In the era of inventory involution, is it difficult to revitalize dormant old users and convert them?
Lack of traffic is a dilemma faced by both large and small companies today. The key lies in how to quickly tap the value of existing users of the platform and achieve commercial realization. Combined with a certain sinking market project that has been operated in the past, transformation is carried out around the platform stock, looking back at the project, and summarizing the replicable methodology.
Note: Partial data display of the project
When working on corporate projects, the problems faced are complex. Different industries and different projects have different difficulties, and it is difficult to solve all problems with one method. If you have to ask me to give an answer, the only way I can think of is: system. Build a complete operation/marketing system, use systems and frameworks to limit the scope, and reduce the probability of errors.
A complete operating system can currently be summarized into six elements: operations, users, brands, people, goods, and sites. The core is the operation linking users and brands; the extension is implementation around people and goods.
1. In-depth operations, the core of stock conversion
Operations are no longer just the operations of the Internet. After 10 years of practical marketing experience, my initial understanding of operations was more focused on the Internet, where operations link users and products. But as I do more and more projects, my understanding of the problem gradually deepens.
If you think based on your own experience in the fields of traffic, products, private domains, content, and activity operations. I think it is OK to operate and link users and products. If you go up to another level. Beyond the scope of Internet operations, operations must solve the relationship between users and brands.
I have come into contact with some companies that are relatively new to Internet marketing. Operations must not only complete the growth and conversion of initial products, but also create brand value in the process. Strengthen the spread of brand value and be more conducive to long-term user links.
If the project has a growth cycle, the cycle range includes the pioneering period, the breakthrough period, the growth period, the maturity period and the final decline period. Further simple division can be divided into “0-1” stage, “1-10” stage and “10-0” stage.
“0-1” stage. It belongs to the early stage of project exploration and requires a deep understanding of platform users and business. Find the exclusive solution for the project, discover the project’s breaking points, and get the project through. “0-1” is also the most difficult part.
“1-10” stage. The project has been completed and has entered a period of rapid growth. In addition to doing a good job in current projects, we must also be prepared for danger in times of peace and plan the second growth curve in advance. No one can guarantee that a successful project will always be in a state of high growth. When the opportunity is favorable, consider a few more steps in advance.
“10-0” stage. The project gradually enters the maturity stage and decline stage. Business began to stabilize, and even profits continued to decrease. If the project’s conversion continues to show no growth, timely adjustments must be made to maintain stable cash flow, and the team’s energy needs to be gradually transferred to new business.
2. Users, the operational basis for stock conversion
Having a user base is only the first step in conversion. Just like traffic is always just a part of business. Whether you build traffic around products or build products around traffic, the difficulty of conversion in the later stages is quite different.
It cannot be ruled out that the free gameplay in the early days of the Internet was driven by free traffic, and then gradually transformed through the “three-stage rocket”. The most classic one is 360, which used free anti-virus tools to acquire users, and then gradually upgraded to a secure network platform, and finally from safe browsing to Advertising revenue from browsers and website navigation, and the company’s operating profits. Obviously this model has many requirements. The free traffic products here must be high-frequency enough and have enough brand potential.
If at the very beginning, attract precise target users around convertible products. The more accurate the early users are, the deeper they understand the value of the brand. The difficulty of conversion will be lower in the later period, and it will be easier to establish a long-term relationship between users and the brand.
Take the sinking market project mentioned at the beginning of the article as an example. This company also made a typical mistake. At the beginning, the platform did not think clearly about how to build a “convertible product” system.
Although a large amount of traffic is obtained through the core functional products of the platform, the conversion process is lengthened invisibly. Because the traffic is general traffic, users’ understanding of the platform focuses on the use of tools. In the later stage, if they want to transform and convert, the difficulty will be increased.
The warning given here is not to do traffic blindly. Before creating traffic, think clearly whether there is a matching “convertible product” system to undertake it.
3. Brand brings stock conversion one step closer
My understanding of brands is that brands allow users to instantly associate you with who you are and what you do. There are three core elements that influence users to place orders: demand, purchasing power and trust. What brands need to solve is the most difficult link, trust.
Imagine the process that users will go through to understand you: understanding, recognition, recognition and subscription. When many unfamiliar brands are first born, they need to constantly build their reputation in the market in the early stage. Similar to Xiaohongshu planting grass and SEO soft articles dominating the screen, on the media platform that suits you, you constantly make your voice heard and build momentum to gain sufficient brand exposure. These preliminary work are to let more users understand the brand.
