User operation: Analysis of Didi’s user growth system!

1Functional module analysis and product introduction

Test model: Xiaomi 5A

Tested version: 5.2.8

Testing time: October 2018

1.1 Functional Modules

Looking at the entire structure of the Didi Chuxing APP, it consists of three parts: taxi service, personal center and more functions. The taxi services mainly include express, taxi, carpooling, chauffeur, ride-sharing, public transportation, used cars, luxury cars, self-driving car rental, private cars and enterprise-level cars. The personal center includes user avatar, level, orders, wallet, customer service, settings and other functions. It also includes some of Didi’s products, cooperative enterprises, users, feedback and other related functions. From a dimensional perspective, it mainly includes two modules: car owners and passengers. If further subdivided, passengers can be divided into female users, student users and ordinary users.

1.2 Product Introduction

(1) Product introduction (official website)

(2) Product functions

Taxi: including taxis, express cars, private cars, luxury cars, buses, minibuses, designated drivers, enterprise-level, shared bicycles, shared electric motorcycles, shared cars, etc.

2. Event planning (taking April Fool’s Day as an example)

April Fool's Day (April Fool's Day or All Fools' Day), also known as All Fools' Day and Humor Festival, originated in the West, but with the exchange and dissemination of Chinese and Western cultures, it has also spread in my country. Because of its unique drama and commerciality, major businesses have taken advantage of the marketing opportunity to increase product awareness, user engagement and user activity, and of course Didi Chuxing is no exception. Below is a brief analysis of April Fools’ Day event planning using Didi Chuxing as an example.

2.1 Activity Theme

Encountering a "big star"

2.2 Purpose of the activity

Further improve new customer acquisition in new first-tier cities

2.3 Activity Objectives

On the activity day, 300,000 new users were added in the new first-tier cities

2.4 Activity Resources

0.41 yuan, 4.1 yuan and free red envelope (the exact amount is unknown)

2.5 Activity Objects

All Didi users

2.6 Activity Rules

All red envelopes can only be used on the next ride and are valid for 7 days. Among them, the red envelope for free rides must not exceed 20 yuan, and the red envelope cannot be used if the payment amount exceeds 20 yuan.

2.7 Activity Time

Only available on April 1st

2.8 Event Promotion

2.9 Activity Platform

During operation, the first thing to determine is the purpose of this operation. If it is to improve KPI and available resources are limited, then it is necessary to perform RFM and 28 rule analysis on users to maximize limited resources. If it is to attract new users, activities should be held to attract new users to register and complete their personal information. After the operation is completed, it is necessary to review it in a timely manner to check the gap between the final result and the expected target, the final ratio of input and output, and the changes in data before and after the operation. Improve the sustainability of operational quality through review.

3User Growth System

3.1 Concept

The user growth system is the best combination of [operation means] and [product mechanism]. It is the embodiment of the mutual benefit of operation and product. Its main purpose is to promote activation and retention . It will make a product more complete and full. If the user growth system is successful enough, it will produce huge benefits:

For products: improve user stickiness. So-called growth is always accompanied by "habit" and "dependence", and it also promotes the maturity of the product.

For operations: having a set of standard classifications for users at different stages of growth will help to achieve user stratification and enable better refined operations.

For business: a complete product with a user system will have more commercial value than an immature product. Through user operations , we can find a suitable and sustainable business model; with high product value, we are more likely to obtain capital support.

For users: The user growth system is the embodiment of product gamification, which helps guide users to use product functions, satisfy their sense of accomplishment, enjoy more and better privileges, and obtain benefits, honor, security, emotional needs, etc.

Not all products are suitable for, or require, the design of a user growth system. When the demand is very strong, you don’t need to motivate users. They will all invest in your products, so there is no need to add anything unnecessary. For example, WeChat’s instant messaging (chat) function is very simple, but 800 million users still choose to use it without hesitation.

There is another type of product that is not suitable for a user growth system, which is a low-frequency product. For example, services and products related to weddings, funerals, and graduation ceremonies are things that are only used once in a lifetime or once every few years. If you insist on encouraging users to use them more often, then you don't really understand human nature.

