How to achieve effective drainage? Share 2 strategies!

There are only two truly effective traffic-generating strategies: free and giveaways. Many ways of attracting traffic, such as: social red envelopes, forwarding by old customers, bargaining group purchases, and cross-industry cooperation, are essentially these two types. The difference lies in the method and scenario of attracting traffic.

Anyone doing business should know this formula:

Sales = Traffic * Conversion * Unit Price

Essentially, there are only three ways to grow your business:

1. If the conversion rate and unit price are low and the traffic is large enough, you can survive, such as supermarkets, fast food, etc.
2. If the traffic and unit price are low and the conversion rate is high enough, you can also make money, such as milk tea, clothes, etc.
3. If the traffic and conversion are low but the unit price is high enough, you can be happy, such as in medical beauty, cosmetics, etc.

Of course, it would be best if the traffic, conversion, and unit price are all high enough to maximize sales!

However, is that all that’s needed?

This business formula may not be enough in today's mobile Internet !

From this, I proposed a growth formula for business value:

Business value growth = traffic * conversion * unit price * repeat purchase * sharing * fission

• How to make new customers continue to repurchase and convert them into old customers?
• How to get new customers to share and forward to promote your store?
• How to get old customers to introduce other people and bring in more customers?

Repeat purchase, sharing and fission have become the core elements of business growth.

Today, let’s start from the beginning and talk about how to attract traffic.

There are three types of traffic: natural traffic, existing traffic, and expanded traffic.

Organic traffic:

It refers to the traffic that naturally passes by your store. They may see your store and go directly into the store to make purchases.

Current traffic:

It is the traffic that you currently have and can control the links. For example, if your store has been in operation for more than a year and has hundreds of customer files, these are the existing traffic.

Or you can control the traffic, for example, if you are a self-media celebrity ( Internet celebrity ) and can bring in your own traffic, or you have other industries that can bring in traffic.

Expand traffic:

That is, on the basis of the above two traffics, more traffic can be generated by carrying out activities.

For example: if you put up a sign saying “Second cup half price” at the entrance of your store, you will attract more new traffic; or you can organize a price-cutting event online to attract traffic to your offline stores, which are all expanded traffic.

Our focus is of course: expanding traffic.

So, how can we bring in more traffic by planning events and creative promotions?

I have summarized two commonly used and effective traffic-generating strategies: free orders and gifts.

Maybe, you will say: Master, why are there only two? And these two traffic-generating strategies are very common!

Of course, I can also name many ways to attract traffic, such as cross-industry alliances and referrals from old customers, but in the final analysis, these are just different channels for attracting traffic, not means of attracting traffic.

But there are very few people who can really make good use of these two traffic-generating strategies!

1. Free of charge

The free item here does not only mean free, it can also be a low-priced product that can attract the audience's attention.

There are two free ways:

1. Free product
2. Free service

When doing promotions, many business owners or marketers like to use simple and crude methods such as discounts, full-reduction, buy one get one free, etc.

It’s not that these strategies are ineffective, but in today’s world of “three-day discounts and five-day free gifts”, they are no longer enough to stimulate the audience.

Why do most businesses not dare to provide free or waiver services?

Of course it’s because of the cost issue. If it’s free/free, you will definitely lose money! Can't bear it!

Therefore, any "free" or "free of charge" is strategic, that is, there is a routine!

For example:

"Four people get one free", this is actually a 25% discount, but isn't it more tempting?

"Top up three times the amount and get the whole table free", this is actually only a 25% discount, but wouldn't it be more stimulating for you?

…

Please look at the photo below. This is a photo I took in the gym a few days ago. It is a relatively common cross-industry collaboration.

This hot pot restaurant made a roll-up promotional poster in this gym.

The poster says that if you get a coupon from the gym's front desk, you can get a 38% discount on all items.

But in fact, is discount a good way to attract customers? Is it really attractive to you? The discount promotion method has actually been overused and cannot attract the attention of passers-by at all.

Instead of giving people a discount, it is better to give them a dish for free.

In Shenzhen, the average cost per person for a hotpot meal is about 100 yuan. Assuming two people spend 200 yuan, then with a 38% discount, it is 136 yuan, and the merchant contributes 64 yuan.

But what if you put all the 64 yuan into one dish?

For example, shrimps have a strong sense of value. One pound of shrimps costs about 35 yuan. You can say that with a coupon, you can get 2 pounds of shrimps worth 70 yuan.

Because it’s free with a coupon, and it’s 2 kilograms, the perceived value of the shrimp is relatively strong, and it’s more attractive than a 38% discount.

Moreover, when you focus all the discounts on shrimp dishes, you can further reduce costs due to the huge purchasing volume, and your marketing costs will be even smaller than a 38% discount.

