Zhou Hongyi: 9 classic Internet marketing cases, how did these big guys defeat their opponents?
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TOP9 How Baidu impressed users in its early days Case description: Was it true that Baidu was able to gain such a large market share back then because its search technology was better than Google’s ? No, it’s because Baidu has MP3 search. When migrant workers communicate with each other, they will definitely not say: I am using a search engine and using advanced search technology. They will say: There is a website where you can listen to songs for free and download songs for free, you can also try it. It is this simple point that has impressed more and more novice users and has led to the Baidu of today. TOP8 How does QQ make money on a free basis? Case description: Nowadays, almost every Chinese person has a QQ number, and some even have multiple ones. Most people use QQ to chat, which is free and does not cost any money. Even if you are tall, rich and handsome in real life, you can be stingy on QQ, not be tempted, not spend money easily, and it doesn’t matter if you wear just a shorts to chat on it. Then you are a loser-level QQ user, the lowest user in the Tencent system. But in real life, there are many losers, such as middle school students in their teens, who pay 10 yuan to Tencent every month and become users of this diamond or that diamond. Then in the Tencent system, they are senior users and users of value-added services. Although a large number of free users are chatting, Tencent's business model is established with these value-added service users. There is a joke that says there are 1 billion people in China, and if everyone gives me 1 yuan, I will make a fortune. The question is, why should people give you 1 dollar? Even if everyone is determined to give you 1 dollar each, you will probably have to pay a cost of 2 dollars to get this 1 dollar, so you will still lose money. But, it can be done on the Internet. If you have a very good product that can reach hundreds of millions of users through the Internet, then among these hundreds of millions of users, you launch a value-added service. Even if only a small number of people are willing to place an order and pay, the total can form economies of scale. QQ has 600 million users. If Tencent launches a black diamond, even if only 0.1% of users are willing to spend 10 yuan per month to buy it, Tencent can still earn 60 million yuan per month. Tencent QQ has many value-added services, such as Blue Diamond, Green Diamond, QQ Show, and games . For QQ users, games are also a basic service that can be played for free, but if you want to have fun and enjoy the game and surpass others, you have to buy QQ props in the game. TOP7 How does Xiaomi subvert traditional mobile phone manufacturers? Case description: Why does Lei Jun’s Xiaomi phone have such a huge impact on traditional mobile phone manufacturers? I was one of the people who realized the destructive power of Xiaomi phones very early on. Xiaomi’s model is actually very simple, which is the concept of free Internet hardware that I often talk about. In other words, its mobile phones will be sold very cheaply and have a high cost-performance ratio because it no longer regards selling hardware as an isolated business. People use their mobile phones to watch movies and play games. Watching movies will generate advertising revenue, and playing games may require payment. So, as soon as the Xiaomi mobile phone came out, I thought it would have a huge impact on China Cool Alliance’s model of making profits by selling hardware. At that time, I explained a lot of things about the Internet to these mobile phone manufacturers. Now I think about what Internet thinking is. But unfortunately, no one can understand it and think it is alarmist. Everyone looked down on Xiaomi and thought Lao Zhou was joking. But the Internet has grown much faster than they imagined. Today, almost all mobile phone manufacturers have established independent Internet mobile phone brands and are trying to imitate Xiaomi's hunger marketing and fan culture. But I can say that these are just superficial things. TOP6 How does WeChat defeat traditional operators ? Case description: Although WeChat is free and Tencent has to invest a lot of money in it, this is a small matter for Tencent because WeChat has brought together hundreds of millions of users for Tencent. With such a huge user base, WeChat can make money by integrating O2O (online to offline business model) and e-commerce in the future. It can also make money by launching a game online that causes everyone to play airplane shooting. Therefore, Tencent will earn more than hundreds of billions of yuan a year through the WeChat user base in the future. This is much easier than making money from communication charges. But what is the worst thing? Many operators initially did not acknowledge how big a threat WeChat posed, thinking: You are an Internet company, how can you run your cars without us operators building a paving path? This is true, but the operators have not noticed that users no longer use your text messages, MMS, or voice messages. They are all using WeChat's services. They have transformed from operators' users to WeChat users. Users don’t care who built the road. You will still exist as a road builder, but if you have no users or your users cannot perceive your existence, then your commercial value will be very limited. Some operators