Millions of paying users, performance rising against the trend, in-depth analysis of New Oriental membership operations

I believe everyone still remembers the money-burning war in the online education industry. In this war, New Oriental's transformation is a successful representative. How can it be successful? How to systematically build a super user system? This article will explain it to you. If you want to know more, you can take a look.

I believe everyone still remembers the money-burning war in the online education industry. Whether it is offline subways, bus stations, or online short videos, you can see posters and advertisements of various companies.

However, with the implementation of the "double reduction" policy, the money-burning expansion model came to an abrupt end, and the entire industry began to return to rationality, gradually shifting from extensive and high-cost customer acquisition methods to refined membership operations.

Among them, New Oriental can be regarded as a representative of successful transformation. According to statistics, the number of paying users of New Oriental Online in the first half of 2021 reached 2.14 million, a year-on-year increase of 62.5% , among which the paying users of K12 education accounted for the highest proportion.

The success of New Oriental's transformation is due to its establishment of a complete "super user system" , focusing on digging deep into the value of old users and identifying and screening out super users, which has become the second curve of corporate growth.

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 New Oriental established a super user system and how it manages membership operations based on these five aspects.

Identification

If companies today want to carry out refined operations on users and find high-value users (super users), they must build communication channels and platforms with users.

Private domain operations are also essential and require deep collaboration with member operations. Therefore, companies should use various channels to promote as much as possible, efficiently reach potential users, expand their private domain pools , and further identify their own super users.

New Oriental established a matrix with WeChat as the core early on, and operated it on different platforms such as the official website, APP, and Weibo, reaching users through multiple channels.

The following is a breakdown of the drainage methods and main contents of each channel:

1. Official Account

New Oriental has established a matrix of official accounts. After users follow these official accounts, they will receive company introductions and corporate microblog pop-ups in the first place.

Taking "New Oriental Quality Center" as an example, when you follow the official account for the first time, an entrance for private domain traffic is set up in the welcome message.

Path 1: Welcome message of the official account - reply "course" - scan the QR code to add the WeChat account

Path 2: Menu bar service - My customer service - Scan to add WeChat Enterprise

2. Mini Programs

Similar to the official account, New Oriental’s WeChat mini program has also established a matrix to meet the course registration needs of different users through stratification.

Take "New Oriental" entering the mini program to receive courses as an example:

New Oriental——Click to receive the trial class——Fill in the information——Complete the course and receive it

3. Video Account

The main content of the video account "New Oriental Quality Growth Center" is brand promotion, knowledge popularization, and course introduction.

The homepage sets up a touchpoint for public account traffic, and users can jump to the public account to enter the private domain. In addition, New Oriental also reserves the teacher's contact information in the introduction, and users can add friends.

4. Official website

In addition to the private domain matrix with WeChat as the core, New Oriental has not given up the traditional Internet traffic channel - the official website, and there is more than one.

The specific method of attracting traffic is to ask users to fill in their mobile phone numbers in exchange for free courses, then guide them to scan the code and follow the WeChat public account, and finally direct them to New Oriental’s private domain.

5. Official APP

New Oriental also has an important customer acquisition channel, which is its official APP. Because users who want to take New Oriental courses need to download the official APP, a large number of new and old users have accumulated here.

On the homepage of the official APP, you can see the activity banners for free courses and low-priced trial courses at a glance, thereby directing users to the private traffic pool.

On the APP, users can also see activity entrances such as "Free Trial" and "Share to Earn Tuition", which is also a good way to attract new customers by attracting old customers.

2. Cultivation

For enterprises, user identification is only the first step, and subsequent training is more critical, aiming to increase user repurchase. So how can a company like New Oriental, which mainly sells low-frequency, high-order products, cultivate its own super users?

Here we can see that New Oriental’s operating model is still very “restrained”.

Currently, New Oriental’s operational transformation is mainly achieved through three channels: one-on-one private chat on WeChat for Business, customer circle of friends, and community.

In terms of 1-on-1 private chats, after adding New Oriental teachers’ WeChat accounts, users will receive activity information regularly. However, considering the disturbance of private chats to users, New Oriental is more restrained in pushing messages to 1-on-1s, usually once every 1-2 days.

