A 3,500-word analysis of Xiabu Xiabu’s membership operations: Is “paid membership” a new trend in the catering industry?

This year is a year of recovery for the catering industry, and a new trend in the catering industry, "paid membership", has become popular. This article takes Xiabu Xiabu as an example to analyze in detail how Xiabu Xiabu operates multiple media platforms, establishes a comprehensive user service system online and offline, and gradually explores the method of "super membership". This article is suitable for friends who want to develop paid membership and explore user potential.

In the past two years, I have observed a trend that more and more leading restaurants have launched their own "paid memberships", such as KFC's God Card and Starbucks' Star Rewards Card.

Especially since 2023, the catering market has shown a clear recovery momentum. For catering companies, it is a critical period to seize a new round of opportunities. In May this year, Xiabuxiabu Group launched paid memberships at a price of 208 yuan. The initial plan is to have 3 million paid members by the end of 2023, bringing in at least 600 million yuan in membership fees.

Compared with the traditional free membership system, paid membership truly realizes the ultimate goal of the membership system, namely: screening and retaining super users, thereby tapping the maximum value of users.

So how do we build a super user system in a systematic way? There is also a set of methodology behind this, which I summarize as the five-step method of super users, namely identification – cultivation – screening – operation – fission .

Image source: Fengcheng Consulting

Next, we will analyze in detail how Xiabu Xiabu established its super user system and how it managed membership operations based on these five steps.

01 Identification

Especially for the leading catering enterprises, due to their huge chain scale, they are more likely to accumulate a large number of members, such as Yum! Brands with over 360 million members and Heytea with 60 million members.

However, if you want to find and identify "super users", you need to further screen them, which is one of the reasons why catering companies are now starting to operate in private domains. Through efficient reach through various channels, users are attracted to enter the private domain and more loyal users are found.

In the past, most of the restaurant customers came from offline. With the development of the Internet, online customer acquisition (TikTok/Dianping) and sales have accounted for an increasingly higher proportion and have become an indispensable channel.

Xiabu Xiabu established an online matrix with WeChat as the core early on, and has operated on different platforms such as Douyin, Xiaohongshu, and Weibo, reaching users through multiple channels.

1. Official account/video account

Xiabu Xiabu has established a matrix on its official accounts. After users follow these official accounts, they will receive membership promotions from Xiabu Xiabu as soon as possible. The official accounts will regularly post messages every week, mainly about welfare activities. There are also 4 official accounts on the video account, and the content is mainly about event introductions and product introductions.

2. TikTok

Xiabu Xiabu has also established an account matrix on Douyin. The video content is mainly product promotion and event introduction. The homepage also has group purchase packages and store traffic touchpoints.

3. Xiaohongshu

There are more than 10,000 Xiabu Xiabu Xiaohongshu related notes. The content of the notes is mainly about brand activities, and there will be lucky draws in the tweets to increase the exposure of the content and attract users to make offline purchases.

4. Weibo

Xiabu Xiabu is quite active on Weibo, posting 1-2 posts every day. The main contents are event promotion, product recommendations, new product launches, and rewarded interactions.

Through sophisticated omni-channel operations and rich touchpoint settings, Xiabu Xiabu has quickly accumulated a large number of fans. Currently, the Xiabu Group has more than 32 million members, and is expected to exceed 40 million this year.

02 Cultivation

In addition to screening, cultivating "super users" is also crucial. Catering itself is a high-frequency rigid demand, so it is naturally suitable for cultivating super users. Nowadays, restaurants usually have both dine-in and take-out, and the rich dining formats have increased the frequency of user consumption.

In order to enhance competitiveness, more and more business formats and service contents have emerged in order to continuously cultivate users' consumption habits, improve user experience, and increase repurchases from old users.

Xiabu Xiabu is worth learning from in two aspects.

1. The points system cultivates members’ consumption habits

Xiabu Xiabu's points are called "Bubi", which can be obtained through consumption (1 yuan = 1 bubi), top-up, lottery, and sign-in. It is worth mentioning that "Bubi" can be used in all brands within the Xiabu Group, including Xiabu Xiabu, Coucou, and Chenshao.

"Baby Coins" can be used to redeem coupons and vouchers for food and side dishes. For example, 80 Baby Coins can be exchanged for a skewer, and 200 Baby Coins can be exchanged for a portion of luncheon meat. You can also redeem "points + cash" in the group's points mall.

