99% of enterprises fail due to these 5 reasons

Private domain traffic is an inevitable outlet for market development. Enterprises need to be prepared in five aspects: cognition, mentality, methodology, tools and team training. Only by changing the mentality, adhering to long-termism and having asset thinking can private domain traffic be truly developed.

Preparation is the key to success. Private traffic is not a new thing that has only appeared in the past two years. Many companies even started to build private traffic pools three or four years ago, but they never came to fruition.

Why is this happening?

In my opinion, most people are not adequately prepared. They either think private domain traffic is too difficult, or they think it is too simple and too eager for quick success.

I believe that before companies engage in private domain traffic, they must prepare in the following aspects.

1. Update your cognition

In Chapter 1, through market data analysis we learned that today the traffic dividend has ended, and the shift from product competition to user competition among companies is not accidental.

The mobilization of enterprise private domain traffic is an inevitable outlet for market development.

Things always develop from simple to complex, from having dividends to having no dividends. Product competition also always develops from scarcity to surplus. This is the objective law of the development of things.

In the early stages of the market, companies pursue large-scale user growth to increase their revenue. Gradually, the cost of acquiring customers becomes higher and higher, and competition becomes more and more intense. Companies need to think about how to dig deeper into the value of a user, which we call "user lifetime value."

When companies engage in private domain traffic, they are essentially managing user relationships and extending their lifecycles to realize the mining of lifetime value.

So we must first be prepared in terms of cognition: private domain traffic is inevitable.

2. Change your mindset

Many business owners always ask me a question: How long will it take for private domain traffic to show results?

I can understand everyone's feelings, but the reality is that the growth effect of private domain traffic on enterprises has a significant lag compared to advertising.

But it is cheaper than advertising, has a lasting effect, and is absolutely beneficial to the company. Any growth method has its two sides.

Why does the growth of private domain traffic lag behind? This is related to the logic that private domain traffic drives purchases.

To do private domain traffic is to manage the relationship between the business and the users. This relationship often goes from unfamiliar to familiar, or from familiar to trust. This is actually a process of building trust and accumulating trust. Only when trust accumulates to a certain level will users buy.

This process from unfamiliarity to familiarity and then to trust is established through interaction and reciprocity of value.

Advertisements are often crude price announcements, using the temptation of benefits and prices to directly find people with demand, so advertisements need to cover a large number of people to find target consumers. It is effective quickly, but requires a large investment, and even requires companies to sacrifice profits in exchange for the first transaction.

However, the lag of private domain traffic is relative, and companies do not necessarily have to wait for several months or even a year to see results. This is related to the company's products and the industry it is in.

For example, if you sell fruit, users may start to buy in two or three days after the WeChat group is established. But if you sell clothes, it may take a month, because clothes are seasonal and the unit price is higher. If you sell cars, it may take three months or even half a year. So the effect varies from company to company.

Therefore, if you want to really do well in the private domain, you must adhere to long-termism and have an asset mindset rather than a leek mindset.

You should treat users as customer assets, not leeks to be harvested.

3. Systematic Methodology

Companies often ask me questions like this: Why are there so many people in the private traffic pool, but they are not active and there are no conversions?

In fact, these problems often do not appear in the stage of adding fans and attracting people, but in the subsequent stages.

It may be that after users come in, they don’t know who you are, what your characteristics are, and what value you can provide. Behind these problems is that the company’s brand IP in the private domain is not well done.

It is also possible that after users come in, you do not engage with them through content, interaction, activities, communities, etc. to deepen mutual trust. Users do not trust you and naturally will not spend money with you. The reason behind this is that you have not done a good job in user activation.

Operating private domain traffic requires an orderly methodology. The methodology here does not refer to a specific technique, but emphasizes the systematization of methods. Operation is not a single-point job, but a chain that requires a work system with multiple links working together.

This requires following the five-step method of private domain operations, namely, doing a good job in the five links of IPization - connection - activation - stratification - repeat purchase .

Emphasizing a systematic approach can easily help us find the reasons why we are in trouble.

Looking at private domain traffic from a global perspective, combining private domain traffic with public domain traffic, and then combining it with corporate user management and brand building, this is the cognitive process from point, line, surface to the whole.

4. Use tools wisely

The use of marketing tools is also a misunderstanding that many companies easily fall into. Many companies think that after purchasing operation tools, such as fan-adding tools, group control tools, red envelope tools, etc., it is just around the corner to generate private domain traffic.

Tools are the ultimate helpers to help companies improve efficiency, save manpower, and move towards scale and standardization. But the premise is that the company has already made the above systematic preparations. Therefore, whether private domain traffic can be achieved does not depend on whether you have tools.

I have founded a SaaS tool for private domain traffic and served as the VP of new retail strategy for a SaaS company invested by Tencent. So I am very familiar with the mentality of enterprises towards tools and their actual applications.

My experience is that you should not over-mythologize the value of tools in the early stages, and you should especially be wary of some SaaS vendors who deliberately exaggerate the value of tools for sales purposes.

Tools should be used reasonably on the premise of mastering the methods.

5. Professional team training

In the end, all work depends on people.

Nowadays, vertical division of labor has emerged in all walks of life in the market. Many times, the reason why companies find it difficult to do business is often because many links are still in a state of extensive operation, which naturally cannot keep up with the times and lacks competitiveness.

Only when professionals do professional things can things be done well. Therefore, in doing a good job in private domain traffic, the boss must understand the trend and its value, and the team must know the specific methods and techniques of operation.

When I served as a private domain traffic consultant for companies such as Quanmianshidai and Pigeon, I would interview the company's personnel to understand the professionalism of the team members, which also facilitated my evaluation of the length of the consulting service.

As a consultant, my goal is to enable the company team to master professional capabilities within a limited time. Obviously, the professional foundation of the team is different, so the time spent will naturally be different.

>Therefore, it is essential for companies to prepare dedicated personnel and positions and provide professional capacity training in order to do a good job in private domain traffic.

Author: Yan Tao

WeChat public account: Yan Tao San Shou