User operation: a new way to increase user base through fission!

What methods were used to attract new users, resulting in more than 4 million daily active users in just 20 days after going online?

This article takes Taojiji as an example for analysis.

"Relationship chain growth" became popular two years ago. Pinduoduo used its magical "relationship chain growth" gameplay - helping to bargain for free purchases, sharing to get money, etc., to create its own mountain under the mountains of Tmall and JD.com, and became an app used by 300 million people. However, today we are not talking about Pinduoduo, we are talking about Taojiji.

People who don’t pay attention to growth may be a little unfamiliar with this app. Mr. Chen will first give a brief introduction: Taojiji, affiliated to Huanshou E-Commerce, is a group-buying APP that focuses on low prices and high quality. It was launched in August 2018, just before Double 11, and carved out a path for itself by leveraging “relationship chain growth”. According to official data, its daily active users exceeded 4 million after only 20 days of launch.

Therefore, today I will use this app to give you a detailed analysis of the logic and main gameplay behind the relationship chain growth - bargaining/assistance part .

1. Basic process of bargaining/boosting growth

First, let’s take a look at a brief summary of “relationship chain growth”. Taojiji’s main operation is to pull, with bargaining/assistance as the focus, and now there is group buying.

Let’s first look at the process of Taojiji’s “Assisted Withdrawal” activity. You can also go to Taojiji to place an order and experience it yourself. Here is an example of entering through sharing with friends:

The blue part is the basic process of most current relationship chain growth activities, and the orange part is the advanced part. Taojiji has added some innovations to the basic process of relationship chain growth activities, which are introduced in detail below.

2. Highlights of Taojiji’s Cash Withdrawal Activities

1. Give money directly to increase the communication coefficient and stimulate new user conversion

Unlike Pinduoduo, Taojiji’s main feature is that the more you buy, the more you earn.

In Pinduoduo's bargaining activity, there is no reward for bargaining for others. After placing an order, you can get a small machete to bargain for yourself. Other activities usually offer coupons or nothing at all, leaving only an entry to initiate bargaining. For most users, this is not attractive enough to download the App for conversion.

How to play Taojiji:

How to play on other platforms:

However, if you get "real money" by helping others bargain, you will be a little interested. The Taojiji activity packages all rewards in the form of cash. You can get cash by helping to bargain, and you can get cash back when placing an order . Once a new user enters the page, he or she is very likely to convert - the communication coefficient must be higher than other activities!

Bargain for cash:

Order and get cash:

*Knowledge point extension: The easiest way to measure whether your conversion efficiency is high enough is the propagation coefficient - the number of new users brought by an old user:

Propagation coefficient = object clicks to enter the registration page uv / subject clicks the invitation button uv

Only when the propagation coefficient is higher than 1 can exponential growth be achieved. I have drawn a simple picture for you to feel:

PS: The communication coefficient in the above figure is only for horizontal comparison. Vertically, the study of the communication coefficient can also be used as a study of the product life cycle. On the other hand, it should also be combined with NPS or Net Promoter Score (Net Promoter Score (NPS) = (number of recommenders/total number of samples) × 100% - (number of detractors/total number of samples) × 100%) to evaluate the communication value of an activity in detail.

2. Cash withdrawal is not real cash, saving costs, and setting a minimum threshold for cash transfer

You may think, if we just give cash, isn’t that just burning money? too simple, before version 2.14, Taojiji was under the guise of giving cash, but in fact, the cash could not be transferred to one's own bank/WeChat account, etc., and could only be placed in the balance of Taojiji to be used as a deduction for the next consumption amount (the red envelopes given by Ele.me's super members can actually only be used when ordering food, and it is the same routine. What is different from coupons is that there is no threshold), and the deduction was 5%~50% randomly - in fact, it was still a coupon, a packaged coupon. After version 2.14, transferable cash became available. However, the price you bargain for others will usually not exceed 2 yuan, and you can only withdraw cash when the price reaches 2 yuan.

This is a borderline case, and the packaging method is powerful, but there are legal risks and may cause damage to user experience. When users withdraw cash, they will inevitably feel cheated. So this path is definitely not feasible? Not necessarily, because what is withdrawn is indeed money, but it can only be used on Taojiji. Therefore, not emphasizing withdrawals, but emphasizing the balance and the availability of the entire platform may be a feasible approach.

3. The “cash” that helps withdraw cash can be used in the next transaction - integrating rewards into the transaction process to promote retention

Taojiji puts the bargaining reward directly into the balance for use in the next transaction (before version 2.14, it could only be used in the next transaction, which is more stringent). At the same time, when placing an order, it is packaged as "earn x yuan" and directly gives "cash" that can be used in the next transaction. ——By integrating rewards into the transaction process, you will continue to trade indefinitely in order to withdraw and use “cash”!

