Product Operation: How to create a product from 0 to 1 and turn it into RMB?

The process of a product going from 0 to 1 and finally turning into RMB is indeed very exciting. This is why many people are fascinated by business. It is not just about making money. If you have been to the Shahe clothing wholesale market in Guangzhou, you can hear the sound of a small truck rolling on the ground on the road, which is particularly pleasant. This is the most beautiful voice I have ever heard. It can heal all sensitivity, fragility and depression. I recommend it to you.

Today we are going to talk about how to create a product from 0 to 1 and eventually turn it into RMB.

Those who have been following me for a long time know that I use psychology to explore the underlying logic of marketing and provide principle-level market solutions. Therefore, as usual, I will not give any examples, but only provide the underlying logical framework, so that we can witness together the process of a product becoming RMB.

When you are preparing to develop a product, you must think clearly about who you are going to sell your product to?

What value does your product have that makes your customers willing to pay for it? Your product may help him avoid hunger, may help him show off, or may make him happy. This is the process you need to think about. turn out,

You have to find a reason for your customers to spend money.

In a society where people can hardly starve to death, product oversupply, homogeneity, and ubiquitous substitutes can always meet any user demand. When you are ready to eat and walk into a Guilin rice noodle shop, it means that the Chongqing noodles, braised chicken rice, and fast food restaurants on this street have lost you. This is the essence of competition. Suppose there are only 1,000 customers on this street at noon every day, and your store can accommodate a maximum of 100 people, what you need to do is to attract 100 people out of the 1,000 customers to consume in your store. Not only those who run noodle shops are your competitors, but all those who compete with you for traffic during this time period are your competitors.

If there is no essential difference between your small noodles and the ramen next door, then you need to jump out of this dimension and upgrade your thinking: what do consumers really need?

What do consumers really need? What consumers want is to be full? If what consumers need is to eat their fill, a bowl of rice with some pickles will be enough for each of us. Why do we need to order shredded pork with fish flavor, chopped pepper fish head, or braised chicken with rice?

So there is no product that meets basic needs. Even rice cannot meet basic needs . How do you need to design your product?

The answer is:

Find an emotion for the product and a product for the emotion.

Why do we drink? On the wedding night, when one’s name is on the list of successful candidates in the imperial examination, or when one meets an old friend in a foreign land, one may feel happy or unhappy. Once you find the emotions of the product and the emotions of the consumers, you will understand why we spend money and on what basis we spend money.

Once you have found the value that satisfies consumer needs, you may have discovered where your target market is. Completing these steps means completing the STP analysis in marketing (market segmentation, target market selection, and market positioning).

Any successful product is definitely not just because of a single point of victory. Those who only see that Jiang Xiaobai’s sentimental copywriting is well done and think that this is the reason why the wine sells well are talking nonsense. Core competitiveness is not a single point, but is composed of multiple points connected together to form the core competitive chain of the enterprise. Ignoring Jiang Xiaobai's channel capabilities and the industry accumulation of the founding team, and wanting to achieve the same success by imitating, plagiarizing, or even surpassing a certain point is wishful thinking.

So your product cannot have only one advantage, but when you are promoting it you must find a single, clear point to tell your consumers, and describe it using common language and experiences that consumers are familiar with. This is the process of finding the core selling point. Just as when smoke alarms first entered the market, they said they were the sensitive noses on the ceiling. OPPO focuses on charging, and Huawei focuses on taking pictures. This has scientific basis. The cognitive load theory holds that the less people process information, and the closer it is to existing knowledge and experience, the easier it is to understand and remember.

As the saying goes, "If it's all advantages, then there's no advantage." And the saying "Words must be popular to be spread far, and words must be relevant to the world to be moving" all speak of this truth. Therefore, our ancestors were very wise, and the great principles of this world were explained thoroughly thousands of years ago.

Now that we know where the product’s target market is, the positioning is clear, the selling points have been found, and the value communication is understood, then we need to solve the problem of selling it?

No matter whether you are online or offline, as long as you sell, you need a channel. You always have to find a channel to promote your products and a place where your consumers will spend their money in the end. So there are two types of channels: one is the sales channel; the other is the traffic channel.

The so-called sales channel is the place where the final customer spends money and the transaction is made. It could be a physical store on a commercial street, a store in a shopping mall, or Taobao, Weidian, or a WeChat official account micro-mall. In short, you have to find a sales channel that suits you. This is what we are talking about when we talk about matching. If you sell LV, you cannot set up a stall in the vegetable market; if you open a 2 yuan store, you cannot open it in a shopping mall.

If you can find a sales channel that still has traffic bonuses, enter it immediately, such as Taobao in its early days. What is traffic dividend? There are many people, few stores, and the entry threshold is not high. When Taobao first became popular, the website had a huge amount of traffic every day, but there were very few competitors for related products, so as long as you opened a store, you could basically make money. It’s no good if you enter the market early but the channel traffic hasn’t built up yet. You’ll be cannon fodder and die in the first episode of the TV series, leaving only a sentence “avenge me” and that’s it.