Below, taking Didi Chuxing APP as an example, we will analyze its “user growth system”. In order to improve user activity and retention rate, Didi has put a lot of effort in this regard. Focusing on its core business - taxi-hailing, Didi has introduced two user growth systems. One is to obtain Didi coins by taking taxis and redeem corresponding gifts in the points mall. The other is to accumulate mileage by taking taxis (excluding taxis) to upgrade to different levels of membership and obtain different membership privileges.

3.2 Coin (Points) System

(1) Entrance

Open the Didi APP homepage, select or enter where you want to go, then directly click to call a taxi and wait for the car. After arriving at the destination, Didi will automatically calculate your fares and mileage, and convert them into Didi coins, which will be included in the Didi coin and membership growth system.

(2) Export

After obtaining a certain amount of Didi coins, users can redeem corresponding products in the points mall according to their needs.

(3) Obtaining rules

The rules for obtaining Didi coins are shown in the figure below. Different car models have different mileages, and only taxis, private cars and express cars can exchange Didi coins. The taxi fare is converted into Didi coins, and a maximum daily limit is set. This is mainly to prevent malicious use of Didi coins.

(4) Privileges

In the Dibi system, there seems to be no such thing as privileges (maybe you haven’t found them). As long as you have enough points, you can redeem corresponding products according to your actual needs.

(5) Recycling mechanism

Because there was an anomaly in the points mall when this article was written, the corresponding rules could not be seen.

3.3 Membership System

In the membership system, Didi also stratifies users into Express and Licheng Special Cars. The corresponding membership mechanisms are slightly different, but the membership levels are the same, namely points members, silver members, gold members, platinum members, diamond members and black gold members.

3.3.1 Express

(1) Entrance

The entrance to the Express membership system is similar to the Dibi system. You only need to drag the upper column to Express to call the Express.

(2) Export

In Express, as the user's membership level continues to rise, only the corresponding permissions change, and the accumulated mileage cannot be exchanged for corresponding products.

(3) Obtaining rules

Different membership levels require different accumulated mileage in the first quarter, and the conversion method for different travel modes is also different. This may be to increase differentiation and encourage users to use Youxiang Car (a travel method based on Didi Express and Didi Private Car that is cheaper than private car but more comfortable).

(4) Privileges

Users of different levels will have different level privileges, but in the express train, diamond members and black gold members enjoy exactly the same privileges. Doesn’t this make it seem like there is no distinction? Will this reduce the incentive for diamond members to use Didi Chuxing to take a taxi?

(5) Recycling mechanism

Didi Express members use mileage accumulation to upgrade their membership level. After each order is completed, the system records the increased mileage in real time and resets it once a quarter. If the accumulated mileage in a quarter reaches a level higher than the membership level requirement, the member will be upgraded and enjoy corresponding privileges until the end of the next quarter; otherwise, the member will be downgraded in the next quarter. (To be honest, it took me a while to understand this membership system. It’s a bit complicated and difficult to understand).

3.3.2 Licheng Special Car

(1) Entrance

The entrance to the private car membership system is similar to the Dibi system. You only need to drag the upper column to the private car to call a private car.

(2) Export

Perhaps considering that the upgrade of user level does not bring any actual benefits, a mileage redemption mall has been added to Licheng Special Car, but it has not yet been officially launched.

(3) Obtaining rules

Different membership levels require different accumulated mileage per month, as shown in the figure below. But to be honest, this part is a bit confusing. Is it calculated by kilometers or mileage? Unlike Express, Private Car has only 5 membership levels (6 for Express), and the corresponding mileage requirements are also different. At the same time, the statistical caliber for Private Car is one month (one quarter for Express).

(4) Privileges

Users of different levels will have different level privileges. For Black Gold users, premium protection is upgraded to premium-free rights, and priority order dispatch is upgraded to ultra-fast response rights.

(5) Recycling mechanism

Didi members use mileage accumulation to upgrade their membership level. After each order is completed, the system records the increased mileage in real time and resets it once a month. Except for the Black Gold membership level which can be protected for 3 months, the membership of other levels will be reclassified based on mileage at the beginning of each month, and the mileage accumulation will start from 0 this month.

3.4 Summary and doubts about Dibi and membership system

From the above analysis, it can be seen that Didi Chuxing's Didi Coin system and membership system are independent of each other and there is no restraining relationship. The following is a brief summary of the two user growth systems:

How to obtain: Taxis, private cars, and express cars can obtain Didi coins to exchange for goods, but only express cars and private cars (excluding taxis) are included in the member upgrade system.