The points mall not only enriches members' consumption choices and enhances the sense of value of members' rights and interests, but also subtly cultivates members' consumption habits in the online mall, effectively improving members' awareness and favorability of brand retail products.

Overall, the value of BUBI is much higher than the 100:1 exchange rate in other industries.

2. Starting from user needs, continuously optimize user experience

Xiabu Xiabu has been established for 25 years. During this period, it has been constantly innovating and launching sub-brands in different business formats, as well as various highly differentiated products and services to meet the needs of more consumers.

What I admire most is Xiabu Xiabu’s detailed insight into user needs and its ability to make timely adjustments.

For example, during the epidemic, Xiabu Xiabu launched meals with different packaging to meet the different meal requirements of one person and family. According to the resumption of work, Xiabu Xiabu’s store page on the Meituan platform displayed the "Today's Business" label to remind consumers to dine in the store. Some restaurants launched in-store pickup services and promoted them simultaneously with delivery platforms, providing consumers with a new consumption option.

A separate food delivery division was also established to achieve contactless delivery during the epidemic, and safety protection information such as the health status of chefs, packers, and riders, and the disinfection of lunch boxes can be visually tracked.

As you continue to improve differentiated services and experiences, user loyalty will naturally increase, which will bring you more repeat purchases and profits.

Here is a user loyalty formula: User loyalty = (the value I provide – the value he provides) + switching cost

Therefore, we should not only provide good services ourselves, but also pay attention to the situation of competitors so as to take corresponding measures to improve user loyalty.

03 Filter

Xiabu Xiabu currently has 32 million members, but most of them are not true "super users." Super users are users who have a clear intention to continue to consume the company's products and services.

How to quickly and effectively screen out super users? "Paid membership" is the simplest and most effective way.

In May 2023, Xiabu Xiabu also launched its own paid membership "All-You-Can-Eat Card" - priced at 208 yuan/year, it enjoys a number of privileges including new product gift packages, 188 coupon packages, and consumption points.

It is worth mentioning that the paid membership launched by Xiabu Xiabu is group-based, including the catering brands under the Xiabu Xiabu Group.

Next, let’s take a closer look at the specific benefits of a membership worth 208 yuan.

1. 188 coupon package: includes 1 50-yuan coupon, 2 free tea coupons, and 2 45-yuan coupons.

2. Monday Fan Pampering: Enjoy 11% off on dine-in, delivery through the mini program, and entire order through the Xiabu Group Mall mini program every Monday, unlimited times, excluding delivery/delivery fees.

3. Consumption points: enjoy 1.5 times the amount of credits for consumption.

4. New store special offer: New stores (within 5 days of opening) enjoy 50% off on the entire order, limited to dine-in, no limit on the number of times.

5. Birthday gift: 500 coins will be given 20 days before the birthday.

6. New product gift package: a package of coupons for new product samples will be delivered more than 4 times in a year (valued at over RMB 888)

7. Selected dishes: Members only discount prices

8. Exclusive deposit: Exclusive deposit benefits for members

9. Didi Chuxing gift pack: worth 100 yuan, available every week

Different from the paid memberships launched by other brands in the industry, Xiabu Xiabu’s “All-You-Can-Eat Card” is a super membership card that is applicable across five major brands, including Xiabu Xiabu, Coucou, Chenshao, Chamicha, and Xiabu Foods.

From the perspective of specific benefits, it is clear that Xiabu Xiabu's paid membership is to lock in the most loyal users. The more you eat, the more you save. When you become a paid member of a brand, you will naturally be more inclined to consume. Xiabu also expects the number of members to increase their annual repurchase frequency to more than 3 times.

04 Operation

The establishment of a super user system is a systematic project. From the overall perspective of an enterprise cultivating super users, daily operations are also essential to keep users active at all times.

Xiabu Xiabu’s operations in two aspects are worth referring to.

1. Establish a complete growth membership system

At present, Xiabu Xiabu's growth membership is mainly divided into five levels: ordinary card member, gold card, platinum, platinum, and black diamond. You need to use growth points to upgrade your level (1 yuan spent = 1 growth point).

