Case analysis: How to increase user growth?

Case analysis: How to increase user growth?

During the survey, we found that “growth means” is a high-frequency word that everyone is concerned about. There are many growth courses and methods on the market now, but most of them are not used in work, or have little effect when used.

At that time, Pechoin’s long pictures dominated the screen, but the transaction volume on Tmall was very small. There are many similar examples.

Blindly pursuing technical methods to guide traffic, ignoring the conversion process and scene matching, the end result is that no matter how many screen-swiping techniques you have learned, you still cannot achieve growth.

So how do we increase user growth ?

1. The original starting point for driving growth: the aha moment

"Aha Moment" refers to the point at which users perceive the greatest value of a product. The product’s “aha moment” is different at different stages. Without the aha moment, we wouldn’t be able to find the fulcrum to drive user growth.
Let me give you an example: at the beginning of last year, a new way of playing emerged in the Internet industry: answering questions to win money. In just over ten days, four or five live quiz-answering software became popular: "Chongding Conference" invested by Wang Sicong, "Cheese Superman" launched by Inke, and "Million Heroes" launched by Xigua Video under Toutiao...
△Image source: IT Times
Just as the live broadcast of answering questions and sharing prize money continued to be popular, Sogou and Baidu grasped the pain points of users, found the aha moment for growth, and launched a product called answering assistant. When the question comes out, it will immediately tell you the answer through artificial intelligence, and you just need to fill it in. The accuracy and speed will be greatly improved!
Baidu data shows that their quick search function had about 10,000 daily active users before the answer assistant, and it became 260,000 after the answer assistant. Before they joined, everyone who answered the questions correctly could get 130 yuan, but after they joined, everyone who answered the questions correctly could only get 3 yuan, which means that the number of people who answered the questions correctly increased by 40 times compared to before! Only moments like this can drive the growth of our products! But the aha moments keep turning into mundane moments. You can't say that just because you have an aha moment you can generate continuous user growth once and for all. There is no such thing. Aha moments require you to keep searching and interacting with users.

Another example is WeChat. What attracted us to switch from text messages to WeChat in the beginning was its voice function. But we can imagine, if WeChat only had the voice function, could it become what it is now? So in addition to the voice function, WeChat is constantly iterating its aha moments, so we have Moments, official accounts, small games, red envelopes, payment functions, and the recently popular mini-programs.
In fact, WeChat has not provided us with new aha moments for a long time since the payment function . Could the recently launched "Look" and "Video" functions of WeChat become new aha moments? We can make a business judgment from this point. If WeChat cannot provide us with new aha moments for a long time, its growth will definitely go down and its business will reach a bottleneck.

[Ahaha Moment] is the original starting point for driving growth. If a product cannot provide users with Ahaha Moments, it will not find a fulcrum to drive growth.
Teacher Li Yunlong summarized user growth as the [Growth Bagua Model Diagram], which is based on supply and demand analysis. The outer circle is the demand side and the inner circle is the supply side.
On the demand side, the user's life cycle is divided into eight parts: cognition, contact, usage, first order, repeat purchase, habit, sharing and churn. This is the entire life cycle of a user using one of our products. As for us, we are on the supply side and we need to provide supply strategies at every granular point in the user life cycle to improve its growth efficiency at this granular point.

2. User Lifecycle - Cognition: What are the brand’s “to-do tasks”?

The first part of the Bagua model is cognition. Before users come into contact with the product, what methods do we use to solve the growth problem? Our supply strategy is brand.

A brand is a long-term traffic pool. Building a brand is not just about increasing awareness and reputation, but also about incorporating it into the entire growth logic.

Therefore, before building a brand, you must first clarify what the brand’s “to-do tasks” are.

For example, VIPKID and many educational institutions regard referrals as the core of growth. So if your growth core is referrals, then the brand’s to-do tasks should serve your referrals.