Level system: There is no user level division in the Dibi system. You can redeem corresponding goods in the points mall based on how many points you have. There is a level division in the membership system, and users of different levels have different privileges. Is it possible to limit the rights of users of different membership levels to redeem different products in the points mall to stimulate user consumption?

Privilege system: There is no privilege setting in the Dibi system, and users of different membership levels in the membership system have different membership privileges.

Questions and doubts?

(1) There are few redeemable goods in the points mall, most of which are used to attract traffic to e-commerce. The Didi coins obtained by users using Didi Taxi do not fully reflect the corresponding value, which seems a bit lacking in sincerity. If more related products are introduced into the mall (opinions can be collected in the feedback), and users’ desire to buy can be successfully attracted, will this coin system appear more dynamic?

(2) There are differences in the types of cars included in the Didi coin system and the membership system, and the privileges for private cars and express cars in the membership system are also different. Considering that calling a private car cannot be exchanged for Didi coins, a mileage redemption mall has been added to the private car system to exchange goods according to mileage. For users, does this design seem a bit too complicated and difficult to understand? Is it to increase differentiation?

(3) The Express and Private Car levels and permissions in the membership system are completely different. The upgrade and demotion rules (mileage requirements) are different, and the statistical calibers are also different (one quarter for Express and one month for Private Car). In the Private Car membership rules, the progress bar is kilometers, and the instructions below are mileage. Which standard should be followed? How are kilometers and mileage converted? (The travel mode conversion only includes taxis, express cars and premium cars, but not private cars)?

(4) There seems to be no exit for the Express membership in the membership system, that is, after users obtain the Express membership, there is no other use except to enjoy the corresponding privileges, unlike the private car which has a mileage redemption mall. If you think about it carefully, you will find that when taking an express car, you can not only earn Didi coins, but also accumulate miles. Can it be understood that the exit for express car members is actually in the points mall?

(5) The coin system does not have a grading system. One can redeem corresponding goods based on the number of points he or she has. Is it possible to limit the goods that can be redeemed by restricting the membership level? However, membership levels are only available for private cars and express cars, while Didi coins are available for express cars, taxis and gift cars. Wouldn’t this make it seem impossible to implement?

(6) The coin system may stimulate users’ desire to take a taxi in order to exchange for things, but the membership system is like I take a taxi and then you give me the corresponding membership. Where is the incentive? Maybe there are many things about the membership system that I don’t know. I’m just going to talk about my understanding of it now.

In general, the coin system meets the interests of the crowd (although the sincerity is slightly lacking), and the membership system meets the honor needs of the crowd. Is it possible to meet people's emotional needs by sending holiday greeting text messages, and pop up safety precautions every time they call for an express taxi (especially at night or when girls take a taxi) to meet people's safety demands, so as to improve user experience and retain users? This can be tried. 】

4. User Growth

To achieve user growth, it is necessary to sort out the business, break down the growth points and methods, and drive rapid iteration of products through experimental testing and data analysis to find the direction of growth, deliver product value to users, and achieve growth goals. If you want to achieve the transformation from 0 to 1, you need to do the following (taking Didi Minibus in Huilongguan, Beijing as an example for discussion):

4.1 User Growth Logic

4.1.1 Clear requirements

Demand refers to who will use your product, when, and where. For example, if I take a taxi from Wangfujing to go to the company at 13:00, this is a demand.

Target group positioning (who):

All users waiting for or riding the bus in Huilongguan, including office workers and students.

User scenario positioning (when and where):

The selection of user scenarios needs to meet two conditions. First, there must be demand, preferably high-frequency demand. Second, it must be able to directly hit the user's pain points. For example, I am waiting for the bus at the bus stop after get off work and want to go home (demand), but the bus I want to take runs only once every half an hour, and every time I arrive at the bus stop, the bus is almost full, and I have to squeeze in, so it always makes me unhappy. If I can get on the bus quickly and without squeezing, and still be able to sit home, it would be great. Even if I have to pay a little more, it doesn't matter, after all, it's more comfortable (pain point). Why did Didi choose Huilongguan as the test site? One reason is

The demand in Huilongguan is very stable regardless of peak or off-peak times, weekdays or weekends, which meets the condition of stable demand. Secondly, the traffic within the temple is not good and the pain points of public transportation are obvious, which also meets the condition of directly addressing the pain points of users.