If you can’t find a channel with traffic bonuses, look for places that can bring their own traffic. Every city has several business districts with large traffic, such as Coast City in Shenzhen, Taikoo Li in Chengdu, Sanlitun in Beijing, and the vegetable market downstairs from our house. There are white-collar workers eating breakfast in the office area, there are students who dare to spend money in the university town, and there are many young men and women in the shopping mall. There are also many national agents, provincial agents, and chain stores that have their own channel networks. The WeChat business tycoons have WeChat business teams that drive Maseratis and are happy to get Harmony cars.

Traffic is always scarce, and what is scarce is always expensive.

So, you need a channel to attract traffic.

The so-called traffic generation means that you need to find traffic for your sales channels. What to do if the website has no traffic? Use Baidu and 360 for search engine optimization to improve the efficiency of search display, so that more people can search for you, and more people are willing to click to enter your website. What should I do if Taobao has no traffic? Buy through trains and diamond booths to capture more platform traffic.

We will not talk about the above because the cost of channels and traffic has become increasingly high, people have access to more and more information, and traffic diversion also has its own benefits. If you miss out on this method, it will not be something that ordinary people can easily master. So you don’t need to pay attention to the sales channel itself, you just need to regard it as a place to undertake the final transaction, and for the rest, you can find traffic for it from the outside.

In the past, we said that you should build your sales channels where your target consumers gather. But now the media is becoming more and more fragmented, the costs of channels and traffic are getting higher and higher, and consumers receive a lot of information every day, so you must learn to focus, focus and focus, and say important things three times.

If you can crush someone with your strength, why bother with tricks and schemes? Focusing requires you to learn how to select channels, conduct channel verification, and find the most effective channel. If you don’t have money, you have to concentrate your limited resources on the most effective channels to maximize their value.

So, what you have to do is to verify the most effective channel.

Verification is a complex process. You first need to think about:

Who are your target customers?

What are the characteristics of the target customer group?

Where do the target groups gather?

What are the characteristics of the channel itself?

What kind of content and communication methods can be effectively disseminated on channels?

What is your strategy?

When the external forces are roughly equal, you need to pay close attention to the variables that appear during each verification process. Variables are the key factors that can truly maximize value. Finding a method that suits you through other people's methods is the key to using skills. You don't need to invest too much each time. Suppose you have 5 methods. Through verification, you will find that the results produced by each method will definitely not be the same. By recording and analyzing variables and the corresponding conversion results, you will be able to find out which method is the most effective. It is not your feeling, but the data that tells you. This is the result of sniffing the roses. If you have done a lot of work and still can't find it, then just give up. Working hard and steadily is also a good way out.

All the channels that are still alive and well are useful. Even though Taobao is not doing well, most of the newly opened stores are still making money. Although Weibo is in decline, the revenue scale of content producers still reached 26.8 billion in 2018. Douyin is very popular, but that has nothing to do with you. It is not that you will become popular immediately after opening an account, and then sell goods and take advertisements. That is something that can be taken for granted. Don't listen to what others say and don't look at industry data. No matter how good the channel is, if you can't make use of it, it is useless to you. No matter how bad the channel is, if you can make use of it, then it is the best channel. For example, even people in the marketing industry think that people on Douban are the coolest and most difficult to monetize. They only talk about books and movies and are super rational. But a friend of mine thinks that people on Douban are the dumbest and most stupid. This friend earns 30,000 yuan a month from Douban alone.

Therefore, only you know the result of the verification. It is not your feeling, but the factual data and real RMB tell you that this is the most effective.

Once you have found the most effective conversion channel, you don’t have to put all your energy into it all at once. Instead, we need to fully consider all the links that may connect with consumers and influence purchases during the channel diversion process, and optimize them step by step.

For offline stores, we need to consider consumer psychology, consumption environment, purchase scenarios, usage scenarios, and how to increase the average order value. How to increase repurchase rate? If you are online, you need to consider the display page design, content copywriting, jump page, purchasing channels, how to attract new people, and how to get them to help you spread word of mouth?

The optimization process is the process of expanding the conversion effect. It is necessary to concentrate advantageous resources and improve the conversion rate of each investment.

It is always easier to retain an old customer than to get a new customer. The best way to attract new customers is for your old customers to help you bring in new customers. The best way to sell is that all consumers are your salespeople.

Attracting traffic is not the purpose of commercial operations, monetization is. According to the rules of the Internet, you'd better turn off the faucet, fully absorb the pool of water that has been attracted, and continue to operate in depth. It sounds mysterious and not very advanced. Traditional business often talks about: old customer relationship management, which is the same principle.

The paths of all operations are nothing more than attracting new customers, revitalizing, retaining, monetizing, and fissioning, which repeat over and over again in an endless cycle.

It is neither complicated nor simple.

At this point, the RMB journey of a product has basically been completed, and it is indeed very successful. You touch your bulging pockets, and an unconscious smile appears on your face. Everything you see seems to be waving at you. You also become a person who loves small animals, and likes BMW, Jaguar and Land Rover.

good luck!

Source: Yiwu