When your brand has a deep enough impression in the minds of users. The next time someone is in need, one is a brand he is familiar with and the other is an unfamiliar one. How will he make a judgment?
Having brand value can improve users’ trust in the platform, which invisibly shortens the path to transaction conversion. Therefore, operations need to be done from a higher perspective to achieve transformation. Build the brand value of the platform and bring conversion one step closer.
4. People, the first element of stock operation
No project can do without people. People, in addition to exploring the user dimension, also include thinking at the platform organizational level.
Based on my current limited experience, I sorted out “people” from five perspectives. They are user insight, demand stratification, team management, department collaboration, and channel expansion. User insights and demand stratification are biased towards the users themselves. Team management, department collaboration, and channel development tend to focus on the organizational level.
1. User insights. The existing user group includes users and payers, and it is necessary to correctly distinguish who are the real users. Dig deep into paying users, follow the 28 principles, and maximize value. Just like the “three-stage rocket” model mentioned earlier, the platform attracts a large number of non-target users and cannot generate real paid conversions. In actual project operations, we must learn to distinguish who are the real value users.
2. Demand stratification. According to Maslow’s demand theory, users at different levels have different needs for products, so it is necessary to conduct a hierarchical analysis of the platform’s existing user groups. Among the paying user groups, more refined operations must also be carried out. For example, according to purchasing power, some users will only choose lower-end products. Those who really have high purchasing power, after all, are the few who can provide higher value VIP services.
3. Team management. “Select Yuliu” within the team to build a team with high combat effectiveness. Yes, give reasonable expectations and provide timely feedback on project results. Internally, improve professional skills and organize and implement SOPs.
4. Departmental collaboration. Communicate and collaborate across teams to leverage resources to promote project implementation. Communicate and review in a timely manner to optimize project details. Accelerate project iteration process.
5. Channel expansion. Leverage external resources, connect with external cooperation, and efficiently promote project development. Screen high-quality channel providers, find channels, screen channels, control channels, and optimize channels. Find a channel provider with a higher degree of matching.
5. Goods and stock operations are the basis for transformation
Without products that can be sold, conversion is like cooking without rice.
A complete product system includes traffic-draining products, core products, profit products, popular products and expansion products. Here we take the retail industry as an example, and supplementary explanations are provided for each type of commodity concept.
1. Drain products, low-priced just-need or experience products, and attract and convert new users. For example, eggs, milk, and fruits in supermarkets are good drainage products that attract users’ attention.
2. Core products and advantageous products have a high sales ratio and ensure users’ repurchase. Fruits and vegetables, meat and poultry, aquatic products, etc. are all important products in supermarkets and are also daily best-selling products.
3. Profitable products, high-margin products, stable sales, and average sales proportion. Many snack products have high profit margins, but their sales volume may not be the highest in supermarkets.
4. Popular products, products with word-of-mouth propagation, have large sales in the short term. Similar to seasonal fruits. We sell watermelons in summer and chestnuts in winter. Larger sales in the short term.
5. Expand products and expand products around core products to meet more needs of users. Daily necessities in supermarkets fall into this category.
The product classification here is relatively complete, and the project is actually operated, but the product system may not be so complete. I have been exposed to many projects, and the product line is very single, or even only one product is available for sale. Regardless of whether the product line is rich or single, one must have the awareness to sort out the product line. Without product delivery, the user’s value exchange cannot be completed.
6. Field, conversion touch point of stock operation
The market is the channel terminal for stock operation transformation.
The most classic 4P theory of marketing. Products, pricing, promotion, channels. Regardless of my previous work experience in traditional industries or my later research on Internet marketing, the framework of the 4P theory has always been the one I use the most. Standing at a higher dimension of enterprise stock management. 4P theory is also an important theoretical framework.
The value of the brand is transferred to the user. It is a transfer of energy in itself. Products and prices belong to the energy of the brand. Any goods and services provided by the platform are potential energy transfers to users. On the other hand, how to link the value of the brand to users requires delivery methods and media. Promotion and channels solve this problem.
Carriers targeting existing users, such as APPs, public accounts, mini programs, etc., are very important channels. Event operations, content operations, and community operations are very effective operations. If there are no scenarios to reach users, that is, channels, the value and information of the brand cannot be accurately conveyed to the users.
At a time when operations are becoming more and more refined and homogeneous, it is necessary to transform existing stocks and no longer just break through at a single point. Learn to build a system and establish operational barriers.