Decoding the consumer psychology used by Pinduoduo in its promotions

You know exactly what to do to succeed, and then strictly execute each step. The end result is a natural increase in conversion rate.

If one project is successful, but the next or the next one is not, there are two reasons: the core methodology for getting this done is not mastered; and the execution of each link is not done well. If one of the two is not done well, the success cannot be replicated.

1. Analysis of the entire process from advertising to monetization

Next, I will talk about a project from advertising exposure to the entire transaction process . It is an offline children's Go training program with a return on investment of up to 102 times. Although most of the friends here are working in app stores, they are all smart people and should be able to draw inferences from this experience .

The whole process from advertising exposure to final transaction

When an ad is displayed through a certain channel (it may be a search ad, e-commerce ad, elevator ad, or radio ad), a certain proportion of users will view it (this is the click-through rate CTR). If the user is interested, further relationship will occur, which may be one or more of following, downloading, registering, telephone consultation, online consultation, making an appointment, and purchasing. Everyone should think about which type of business their business belongs to. How to gradually optimize the conversion rate of each step?

Let's look at a set of comparative data on the offline and online marketing conversion rates of a project, and comparative data on the entire process of offline store enrollment and online marketing enrollment for Zhenpu Children's Go Training in 2014. After step- by-step optimization, the online marketing enrollment conversion rate is more than 35 times that of the offline store enrollment conversion rate.

Final conversion rate = conversion rate 1 × conversion rate 2 × conversion rate 3 ×…

The appointment conversion rate increased from 33% to 74%. Let’s take a look at what happened here?

When the price of a product (if you only look at the price and not the value) is much higher than that of its peers, and a customer comes to consult and asks how much it costs right away, what should I say to make the customer feel that he or she must buy it? Let me use the children’s Go training program that I have been running for 14 years as an example.

When an interested parent calls and asks how much, if you just tell them the price, there will basically be no follow-up. What did we do then?

1. Provide multiple options (beginner class, intermediate class, advanced class, 3 months, 6 months, 1 year, 3 years) to avoid major problems . Let's review the scenario:

The parent asked: How much does it cost to learn Go in your place?

Customer service answer: Hello, parent! We have beginner, intermediate and advanced classes, as well as 3-month, 6-month, 1-year, 2-year and 3-year courses. The tuition fee will depend on which class is suitable for your baby.

2. Use questions that can be answered without thinking to screen real target customers

Contact customer service: How old is your baby?

Parent: N years old

The reason for asking age at this time is to quickly determine whether the potential customer is the real target customer. If the other party is not the real target customer, then it will be resolved quickly and another call will be answered. Because the number of consulting customer service staff is limited, we need to save time for the real target customers.

3. Simulate all possible situations + corresponding pain points

Asked by customer service: Boy or girl?

At this time, there are two situations for the customer's answer. Situation 1: Boy

Parent’s answer: Boy

Asked by customer service: Is the child more active and lively or more mature and stable?

Case 2: Girl

Parent’s answer: Girl

Asked by customer service: Is the child more active or quiet?

There are four situations at this time.

Situation 1.1: Boy & Active

Parents’ answer: Boy, lively and active

The customer service representative said: Hello, parent. Our Zhenpu Go school has 12 campuses in Beijing alone. The largest campus, Wangjing, has as many as 1,000 children. Most parents send their children to learn Go because their children are particularly naughty and make too much noise. The children cannot sit still and cannot concentrate. And we all know that children have difficulty concentrating, not only in Chinese, math and English, but in learning anything else. I heard from experts and kindergarten teachers that learning Go can improve children's concentration, so I sent my child to learn Go to train his concentration.

Situation 2.2: Girl & Quiet

Parents answer: Only a girl, and she is quiet.

The customer service representative asked: Do you remember that when you were in your second year of high school and were studying permutations and combinations and spatial solid geometry, the girls' grades were generally worse than the boys'?

It is an established fact that most boys have stronger logical reasoning and spatial imagination abilities than girls. Parents have now given birth to a precious daughter, and the child will also study spatial solid geometry and permutations and combinations in high school in the future. If you are a parent, you will feel the pain unbearable and will quickly take your child to an audition.

So by simulating all customer situations, your customer service will be able to answer whatever the customer asks, accurately solve the pain points and convey the value points of the product, and your appointment rate will definitely increase.

As the saying goes, the devil is in the details. In fact, there is not only the devil in the details, but also a lot of money. As the conversion rate increases at each step, money will come.