△VIPKID launches the "Dream Hunting Journey" at Orlando Disney
VIPKID cooperates with well-known organizations like Disney in order to increase the materials for referrals and to increase the confidence of parents (users) when introducing their children to other people. Users will feel that it is not low for me to introduce my children to others, and that my introduction is correct and credible. Brand theory must be continuously upgraded under the existing communication environment and cognitive level to serve the growth logic. In the past, the brand purchasing scenario was separated from its media communication scenario . For example, we saw a brand advertisement on TV, but we could only buy the product in the mall. Therefore, the main purpose of branding at that time was to improve memory efficiency.

Now, with the diversity of purchasing channels, what you see is what you get. At this time, when we build a brand, we must have a call to action and try our best to convert users.

3. User life cycle - contact: a way to obtain traffic

Supply strategy is the promotion channel:

It can be divided into three points: Own traffic / Earned traffic / Purchased traffic

① Own traffic

It is our traffic pool. You can reach users at any time, and users have a clear sense of your reach.

There are many ways to carry traffic pools. For example, offline stores can be considered traffic pools, and online there are products such as official accounts, apps, mini-programs, and knowledge planets.

All acquired users must be accommodated somewhere, and development can be done here later. This will be more efficient and less costly than attracting new users externally every time.

②Win traffic

Nowadays, many students who are engaged in growth like to do distribution, fission, distribution, group buying, free, SEO, etc.

I really admire those students in the current market who are obsessed with winning traffic, because they believe that there must be faster and cheaper ways to acquire customers in the world.

A 100-point nationwide screen-sweeping event requires the right time, right place, and right people. A 60-point fission event can be replicated in batches. When we do fission, you actually have to draw a logic diagram on paper at the beginning.

【Reward】

This mini program has produced a very good fission effect, and it can quickly accumulate 1 million fans every time it is used. The following is its logic diagram: I sent you a red envelope, and you need to send me a red envelope in return before you can claim my red envelope.

When a logic diagram forms a logical closed loop, fission is very likely to occur. Is the effect of fission good? You can also review the process through this logic diagram. We can analyze the efficiency of each link. Is it that the conversion rate is low when users receive fission copy, or is it that the threshold is high when giving rewards, resulting in lower participation? For example, many people are working on [Assistance] now. If we look at its logic diagram, it also forms a closed loop.

First, someone initiates the creation of a support poster and sends it to Moments, WeChat groups or friends. The general support is to scan the code and follow the official account. At this time, two closed loops are generated. When your friends successfully help you, the reminder of the successful support will in turn remind you, stimulating you to send the poster again. In addition, the person who provides support may become a new initiator, and he may also create a support poster and then pass it on.

However, the techniques and methods of fission will become obsolete, so we must constantly look for ways to generate growth methods and continue to learn from other predecessors or their peers.

③Purchase traffic

It can be purchased through Baidu SEM, Tencent Guangdiantong, DSP and other channels.

When we are "winning traffic", the advantage is that the price is very cheap, but the efficiency is uncontrollable; when we are "purchasing traffic", the efficiency is more controllable, but the disadvantage is that the price is relatively high.

4. User life cycle - usage: How to increase user usage frequency?

The supply strategy used is key behavior. We base it on a behavioral triangle model , also called the demand triangle, which is motivation, ability and trigger.

  • Motivation: Increase motivation/prevent motivation bias;
  • Capabilities: Improve capabilities/lower thresholds;
  • Trigger: Dismantle trigger/improve trigger.

Let’s use two cases to understand how we can increase user usage frequency. The first case is Didi, which uses operational means to lower the threshold, enhance users' capabilities in a certain field, and then achieve the goal of increasing user usage frequency. Didi once conducted a survey, which showed that Didi’s coverage rate has reached 90% among people under 50 years old in China, but only 50% among people over 50 years old.

After Didi's team did a lot of research, they found that the elderly lack some abilities compared to young people, such as the ability to type.

