New Brand Growth Trap

When traditional brands are already very strong, how can we position ourselves and break through through our own characteristics and features?

1. Choose a track and grab the bonus: A good track is half the success;

2. Develop abilities in the bonus: When you learn how to create hits and tell stories, you can accurately seize the bonus;

3. Preventing growth traps: How to avoid unnecessary pitfalls;

4. Building user operation capabilities: How to continuously introduce new traffic and keep them repurchasing in the pool;

5. New consumer brands 10-N: In this era of fierce competition, how can a company survive longer?

6. The private domain of public domain brands: Through practical cases, Teacher Yaguang breaks down step by step how to build a brand that ranks first in the minds of users.

01 Choose a track and grab the bonus

When a brand is building from 0 to 1, the first thing to focus on is choosing the right track and seizing the dividends. Choosing the right track is half the battle, because this track will have better growth points and will be more in line with future trends. It is easier to get results by following the trend.

02 Cultivate capabilities through dividends

1. Make a hit product

When you identify a user’s pain point, how do you choose the best-selling product?

It is also a better idea to look for it in the comments.

For example, what are the negative reviews of your top competitors, what needs are not being met, and can you find your opportunities?

Find such an opportunity, have such a hit product, give it a good name, and have good-looking packaging, then you can basically start the business.

2. Storytelling

Especially in today's Internet age, we must learn to tell stories and create content.

What does the Internet sell?

What you sell are pictures, your short videos, and buyer shows. You want users to recognize your brand and have such a reason to subscribe, so it must have a good story.

3. Seize the traffic dividend

We need to look at what changes are happening in the market, from our own supply to consumer demand, to the entire connection in between, to see where a huge change has occurred.

03 Preventing Growth Traps

1. The first growth trap: pseudo-growth

It’s not that you are great, it’s that the resources are great.

At the same time, the easier it is to obtain growth, the easier it is to pry it away.

In addition, some growth methods are rejected by other brands. For example, if you are making a loss, and a certain anchor on Kuaishou brings in a lot of volume, does it make sense?

In the end, there is no repeat purchase, and users are only loyal to the anchor.

2. The second growth trap: Ignoring competition and believing that growth can continue

When your life is good, you should think about how to iterate quickly.

Domestic brands are very competitive. After a category rises, other small brands start to enter the market, and profitable businesses become unprofitable.

Later on, even leading brands began to enter the market to reap the benefits. They had greater supply chain advantages, lower prices, and more resources. How could you survive then?

Therefore, we must iterate quickly and cannot ignore competition.

When your life is good, you should think about how to iterate quickly.

Domestic brands are very competitive. After a category rises, other small brands start to enter the market, and profitable businesses become unprofitable.

Later on, even leading brands began to enter the market to reap the benefits. They had greater supply chain advantages, lower prices, and more resources. How could you survive then?

Therefore, we must iterate quickly and cannot ignore competition.

3. The third growth trap: the dividends cannot be fully enjoyed

You think that the dividends are enough, but in fact, the dividends are endless. From childhood to adulthood,

You need to develop your organizational strength, product strength, brand strength, all supply chain capabilities, and financing capabilities.

We will not follow any of the paths that big brands have taken, but in this era they have given our new brand some different starting points, allowing us to move a little faster through online methods.

summary:

Let's also summarize the growth methods in several stages. The easiest way to grow is to use performance-based advertising, which involves finding various channels to distribute products.

Then find various anchors to promote the products. Through the CPS format, you can know how much output can be generated by paying certain amount of money, and you basically will not lose money.

By the second stage, CPS was about to become AIPL, and it was time to start planting seeds.

At this time, we need to create information flows and do some CPM and CPC placements. More broadly speaking, we must improve the brand’s tone and move towards brand power.

04 Building user operation capabilities

User operation ability is particularly important. We often ignore the value of many old customers. We keep trying to attract new customers.

But in fact, attracting new customers is not profitable. 80% of our expenses are spent on attracting new customers.

However, we can see that attracting new customers, including our efforts to grab traffic in the market, is actually determined by market behavior.

What you can do, your competitors can do too.

We may think, it’s okay, even if we don’t make money by attracting new customers, we still have repeat purchases. But if we look at our own CRM, we will find that actually 80% of the users do not make repeat purchases.

Although these old customers may not be numerous, only about 20% or 30%, they can contribute more than 50% of sales and even more than 80% of profits.

Because old customers do not need to pay commissions, it is the user's reputation and loyalty, but our investment in old customers is relatively small.

