2023, not only private domain, but also growth!

2023, not only private domain, but also growth!

Different user groups have different strategies for growth. Urban user groups are different from rural user groups. So how do projects that sink into the rural market operate? The author reviewed his project. It is difficult for any project to be 100% replicated. The important thing is to understand the thinking behind it. I hope it will inspire you.

Different from the urban user groups, how do projects targeting the rural market operate?

Past experience was concentrated in the fields of finance, home appliances, education, etc. This was the first time I came into contact with the rural market, and it was on an immature commercial platform. The project cycle was nearly 8 months, with a turnover of nearly 10 million and a total of 15,000 paying users. The project mainly revolved around the operation of a tool app for the rural market (hereinafter referred to as the platform). Due to its heavy tool attributes, commercialization was delayed in addition to advertising, and the products connected to the site had not been monetized.

It is said that whoever wins the users wins the world. What factors should be considered in practice? I usually immerse myself in the project. I review the project during the holidays and summarize the underlying methodology behind the project. The key information of this article is as follows:

①Do you really understand your users?

②What are the three elements of private domain operations?

③How does data drive business growth?

④Content that moistens things silently?

It is difficult to replicate any project 100%. What is important is to understand the thinking behind it.

1. Do you really understand your users?

Different platforms have different tones, and the user relationships on the platforms are also complicated. When doing C-side projects, it comes down to dealing with the users of the platform. However, it is not easy to understand the users. Based on the characteristics of this project, we sorted out the two layers of relationships behind the users: the multiple relationships between platform users and the stratification of user needs.

1. The platform’s diverse user relationships

The multiple user relationships sound difficult to understand. For example, parents and students in the education and training industry are binary user relationships for the platform. Students are users of the platform, and parents are payers of the platform. In the platform projects that I have come into contact with, users are not only parents and children, but also other assistants. For ease of understanding, we call it multiple user relationships. No matter how many roles of users participate in the platform, the key is to find users who are willing to pay on the platform.

How to distinguish between platform users and payers can be expanded from the following three perspectives.

Demand: Users have demand for the basic functions of the platform itself, but they are limited to the use of product functions, that is, they only regard the platform as a tool product. Payers may not use the basic functions of the product, but they have demand for the products derived from the platform. While helping users use the tool functions of the platform, they also consume platform products. The starting points of the two for the demand for the platform are different. Users only regard the platform as a tool, and payers are the user group that truly makes commercial contributions to the platform.

Motivation: Users naturally do not have much motivation to buy platform products. The real motivation is the payer, who is willing to pay on the platform. As long as the platform products meet the needs of users, some users will try to understand the platform products. What is tested here is the platform's ability to select products and truly meet the real needs of platform users, rather than false needs.

Purchasing power: Only payers will eventually make purchases. Of course, in addition to the final payers, there are also some users who belong to the potential user group, but their purchasing power is relatively insufficient. The purchasing power of users is also related to the platform's product selection. Some categories of users have the ability to consume, while some products are only available to some users with purchasing power.

When operating a platform project, you need to pay attention to and care about the payers of the platform and accumulate valuable paying users. Use your limited time and energy to serve the valuable users of the platform. This is also the focus of daily operations at the user level.

2. User needs stratification

Human needs are multi-layered. According to Maslow's hierarchy of needs, people have five types of needs: physiological, safety, social, respect, and self-actualization. The higher the level of needs, the more obvious the self-drive of people.

People’s needs are multi-layered. It is not the case that the needs of rich people are necessarily advanced. It mainly depends on the needs of individuals at different stages. In the actual operation of the project, different needs will correspond to different product selections.

(1) Low-level needs

Pinduoduo's practice in the sinking market has shown that cheap and easy-to-use products are more popular with these users. Low prices, practicality, and high purchase frequency meet daily basic needs. The closer it is to food, clothing, housing, and transportation in life, the faster it can attract users with needs.

(2) High-level needs

High-level needs are more driven by the user's internal drive. For example, if you want to improve yourself and spend tens of thousands of yuan to buy courses, you will definitely think rationally. Other people's auxiliary communication can also dispel your potential concerns.