also confidently told me: My SMS revenue has not been affected. I thought to myself: Brother, you have to look at the trend. It’s just like selling mobile phones. The online sales volume may not be as high as that of physical stores, but it is growing explosively. An operator in one province even cooperated with WeChat because Tencent persuaded them to launch a monthly WeChat data package. Although WeChat may have reduced the operator's SMS revenue, WeChat users still need to consume data, so the operator can make a lot of money from data. TOP5 Why is 360 Security Guard successful? Case description: In 2006, when 360 started to develop 360 Security Guard, it had no commercial motivation, no idea of how to make money, and even less thought of providing free antivirus in the future, nor did it think of developing a browser or a search engine. The purpose of creating 360 is very simple, which is to directly kill all those rogue software, no matter who its godfather is, and no matter how many relatives and friends plead for it. In that era, except for NetEase, almost all Internet companies made plug-ins, which were forcibly installed on computers without the user's consent, and then hijacked traffic and popped up random advertisements. Ordinary people call this kind of plug-in rogue software. At that time, rogue software was rampant and users were complaining bitterly. There are basically several schools of thought on how to solve the problem of rogue software. One group is the legal group, which believes that the problem of rogue software must be solved through law. However, the Internet is developing at a very fast pace, and it is very difficult to collect evidence on the Internet. Not to mention whether a case can be filed, even if a case can be filed, it will take several years to complete the lawsuit. One group is the government faction, which believes that problems should be solved through government departments. The subtext is that ordinary people will always be grassroots and need the government to take charge when they encounter problems. However, there are so many mining accidents and food safety issues that the government has no time to solve, and rogue software doesn’t kill people, so how can the government have the time to solve them? Later, the relevant departments organized large Internet companies to participate in the formulation of standards for rogue software. When I looked at it, I found that all these companies were making rogue software. Finally, the sentence that impressed me the most at this meeting was that everyone was required to be cautious when detecting and eliminating rogue software. 360 advocates a third way, which is to fight violence with violence, that is, to give weapons to users and let them solve the problem. Users are bullied by rogue software because they don’t understand technology. 360 provides users with a free tool that can kill all rogue software. In this way, the computer will be safe. The early 360 Security Guard did not have high technical content. Companies like Kingsoft and Rising definitely have the technical capabilities to detect and kill rogue software. But they are unwilling to do this, nor dare to do it. They are unwilling to do it because they don't make money. They sell anti-virus software and each set costs several hundred yuan. What’s the point of making something for free if it doesn’t make money even if users like it? They don't dare to do it because they don't want to offend others. We all see each other every day and are all in the same industry. If you kill the rogue software of these well-known Chinese Internet companies, the loss will outweigh the gain and the pressure will be very great. Doesn’t Zhou Hongyi feel a lot of pressure? Of course it’s big, but there’s nothing I can do about it. I checked and killed rogue software in order to remove the big hat that was put on me. It was out of selfish motives, so I was very strong inside. If it was for a noble goal, I might not be able to persevere. Therefore, we created 360 Security Guard, which is equivalent to providing users with a free weapon that is specifically designed to detect and kill various rogue software. From today's perspective, 360's unintentional success was because Chinese Internet users were suffering from the harm of rogue software at the time, and no one was willing to come out to solve the problem. Therefore, when we come out to solve this problem, we are actually catering to the needs of the majority of users. The revelation to us in the future is that 360 should not only be free, but also must be user-oriented. TOP4 How did Taobao subvert eBay? Case description: Jack Ma was the first to engage in e-commerce and announced that it was free to open a store on Taobao, while his competitor eBay charged a store opening fee. Since it is free to open a store on Taobao, sellers on eBay feel that it would be a waste not to open one. Regardless of whether Taobao has traffic or not, they are willing to copy a store on Taobao. Finally, Taobao has brought together a large number of sellers for free, and with sellers there are buyers. When it was first announced that it would be free, I don’t think Jack Ma had figured out how to make money from it. Originally he wanted to charge a fee, but Tencent's PaiPai.com was eyeing Taobao's sellers, so after three years of free service, he had to continue to offer it for free, forever. Finally, what will happen when almost all merchants in China open stores