Two key steps to attract new users and retain users on e-commerce apps!

In the second half of the mobile Internet, it has become a consensus that it is becoming increasingly difficult for e-commerce apps to acquire new users and the cost is increasing. So, how to attract new users and convert them into effective users? Based on my limited experience, I have summarized a set of methodologies for attracting new customers and retaining existing customers for reference by people in the industry.

Before introducing the methodology, let us first define the North Star indicator as “new user first-order conversion rate.” To complete the first order, new users of e-commerce apps need to go through nine steps: download the app - open the app - browse the homepage - enter the product details page - add to shopping cart - register/log in - checkout - fill in the delivery address - pay . Each step may cause user loss, so improving the conversion rate of each step has become a lifelong mission of user operations.

1. Find potential new users

1) User group positioning

First, identify the key user groups of your products: gender, age, region, preferred categories, consumption level, etc. For comprehensive e-commerce apps, the new customer acquisition team will target user groups based on business segmentation. Taking JD.com as an example, the user groups of JD.com Pinduoduo and JD.com Zao are completely inconsistent. For vertical e-commerce APP, the user group is the target group of the product.

2) Find the right promotion channels (attached with promotion channel map)

After identifying the target user group, you need to find suitable channels to attract new users. Currently, the channels for attracting new customers are very extensive. For budget purposes, it is not possible to try and error all of them, so it is necessary to choose the most appropriate channel based on the budget.

I believe that for most companies, establishing their own promotion channels is the most cost-effective way. For example: WeChat official accounts, mini-programs, Weibo, Douyin, and search SEO, maintained through own channels, can not only maintain the activity of existing members, but also attract new users as a brand promotion. Due to the limitations of own channels, it is necessary to cooperate with third parties for payment or exchange, so it is necessary to understand the characteristics of the channel's own user groups. For example: Airport media promotion is suitable for business people and for the promotion of apps that emphasize quality; Xiachufang is suitable for housewives who love cooking and can exchange traffic with fresh food apps.

3) Develop new customer acquisition strategies

After completing the above steps, start formulating a new customer acquisition strategy, including but not limited to the delivery channels, delivery time, delivery volume, delivery materials, and delivery methods.

The North Star Indicator "New User First Order Conversion Rate" is used for measurement. At the same time, combined with the promotion cost, the effectiveness of each channel is measured and continuous adjustments and optimizations are made. It must be pointed out here that the results of one or two channel delivery cannot prove that the channel is not effective in attracting new customers. In many cases, the font style of the material and the selection of delivery time will lead to huge differences in the results, so continuous trial and error with small costs is required in the early stage.

2. Retain new users: quickly experience the AHA-Moment

All the hard work of attracting new users will be in vain if you cannot keep them. So how do we retain them and complete their first order? Start with core values, seize every opportunity to convey value to users, and quickly motivate users to complete the seven steps of browsing the homepage - entering the product details page - adding to the shopping cart - registering/logging in - checking out - filling in the delivery address - and paying .

1) Help users quickly understand the platform

Newbie guide page:

Since e-commerce apps have been educated by major platforms such as Taobao and JD for many years, the operating procedures are similar, so the common guidance for novices is mainly to convey brand concepts rather than function demonstrations or operating steps.

Example 1: Introducing platform features to new users through splash page images, animated graphics, or short videos;

Example 2: Introduce product features or service features on the home page. For example, NetEase Kaola uses the obvious area under the focus image on the homepage to highlight "NetEase self-operated", "Global direct purchase", "Ten times penalty for fake products", and "Worry-free after-sales service", using the endorsement of the NetEase platform to enhance user trust and subsequently convert new users.

Product Experience

From the moment the user opens the APP, browses the homepage - enters the product details page - adds to the shopping cart - registers/logs in - checks out - pays, each product link is crucial and the experience will terminate the user's shopping behavior. The key points are as follows:

a) Interactive experience of each page: closed loop of scenes. For example, the product activity page needs to display the shopping cart entrance, so that users can quickly enter the shopping cart and place an order after adding products to the cart;

b) Visual style of each page: Make your merchandise and products consistent in tone. For example, Pinduoduo sells LV bags based on its existing visual and interactive experience;

c) Click-to-jump loading speed: Loading speed exceeding 3 seconds will result in 70% loss of users.

2) Accelerate the core process of user experience

E-commerce platforms want users to place orders immediately. In order to achieve this goal, they usually speed up the entire process by providing exclusive benefits to new users. Common strategies are as follows.

New member gift pack: coupons

Taking Suning.com as an example, when users open the homepage of the APP, the new user floor will be displayed, highlighting the "199 yuan new user gift package"; at the same time, after clicking on the interest point area or logging in successfully, the user will be immediately redirected to the gift package page, using interest points to encourage users to complete their first order.

Newcomer exclusive price: hot product special price

Build an exclusive page for new users, select popular products and mark them with exclusive prices for new users, so that users can feel our sincerity and place orders. For example, NetEase Kaola offers special discounts on popular products, such as SK-II Facial Treatment Essence, exclusively to new users, allowing users to feel the sincerity of the platform and lowering the psychological threshold for new users to purchase.

Member Privilege Trial

In order to improve user stickiness, major platforms have begun to launch membership strategies. For new users, allowing them to experience membership benefits at a low price or for free can speed up the conversion of new users into paying users and deep users. For example, NetEase Kaola launched the activity of “New members can get 7-day red card membership for free”, which allows new users to experience membership benefits for free, prompting them to place their first order and even convert into heavy paying members.

Marketing functions: fission, group buying, etc.

To summarize the function in one word - speed up the acquisition of new customers through marketing functions and gameplay. Taking invitation gifts as an example, new users may not complete their first order, but they can convert their relatives and friends to complete their first order. According to the AARRR model, we can move the last R (dissemination) to before the second A (activation) and encourage users to bring in more new users through cash/discount rewards.

3) Don’t give up on users who haven’t completed their first order

For various reasons, users may give up and leave after downloading the app but before completing their first order. Sometimes, it’s not that users are not interested in the platform, but that the process operation is interrupted. At this point, we can activate these users through PUSH, SMS, WeChat public accounts and other contact methods to complete the remaining steps.

Example 1: If the user completes the login/registration steps but does not add a car or take any subsequent actions. In addition to objective reasons, it can be inferred that users have no desire to purchase the products recommended at that time. We can carefully select the main models and combine them with interest points, such as "free shipping for 1 yuan", to attract user return through push.

Example 2: If the user completes the steps of adding a car or placing an order but does not make a payment. We can make personalized recommendations based on user information and use urgency copy, such as "Only 1 left" or "Only 6 hours left on special offer", to stimulate users to complete subsequent steps.

Conclusion

The two key steps to attract new users and retain new users for e-commerce apps : find new users and retain new users. To achieve this goal, you can:

1. Find new users: Accurately match product user groups and delivery channels, and improve new user conversion by continuously optimizing delivery strategies

2. Retain new users: Let users quickly understand the product and motivate them to complete their first purchase through benefit points or marketing functions. At the same time, do not give up on new users who have not completed the steps, and combine marketing and outreach to encourage return.

Related reading:

1. How can operations improve APP retention rate? ?

2.5 Tips to Improve APP Retention Rate

3. Four steps to improve APP retention rate using push notifications

4. How to activate existing users and improve user retention?

5. How to improve user retention rate? 6 strategies used by the entire Internet finance industry

6. Case Study: A Specific App Retention Improvement Analysis Plan

Author: Meow Meow

Source: MeeMee