Practical tips + cases | 3 ways to double event revenue!

Recently I have been thinking about a question: for a business, is traffic more important or revenue more important? They are all important, but the purpose of traffic is to serve revenue. The useful information I want to share today is about money. To put it simply: 3 methods are ready to use. Help companies increase revenue effectively. Although each method has its theoretical support, namely consumer psychology. However, I will try my best to present it to you in the form of practical cases.

• Method 1: Reference price

Look at the pictures first, then talk

1. Basic gameplay:

Everybody is doing it, so you can't fall behind.

From the picture, we can see two prices of this wave of dog food: the original price and the promotional price. This is very common. Our partners in operations know it very well. In the system background, there are two special areas for filling in prices, namely price and promotional price. The price is for users' reference, while the promotional price is what users actually pay. By comparing the promotional price with the original price, the cost-effectiveness of the promotional price can be highlighted. There is no need to say too much about this gameplay. It’s very simple, everyone does it this way. If your product hasn’t done this yet, then hurry up and add it.

(II) Advanced gameplay:

If you want to stand out from the crowd, you can do this.

But I want to say that since this is a way of playing that everyone is playing, after playing it so many times, users will become insensitive to it. Is there any way to motivate users to pay more? have. We can see this wave of dog food. Original price 398, promotional price 159. Then the reduction from 398 to 159 is quite rough. The only impact of this approach on users is that after comparison, they feel that the promotional price is a good deal. If you don’t pay now, users will feel a sense of loss. If we quantify it, we assume that the basic gameplay stimulates the user's sense of loss by 1 point. So, what advanced gameplay needs to do is to amplify this sense of loss to 10 points. The higher the sense of loss score, the higher the user's payment rate.

Therefore, in order to magnify the user's sense of loss, we need to increase the price difference by 398-159=239, so that the user feels that the 239 is hard-earned. You will find that the 239 is easy to get in the basic gameplay, and this is the price when you click in. Therefore, we need to allow users to obtain a discount of 239 through games or social methods . The specific steps are as follows:

1. How to play the game:

Allow users to play a certain H5 game and reach a certain score to receive a 239 yuan discount red envelope;

2. Social methods:

1. There are gifts for invitations . If old users invite new users, the new users can get a preferential red packet of 239 yuan.
2. For group buying , old users, as group leaders, need to start a group and attract new users, so that everyone can get a red envelope of 239 yuan to buy dog ​​food at the price of 159.
3. Bargaining with friends : old users can share the bargaining information on their Moments and let their friends bargain with them. Each person can bargain for a fixed amount or a random amount. Eventually, you can bargain down the price of dog food to 159 yuan or more.

(III) Cases:

Look at the picture first

You can see that this is a personal poster sent in the circle of friends. Through the personal poster QR code, you can receive a 90 yuan discount as a new user. At the bottom of the page there is an item with an original price of 199 and a current price of 109 . However, this 90 yuan discount is given to new users in the name of WeChat friends . The implication to the user is: this 90 yuan is a gift from your friend and you should cherish it. This is not a random and rude discount by the merchant. Let me say a little more here. Generally, coupons, red envelopes, etc. are distributed to users in the name of friends, and must include the friend's nickname and avatar. The red envelope collection rate and user payment rate distributed in this way are better than when merchants distribute them directly to users . Because friend distribution is a strong link social relationship.

• Method 2: Endowment Effect

In consumer psychology, the so-called endowment effect can be simply explained as follows: if a person touches something with his own hands, he will think that the thing becomes more valuable.

So how does this help increase revenue? How to apply?

1. How to play in physical stores:

Why do salespeople always recommend that you try on clothes when you go shopping?

Why does Xiaomi Store have a bunch of Xiaomi family buckets for you to play with?

Yes, that’s how physical stores work: let users come into contact with your products and touch your products, that’s all.

(II) Basic gameplay of e-commerce :

7 days no-reason return, this should be the most common way of playing . If you have already received the express delivery, it will generally not be returned unless there are major problems with the quality of the goods.

So, if you can return the product without any reason within 7 days, it is the basic rule. So what is the advanced gameplay?

3. Advanced e-commerce strategies:

Due to work reasons, I have to constantly collect marketing cases . Recently, I found that a domestic clothing e-commerce company and a foreign clothing e-commerce company are worthy of our reference. Here I will analyze it with you in the form of a case.

