Case + Method | How to build a user growth system for cash loan products

There are many sub-sectors of Internet finance products. Today we will talk about cash loan products.

Cash loan products, like any other products, are inseparable from the funnel model . That is, traffic to paid conversion , and then to repeat purchase. Cash loan products start from traffic to first loan and then to repeat loan.

Users’ first loan and repeat loan are the core of cash loan product revenue. This is somewhat different from the paid conversion of other products. Because the paid conversions of other products can be dominated by operations . This is not necessarily the case with cash loans. In addition to operations, there is also risk control. If risk control is not possible, operations will be powerless.

So how should the traffic of cash loan products be managed?

Today, let’s focus on analyzing how cash loan products should grow.

1. The case of “growth failure”

Before analyzing how cash loan products can achieve growth, I would like to first analyze a case of “growth failure” of a cash loan product.

I cannot tell you which one it is here. But let’s look at the data:

The product has over 500,000 APP users, with an average daily active user base of over 80,000. During the National Day holiday, an APP fission campaign was conducted to attract new users. The event had effective exposure to around 4,500 people. The actual number of new users attracted is appalling.

Why is the data so embarrassing? Let’s analyze what went wrong in this fission activity.

1. The event was not announced in advance: the event was released directly in a relatively hidden location on the APP on the day of the event, without any preheating through any channels ;

2. No push : Users of the APP channel did not make any PUSH contact;

3. Hidden exposure location: The location of APP activities is very hidden and difficult to see;

4. No sharing bait is set: Without setting reasonable sharing bait, users have no motivation to attract new users.

2. What is the core of the growth system?

For cash loan products, the main growth channels are as follows:

1. Advertising : Common cash loans often choose mainstream Toutiao information flow ads , Guangdiantong WeChat ads , etc.

2. Cross-industry cooperation: For example, some cash loans will cooperate with offline mobile phone stores, and users can use the loan products to buy mobile phones, etc.;

3. Loan Super: Loan Supermarket. There are often such platforms that provide online loan super services. Cash loan products can obtain traffic by placing loan super.

But what’s wrong with common growth channels?

Yes, higher customer acquisition costs.

Although the current high customer acquisition costs of cash loan products can be recovered through the interest converted from user loans. However, if there is a growth system that can reduce customer acquisition costs while ensuring the current loan conversion rate , I think this is the growth system that cash loans need.

As shown in the figure, this is the growth system that a cash loan product needs to have.

1. Basic traffic: This does not mean that the current advertising, cross-industry cooperation, and loan super channels of cash loans are no longer needed. On the contrary, these channels can continue to obtain traffic. What we need to do is to use the subsequent fission gameplay of old customers bringing in new customers, and use the basic traffic as the fission starting traffic for fission. This reduces customer acquisition costs while achieving growth;

2. Activity entrance : After the basic traffic enters the cash loan product, more people need to see the fission activity. If the activity entrance is hidden too deeply, the situation described above as “growth rollover” is likely to occur. Therefore, generally, we recommend placing the fission activity entrance on the homepage;

3. Sharing by old users: From basic traffic, to seeing the activity entrance, to entering the activity and sharing it with new users, it is a funnel in itself. To avoid narrowing of the funnel. The common practice is to set up reasonable fission bait. How to do it specifically will be shared with you in the following article with a practical case;

4. Reward users: When old users of basic traffic bring in new users, they will be rewarded.

This system itself actually builds a traffic pool. He reuses high-cost basic traffic through fission method.

Let's do some calculations. Assuming that advertising is charged on a CPA basis, with one click costing 1 dollar, 10 clicks can get a registered user, and one out of 20 registered users will take out a loan.

So the actual customer acquisition cost for loan users is 200 yuan. However, the growth system is based on the assumption that if a registered user invites a new user to register, he or she will receive a reward of RMB 5. Then, acquiring 20 registered users through traditional advertising will cost RMB 200, and 40 registered users will cost RMB 400.

However, if you spend 200 yuan on advertising to acquire 20 users, and among the 20 users, 10 of them each invite 2 new users to register, then the final number of customers acquired will also be 40 registered users, and the cost will be 300 yuan. Moreover, if the fission bait is set up well, it can also further encourage old users to bring in new users, thereby effectively improving the conversion rate of old users bringing in new users, while reducing customer acquisition costs.

3. Analysis of successful growth cases

Product: A cash loan APP

Basic traffic: advertising

Activity entrance: APP home page

Fission gameplay: registered users invite new users to register, the new users complete their first loan, and both new and old users receive rewards.

award:

1. New users: RMB 20 for phone calls. There is nothing special about the rewards for newcomers.

2. Old users: To encourage old users to invite more high-quality new users. The fission bait here has a fixed reward + step-by-step reward gameplay.

1) You can see that if an old user successfully invites 1 new user, he can get a 50-yuan JD shopping card. If he invites 10 new users, he can get a 500-yuan shopping card. There is no upper limit.

2) But it’s not just that, this is a fixed reward, there is also a tiered reward. For attracting 2 new users, the fixed reward is a shopping card worth 100 yuan, and an additional reward of 50 yuan, which is a total of 150 yuan.

3) Invite 3 people, the fixed amount is 150 yuan, and the tiered amount is 150 yuan, for a total of 300 yuan. And if you invite 40 and 60 people cumulatively, you can get an additional iPhone as a reward.

(If fixed rewards are to encourage users to share, then the purpose of tiered rewards is to encourage users to invite more.)

4. Several points to note when doing growth fission

In the fission activities of actual cash loans, you need to pay attention to:

1. Cash loans often offer “rich” user rewards, making it easy for users to be fleeced. Therefore, when splitting, the conditions must be set to old users bringing new users, new users completing registration, and completing the first loan, and then rewarding users;

2. The design of sharing content. Cash loan products have a very special point, that is, the fission bait is sufficiently favorable, but it may not be enough to shake users to share and thus attract new users. This is because loans themselves are a relatively private matter. Many people take out loans but don’t want others to know.

So what should we do?

Sometimes, you will receive a cash loan text message, "XXX, congratulations on obtaining a credit limit of XXXXX yuan, click the link to claim it quickly." This kind of content is actually not suitable for making the fission sharing content of the APP, because once you do this, it means exposing the user's loan behavior. It would be better to make the theme of sharing as getting free stuff, so that everyone will be attracted to register for the APP because they want to get free stuff and benefits.

Finally, to sum up, today we started from a "growth failure" case and talked about the traditional cash loan traffic channels. However, what this article wants to express is that by using the fission method to build a growth system, one can effectively build one's own traffic pool through advertising, cooperation and other channels, achieve rapid growth of cash loan products, and reduce customer acquisition costs.

Source: Hujin Marketing Research Institute