The logic of doing business has changed. Don’t wait until it goes bankrupt to find out.

Information flows too fast nowadays. The methodology that worked yesterday may be outdated today. If you want to do good business now, you must pay attention to 4 issues.

Now the whole era environment has changed.

In the past, customers made more passive choices because of the lack of information, information asymmetry, underdeveloped logistics, and unpopular e-commerce. Customers had no choice, so goods were scarce and easier to sell.

But with the abundance of information and the rise of the Internet, customers have more choices and are more selective.

In the past, channels were king, but now customers are king.

In the past, all it took was a good product. But now there are too many competitors and the competition is too fierce. If you want to stand out, you can’t just follow the rules and wait for customers to come to you.

If you want to have good business in the future, you must pay attention to 4 points:

1. Tik Tok

①Short videos

Now a lot of traffic is on Douyin. As long as you do a good job on Douyin and as long as your target customers can see your videos, you will not have to worry about lack of business.

② Live broadcast

Douyin live streaming is also something that needs to be done. It has a huge amount of traffic, and it can also attract customers, promote products, and sell coupons in the live streaming room.

2. Video Account

In addition to Douyin, you should also pay attention to Video Account, which is now strongly supported by WeChat. Video Account is more inclined to the private domain, that is, your WeChat friends and your public account fans.

Through video accounts, you can provide value to customers, build trust, and close deals.

3. Private Domain

Private domain is simply personal WeChat + WeChat group + public account + circle of friends.

Why are more and more companies and entrepreneurs building their own private domains now?

Because it costs money to obtain traffic, and traffic will become more and more expensive in the future.

So what does private domain user pool mean?

Private domain user pool = funnel model + user pool. The traditional funnel model has only one funnel. Although a large number of users can be obtained through the entrance of the funnel, users will slowly disappear at the other end of the funnel.

The private domain user pool is to add a user pool below the traditional funnel. Users that slowly flow out of the funnel will be placed in the user pool. In the user pool, we can perform deeper user operations and establish relationships and trust with users.

User connection, user screening, user management, user transactions, and user communication are the complete process of building a private domain traffic pool.

So why do we need to create a private user pool?

In fact, it is to increase revenue and profits and improve the lifetime value of users.

We all know five general formulas:

1. Sales volume = traffic × conversion rate
2. Revenue = sales volume × average order value
3. Profit = Revenue - Cost - Expenditure
4. User value = average order value (consumption amount) × repurchase rate (number of consumption times) × sharing rate (new customers brought by sharing × payment amount × number of consumption times)
5. Input-output ratio: The higher the input-output ratio, the better, which is also the operational efficiency

With fixed inputs, the higher the output, the better.

When the output is fixed (same), the smaller the input, the better

Input-output ratio = (input + output) ÷ input × 100%

From the above formula we can see that:

Ultimately, if you want to increase profits, you need to increase traffic, conversion rate, average order value, and improve operational efficiency. Then, reduce operating costs and churn rate.

Ultimately, if you want to increase user value, you need to increase the average order value, repurchase rate and sharing rate.

If you build a private user pool, all of the above problems can be solved.

In fact, to put it bluntly, the ultimate goal of building a private domain user pool is to maximize the user's lifetime value through reasonable methods.

The lifetime value of a single private domain user ≈ user retention time × price × sales volume (sales volume = potential users × conversion rate) × repurchase rate × sharing rate × sharing conversion rate

In the private user pool, it can help users make decisions, influence their purchasing decisions, and explore user needs more deeply.

Build user social relationships through private user pools, stimulate users to generate demand (what to buy?), help users make purchasing decisions (why choose us?), share and communicate after purchase (social communication), and continuously operate to increase repurchase rate and sharing rate, forming a closed loop.

Once you have your own private user pool, you can do user journey design, user interaction design, and transaction path design in your own private user pool for free.

①User Journey

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

②User interaction

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

③Transaction path

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

In the process, we need to establish connections, build relationships, and build trust with users, and strengthen connections, relationships, and trust.

Improve user loyalty, user retention time, user purchase times, and user purchase amount.

4. User Thinking

Cultivate user thinking and create content and products that excite users.

Improve the ability to explore and understand users' potential needs and pain points.

Always think about problems from the user's perspective, and experience products and services from the user's perspective.

User thinking is user-centered, creating content and designing products from the user's perspective, and thinking about problems from the user's perspective.

Stand higher than your users, see farther, and think deeper.

To understand the target users, gain insight into the target users, comprehend the target users, and analyze the target users.

Gain insights into users’ pain points, needs, expectations, wants, excitements, and preferences.

Give users an experience beyond their expectations, make them satisfied, excited and happy.

We should stand in the customer's perspective to design products and services that satisfy, surprise and excite the customers.

Provide customers with better service and experience.

Author: Lao Chen

WeChat public account: Lao Chen's deep thinking