So Didi launched a function called Didi Ticket. Young people can generate a ticket in Didi, enter the departure and destination clearly, generate an order and send it directly to the elderly. The elderly can place an order with one click, thus lowering the threshold for the elderly to take a taxi.

Let’s take another example of growth achieved from the perspective of triggers.
The sharing button of the Tangdou Square Dance mini app is very interesting. There is a red dot on this button. Most people can’t stand such a red dot and want to click it off. In addition, a WeChat icon was added to this button. This is the insight of the Tangdou Square Dance Team. Many middle-aged and elderly people have only one communication product on their mobile phones, called WeChat. Therefore, they have a strong sense of identification with the WeChat icon and a strong sense of security.

After the Tangdou Square Dance team added the WeChat icon to the share with friends button, their sharing rate increased 30 times.

So, students, you can go back and review and see if it is possible to improve the triggers and see if you can increase the conversion rate.

5. User’s entire life cycle - first order: Why don’t users consume from us?

We should not only think about why users choose to consume our products, but also think about why users don’t consume from us?

It must be because there are concerns, so our supply strategy for the first order is to eliminate concerns.

Concern elimination: Price concern elimination/trust encouragement elimination

We may not have much time to talk to you about price concerns today, so we will only talk about how to eliminate trust concerns.

There are three ways to trust concerns:

①Brand Commitment

During the 2018 World Cup, there was a very good example of a brand promise. Vatti promised that if the French won the championship, Vatti would refund the full amount. This stimulated many users to vote and stimulated many users to buy its products.

There is also the group buying method. Group buying first started in the United States when merchants offered a very low price to encourage users to participate. You needed to reach a certain number of group buyers before you could enjoy the low price, and you could not get a refund, otherwise the low price would be meaningless. At this time, users will have concerns about placing an order. Although it is cheap, what if the product is not good? Or, what if I have purchased a meal in a group but I cannot go due to external reasons? When the group buying model came to China, Meituan promised that you could return the order at any time, thus eliminating users' concerns about placing orders.

②User Experience

This is what all consumers care about. When we go to a restaurant or a hotel, we may first open websites such as Dianping.com or Ctrip to read user reviews.

Their mechanism is that only users who have actually consumed or experienced the product can leave reviews. This review directly affects whether other users purchase, so user experience is also very important.

③Third-party endorsement

So many companies are constantly trying to enter the CCTV National Brand Plan, in fact, they just want such an organization to endorse their brands.

There are also products like Shuidi Qingsongchou. You will donate to a person you don’t even know in this product, simply because a friend in your circle of friends said that this child is the child of someone in your hometown. Because you trust this friend, you will donate to this person. This is third-party endorsement.

6. User Lifecycle - Repeat Purchase: Cultivating Super Users

The supply strategy for repeat purchases is replacement cost. There are 6 more detailed methodologies to help everyone find specific methods, namely "satisfaction/satisfaction rate/user growth/membership value/network effect/value reservation".
① Satisfaction is mainly discussed from the product level. Your product must be good enough. If your product is good enough, users will naturally repurchase it. This is beyond doubt. ②Satisfaction rate

Users actually have multi-dimensional needs. Meeting their multi-dimensional needs through different products is called satisfaction rate.

For example, Mantou Business School has systematic courses on new media, short videos, operations and other Internet topics, as well as courses for rapid improvement of working people to meet the needs of different groups of people for various knowledge. You can buy them all in one place, so the platform achieves repeat purchases.

③The best example of user growth is the gaming company. When you level up from level 1 to level 70 or 100, you will find it difficult to go to a new place and upgrade again. For example, when you used QQ, you also had levels. You had a few stars, you were the moon or the sun. Like Taobao merchants, they also had a few crowns. At this time, it was very difficult for you to leave the platform because the platform recorded a lot of your growth trajectory, and these growths actually became your sunk costs.