4.1.2 Seed stage (cold start)

The so-called cold start refers to the process of converting target users into seed users (which requires a good interpretation of the product) in the early stages of a product. The best way in the cold start phase is to do field promotion, communicate with users, identify problems, and finally solve them. In Huilongguan, Didi Minibus' target users are people entering and exiting the subway entrance, getting off at the bus stop, and waiting to get on the bus. By distributing flyers to them, we let them understand and use our products and convert them into our users. At this time, we need to consider three questions, namely, what products do we recommend to users? Why should I use your product? Why do I have to use your product (from the perspectives of benefits, safety, emotion, and honor, it can effectively attract users)? Only after giving answers to these three questions will users be likely to use your product and become seed users. Seed users are often curious and willing to try new things.

Three things to do in the seed stage: 1. Be sure to communicate more with users and continuously improve the product based on user feedback; 2. There is no difference between 100 users and 1,000 users; 3. The purpose is to create a retention funnel and verify demand.

Focus at the seed stage: Retention rate (weeks, months, three months, etc. are all statistical calibers, depending on the specific situation) is the essence.

4.1.3 Outbreak period

What are the signs that the seed stage ends and the outbreak stage begins? The key to the seed stage is retention. If the retention rate reaches a certain threshold, it means that the product has successfully passed this stage. When the monthly user retention rate is greater than 10%, congratulations, just go for it, the explosive period is coming.

The so-called explosive period means trying every possible means to attract new users. To attract new users, you need to promote your product to increase brand exposure and let more users know about your product. Promotion methods include online (Weibo, WeChat, QQ, search engines, app stores) and offline (ground promotion, software pre-installation), etc. In the early stage, if the

Jin Xuqi doesn't care about anything and just throws money at various channels. If resources are limited, he will start with a small-scale and large-scale launch, analyze the quality of users from each channel through embedding points or third-party statistical software, and then make precise launches on high-quality channels.

The three indicators that need to be paid attention to at this stage are CAC (customer acquisition cost), LTV (customer lifetime value), and PBP (payback period).
Focus during the explosive growth period: Find the ceiling for customer acquisition while paying attention to user activity (in the later stage).

4.1.4 Bottleneck period

When the explosive period ends, it enters the bottleneck period, during which more attention is paid to indicators of user activity. At the end of the explosive period, we found that the cost of acquiring customers was very high and hit the ceiling. Then it is necessary to increase user activity through better products and better services to increase the ceiling of customer acquisition.

For example, if the user activity is 1 hour per day on average, the cost of acquiring a new user is 50 yuan. Now the activity becomes 2 hours, the cost of acquiring a new user is not 50 yuan, because the user lifetime value has doubled, so the cost of acquiring a new user becomes 25 yuan.

Getting through the bottleneck period can help us enter the next round of outbreak. Therefore, the logic of the entire growth is very clear: demand, seed stage, explosive period, bottleneck period, and in the later stage, the "explosive period" and "bottleneck period" will alternately iterate. This is the logic of growth. When the general trend is right, you need to look beyond growth and focus on how to make profits and how to maintain a stable scale.

4.2 User Growth Methods

In the early stages of a product, you should continuously improve the product through marketing, research, and communication with users to increase user retention. Once you have a certain retention rate (higher than 10%), it means your product is in demand, and you can prepare for the explosive growth period by placing large amounts of advertisements to increase brand exposure and attract a large number of new customers. Once you have customers, you need to improve the product to enhance user experience and activity. After users have a good experience, word of mouth will spread. At this time, you don’t need to do too much product promotion, and users will come naturally. If user activity is too low, it may be that users are tired of using the product and it lacks appeal. At this time, it is necessary to improve the product while introducing new features and new gameplay to complete the alternating iteration between the explosive period and the bottleneck period.

The most effective means and the indicators that need the most attention in each period (yellow part) are as follows:

The most important thing in the entire seed stage is to focus on "retention", which needs to be achieved through product optimization. The most effective way to attract new users in the seed stage is still ground promotion, and the most effective way to activate users is research. Don't give coupons to users, just chat with them, because the seed stage often attracts new users, and these users can also give you the most valuable feedback. This is a very critical thing to promote activation in the seed stage.