2. Chen Yong’s Six Elements to Make Customers Buy

Let's think about it. When we buy things, we either go to Tmall, JD.com, Taobao, or Amazon, or we go to offline stores. For example, I recently bought green radish and found that there were not many choices on JD.com. So I opened the almighty Taobao, typed in green radish to search, and saw a bunch of merchants selling green radish. I chose the one with the highest sales and bought it. Green radish is very cheap, so if I bought the wrong one, I just admitted it and bought the one with the highest sales. Of course, if the price is very high, you will look at the product page very carefully and compare several stores. But when we buy things, we either buy from that store or this store. The reasons why we choose store A are nothing more than the following:

Three stages of ordering

The first stage: stimulate interest

When we buy things, I have a need to be met, so I need to buy something (to stimulate interest). When we see a certain product, we will wonder what the quality of this product is. Is it easy to use? Is the after-sales service good? The reason we have these questions is simple because we don’t trust this seller.

The second stage: generating trust

A good friend introduces a product to you, and you trust your friend, but why didn't he buy it? There are three major factors, which I won't elaborate on due to time constraints, but as a merchant, you definitely hope that the customer will buy and place an order.

The third stage: place an order immediately

These three major stages correspond to Chen Yong's six elements: reciprocity (note that it is reciprocity, not preferential treatment), commitment consistency, authority, social recognition, preference and scarcity.

I have a flight to catch soon, so I won’t have enough time. I will only elaborate on one element that people often make mistakes on: commitment and consistency.

Commitment = guarantee (the promise in the upper corner), consistency (for consumers, you have to deliver what you promised) means fulfilling the promise.

So how do you achieve commitment and consistency? In plain words, how do you make customers believe that what you say is true?

Let me use an example of commitment and consistency from an ad for a diet pill that almost everyone has seen.

Suppose we develop a special weight loss drug that can turn a 150-pound fat person into a 100-pound thin person within 50 days, and let's assume that this drug is truly effective. The question is, how can we make advertisements that make people believe that this medicine is very effective?

Advertisement 1: Static comparison chart (static comparison chart of weight reduction from 150 catties to 100 catties before and after taking the medicine for 50 days)

Everyone raised their hands indifferently, indicating that most people did not believe in advertisement 1.

Advertisement 2: GIF (After taking the medicine, I went to the scale and the scale showed that I weighed 150 catties. After taking the medicine for 10 days, I went to the scale and the scale showed that I weighed 140 catties. After taking the medicine for 20 days... After taking the medicine for 50 days, my weight really dropped from 150, 140, 130, 120 to 100 catties.

(More people believe in ad 2)

Advertisement 3: Make a weight loss video with a process. Before taking the medicine, the weight was 150 kg, and after 10 days, it became 140 kg. The camera zooms in and after 50 days of taking the medicine, the scale shows that the weight is only a little more than 100 kg.

(More people believed in Ad 3 than Ad 2)

Advertisement 4: Measures + process video, the patient went to the best local tertiary hospital, the weight loss expert of the hospital told him to hold back his mouth and move his legs (not to overeat, to walk 2000 steps a day), then he dropped from 150 kg to about 100 kg

(More people believed in Ad 4 than Ad 3)

If we rank these four ads according to their trustworthiness, the later the ads, the more trustworthy they are. That is, Ad 1 < Ad 2 < Ad 3 < Ad 4

The above commitment

The following are common sense (universal values) safeguards for fulfilling commitments + successful cases

The role of commitment and consistency is to generate a slight degree of trust (i.e., to make people believe it a little bit)

Reciprocity -> Spark interest & create connections

Commitment and consistency -> light trust

Authority->Trust Transfer

Social Proof -> Herd Mentality

Likes (and dislikes) -> avoidance of pain

Scarce -> Immediate transaction

The six elements that make customers buy correspond to the three progressive stages of people placing orders: stimulate interest -> generate trust -> place an order immediately

3. Precautions for using Chen Yong's six elements

Chen Yong's six elements have different usage proportions in each type of product

The proportion of authoritative use of products with heavy consumption decisions is high. Heavy consumption decisions refer to products that are expensive or require multiple people to participate in the decision-making, such as MBA, studying abroad, etc.

In September 2016, Mr. Li Zhi, co-founder of Tsinghua Bauhinia Education, found me through the recommendation of Mr. Yang Fei, CMO of UCAR. Bauhinia Education, a subsidiary of Tsinghua Bauhinia, has cooperated with Sophia University in the United States to launch an online MBA program. This program is great for people who are working and want to improve their academic qualifications. This is a degree program that does not require full-time study. You only need to study online. Once you accumulate enough credits and pass the relevant exams, you can get an MBA degree certificate officially issued by Sophia University in the United States.