④The membership value is similar to Amazon’s Prime. It started at $99 and included one year’s shipping fee. In fact, this $99 cannot cover the shipping fee for one year, but Amazon did not cancel the service and is still adding benefits to Prime. We will also add some Kindle reading privileges or other audio-visual products to Prime, making Prime members more and more valuable and allowing members to feel that they have many benefits.

The reason for doing this is that the annual consumption of Prime members is more than 1.5 times that of non-members, and all the benefits are also to stimulate users to consume again. The losses on shipping costs have long been earned back in other places. The value of a membership is to increase the replacement cost, thereby continuously increasing the user's lifetime value. ⑤Network effect refers to the relationship between your users. When users have relationships with each other, if they leave a product, it is equivalent to leaving many social relationships.

Companies like Mobike and Didi actually have no network effects. Although they have economies of scale, there is no connection between their users. So if Shouqi Car Rental offers a low-price policy, Didi's users will be lost immediately.

It is very difficult to lose users on WeChat, whether it is Bullet Messenger or Laiwang, which was originally launched by Alibaba. It is very difficult to invite you to join and then form your own new social network.

⑥Value reservation

Value reservation is a common method. After you have a meal at a restaurant, the restaurant will give you a coupon. This coupon can be used to get a 20% discount before a certain date.

Many businesses are now implementing the [ Second cup half price] strategy, but you have never thought about how to optimize it.

There is a 711 downstairs from us that has made a small optimization. If you buy a second cup of coffee at half price, you can choose not to take it away. Just stamp your receipt and you can come back to pick up your second cup of coffee next time.

For users, I can book a cup of coffee at half price. For the store, it has more benefits. First, the money for half a cup of coffee is received. Second, it can bring users to the store again, increasing the user replacement cost. This is a very good way to realize value reservation.

7. User life cycle - Habits: Make users uncomfortable without you

Although the user's life cycle is divided into eight stages, it does not mean that you must follow all eight stages. Habits only apply to high-frequency products. Only high-frequency products can form habits for users. If it is a low-frequency product, for example, it may only be used once a year, you don't have to consider this stage. The supply strategy that forms a habit is addictive.
In the trigger and action link, we have already talked about the brand, user contact and user usage level. In this part, we will mainly talk about "variable rewards" . I myself often use keep to exercise. Keep has a very good mechanism in terms of variable rewards to help users form habits. It is actually difficult to form a habit of fitness, but Keep uses various methods to encourage you after each fitness session. For example, it will remind you: "Your training time has increased." Many people have this kind of obsessive-compulsive disorder, and they will be very happy to see the time increase.

For example, after completing a certain training, you will be given a specific training badge, or after you have trained for several consecutive days, you will be given a persistence badge, and so on. Your training status will also be sent to other friends who are exercising, asking them to like your post.

Keep uses various dimensions, different time nodes, and different spaces to motivate you and help you form habits. Once you have passed the previous difficult period and formed a habit, you will continue to use Keep. "Various rewards" are the most important step in forming habits. We need to think about how to reward users after they complete an action and motivate them to form habits.

8. User life cycle - Sharing: Discover, create, and simplify sharing points

It can also be said to be dissemination or referral, and the supply strategy is NPS. When we talk about the value of a user's entire life cycle, it doesn't end with completing a transaction or achieving repeat purchases. It can also help us introduce customers and share our products. There are three situations: Active sharing / interest incentives / social currency Focusing on the active sharing, it can be further divided into three stages:

① Sort out the forwarding scenarios. VIPKID is an English early childhood education company. It sorted out two forwarding scenarios - "Newbie Moment" and "Glory Moment" .

Newbie moment - when a user first comes into contact with your product and knows nothing, he is particularly willing to share, so we can consider designing forwarding scenarios at this stage.

The moment of glory is when a child brings a parent a sense of glory, and the parent will definitely want to share it.

For example, if a child can talk to a foreigner very fluently, parents will definitely want to share such a video. If the child writes an essay in English titled "I Love Mom", if the mothers receive a photo of this essay, they will definitely share it.