The core of the explosive period is to attract new customers. You need to establish more channels and pay attention to the channel forwarding rate and customer acquisition revenue. The best way to promote activity during an explosive growth period is to conduct sales promotions, the best way to retain users is to conduct research, and the best way to recall users is to chat with them.
During the bottleneck period, the most important thing to focus on is activity, which should be improved through products and efficiency models. Growth during the bottleneck period does not require the same trend as during the explosive growth period, but requires more stability. Of course, we should also cultivate our internal strength, build more brands, make our voice heard in the market, improve our reputation, and tap into some new demand points. The best way to retain customers during the bottleneck period is to become a member and accumulate points.

5. Didi Chuxing’s AARRR Model

5.1 Introduction

The AARRR model can be simply understood as how users come, how to make users active after they come, how to retain users after they become active, how to make users pay for products after they are retained, and how to spread word of mouth after users pay. This article will combine the AARRR model to do some simple work and learning summary on Didi Chuxing APP. The following is just my humble opinion, and I welcome your comments.

5.2AARRR Model Definition

The AARRR model consists of five parts: acquiring users (Acquisition), increasing activity (Activition), improving retention (Retention), obtaining revenue (Revenue), and viral communication (Refer).

As a product that has just emerged on the market, although a lot of testing has been done within the company in the early stage of its release, including technology, functions, A/B testing, etc., it remains to be tested whether users will buy into it after it is released to the market, whether it meets user preferences, and whether it solves user needs.

5.2.1 Get User

When a company releases a new product, its purpose is to solve the needs of the market or users and ultimately achieve profitability. Therefore, the primary task in the early stage of product launch is to acquire users. In order to acquire users, a lot of promotion is needed to increase the exposure and popularity of the product so that more users can know and understand your product. The specific promotion channels are as follows: including social advertising, search engines and SEM, social media, software stores, exchange alliances, etc. The promotion strategy should be to launch a small-scale campaign first, and then conduct statistical analysis on the data through embedding points or third-party statistical tools to analyze which channels have higher-quality campaigns (to prevent spamming and focus on tracking user behavior) and lower prices, so as to accurately launch campaigns on that channel and achieve the desired effect.

When acquiring users, you should pay attention to the reasonable design of the product's landing page, which should highlight the product's positioning, because many users browse products with a purpose and specificity. In simple terms, users may browse the product only when they have such a need.

In fact, after acquiring users, another important step is to activate users. The commonly used method of user activation is that after users register, they will receive various interest rate coupons, vouchers, red envelopes, etc. to attract users to experience the product. For example, if you register for Didi Chuxing, you will receive a free coupon. It happens to rain today, so you use Didi Chuxing. Not only do you not have to pay, but the driver also takes you home safely. This greatly improves the user experience. In the future, when you want to take a taxi, the first thing you think of may be Didi Chuxing. The product differentiation is reflected. Over time, users will become dependent on the product and the cost of leaving will become higher.

At Didi Chuxing, user acquisition actually involves two parts: one is the driver, and the other is the passenger, and there is a sequence between the two, that is, there must be drivers first, and then there will be users. In the early stages of a product, the main method of promotion is still field trial, followed by large-scale promotion later. First of all, Didi attracts drivers to register on Didi by looking for drivers and giving them corresponding rewards and discounts. The drivers then find someone to take the cars of registered Didi drivers, which makes the drivers realize that this thing is quite reliable. They can accept orders and pick up passengers through their mobile phones, which is much more convenient than driving a taxi. Taxi drivers have to pay attention to pedestrians on the road and look for passengers along the way. In addition, with the subsidies and rewards from the platform, drivers will think this thing is really good. After work every day, they can drive for Didi, earn some extra money, and live a good life. After having a certain number of drivers, we will do user promotion, let users register and place orders, and give users various rewards, such as free first order, issuing coupons of a certain amount to attract users. Due to the preferential prices, good service, convenience and speed, a virtuous circle is formed in which users can call for express at any time and drivers can accept orders at any time.

5.2.2 Improve activity

Different companies have different definitions of user activity, but most can be measured by the length of time spent on each login and the average daily length of time spent on each login. To improve user activity, it is necessary to establish user portraits and user tags, conduct refined operations, and adopt different marketing or recommendation strategies for different users. To put it bluntly, the product should be able to solve the different needs of different users.