In terms of the setting of the language, it is not the kind of cold and stiff language, but some warm and emotional ways of greeting, such as "I know that you are very busy, parents". This kind of language will make parents not feel that the communication is very abrupt, but instead think that they are enjoying special treatment.

New Oriental’s customer circle of friends often posts some “free physical books” activities. Users only need to invite a certain number of friends to add the teacher’s WeChat to get children’s books for free. (This fission method is used by many training institutions and is very useful.)

For New Oriental, there are likely to be many groups of mothers in the circle of friends of mothers who have just given birth, so the fission effect is very good and can bring potential users to the company.

From the community, we can also see that New Oriental actively "cultivates" users. In addition to inviting friends to help receive physical rewards, the community will also regularly launch group buying activities. Many people form a group and buy courses at a low price. Since the members of the group are relatively accurate target users, the success rate of group buying will also be greatly improved.

In addition, New Oriental is also an expert in data conversion. Here I have compiled a transaction formula for your reference:

Free learning materials (traffic) + low-priced courses (conversion) = transaction

3. Screening

The biggest difference between super users and ordinary users is whether they are willing to pay to become corporate members. At present, many companies will screen super users through the "membership system", among which "paid membership" is the fastest and most effective means for companies.

New Oriental’s paid membership system is mainly aimed at students taking IELTS and TOEFL, and charges separately.

TOEFL Pro membership is priced at 299 yuan/half year, and includes 180 days of unlimited reading of teacher’s model essays and other benefits; IELTS PRO membership is priced at 360 yuan/year, and includes 7 exclusive benefits including writing model essays, oral answers, and real test analysis.

Next, let’s take a closer look at the benefits of New Oriental IELTS PRO members:

1. Writing sample

Read all the teacher's sample essays for writing test questions, learn grammar and logic, and get ideas for solving problems.

2. Oral answer

You can listen and see all the teachers' answers to the oral test questions, with pure British pronunciation + original examples to help you get ideas for solving the questions.

3. Cambridge IELTS Exam Questions Analysis

Read all the answers to the real questions of the Cambridge IELTS listening and reading sections to identify the problems and understand the answers.

4. Good IELTS courses

You can study all the recommended courses freely, from entry-level to advanced level, and from advanced level to sprint level. All handouts can be downloaded for free. It covers all stages and provides step-by-step teaching to help you prepare for the IELTS with ease.

5. Avatar widget

VIP exclusive avatar pendants, multiple choices to show your personality. The avatar pendant will appear in the spoken language wall voice, learning community comments, and [My] page.

6. Prestigious logo

VIPs enjoy distinguished identity tags, which will appear in the spoken language wall voice, learning community comments, and [My] page.

7. Desktop Logo

Members can enjoy the exclusive APP desktop icon, and the APP logo is unique.

It is worth mentioning that IELTS PRO membership has four levels in terms of duration. They are monthly card, quarterly card, half-year card and annual card. The monthly card is 1.5 yuan/day, the quarterly card is 1.1 yuan/day, the half-year card is 1 yuan/day, and the annual card is 0.98 yuan/day.

From the perspective of unit price, users are also encouraged to purchase cards with longer validity periods, so certain price guidance has been given.

IV. Operation

"Super user operation" is like a marathon. It is not about who starts faster, but the ability to sustain the effort (operation). Through continuous operation, users are constantly activated.

In my system, we can start with three aspects : super products, super services and super employees .

1. Super product

I won’t say much about New Oriental’s products here, the level of the live broadcasts in the room is very high.

Regarding this point, Mr. Yu Minhong mentioned in the course that many people have taken New Oriental courses. I also went to Beijing New Oriental to study English. Although it was a large class, the experience was very good. I felt that the teacher took care of the feelings of each student. After a class, the knowledge points were clear and the growth was full.

2. Super Service

The so-called super service refers to the service that is just right, considerate and exceeds user expectations.

At present, Haidilao is the company that does the best in terms of super service. Many people have enjoyed the "Lao-style service". If you are a girl and you eat with your hair down, the waiter will definitely give you a hair tie to tie your hair up. If you wear glasses to eat, the waiter will give you a few packs of disposable tissues to wipe your eyes.