on Taobao? If you search for a type of toilet paper, 10,000 results will appear. It’s okay to open a store for free, but if you want to rank higher in search results, you will have to pay a value-added service fee. Taobao has also become one of the most profitable Internet companies in China today, and has actually created a new revenue model through its free model. If Taobao was not free, I believe it would not be able to defeat eBay nor develop such a revenue model. Because eBay charges transaction fees, it is particularly worried about collusion between buyers and sellers, and has strict regulations prohibiting sellers from leaving their mobile phone numbers or email addresses. The Chinese people’s shopping habit is that they feel insecure without direct communication, but Taobao cannot collect transaction fees if there is direct communication. So Taobao waived the transaction fees. The more contacts between buyers and sellers, the better. Taobao also created a chat tool called Taobao Wangwang to match transactions. In this way, Taobao now has another instant messaging tool. Since everything is free, let’s do it as much as possible. Taobao provides a payment method that facilitates transactions. In order to solve the credit problem, Alipay has come up with creative ideas, such as allowing buyers to notify payment after receiving the goods, so Alipay has in turn promoted Taobao transactions. Looking back from the perspective of hindsight, Taobao was far-sighted and successfully laid out the layout of Internet finance. TOP3 How personal computers revolutionized IBM Case description: When personal computers first came out, they were full of flaws and didn’t look good. It was even hard to tell what problems they could solve or what commercial value they had. When the personal computer first came out in 1975, it was just a toy with very poor computing power. It didn't even have a casing, nor did it have today's display screens. It was no match for the mainframes of the time. At that time, several companies that made mainframe computers came to the conclusion that personal computers would never become popular. So when engineers showed DEC founder Ken Olsen an early design for the personal computer, Olsen asked, "Why would people need their own computers?" When he agreed to develop the PC, he and another engineer took it apart to get a peek inside, and he scoffed at its internal structure. But why did personal computers become so popular? From the perspective of user experience, before personal computers came out, everyone who wanted to use a computer had to put on a white coat, change into slippers, and go to a heavily guarded computer room. But for the first time, personal computers gave all users a shock: for just $1,000, you could have your own computer at home and do whatever you wanted with it. It impresses consumers on the basis of humanity. It does not need to have ten major functions, and it does not need every function to attract consumers. As long as a function impresses people, there will be consumers using your product, you will win the market, and you will have the opportunity to continuously improve your product. After decades of continuous improvement, personal computers have now successfully overturned traditional mainframes. The computing power and application richness of personal computers today have far surpassed those of mainframes 30 years ago. This is what I mean by a loser achieving a counterattack against a rich and handsome guy. TOP2 Amazon achieved success through good customer experience Case description: Since it started selling books online in 1994, Amazon has been the first to leverage the technological advantages of the Internet, carry out various innovations, and create a great customer experience. For example, encourage readers to write book reviews, use the books purchased by readers to recommend other related products, and so on. These are things that traditional bookstores cannot do. After these innovations were quickly imitated, Amazon invested heavily in its logistics system to improve inventory turnover and speed up the delivery of goods; customers can not only get the goods faster, but also check the order processing status online. The latest case should be the following one. The Wall Street Journal just published an article titled "Amazon's Most Powerful Weapon: Bezos's Paranoia." The author of this article mentioned that he bought a pair of sweatpants for $13 on Amazon.com, but after they arrived, he wanted to return them because he found that the pants were too big. As a result, he received an important message from Amazon: as an important customer, he could get a refund without returning the sweatpants. In other words, after assessing the importance of the customer and the fact that the cost of returning the sweatpants would likely exceed the value of the sweatpants, Amazon decided to let the customer get a pair of sweatpants for free. >>>> How important is the "customer experience" that Bezos has always emphasized in Amazon? "The Clean Slate" written by Brad Stone, a reporter for Bloomberg Businessweek, mentioned such a detail: Bezos has a public email address. He would read a large number of customer complaints, add a "?" in the email, and then forward the email to the relevant Amazon employees. Although email marketing made a lot of money for Amazon, due to strong complaints from customers, some reproductive health products eventually stopped email marketing at