On the Didi Chuxing APP, the two systems used to increase user activity and retention are a membership and points system and a traffic redemption center. The entrance to the membership system is a bit too small. If users are not careful, they probably won’t be able to see it. In addition, regarding points (dicoins), I can’t find out how many points I have, and the points mall has been malfunctioning in recent days. Although the membership and points system has been established, I personally feel that there are still some problems. In fact, after clicking in, we can find that Didi has also put a lot of effort into the points and membership system, but aren’t you hiding it too deeply, so that users can hardly discover your existence? Shouldn’t you show your good intentions to users? Another traffic redemption center limits the number of redemptions based on membership level. This may stimulate users, but for students, who already have unlimited traffic, they probably are too lazy to click on it. How do they submit the traffic application according to the activity details? The traffic at the end of the month cannot be redeemed due to system upgrades. After the upgrade, can it be accumulated and redeemed next month? Should there be an entrance to understand membership levels on the traffic redemption page?

Taking Didi Chuxing as an example, the following improvement plans are proposed:

(1) For car owners, the company can recommend some high-quality soft articles on car maintenance, beauty, and information, and introduce recommendation strategies to further recommend relevant articles based on the car owners' preferences. For taxi users, the company can recommend some articles on taxi safety or related precautions, travel and other aspects to address users' emotional and safety needs and increase user activity.

(2) Establish a user sign-in system, that is, Didi users or car owners can obtain corresponding points by signing in on the APP, or they can complete corresponding tasks to obtain additional points. After obtaining the points, they can go to the points mall to redeem goods, discount coupons, coupons, etc.

(3) Create a mini program and invite friends to play and get rewards, such as a car knowledge competition, which is similar to the previous WeChat Super Brain mini program. It increases creativity and playability and improves user activity.

(4) Can we display the member badge and points in the position of the avatar in the personal center, or add my points and my membership level label in the same position as the setting level (to attract users' attention. Since you have done so much effort, why not show it to users?), and remind users how far they are from the next level after each order is completed, and what new privileges they will be given when they reach the next level (to satisfy the user's sense of honor), such as "Dear Mr. *, you are only 10 kilometers away from becoming a diamond member. At that time, we will open the fast channel permission for you to minimize the time it takes to call a taxi. Come on, we are rooting for you. For more details, please click... "

To increase user activity, it is mainly necessary to make products that can attract users, increase creativity, and increase playability.

5.2.3 Improve retention rate

User retention means that users continue to use the product for a period of time after registering to use the product. Retention rate = number of logged-in users/number of new users*100%. The number of newly added users is the number of users who have newly registered and logged into the application during the current time period, and the number of logged-in users is the number of users who have logged in at least once during the current time period. The retention rate reflects a conversion rate, which is the process of converting initially unstable users into active and loyal users.

Several commonly used retention rate indicators: next-day retention, 3-day retention, 7-day retention, and 30-day retention.

There are two solutions to improve user retention:

(1) To improve user retention, you must improve product differentiation, that is, the product must be the best in a certain aspect, or the best in the industry. When users want to solve a certain need, the first thing they think of is your product, and the retention rate will naturally increase. For example, when I want to solve a technical problem, the first thing I think of is Baidu. When Baidu can’t solve it, I use Google (actually Google is good, but it is slow to get around the firewall, has a large delay, and the user experience is relatively poor); when I want to read some operational articles, the first thing I think of is Renren Shizhai Product Manager, because the articles are of high quality; when I want to take a taxi, the first thing I think of is Didi, because it is convenient; of course, methods aimed at increasing user activity are also effective in improving user retention.

(2) Define churned users, that is, what conditions must be met to be considered a churned user. For lost users, we use Push, email or SMS to recall them. Generally, in order to attract users to use again, we will issue some coupons, discount coupons, etc. While recalling lost users, think about your own products and analyze the reasons for user loss. Is it because the user experience is too poor, alternatives have appeared on the market, users are fatigued, the entire industry has undergone large-scale changes, or user needs have changed? These can be analyzed using questionnaires or industry experience.
In short, a product has a good positioning, and through continuous iteration, this positioning is maximized and becomes No. 1 in the industry, whether in terms of convenience, efficiency, user experience or other aspects. At this time, you will naturally be able to capture users.

