Today I want to talk to you about target decomposition. After getting a business, how to break down the goals of this business and eventually turn a large indicator into small, achievable and controllable indicators. This topic comes from what we are doing now, disassembling our own business and combining it with a one-day target disassembly course, to share with you how to disassemble. This article will share with you from the following aspects:
Next, let’s talk briefly about this matter. 1. What is target disassembly?What exactly is target disassembly? Why do we need to do target disassembly? What is the significance of target disassembly? Next, we will start with what target disassembly is and why do we need to do it and see what target disassembly is. 1. What is target decomposition?What is target disassembly? Although we have been doing this, we may not really understand what target disassembly is and why we should do it. I didn't understand it at first. I always felt that this was a waste of my time and that my boss was using it to torture his subordinates. I was already very busy at work every day, so why would I spend time doing something that seemed meaningless? It wasn't until I took a day to take a course on goal decomposition that I slowly understood that goal decomposition is not a waste of time, but rather it saves time. Before taking action, plan each subsequent step to ensure that the work can be arranged and the project can be promoted around the goal, and the final project can be completed. (Especially before getting busy, if you know your goal clearly in advance, you can effectively avoid being busy.) Just like winning a battle, you need to study the enemy's situation and the current situation of both sides. Then accurately deploy the battle plan to ensure that the battle can be won at the lowest cost. Simply put, goal decomposition is to break down a seemingly very large and unattainable goal into individual projects that can be implemented, executed, evaluated and monitored, and have a time limit, so as to ensure the implementation of the project and the achievement of the goal to the greatest extent possible . 2. Why do we need to decompose targets?Why do we need to break down goals? Is it to torture people for the sake of formality? Or is it that before doing anything, thinking clearly about how to do it is more important than doing the thing itself, especially when it comes to busy things. We need to be more cautious about whether the things we do are related to the goals and what indicators and goals the things we do can help us achieve. In my opinion, indicator decomposition, even if it allows you to think clearly about how to do things around the goal in the future, is also a basis for aligning your goals with your boss. In this process, if the things arranged by the boss are not within your goals, you can justifiably reject the boss. It is a blackening of a discourse system of multi-party communication, and a process that can quickly align the things of both parties. Taking the theoretical knowledge of management as an example, goal management is the foundation and core of management. It can help enterprises achieve strategic goals and business goals and improve the performance and efficiency of enterprises. As an important part of goal management, goal decomposition can help enterprises decompose long-term goals into specific short-term goals and action plans, so as to achieve the operability and evaluability of goals. In layman's terms, it is to decompose the itinerary of 5 people from Beijing to Shanghai in one day with the least money into specific and feasible ways, so that a large indicator becomes specific, clear and monitorable . 2. How to break down the targetNext, we will move on to the key content, how to break down the goals of your own business. In this process, I will take paid membership as an example to share with you how to break down the goals, what are the key steps and actions in this process, and how to test whether the goals you break down are reasonable and finally turn them into specific projects that can be implemented. 1. Analysis of business statusIn order to finally break down the goals, you need to do a key task before that: analyze the current status of your business. Only by finding problems from the current situation can you formulate a feasible goal based on the problems and break through the current business status . Where can you start with the inventory and analysis of the current business status? Where can you start with a deeper understanding of the business and see the current difficulties of the business? There is a trick to taking inventory of the business: what is the business model? From which aspects can you start to see what the current status of the business is? This may be too abstract, so let’s take the paid membership business as an example. Paid membership is either about user growth or revenue. In these two cases, there may be different business status analyses. In the case of user growth, you can conduct business based on the model of paid membership number = traffic * conversion rate , looking at the conversion rate of different scenarios and traffic entrances; looking at the conversion rate of different groups, and looking at the conversion rate of different prices and different membership card types. If the user base is large enough (millions of members, with more than 30% of the users coming every day), you also need to distinguish between new card opening and renewal, and look at the conversion rates of new card opening and renewal in different scenarios and groups. If there are multiple types of membership cards, you also need to analyze the conversion rates of multiple membership cards and the subsequent repurchase rates. If paid membership is used as a revenue product, then the model at this time is revenue = traffic * conversion rate * (income - cost) . There are three key factors here. One is conversion rate, which is actually revenue and cost. When the goal is revenue, it is necessary to balance the relationship between new users and revenue . It is to adopt a model of small profits but quick turnover when revenue is growing, or to increase the average revenue per membership card to maximize total revenue when revenue is growing. When the goal is revenue, it becomes very interesting. Most bosses have become a role that wants both. Most people want user growth (paid members cannot talk about revenue separately without user growth) and also want the revenue per membership card. So in this case, we need to look at both conversion and the revenue of each membership card. We even need to break it down to look at the conversion and membership card costs in different scenarios and populations. In this case, it is not that the channel with the higher conversion rate is better (a high conversion rate may also correspond to a high membership card cost, which does not make money itself), but in what scenarios, the conversion rate is appropriate, and at the same time, the membership card cost is relatively low, which can effectively bring about an increase in revenue. In the case of user growth, members hope that everyone uses the card as much as possible, which shows that users recognize the value of membership. At the same time, because members bring enough consumption frequency or order growth to the platform, they are more and more loyal to the platform. However, in the revenue growth model, we do not hope that users use the card more, but hope that users use it appropriately and can perceive the benefits of the membership card. We do not hope that users use the card as much as possible. 