If more than two people consume, the consumption amount will definitely exceed 200 yuan. If you give a 38% discount, your marketing cost will increase further, but you still only give away 2 kilograms of shrimp because the perceived value is very clear.

But free ones also face a problem:

People are mean. The easier it is for them to get something, the less they cherish it.

If someone hands you a flyer on the street, you probably won’t even look at it. After all, free things always give people a feeling of being worthless.

One of the customers I served was in the catering industry. He had organized some activities and built communities before, but the results were not very good.

I asked him how he did the activity?

He said a bottle of wine was free, but it didn't help much. There were not many people coming to claim the dishes in the community red envelope raffle, and the 30% discount for all items had some effect, but later it stopped working.

No one values ​​free things.

You think that if you give things to customers for free, they will be grateful to you? That's impossible. There is a term called sunk cost. The more you pay, the harder it is to give up.

You can provide it for free, but you must make customers pay a monetary cost or a behavioral cost.

I said: You can drink beer for free, and then sell beer coupons at a low price. In the community red envelope lottery, the winner must forward the poster to claim the prize or invite local friends to join the group. Those who want to join the group must pass the review before they can be invited to join the group.

Always remember: customers will not keep buying from you just because your product is cheap; instead, you need to make them feel like they are getting a good deal.

Therefore, the premise of free is: making users pay costs, either monetary costs or behavioral costs.

Buying 101 bottles of wine for 20.18 yuan is actually equivalent to free, but why charge 20.18 yuan? The audience must pay a financial cost before they will cherish it.

Experience ten skin rejuvenation treatments for free, which is also free, but you have to forward the poster every time you come and help our store spread the word. Only when they pay the cost of their behavior will they cherish it.

2. Gifts

The gifts here include three levels:

1. Cash Back
2. Send coupons
3. Gift

Cash back: for example, recharge 500 yuan and get 360 yuan back, but get 30 yuan back every month; coupons: for example, give a 100 yuan coupon to the customer who pays the bill, a total of 5 coupons.

You can design it like this: the first discount is 10 yuan, the second discount is 15 yuan, the third discount is 20 yuan, the fourth discount is 25 yuan, and the fifth discount is 30 yuan.

Because the more times he uses it, the bigger the discount will be, so you have locked in his consumption for five times.

Gifts: For example, if you top up 500 yuan, you will get a bottle of red wine.

These three are relatively commonly used and nothing new, but if you combine these three together, they become novel and more attractive. For example, a new promotional method - selling cash coupons and giving away gifts.

For example, if you are in the catering business, you are planning to distribute coupons, but if you distribute them directly, you will face the problem mentioned above: no one will cherish free things.

What should I do then? You can sell!

You can use 20 yuan to buy a cash voucher worth 50 yuan, and at the same time get a thermos priced at 198 yuan. If you see such an activity, will you take action?

In fact: this is also a disguised form of coupons. You spend 20 yuan to buy a 50 yuan cash voucher and get a product worth 198 yuan for free.

What is the essence?

The essence is: you spent 20 yuan to buy a product with a cost of 20 yuan and a market price of 198 yuan.

Many things on Alibaba are very cheap and are suitable as gifts. That 50 yuan coupon is for you!

But if you give you a 50 yuan coupon directly, will you cherish it?

You won’t. You won’t cherish things that come easily and for free.

However, the situation above is different. You use a 20 yuan or 50 yuan coupon. You will think that the coupon is bought by you, and the 198 yuan item is a gift! Therefore, people who buy this 50 yuan cash voucher will most likely use it, otherwise they will feel that they have suffered a loss.

Then you split the 50 yuan coupon into three pieces, one for 10 yuan, one for 15 yuan, and one for 25 yuan. This way you have locked in their consumption for three times. Because the coupons are purchased with money, 80% of customers will spend them.

If the coupon is given for free, there is only a 20% chance that you will go.

For example: if you buy a movie ticket with your own money, or if the cinema gives you a ticket for free, the probability of you going to the movie or not is very different.

For example, the strategy provided to one of my clients was:

1. 88 bottles of beer for 17.17 yuan - beer can actually be given away for free, but customers still have to pay a monetary cost.
2. After the purchase, you will be given a bottle of imported red wine worth 69 yuan (on 1688, the cost of red wine is between 5 and 10 yuan) - after paying the money, you will also receive a gift, making you feel that your money is well spent!

Therefore: many other ways of attracting traffic, such as social red envelopes, forwarding by old customers, bargaining group buying, and cross-industry cooperation, are essentially these two types. The difference lies in the method and scenario of attracting traffic.

Statement: Some pictures are from the Internet. If there is any infringement, please contact the author to delete them.

Source: Wu Laoshi