5.2.4 Profit

Generally speaking, there are three ways for companies to make profits: paid products, in-product payments, and advertising payments. In fact, if a product can do the first three points well and there are no major problems in attracting users, making profits becomes a natural thing.
At this stage, two indicators need to be considered. One is ROI (return on investment) = sales/customer acquisition cost, and the other is LTV (user lifetime value) = sales-customer acquisition cost. For a business, the higher the ROI and LTV, the better. To increase ROI and LTV, it is necessary to increase sales and reduce customer acquisition costs.

Increase sales: Sales = UV conversion rate average customer unit price. Therefore, in order to increase sales, it is necessary to increase page views through promotion or spread by old users, improve user conversion rate through optimization of each link, and encourage users to increase their customer unit price through activities such as gifts and discounts.

Reduce customer acquisition costs: In the early stages, products need to be promoted through various channels to increase product exposure and visibility. Promotion methods include online and offline. The best way to reduce customer acquisition costs is to try a small-scale campaign first, then analyze the source and quality of users through data analysis, and increase targeted delivery to high-quality channels.

Regarding Didi, there are roughly three ways to make profits now. The first is to extract commissions from drivers, the second is through the insurance mall, and the third is to earn relevant profits through cooperation with China Unicom and China Merchants Bank (after all, they have opened a traffic entrance).

Regarding Didi's profit, two suggestions are put forward:

(1) Didi Chuxing generates a lot of trajectory data, and we mine these trajectory data and user scenarios to seek profits. For example, by mining trajectory data, we found that there are more Didi users in a certain commercial building. At this time, Didi can cooperate with nearby businesses, such as coffee shops. First, Didi can send a coupon for the merchant and provide the merchant location. I found this coffee shop through the map, drank coffee, and felt that the taste, service, and environment were all good. In the future, I will come here often and get commissions through cooperation, which can be a source of income for Didi.

(2) In order to encourage passengers and drivers to purchase insurance, a small lottery session is held after each order payment is completed. The types of coupons include taxi coupons, discount coupons, and insurance coupons and discount coupons. The main focus is still on giving out insurance coupons to attract passengers and drivers to buy insurance and achieve cross-marketing.

5.2.5 Propagation

There are two main ways of communication: one is that the product experience is good, and users spontaneously recommend it to their friends. This type of communication has the lowest cost and relatively high user quality. The other is to stimulate users to spread the word by getting coupons by inviting friends. A three-level distribution system and investment ratio profit-sharing method can be adopted.

To improve product experience, it is not only necessary to have a clear product structure and reasonable interaction design. The most important thing is to increase product differentiation, capture users, and provide different services based on the different needs of different users. This usually requires building a user portrait system, which may be difficult for many small businesses to do. And improving product experience often requires a lot of A/B testing and product iteration, which is a long way to go.

Inviting friends to experience it can be said to be the simplest and crudest way. The specific process is to invite friends to register or place an order (the indicators considered in different periods may change). Both parties can obtain equal or unequal coupons, discount coupons or commissions. This is actually a distribution and investment profit-sharing system. In order to avoid suspicion of pyramid schemes, it is necessary to set an upper limit on it. Invite friends through the Didi Chuxing APP below, and your friends will enjoy a 5 yuan discount on their first order and you will get 5 yuan in cash.

6 Additional Thoughts

Today’s Didi Charity can be said to be a fundraising platform where everyone can contribute their love and help those who really need help. This may be Didi’s original intention. Let me briefly share my thoughts on this point:

(1) Is it possible to make it so that for every order completed by a user, Didi donates one cent to poor areas, and remind users in the form of pop-up windows to increase user participation and stimulate their emotional appeal? Next time when I think of taking a taxi, I will think of Didi, because I want to contribute my meager strength to people in poor areas.

(2) Join a column where Didi company participates in charity, promote and promote the brand, enhance the brand and public relations image, and attract more users to participate in charity undertakings.

7 Instructions

This article is purely for communication, and all the opinions, suggestions, questions and doubts above are also personal opinions. Some may have been implemented, some have passed user inspection, or they may be because of their stupid qualifications and cannot understand the good intentions of Didi designers. Don’t blame them! ! ! ! If you have any questions, please comment and give me some advice. Thank you.

Author: CSDN blogger "python_new"

Source: CSDN blogger "python_new"