The advanced gameplay of e-commerce should be:

Improving user participation before users pay can effectively increase user payment

(IV) Case 1:

Product Name :

Yibangren

Product business scope:

This company makes custom suits for men. I used to see their advertisements frequently in office buildings.

How to play:

So, what do they do before users pay? Traditional custom-made suits require going to a store to have your body measured. The key point of this company is: make an appointment with a professional beauty consultant to come to your home for free measurement at 0 yuan. So, compare:

a. For the same suit, you can go to a store to get your measurements taken in the middle of summer and go shopping at the mall at the same time;

b. One is in the middle of summer, and a beautiful woman comes to your house to measure you.

After measuring, if you had to choose one to pay for, which one would you pay for?

(V) Case 2:

Product Name :

ThreadLess

Product business scope:

t-shirt

How to play:

This company operates differently than any other clothing company. Their designers are the users. The users design the T-shirts and the company makes the patterns and produces them. The brand has a consumer community of more than 2.5 million members and receives an average of about 1,000 design drawings from community users every day. The community votes to decide which images will eventually be produced into T-shirts. The winning work will receive a $1,000 reward, and community members can purchase a T-shirt for around $20.

So if you designed a T-shirt, would you get paid for it? This is also a process of deep user engagement before payment, allowing users to deepen the value of the product. What's more, the T-shirts here are really cheap.

• Method 3: Peer Effect

There is a term in consumer psychology called peer effect. That is to say, when people buy something, if they see others buying the same thing, they will think that the thing must be of good quality and low price.

1. Basic gameplay:

Everybody is doing it, so you can't fall behind.

In fact, in order to use the "peer effect" to increase user payment rate , all you need to do is create a hot scene . It gives users the feeling that many people have already purchased it . So, this is why the joke about " Heytea hiring people to queue up" came about. So what is the basic gameplay?

XXX people have registered/purchased/received/etc.

Only XXX items/pieces/seats left

(II) Advanced gameplay:

If you want to stand out from the crowd, you can do this.

If you can kill two birds with one stone by utilizing the "peer effect", then this can definitely be considered an advanced way of playing. What are these two birds? First, the user payment rate must be increased; second, user points must be effectively utilized to achieve other operational goals.

(III) Cases:

Product Name:

Chaos University

How to play:

Chaos University is very popular recently because everyone is scrambling for tickets. Just grab a cruise ticket from Shanghai to Japan, and there will be various knowledge sharing sessions by bigwigs on the ship. So in terms of advanced gameplay, I will share with you the case of Chaos University.

I have seen this poster a lot in my circle of friends. Today's flash sale tickets are sold out . This is more brutal than the basic gameplay where only XXX items are left. There are so many people trying to get it, and there are all kinds of social activities on the cruise ship, knowledge sharing from bigwigs, and all kinds of delicious food and beautiful scenery. Do you want it?

However, to grab a ticket you need research value (i.e. Chaos University points). On July 14th, you can only use research value to grab the items, but from then on, you have to use RMB to grab the items, but you still need to have 500 research value. So, first of all, we kill two birds with one stone: the user payment rate has increased.

So what’s the second bird of two birds with one stone? So let us first understand what the research value of Chaos University is? The research value can be used to grab some regular offline class tickets, or to purchase some online courses. As for how to obtain the research value, refer to the figure below. Through the research value acquisition channel, let’s take a look at what operational goals Chaos University has achieved.

1. Share courses and invite friends : This is a form of old-to-new fission, which can be used to attract new traffic;
2. Watching live courses : This means you are an active user and you need to study on it frequently.
3. Renewal : Improve user repurchase rate and increase user LTV.

So, rather than killing two birds with one stone, the second bird is points. It’s better to say that it kills many birds with one stone. Improving paid conversions is just the basics.

• Summarize:

1. In addition to increasing revenue, by using reference prices, you can also embed the "old customers bring in new customers" gameplay to attract new customers ;
2. Through the endowment effect, in addition to increasing revenue, it can also drive user participation ;
3. Through the peer effect, in addition to increasing revenue, you can also kill two birds with one stone and open up the points system to achieve more operational goals .

Therefore, all gameplay is a combination of punches. Revenue is not just revenue, revenue can also bring other things.

Source: 2 Minute Marketing