Bezos' request. >>>> Why does Amazon place such importance on customer experience? My understanding is that the retail industry, as a service industry, is at the forefront of the experiential economy. The traditional economic model is that a company that manufactures televisions completes its sales mission by selling them to customers. Television is a durable consumer product, and the company would like customers to never bother it again so that it can use advertising and other means to attract new customers. However, the retail industry has inherently low profit margins and must rely on continued purchases by customers to generate scale revenue. This means that retailers like Walmart and Amazon must provide a good customer experience so that customers feel comfortable during the shopping process so that they will come back to shop again in the future. This is as I have always emphasized, any business should be like a retail business. The process of users using the product is the process of communication between the enterprise and the users. When a user buys a product, it does not mean the sales task is over, but the experience journey has just begun. Create user value first, then generate business value, this is what I have always emphasized. Looking at Amazon's stock price, it was below $50 until 2009. Since its founding in 1994, investors have been arguing about the company because it always does things against Wall Street's rules, and Wall Street doesn't know what it will become. For more than ten years, Bezos did not talk about how to create the greatest value for shareholders, but instead talked about how to create the best user experience. He went out to various places and spent huge amounts of money to purchase and build a large amount of infrastructure that could not be used up. This has prevented Amazon from improving its return on investment, but its customer base has continued to grow and remain loyal, helping Amazon defeat many competitors along the way. This makes Wall Street love and hate it. I believe that only a company that Wall Street loves and hates has the potential to grow into a great company. Whether a company is great or not is not determined by how much market value it creates or how many millionaires or billionaires it produces, but by how much value it creates for its customers. in the country, some companies make money by creating problems for users rather than by solving them. For example, in some cities, as soon as you get in a taxi, the LCD screen hanging on the back seat starts playing dazzling and harsh advertisements, and you can't turn it off. Eight years ago, most SPs made money by setting traps for customers and charging them random fees, and some even went public. But the facts have proved that even if a company can gain commercial value, it will be short-lived if it does not create value for users. Amazon's innovation in customer experience has always been imitated but never surpassed. TOP1 How Steve Jobs started his second entrepreneurial venture through iPod: Jobs' second venture started from a common need, which was the foundation for him to achieve a great career. Some people say that Jobs is good at creating demand, but I think that’s nonsense. No one can create demand. The need for music is innate to human beings. What Jobs did was to bring the music listening experience to the extreme through iPod and meet people's needs. The reason why iPod is popular is first of all its first-class design. Compared with other MP3 players, iPod stands out from the crowd. Another micro-innovation is the small Toshiba hard drive inside, which is said to be able to store 10,000 songs, enough to last you a lifetime. Starting with the iPod, every tiny innovation and continuous change has made a great product. By adding a small screen to the iPod, we got the prototype of the iPod Touch; with the iPod Touch, everyone would think, what would happen if a call module was added to make calls? So, the iPhone came into being; with the iPhone, if we suddenly enlarged its screen, wouldn’t it become an iPad? However, all the seemingly dazzling and diverse things all started from that "one", and that "one" is the iPod. You have to know that when Apple launched the iPhone, iPod sales had exceeded 100 million units worldwide. These more than 100 million iPods not only created word of mouth and brand for Apple, but also captured a lot of consumer experience for Apple. Without this step, even if Jobs had started making the iPhone right away, he might not have been successful. Later, Jobs and Apple became the objects of worship for many people, and everyone began to learn from Jobs to make mobile phones, app stores , and various tablet computers. Qi Baishi once said, "Those who learn from me will live, those who imitate me will die." What he meant was that copying a business model may seem to be the easiest way to save effort, but simple copying will definitely lead to death. Only those who truly learn the essence of the business model can survive. Therefore, if you want to learn from Jobs, you must learn his essence, and that must start with the iPod. It's like a person who eats seven steamed buns and becomes full, and then you think the seventh steamed bun is magical and wonder what special flour it is made of. Learning from Jobs in this way is definitely missing the point. Source | Excerpted from "Zhou Hongyi's Autobiography: My Internet Methodology" Your APP |
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