We need to take inventory of our own business processes and sort out the points in the process where users are likely to have the urge and desire to forward.

② Create forwarding content

As mentioned above, videos of children conversing fluently with foreigners, or photos of children writing letters to their mothers in English, can all be produced in batches, which is much more efficient than users independently discovering and forwarding scenarios.

③Forwarding tool empowerment

Some organizations want parents to forward a photo, so they give parents a Baidu cloud drive link. Parents need to open the link and enter the password first, download the photo and save it to their own photos, and then post it on WeChat Moments. This is too difficult and artificially creates many sharing barriers.

We can actually provide more convenient and quick tools, which can be an H5, mini program or others. The only principle is to lower the threshold for sharing, and it would be best if forwarding can be achieved with one click!

And the forwarding process forms a closed loop. It is not enough to just share it, but to let new interested users join again to achieve new additions. Therefore, attach a QR code when sharing, and you can scan the QR code to learn about, join, sign up, etc.

9. User Lifecycle - User Churn: How to Increase User Stickiness

No matter how loyal a user is to us or how much he spends, he will eventually leave. What should we do when a user leaves us? There may be two reasons for user churn. The first is that they forget. This situation is easier to solve. We need to establish a recall channel, which is what we called the traffic pool earlier. When we have a traffic pool, we can recall users by reaching them.
This is a recall action made by Honor of Kings. It recalls you by having your friends who are still playing Honor of Kings send you WeChat messages. Second, users are no longer interested in your aha moments and no longer like your product. At this time we need to: return to aha. The key is to find your super users. We can classify users into ordinary users, core users and super users. Super users are those hardcore fans. By conducting research on them, you may discover some ahaha moments about the product that you don’t even know about. Extract these ahaha moments and then reach those users who are about to lose.

Recall channels or re-entry are both when users are about to leave. We should actually put user recall or user churn management work in advance.

So thirdly, let users develop "loss aversion". When users use our products, we should make them constantly feel a sense of gain, and make them feel that they have suffered a great loss when they want to leave.

To increase loss aversion, you need to constantly let users know what functions you have during the product operation process.

I previously created a public account: Daily Early Knowledge on Internet Finance. I often let users vote on this official account and ask them which features of ours they are interested in.

The options generally include: evaluation function, manual service, query of problematic platforms, query of deposit platforms, and query of early warning platforms, so that you can know at any time which platforms may have problems recently and you should never invest in them.

When I do user function research, I don’t really want to know which functions users are more interested in, but to let users know that I have these functions and they are very valuable to you.

Making these functions appear repeatedly in the user's mind increases the difficulty for the user to leave, and makes him feel loss aversion: he finds that if he leaves the official account, he may not be able to know at any time which platforms have problems and what information he will miss.

Many of our organizations often ask a question when conducting user surveys: "What other problems do you think I still have, and what other shortcomings do I have?"

The starting point of this question is good, which is to discover the problem and then improve it, but from the perspective of user operation , it is a very bad question, because the user may not be sensitive to it at first, but when you ask such a question, it stimulates him to keep thinking about what is wrong with you and what you have done poorly.

When you stimulate him to think about it, you actually deepen his dissatisfaction with you. Therefore, when we are operating users, we constantly let users feel what functions and products you have, so that these functions can attract users to stay and generate loss aversion when they want to leave.

We have discussed each link of an [Aha Moment] and [8 Life Cycles of a User] and provided supply strategies for each.

When analyzing these methodologies on how to increase the growth efficiency of each segment, there is actually no excessive emphasis on data and technology.

Data and technical capabilities will give your entire growth a boost and make it more efficient, but that doesn’t mean you can’t grow without data and technology.

Therefore, the above methodologies all consider how to achieve growth from a more basic growth thinking perspective.

Author: Li Yunlong, authorized to be published by Qinggua Media .

Source: Mantou Business School (mantousxy)

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