Back to New Oriental, New Oriental's "super service" is reflected in various details of a class, before class, during class, and after class. Here, I will give 2 examples in each stage for your understanding.

Before class:

1) Preview and warm up before class

Pre-class preparation is the constant theme. A good start is half the success. In addition to the official textbooks and various vocabulary and grammar materials, there are also a lot of advance lessons to help students find the right state and get twice the result with half the effort.

2) Exclusive software word punching

New Oriental has equipped paying students with exclusive word punching software. Every fragmented time of students will be filled with Leci punching software, through vocabulary testing to find out the gaps and make plans for the next step.

During the course:

3) Daily check-in by the academic supervisor

New Oriental has assigned a study teacher to each student, who is a bit like our homeroom teacher in school. The study teacher will make a unique vocabulary recitation plan based on your current level, and you can check in the word in the group every day and practice offline dictation. Only quantitative changes can lead to qualitative changes.

4) Answer questions throughout the process

During the course, the teacher will help students solve various problems encountered during the learning process. Targeted answers will achieve twice the result with half the effort.

After class:

5) Careful comments on homework after class

The dedication of New Oriental teachers is also reflected in the homework. For every homework of the students, the teachers will give careful feedback on everything from punctuation to structure, from grammar to vocabulary, so as to find out the problems and prescribe the right remedy.

6) Review plan is accurate to the minute

New Oriental’s TOEFL/IELTS courses provide a 400-hour after-class review plan that is accurate to every minute, so that every minute you spend is well-founded.

3. Super Employees

Whether it is a super product or a super service, it needs to be provided by people. Therefore, to some extent, it can be said that super employees support super user operations, and only super employees can make super products and provide super services.

As a company that started out as a training company, the teaching staff is the core of New Oriental and the key to its teaching quality. At the New Oriental "Good Teacher" press conference, Yu Minhong clearly defined the three criteria for a good teacher: "profound knowledge, good foundation; happy and inspiring, good study style; responsible and good service."

It is understood that New Oriental is extremely strict in selecting teachers. Only graduates from 985 and 211 schools have the opportunity to interview, and the overall recruitment ratio is less than 2%. After multiple rounds of selection and elimination, the outstanding teachers who remain have the opportunity to step onto the podium and teach students.

At present, New Oriental has established a scientific and independent teaching evaluation and teacher training system, which helps teachers grow rapidly and improve continuously through means such as lesson polishing, quality inspection, and teaching competitions.

At the same time, New Oriental selects a large number of excellent teachers every year to study in Harvard, Oxford and other world-renowned universities, so that their professional level can always be at the leading level in the industry. Dong Yuhui, Dun Dun and Xiao Sun, who were selected by New Oriental, all came from New Oriental, a "top university".

When an enterprise can continuously strive to improve super products, super services, and super employees, it will have the foundation for the continuous operation of super users. Continuous operation can increase the renewal rate and activity of super users, bringing greater benefits to the enterprise.

5. Fission

Fission is one of the important means of user growth. New Oriental mainly adopts two forms: "rewards for attracting new users" and "free classes for group purchases".

1. Get physical rewards for attracting new users

At present, the "Limited Time 0 Yuan Physical Prizes" activity is the main way New Oriental uses to achieve user growth.

Whether it is in the customer circle of friends or in the corporate WeChat community, users can see a variety of physical rewards. For a single user, there is always something you want.

If a user wants something, he needs to invite friends to help and reach a certain number of people, usually more than 10 people, so that New Oriental can achieve the goal of user growth.

2. Invite friends to buy courses in a group

In addition to giving away gifts to attract new customers, New Oriental’s other way of fission is to use group buying activities to achieve user growth.

In the activity description, it can be clearly seen that after users successfully join a group, they must join New Oriental’s community in order to receive the corresponding group rewards.

Based on physical rewards, through the help of friends and group buying, New Oriental quickly accumulated a large number of private domain users on WeChat Enterprise, and also established a large number of WeChat enterprise communities, laying the foundation for subsequent conversions.

Summarize

We have now entered the "stock era". Whether it is an education and training company like New Oriental or other industries, they are all trying their best to retain and screen users. This has become the foundation for the future survival of enterprises.

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 WeChat public account: Yan Tao Sanshou