2. Find the key factors that affect the goalAfter conducting business analysis and finding the problems existing in the current stage of the business , we can list the key factors that affect the goal based on the problems. The key factors listed based on the current business situation can ensure that the goal is to solve the problem based on the current situation, rather than to break down the goal for the sake of breaking down the goal. Let’s use the previous example of paid members to illustrate. If we are talking about the growth of pure paid members, the number of new paid members = new user traffic * conversion rate + old user traffic * conversion rate. You can also combine the working hours and get traffic * conversion rate. If it is the early stage of the product, then it may be a traffic problem, and you need to find various traffic scenarios to cut in, so as to increase the coverage of paid members. At this time, traffic may be the key factor affecting the goal. If it is in the middle and late stages of the product and has entered the mature stage, the focus at this time is to improve user conversion, rather than blindly laying out the entrance. If you are a paid member with the goal of revenue, draw some effective conclusions from the previous business analysis, and list the key factors that affect the goal based on the current business situation: revenue = traffic * conversion * (income - cost). For an indicator, there are also different ways to disassemble the same business. The key to disassembling from different dimensions is to analyze the current business problems. If there are any factors that have problems, start from those aspects to disassemble and solve the problems. 3. Further split the key factors into 4-5 layersThe core purpose of goal decomposition is to gradually decompose the goal 4-5 layers down based on the current business situation, and finally turn it into projects that can be implemented, executed, evaluated, quantified, and have a time limit. It gradually turns a large, vague goal with no direction into specific and controllable target projects or directions. We can further decompose the key factors above, and gradually decompose them 2-3 layers down into specific things. Let's take the above case as an example to see how to decompose them. As for the key factor of conversion, the key factors that affect the conversion rate include: price, membership card product strength (membership benefits), marketing packaging, user experience and other key factors . All key factors can be listed, but not every factor needs to be disassembled and divided. Similarly, you only need to find the most critical factors that affect the conversion rate based on the current business situation. From the current data analysis of the business, it may be found that there is a significant difference in the conversion rate of new and old users. Next, we will gradually break it down. For price, we can look at the relationship between price and conversion rate. When the price is in a certain range, the conversion rate may decrease, but the decline is lower than the price increase. Once it exceeds a certain limit (user's psychological expectations), the conversion rate may drop significantly. From the data, we may need to add some low-priced products for users to try, so as to increase the user's paid conversion rate. Of course, from the perspective of user growth, if we start from the dimension of revenue, we may need to consider at what price the revenue is the greatest. Then, from the product strength of the membership card, we need to see what kind of rights and interests are the rights and interests that users really like and are willing to pay for. These rights and interests are regarded as the main rights and interests of members and the value is clearly communicated to users, so that users feel that they are getting a great value. From the perspective of marketing packaging, what marketing packaging methods are there, and what methods are truly effective and useful, these key factors can be listed to better achieve their own indicators. 4. Find leverage solutions and fundamental solutions, and point out business difficulties and challengesSome things can complete the indicators quickly, but may not be conducive to the development of the business in the long run. This is called leverage solution, which uses some levers to leverage the completion of indicators. However, some things may not show results in the short term, but they must be the right thing to do in the long term, and they are things that can bring real value to users. Only by persisting in the long term can the problem be fundamentally solved. When doing things, we always combine short-term and long-term things, quickly solve indicator problems in the short term, and at the same time focus on the long term and do difficult but correct things. On the other hand, the boss also needs to be aware of the difficulties and adjustments of the business. If there is a problem that requires the boss's help to solve, it needs to be pointed out clearly: for example, project xx requires the boss to resolve a certain key element before it can be started. If the boss can't resolve it, then it can't be done. 6. Pick the three most important things to do each monthAfter breaking down the goal, you will know what important things to do around the goal. You must confirm the three most important things that must be completed every month, so that even when you are very busy, you can prioritize those things that contribute most to the indicators. You don't end up looking very busy every day, but in the end you find that you are pushed around by things every day, and you seem to have done a lot of things, but many of them don't contribute much to the indicators themselves. Therefore, when disassembling, some key projects also need to be disassembled to ensure that the most important things related to the indicators are done every day, every week, and every month, so as to confirm that the final indicators can be achieved. Finally, a business disassembly model is formed: Author: Tingting Source: WeChat public account "Operation Wang's Growth Diary (ID: yunyingwang001)" |
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