Demand stratification means user stratification management in the later stage. These users are deposited into the private domain pool for tag management and fine operation. For platform users, users are stratified with the help of the tag system of third-party tools. For daily app operation, you can use in-site push, push message, SMS push, in-site pop-up window/banner and other advertising locations for large-scale exposure. For the obtained user details, you can undertake them in the community.

2. Three Elements of Private Domain Growth

Profit is the key to growth! Without profit, it is difficult to maintain sustainable operations.

In the process of implementing existing projects, in addition to the insight into users and the stratification of their needs, "venue" and "goods" are also crucial, which are the three elements of "people, goods, and venue" that are often heard in the industry.

First, let's understand what operation is. Operation links users and products. Based on this project, products are the platform's commodities, and users are the platform's existing customer base. How to continuously accumulate paying users through the operation of the platform is the value of private domain growth. Here we focus on "goods" and "place".

1. Goods

Whether the product selection is accurate directly affects the platform conversion. If common products are classified, there are roughly 5 categories.

  1. Traffic-generating products: Most of them are low-priced, urgently needed products, mainly to attract new users.
  2. Conventional products: flagship products, which generally account for a higher sales share and are conducive to user repurchase.
  3. Profitable products: high-gross-margin products, with average sales share and relatively stable.
  4. Hot-selling products: have a certain word-of-mouth effect, mainly focusing on short-term sales.
  5. Extended products: Derivative products around regular high-selling products to meet the various needs of users.

The selection of different types of products needs to be combined with the platform and user needs. In actual projects, the platform may not have so many complete types of products. In the past, when we were working on air conditioners, the products were mainly divided into three categories: special price units, regular units, and exclusive sales units.

  1. Special price machine: specifically refers to the products used for traffic diversion to attract users to the store.
  2. Conventional machine: a product model that accounts for a relatively large proportion of daily sales, with a medium profit level and prices and functions that are relatively acceptable to users.
  3. Underwriting machine: Generally, it is a high-gross-profit commodity, and the gross profit margin of a single item is basically above 30%, and it is mainly used to display the brand image.

Improving the conversion rate of "goods" can be expanded from the perspective of product discounts.

  • Transaction: flash sale/group buying/direct discount, etc.
  • Customer order: discount/discount/gift etc.
  • Frequency: order coupons/membership, points system, etc.

2. Field

It can be understood as a daily operation channel and also the terminal touchpoint for enterprises to reach users. Strictly speaking, private domain carriers include enterprise WeChat, personal WeChat, Moments and communities.

In addition, the company's apps, mini-programs, public accounts, SMS channels, etc. can all be used to reach users, convert them, and recall them. How to tap the value of channels is the key. In actual operations, there may be only a few channels that can produce results.

Focus on the three elements of “people, goods and place” to carry out daily operations.

3. Data drives business growth

Data drives business growth. What data does the actual project include? Data center construction and daily operation report design. If you are on a more mature platform, the data report may be complete and can be used directly. If you are in a team that has never built an operation data report, how do you design the data report?

1. Backend data construction

The construction of the data report background is generally centered around several reports on users, products, channels, and activities. User reports focus on traffic sources, the number of new users, etc.; product reports can be understood as data on product categories; activity reports are mainly used to analyze activity data; channel reports focus on the value of various channels. Data reports cannot actually solve operational problems directly, but rather help operations "find problems" in daily work.

A simple analysis based on the channel report design logic is provided for reference only. The actual business shall prevail.

Understanding of data reports. If the report involves conversion data, it must have three dimensions of analysis: front-end traffic data, user behavior data, and user conversion data. With complete traffic data and conversion data, you can derive the cost and calculate ROI. The value of the report is to help operations quickly obtain conclusive results and assist in operational decision-making.

(1) Front-end traffic data

If you have ever done advertising, you will definitely be familiar with "display point consumption". Display refers to the traffic exposure of the channel. For example, if channel 1 has 1,000 displays on a certain day, the display is 1,000, which is actually PV data. Click is UV (unique visitor data). Maybe 1,000 users browsed this channel, but only 100 actually clicked to view it, so the click-through rate is 10%. Consumption refers to the daily budget delivery data of a certain channel. By analyzing the front-end traffic data, you can clearly get the traffic quality of each channel. Focus on channels that can produce conversion effects.