The simplest idea we can learn from is: change your reward into: the amount of the reward card reward, which is used to offset x% of the handling fee/the payment of the next transaction/the reward of the next transaction is randomly multiplied by x. In short, there are N ways of packaging. Integrating growth strategies into the transaction process can increase user activity and retention, and shorten conversion costs for newly registered users. However, there are prerequisites for Taojiji to be integrated into the transaction process - the transaction chain is short and decision-making is light. Moreover, after the integration, the growth efficiency may be reduced. Therefore, whether this form is suitable for the growth of other businesses depends on the business situation.

4 . Reward in advance to improve conversion efficiency

Giving you a red envelope first before you can withdraw it is actually a commonly used means of pre-reward. Everyone knows about pre-reward, but they may not be clear about the psychological mechanism behind it. After understanding it, you can actually draw inferences about other situations. Next, I will make a small expansion and give you a detailed introduction: about the human loss aversion psychology.

Take Didi Licheng, a newly launched car-hailing service, for example. There is an activity where you can grab a 100-yuan cash voucher for 9.9 yuan. I asked many people about this. Here is one person’s answer as an example. This is also the answer of most people:

A.How much are you willing to pay for this coupon? The answer is: no more than 30 yuan.

B. You want to sell this ticket. How much are you willing to sell it for? The answer is - emm...about 80 yuan.

So, how much is this coupon worth in your mind? According to the utility principle of economics, for a rational economic man, the price you are willing to sell and buy should be the same, which is the value of the ticket in your mind. The reason why it is different now is that people have a psychological effect: loss aversion - they don’t want to lose what they have gained, so the value of the product in their minds will become higher.

In 2, you think that you already have a coupon worth 100 yuan. If you sell it now, it will be a loss, and you don’t want to have this kind of loss, so others have to pay 80 yuan before you are willing to give him this coupon. However, in 1, you haven’t got the coupon worth 100 yuan yet, and you are only willing to spend 30 yuan to get it.

Not only Taojiji, but almost all promotional activities now are taking advantage of people's psychological mechanism: giving you a red envelope/coupon/discount coupon first - the thing is given to you, you don’t want to lose it, and its value will become greater in your mind. Let me throw out a few more examples to give you some ideas to think about:

1. Collect service fees in advance instead of charging suppliers commissions to avoid letting suppliers make money and then lose it, and to reduce complaints and dissatisfaction.

2. Let users spend X yuan to try out the membership for X days for free, and then after X days, let the users choose to continue using the membership or resell it to others.

5. Cash has a deduction range, which is convenient for controlling ROI

As I just said, the discount is randomly 5% to 50%, and high-risk people can increase the deduction ratio through classification, but it does not explain what high-risk people are. On the one hand, compared with the fixed 12% off, there is uncertainty in the discount, which, combined with the pricing of consumer goods, provides an additional means of controlling ROI. On the other hand, compared with coupons with fixed amounts (5 yuan, 10 yuan vouchers), discounts are more conducive to the stability of the average order value, or the unclear amount will have less stimulation to users. This can be tried and verified based on your own business content.

3. Summary of skills

The above are all the highlights of Taojiji’s relationship chain growth activities. Now let’s talk about the key points and the dry goods:

1. Increase the spread coefficient - exchange the bargaining rewards for real money such as balance!

2. Improve conversion efficiency - reward in advance to make users feel like they already have something

3. Improve retention rate - Integrate rewards into the transaction process. On the one hand, it allows users to remain active, and on the other hand, it avoids the risk of being cheated.

4. Improve ROI:

(1) Give corresponding rewards based on user characteristics - If the activity can collect user data on the terminal, you can consider estimating the value of the reward to the user based on user behavior, and then give different types of rewards (this may be criticized as taking advantage of the old customers, so be cautious).

(2) Give corresponding discounts based on product features.

When the Internet connects people, and when the amount of information each person receives every day begins to explode, in addition to through celebrities/KOLs, the most efficient way for information to reach users is probably the user's circle of friends, which is the "relationship chain growth" analyzed today. It has played an endless magic in one innovative "iteration" after another.

Judging from the results, Taojiji’s assisted cash withdrawal is an excellent case, but I have always believed that extracting the essence of the case is only one part. What is more important is to explore the psychological mechanism behind it, learn by analogy, think deeply about your own business type, and integrate the skills.

Author: Seventeen

Source: Mr. Chen