We need to build our own user pool. Every year, I attract new users and lose some users.

The value of the active user in the middle, multiplied by the user's CLV (LTV), builds the business of my entire brand.

So, how to continuously introduce new traffic and keep them repurchasing in the pool?

How to make the drain and outflow outlet thinner and thinner so that there will be more water in the pool.

Here is a common sense that many people would think that my CRM has 10 million or 20 million users.

Sorry, those have passed the retention period and have nothing to do with you. Just treat them as new users because they have passed the retention period.

So in this process, we must continue to build our own user pool and keep them loyal.

So, who are the users in the pool?

They are our active users and our first-time purchasing users, so we must manage our brand life cycle well.

05 New Consumer Brand 10-N

Competition is becoming increasingly fierce. As companies grow larger, how can they survive longer?

From consumer demand to the supply we can provide, across the entire value chain, we must either achieve cost leadership or be different.

When it comes to branding, what will remain unchanged in the next ten years?

We still need to return to users and products.

The ability to recognize user needs needs to be continuously improved. Consumers’ unmet needs are our opportunities.

At the same time, the most powerful way to grow is not through traffic, because traffic has costs, but through user word of mouth.

Just like today's Qun Xiang meeting, I believe that many people joined Qun Xiang's meeting, not because Qun Xiang put a lot of ads in the circle of friends,

It’s because these activities have indeed brought useful information to everyone, allowing everyone to form a good reputation and one person brings another.

So in this process, when we return to users and products, we must think about what kind of value we have created for users and whether our value is sustainable.

Only when your value can be sustained and your users' needs are constantly met by you, can such a brand become more and more lasting.

06Private Domain of Public Domain Brands

I think the field where brand users can be operated is called private domain, which belongs to me and is not limited to corporate WeChat and personal account.

It can also be my mini program, my live broadcast room, or one of my members' channels.

It can also be my Douyin live broadcast room, etc. It is a place for me to build relationships with users.

So, we have changed from the previous purchasing relationship to attention and then to friendship, and every time a user establishes a relationship with the brand, the repurchase rate doubles.

We also stratify users ourselves, from buyers to members to private domains, and we will find that from top to bottom,

With each layer of stratification, the user's repurchase rate gradually increases.

At the same time, based on each layer of stratification, your contact methods are rich. For example, when I have a personal account or a corporate account,

My contact with users is free and the contact rate is the highest, but the number of users affected will be very small.

I can push it through my official account and my mini program. The reach rate may be a little low, but it is basically zero cost.

Later on, I started sending text messages and making outbound calls, but my efficiency became lower and lower. However, I was able to reach more people, and we continued to deliver.

Therefore, we should better study and stratify users, and set up and reach out to them based on repurchase rates, so as to enhance our user operation capabilities.

Of course, the whole process requires a very complete link and system.

You need to attract your users from various platforms, build awareness among your users, and add your users' information to your system.

Then we continue to stratify users, and after stratification, we match different teams’ operating methods and rights to increase the repurchase rate.

In addition, we need to build some user relationships.

We will develop a small game that allows users to adopt a cow. I will cooperate with Tmall Genie. You can say to Tmall Genie, "I want to buy milk," and the milk will be delivered to your home.

I will also set up a 24-hour live broadcast of how the cows on the ranch are milked and provide it to consumers.

This is all about building a relationship between you and consumers, and making them more aware of and identify with your brand.

The most powerful growth is the word-of-mouth growth of users, which brings such NPS value.

We will also establish our own membership system to continuously deepen our contact with consumers and gain insight into their needs.

When a brand reaches the second stage and has gone through the blind growth brought by the traffic dividend, it will become more and more rational. What will be its competitiveness at this time?

Can I be number one in the minds of users, or number one in the minds of specific users?

So, I try to steal users from other brands, and other brands are also trying to steal my users, but they can’t steal my users, and I can easily steal their users.

Therefore, becoming the first in the minds of users is the only way that can make us truly invincible in such a complex competitive environment.

07 Today’s Tips

Two abilities that need to be developed to seize traffic dividends:

Make hits and tell stories.

· Reject pseudo-growth:

It's not that you are great, it's that the resources are great. At the same time, the easier it is to obtain growth methods, the easier it is to be poached.

Don’t Ignore the Competition:

When your life is good, you should think about how to iterate quickly.

· Bonuses can be eaten up:

Organizational strength, product strength, brand strength, supply chain capabilities, and financing capabilities must all be continuously improved.

Author: Qun Xiang

Source: Qunxiangle