(2) User behavior data

Different assessment indicators lead to different user behavior analysis. They are broken down into the number of effective users and the number of paying users. When a user comes to the platform and performs a certain behavior (based on the platform assessment), he or she can be identified as an effective user. If a user performs a paying behavior, he or she can be identified as a paying user. By analyzing the display traffic, number of effective users, and number of paying users of the channel, a rough conversion funnel model can be derived.

(3) User conversion data

The most intuitive way to tell how much actual revenue a channel brings is to analyze the conversion data. If you do it more carefully, you can even embed LTV data into the table. This way, you can get the user's first order and repeat purchase data, and do a more detailed analysis.

Relying on a single report alone may not solve all problems. Design reports that meet business characteristics based on users, products, channels, and activities, and analyze the business in as many dimensions as possible.

2. Daily operation report

Data report design tends to be in the middle and back-end, and front-line execution may not be involved. The daily operation report is closely related to operations. The content of the operation report is also relatively broad, and the analysis is based on specific business. Before explaining the report in detail, let's first popularize several core indicators that need to be paid attention to in order to achieve growth, which is also the practical experience of private domain operations.

Conversion rate: It can help you understand the overall conversion of the platform. For example, if there are 10,000 people on the platform and 1,000 of them pay, then the conversion rate can be simply understood as 10%. In actual operation projects, during peak periods, nearly 1% of the platform's monthly active users were converted into paying users.

Repurchase rate: A high repurchase rate means that the platform's paying users have high stickiness. The value of old customers' continued repurchase is self-evident and is also an important source of platform profits.

Referral rate: Word of mouth is the best communication method. Only when users trust the platform and recognize the product can we create a good referral rate.

During the project operation, the above report format was designed around the conversion rate and repurchase rate. The table header "category" refers to a certain business line. If the platform has mobile phones, computers, home appliances, etc., the category can be mobile phones, computers, and home appliances. Because the products of the platform project are relatively simple, the design of the report is relatively detailed, and the overall calculation amount is not large.

(1) Conversion rate

When a user buys a product for the first time, it involves GMV, order volume, and average customer unit price. Through basic data analysis, you can understand the details of each dimension.

(2) Repurchase rate

The repurchase situation can be broken down into (second purchase, second or more purchases), so that the proportion of first purchases turning into second purchases and the proportion of first purchases turning into multiple purchases can be obtained. With these data, you can know how many new customers are converted each month, how many second purchases each month, and how many multiple purchases each month. With the new customer conversion rate and repurchase conversion rate, you can solve the problem in a targeted manner.

The design of data reports is not static. In addition to the monthly dimension mentioned above, the report design can be further divided into weekly and daily dimensions. Different businesses have different report formats, and the key is to understand the logic behind them. Everything is designed around business needs.

4. Emphasize the value of content

The content is silent, but it influences you subtly!

When it comes to private domain growth, content is extremely important. But how do you understand the essence of content? Have you ever thought about this question?

Left-brain products, right-brain brands. This means that the left brain of a person is more rational, while the right brain is more emotional. What does this have to do with content? Daily WeChat Moments copywriting helps to narrow the distance between the company and its users.

We often hear that it is necessary to have a persona in the private domain. The persona is actually a bridge that brings brands and users closer. In the silent circle of friends and communities, if we want to achieve transactions, we need to solve the problem of users' trust in us. In essence, the more problems we help users solve, the easier it is for users to trust us.

Among them, the copywriting of Moments and social networks can be divided into two types: dry goods and wet goods. Dry goods are more rational, while wet goods are more emotional.

  • Trust (rational): Professional and reliable copywriting is more likely to build trust, such as sharing of useful information, positive corporate image, customer reviews, authoritative endorsements, etc.
  • Transaction (emotional): Intimate and warm copywriting content is more likely to bring users closer and promote transactions. Activity promotion, daily greetings, circle of friends interaction, etc.

Creating content is a slow process, and it has a subtle and silent effect.

Focus on platform users and dig deep into user value. Explore commercialization from the perspective of deep understanding of users.

Today’s road is not easy to walk, and tomorrow is still full of unknowns. The gap between knowing and doing is not only the information gap, but also the cognitive gap. The certainty in uncertainty is to lay a good foundation and consolidate the foundation.

Author: Hu Xianwu, WeChat public account: Wenli Marketing Notes

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