But the core of the problem is: Sophia University is not well-known in China, and many people do not know about this university. But you should know that Sophia University in the United States is the world's number one institution of transpersonal psychology. Many people know consumer psychology, but transpersonal psychology is too niche, and the general public does not know the existence of this subject. Later, I delved deeper into this project and learned about the differences between university education in China and the United States, and discovered a bright spot: Chinese universities are basically under the direct jurisdiction of the Ministry of Education, but this is not the case in the United States. The U.S. Department of Education has delegated its management power to major education alliances, such as the Eastern Education Alliance and the Western Education Alliance.

Sophia University, like the world-renowned Stanford University and the University of California, Berkeley, are all located in the western United States, which means they are all WASC-accredited universities. Then everyone knows Stanford University and the University of California, Berkeley, so this picture appeared on the page

When Sophia University, Stanford University, University of California, Berkeley, California Institute of Technology, University of Washington, etc. are put together, they rely on the power of authority.

Light consumption decisions have a high proportion of social recognition and scarcity. Light consumption decisions refer to low prices and only one person is required to make the decision. For example, many products on Pinduoduo include lighters that cost between 50 cents and 2 yuan. If you buy the wrong one, you can just throw it away. You won’t worry about whether you trust the other party because the cost of trial and error is too low.

IV. Examples of using Chen Yong's six elements

Chen Yong’s six elements can be used in websites, WeChat public accounts, marketing special pages, posters, DM single pages, roadshows, SEM creativity, on-site communication, proposals, conference sales, pre-sales consultation, etc. What do these scenes have in common?

Chen Yong's six elements are needed in any situation where you need to persuade the other party.

Here are some examples to help you understand

1. WeChat official account welcome message

Take my personal WeChat public account: Chen Yong Marketing Column as an example

In 2017, I gave a sharing session at the Crazy Cheats Lab founded by Sister Huo Jin on "Three Steps to Creating a Welcome Message for a Public Account That Won't Let Fans Fall Asleep", in which I talked about the following content.

Disassemble this public account welcome message

Welcome the other party: First of all, as Orientals, everyone who comes is a guest, so welcome the other party.

Positioning: Then tell fans that I am doing conversion rate improvement, here introduces positioning

How do I know? At this time, I introduced my various tltie, which is to introduce the authority

How to achieve it: How did I achieve a 30.1%-1750% increase in conversion rate? I used computer modeling, consumer psychology, and process control to achieve this. In fact, I used some of the consistency in Chen Yong’s six elements of commitment and consistency, as well as preferences.

Call to action: There must be a call to action at the end. The call to action of my personal public account Chen Yong Marketing Column is very simple:

Reply 1 to get a 27-page case study on a 13-fold increase in monthly sales;

Reply 2 to get Mr. Chen’s personal WeChat ID;

At this time, please note: the call to action must be simple and straightforward, directly hitting the needs of fans

2. Product details page

Take a product details page in Pinduoduo as an example

When you open the product details page, as a consumer, you cannot think calmly. One moment, XXX successfully placed an order XX seconds ago (it would be better to change it to xxx placing an order XX seconds ago. Not all users know the group ordering model. Of course, Pinduoduo uses group ordering the most), and XX gave a five-star review 8 minutes ago.

Including the 30,809 reviews below, all of which convey the message: this product is very popular and has high reviews. When we make consumption decisions, the reasons are often high sales and good reviews.

3. Pinduoduo’s WeChat Moments ads

I have a small account that is used to view various advertisements. My main account has never received any advertisements from Pinduoduo, but my small account’s circle of friends often receives Pinduoduo advertisements. Let me show you two.

9.9 yuan for free shipping, does it sound familiar? That's right, use hot products to attract and convert traffic, first give customers benefit points, products that usually cost hundreds of yuan now only need 9.9 yuan with free shipping, this benefit point is very attractive to customers, and then customers go to download, click to learn more and adjust to the corresponding mobile phone operating system's app store, at this time there will be a bunch of problems encountered in downloading (especially IOS system, Apple's app store is often not accessible normally), but it doesn't matter, because there are operating products with free shipping waiting for him for 9.9 yuan, he will overcome many difficulties to download, and then find this product, then the maker of this advertising material is very smart, only wrote limited time and limited quantity, that is, did not write the discount expiration date and the number of discounted products, they deliberately did not write it clearly, because marketing can only be polished, not falsified. Although Tencent has invested in Pinduoduo, it cannot pass the advertising review, so it can only be blurred, which is also conducive to customers downloading. If it is limited to 3 items, customers will think that there is nothing I can do, and the probability is even lower than winning the lottery. Therefore, advertising is a science, and there are so many things to master.

Let’s continue to experience another advertisement of Pinduoduo

Is this the routine? There is a reason why Pinduoduo achieved GMV in a very short time with its explosive growth, which took JD.com a long time to achieve. Success is not accidental.

Author: Chen Yong

Source: Chen Yong Marketing Column