The growth value and specific rights of each level are as follows:

Xiabu Xiabu has put a lot of effort into member benefits for its growing members. There are three main features:

1. Membership benefits cover a wider range : benefits are not limited to simple vouchers, birthday benefits and other basic means, but also include special benefits such as offline activities and queue-free. You know, even Haidilao's Black Sea members do not have the privilege of queue-free.

2. Many member-exclusive discounts : Xiabu Xiabu offers many member-exclusive discounts, which accounts for the highest proportion among popular hotpot brands, greatly promoting users' willingness to join as members.

3. Strong brand integration : some membership rights are applicable across the group’s brands, leveraging brand linkage to promote membership growth.

2. Systematize community operations to increase user consumption frequency

Xiabu Xiabu is also actively operating private domain communities as the most commonly used channel to reach users on a daily basis. Among them, the number of Xiabu Xiabu brand private domain community fans alone increased by nearly 1.9 million in 2022, and now the total number of private domain community fans has exceeded 2.5 million.

In the early stages of operation, Xiabu Xiabu set three main operational goals: first, to stimulate product sales; second, to enhance product awareness; and third, to increase member stickiness.

By placing corporate WeChat activity materials in cooperative stores and actively recommending by store staff, dine-in customers were efficiently retained. In less than two months, 12 pilot stores had accumulated more than 100 fission communities. It is worth mentioning that after joining the corporate WeChat group, Xiabu Xiabu's ordinary members' consumption frequency has been significantly improved, and the conversion rate of members in the community has increased by 10% compared with the store.

The picture comes from the Internet

05 Fission

In any industry, fission is the lowest cost and most effective way to acquire customers. Most fission activities have low thresholds and attract users to participate through benefits. If the threshold for user participation is raised, or even users are asked to pay, it will be a great test of the brand's grasp of user needs.

Here we analyze one of Xiabu Xiabu’s classic fission activities: “520 recharge activity”.

Xiabu Xiabu launched a recharge activity on May 20, 2020. Just one "520 Recharge Activity" drove the recharge amount for that month to exceed 100 million yuan ahead of schedule, and attracted millions of users to participate.

The threshold for participating in the event is very low, but the lottery mechanism is very attractive. If you recharge 300 yuan, you can get a guaranteed gift certificate worth 30 yuan, and you can also draw excess gift certificates worth up to 2,400 yuan from the million-yuan prize pool.

This move fully utilizes the "lucky guy" mentality of consumers, using participation value thresholds corresponding to high prizes to encourage consumers to recharge repeatedly, thereby increasing repurchase rates and ultimately driving sales conversions.

In addition, online and offline linkage communication is also the key to igniting the popularity of the event.

For example, the magical video that Xiabu Xiabu tailored for this recharge event is highly shareable in itself and can easily gain popularity on online communication channels such as WeChat, Weibo, and KOL. The number of tweets for the event on the official account easily exceeded 10w+, and the number of people participating in the Weibo topic reached 8 million.

The final sales conversion is also inseparable from the sense of ceremony created by the simultaneous construction of offline scenes, as well as the secondary endorsement of the event by targeted outdoor advertising.

In general, the success of this event by Xiabu Xiabu is not only due to the creativity and fun of the event itself, which is close to the main young consumer groups, but also the reputation accumulated by adhering to quality management for more than 20 years, which is also the key.

Final Thoughts

Nowadays, not only in the catering industry, more and more companies are becoming paid members, because it is becoming increasingly difficult to acquire new customers, and it is imperative to deeply tap into user value.

After investigation, it was found that most brands have started to operate membership systems, but encountered temporary bottlenecks in the process and were unable to break through.

To make member marketing more precise and to deeply tap into high-value users, we must give up treating all users equally and implement truly tiered and refined operational management, thereby establishing a super user system and achieving the company's second curve growth.

The evolutionary path of enterprise users/Image source: Yan Tao

According to data from Nielsen, a world-renowned company, super users have 5-10 times the spending power of ordinary users. Every 1% increase in their spending power leads to a 10-15% increase in new customers and a 20%-25% sales growth, which shows the enormous value of super users.

Even the smallest companies have their own super users, and we need to learn to identify and select them. In today's fiercely competitive world, it is better to cultivate users and achieve more long-term and stable growth instead of blindly rolling inward.

Author: Yan Tao Public Account: Yan Tao Sanshou (ID: yantao-219)