, official accounts, and communities. The communities are mainly based on cities and bring together young people who love sports.

Business demands: The company wants to start developing private domains. Although it has sold products through the WeChat ecosystem before, strictly speaking, it is not a private domain and has not accumulated traffic well. WeChat is just used as a sales channel. In addition, it has a requirement that it cannot affect the interests of offline franchisees. We all know that the main sales revenue of a fitness club must be membership fees. But in fact, in addition to this, fitness peripherals and outdoor products also account for a very large proportion of its daily sales, so it will have this worry. If the headquarters does this private domain, it may disrupt the overall sales system of offline stores, especially franchisees.

Competitive product analysis (reference for peer strategies):

After we have sorted out these, we will have to see if there are similar companies in the industry that are already doing private domain and doing well! Or we can see how private domain is generally done under the same business format. We analyze peers and competitors to find a business model that suits us.

We all know that at present, in the retail franchise industry, the most commonly used business model for private domain is the SBbC model. The S here refers to the supply chain, including all supply ends, such as manufacturers + logistics + system service providers, etc., and the first B is actually a platform that provides S-side products and services to downstream small B customers, which is the second B here. Then B pushes S's services to C customers through the B platform.

The key point here is the middle platform B, which must integrate upstream S-end products into the platform and downstream small B resources, while C customers are usually existing or newly developed users of small B. This is the most commonly used business model to increase private domain revenue in the current retail franchise industry, and it is very worthy of our reference.

Dismantling and analysis of key links and key factors:

Next, let’s break down the key links in detail and see what their focus is.

First is S, which is the supply chain: In this link, to put it simply, we need to encourage users to place orders online and then pick up the goods in stores offline. At the same time, we need to expand products with low customer unit prices to increase the frequency of user purchases. Finally, it is particularly important to continue to create hot products and use the hot product strategy to bring new user traffic to the entire private domain.

Then on the B-side: first of all, the key is to lower the threshold for franchisees to participate. At the same time, it is necessary to be able to return the income brought by the private domain to the franchisees. In addition, it is necessary to create this model franchisee, use it as a case, and continuously expand new franchisees to participate and do this together.

Next is the small B side: the focus here is on shopping guides. By empowering shopping guides, they can sell more things, including improving their community operation capabilities and achieving continuous improvement in user relationships, which can bring more repeat purchases.

The last C-end refers to users. On the one hand, various marketing activities are used to enable users to place orders and repurchase. What is more important is to develop loyal users into new shopping guides, and then use their influence to expand more new users and convert consumption, forming a closed loop of fission.

By analyzing the key factors of each of the above key links, we can find the most critical core content. In fact, there are two aspects:

1) Shopping guide’s operational capabilities

We need to let shopping guides know how to use mini programs, shopping malls, communities, etc. reasonably, know what they are, how to do them, and how to use the basic functions of each carrier. We need to empower shopping guides through training so that they can master various private domain tools and improve their private domain service and conversion capabilities.

Of course, in this process, we need to make them realize what the meaning of doing this is. Because in fact, many shopping guides are relatively straightforward, just looking at income, whether I can make money by doing this, whether I can increase income. Therefore, it is necessary to clarify how the income commission of the shopping guide is calculated. So we need to formulate a corresponding performance incentive system.

2) Generate more shopping guides

In addition to improving the operational capabilities of shopping guides, another very important point is to see whether more shopping guides can be generated. In private domain marketing, there is a formula for the value of private domains: Private domain performance = total number of small Bs × average number of communities served by each small B × sales of each community

Therefore, if we can continuously generate more shopping guides, it will play a very critical role in the overall improvement of private domain business. So in this regard, we need to focus on things, such as the official can conduct an open recruitment to allow more people to become our shopping guides, and another is to generate more shopping guides through shopping guides. Of course, for these new shopping guides, we may need to develop a novice guide to help them adapt faster.

After refining the above contents, you will find that for this company, if it wants to layout the private domain and realize an increase in the revenue of the private domain business, the key is to do 6 things.

The first is the establishment of a training system; one is about operational tools; the third is a performance incentive plan; then it also includes the official recruitment of shopping guides and the fission of shopping guides into new shopping guides; the last one is the guidance and training of new shopping guides.

OK, the above is how we should plan our operational strategies for business goals that are not related to data indicators.

Whether it is for data-related business goals or non-data indicator business goals, when we formulate specific operation strategies, the premise is that we need to first split the business goals from a large indicator into several key elements, which is the secondary positioning shown in the figure above. These are our starting points in actual operations, and we need to output our operation strategies through these key points.

3. How to select operational plans that can be implemented immediately

Finally, there is another point that deserves our attention. In actual business, we often face a situation. For example, you are now tasked with increasing the business revenue of this private domain. Then you also analyze this business goal, find the key influencing factors, locate the specific gripper, and even know what specific operation strategy to formulate.

But at this time, you may suddenly feel confused, because faced with multiple key factors and corresponding multiple operation strategies, you don’t know which one to do first? After all, you can’t do them all at once, which is meaningless. If you do it well, it’s fine, but if the result is not ideal, you can’t judge which strategy is the problem.

Therefore, facing this situation, how can we select the operational plans that can be implemented immediately? In other words, how should we judge which one should be done first?

The specific judgment method can be divided into three steps:

1) Make a to-do list:

It is to list all the things to be done in a work list. For example, as in the example just mentioned, we need to focus on six aspects: training system construction, operation tools, performance incentive plan, official recruitment, shopping guide fission, and novice guidance.

2) Based on the company's business maturity

Take a look at these things to see which ones are relatively mature for the company and have basic guarantees, including service guarantees. For example, if the company already has a mini program and a mall, and the community has been built, then at this time, you can give priority to shopping guide training, mainly focusing on training shopping guides on the use of various tools. Ensure that they can master various private domain tools so that they can quickly get started and achieve private domain conversion.

3) Make judgments based on existing resources

Finally, we need to take a look to see if there are any things that may be limited by our own resources. Then we just need to rule these things out, and the only things left are those that we can implement immediately.

For example, when many companies are doing private domain business, they usually achieve conversion through community operation, or encourage users to place orders through live broadcast. Among them, live broadcast can indeed be said to be a major direction of private domain conversion. However, there may be many problems involved, such as who will do the live broadcast? Does the anchor have relevant experience? Its speech and its state in front of the live camera may need a period of training before it can be improved. So in this case, if we want to increase the revenue of private domain business, we may need to put aside the factor of live broadcast first, and we may need to focus on optimizing the key factor of community conversion first.

Author: Pai Ye Operation