How to achieve the effect of user operation through points operation?

When it comes to the Internet industry, many people may not have a complete Internet system in their minds. It is all very scattered, and the work they have done is not systematic. Many people will ask: What does the operation of an Internet platform do? In fact, no matter what company it is, operations are the most complicated job because operations cover a lot of scope and content. Therefore, when each of us is engaged in Internet operations , we must first form a knowledge system in our minds.

Internet platform operations include 12 major systems, among which user operation is a large system, content operation is the second largest system , and there are also activity operations , rule making, data operations , merchant operations, etc. Each operation system contains multiple branches, and each branch has multiple specific operation contents.

So, why is the points system related to the user system in operation? Because user operations involve only three core tasks: attracting new users, activating users, and retaining users .

This article will focus on explaining: the relationship between point operation and user operation, how to achieve the effect of user operation through point operation, and what are the specific operation strategies.

Insight into the design principles of the points system architecture

In Internet companies, conflicts often arise between product managers and operations staff. To do operations well, you first need to understand how the product logic and architecture are designed , and you don’t necessarily have to understand the entire user system. However, you must understand the underlying rules of the product when doing user operations, so that you can support yourself in doing the operations well. This is the first step.

After the first step, the second step is how to link it with user operations, which is the points system. Because the points system is a very effective means of user operation, and it is also an effective tool that runs through the three core tasks of user operation; the third step is case practice, specific strategies for operating the points system , and how to do a good job of the points system; the last one is to start from your actual work, how to do a good job of operation, and from which angles to do it, and give operational suggestions.

First of all, to create a points system, we need to understand the architectural design of the points system and the significance of system construction. Whether it is the PC side or the mobile APP side, there are common problems when doing operations: the first is the lack of new users; the second is the low user activity; the third is the low user retention rate ; and the fourth is the lack of conversion methods. When operating Internet products, there are no escapes from these common operational problems. How can we solve them? The most core and effective way to solve this problem is through user operation, which is points operation.

Through point operations, common problems in user operations can be improved or even solved. Points operations are relatively limited in China at present, but an example of relatively good operation results is Ping An Bank's Wanlitong points operation. By connecting to numerous external third-party merchant resources and enabling redemption and exchange to increase the value of points, Ping An users are attracted to consume and earn points.

Air Miles points have two levels of meaning . The first level is to strengthen user behavior and attract consumption . For example, when using a credit card, the credit card points will increase with each swipe. As the credit card points increase, the points have value, which encourages merchants to promote points to attract people's stickiness and consumption of products. Everyone has various consumption points, so why would users not be interested? Why is there no attraction? This is because those points are usually exchanged for gifts that people are not interested in, that is, the points have no actual value and cannot stimulate users to actively exchange consumption points, which is everyone's desire to exchange. Another example is the ICBC's Rong E-shopping mall points, which are the user's comprehensive points. The points generated by the user's ICBC savings card, credit card, etc. will be converted into the user's comprehensive points and connected to the points pool. In order to increase the points, the user will use the product frequently. Another level is to weaken the user's behavior. For example, if the user makes a malicious complaint or comment, this behavior can be weakened by deducting points.

Why do we need to weaken it? For example, people often go to Tmall to shop, and they will generate certain points after placing an order, such as Alipay points and Tmall points. After the points are generated, if you are complained by the merchant or you return the goods without reason after payment, this will generate some negative incentives, and the platform will weaken the behavior of this user, that is, deduct points.

Therefore, the points operation of the Internet platform mainly plays four roles :

1. Guiding role for users;
2. Increased user activity;
3. Increase users' dependence on products through user points;
4. Retain users through points and improve the platform's retention rate ; different users can be classified and graded through points to form a value classification of points by users. Each type of points level user can be promoted according to different marketing plans, which will increase user stickiness.

How is the underlying architecture of the points system designed?

When operating a points system, the first thing to do is to design the points well . You can use the APP or PC to classify the entire user behavior process from the initial registration, login to the user leaving, based on the points of contact between the user and the platform, which is a decomposition of the product functions. The decomposition of product functions can start from user registration, login, sending verification code, and entering verification code. Each behavior should be sorted out to determine whether it is a behavior generated by the interaction between the user and the platform. After sorting out, every behavior of the user is a real behavior generated by the user.

When classifying behaviors, there are dimensional indicators. It is divided into login dimension, product activity dimension, transaction dimension, etc. Each dimension has different sub-indicator items. After sorting out the user behavior dimension indicator table, different points encouragement levels are designed for each item in this table.

What is the level of encouragement? For example, no matter which product you log in to, you have to register. After registration, some platforms will give you 5 points. If you place an order or add to the shopping cart, you will get 10 points. After consumption, you will get 100 points. Each point is classified into three categories :

• The first type of points is consumption points , which are also the general points on the platform. The points generated after everyone places an order are consumption points.
• The second type of points is user behavior points . For example, after placing an order, you will be awarded 5 points for each comment, including the quality of the product, the speed of delivery, and the logistics service attitude. For example, if you enter a comment with more than 20 words, you will be awarded another 5 points. Therefore, the user's behavior points are parallel to the consumption points.
• The third category is level points , which are accumulated based on the user's consumption points and behavior points. For example, there are four levels in Alipay, which are divided into gold members, diamond members, etc. The higher the level of membership, the more rights and interests. For example, diamond members can enjoy free quotas, same-day fee reductions and other rights.

With these, users can be classified into points accounts, that is, points pools, through various channels and means . With this points pool, no matter it is the front-end user, mobile terminal, or third-party WeChat public account , the user points will be deposited on your platform after the channel classification. Based on the user system passport, the data of users from every channel are connected to the points mall system and marketing system.

After this part is built, it will be connected to all external third-party resources. This model is the current operating model of Duiba. Duiba makes the points system and marketing system into independent tools and products, and connects them to various third-party channel applications. In fact, the points system is not a core demand for other platforms. It is impossible to invest one or two million to build a points system for non-core needs. Therefore, Duiba’s strategy is correct. It is a service platform that specializes in serving third-party points user operations, which is Duiba’s positioning, user service operation.

On this basis, users accumulate points for consumption, participate in lotteries and redeem points, and directly connect to various third-party APP applications through the API interface. Only after understanding the entire points structure can we deeply understand the relationship between points system operation and user operation.

Relationship between points system operation and user operation

In fact, compared with foreign points operations, domestic points operations have no value at all. The value is too low, which leads to users’ unwillingness to redeem. Users don’t want it at all because it has no value.

Therefore, the core of point operation is to increase the value of points and attract new customers, that is, to attract everyone's attention;

The second is user activation , which means that every time a user touches the platform, the system makes your touch points automatic. When you meet the touch point rules, the system will automatically stimulate you to make relevant points consumption.

The third is user retention , which is to raise the threshold of churn through user feedback. By designing corresponding points retention plans, we can reduce user churn and achieve the goal of retention.

On this basis, how to carry out points operation? In fact, many products, if operated in depth, will come to the following conclusions:

• The first conclusion is that for every product, 20% of customers actually bring 80% of the profits ;
• The second conclusion is that for every 5% drop in platform user loyalty, the platform's profits will drop by a quarter, or 25% ;
• The third conclusion is that the cost of developing a new customer is much greater than the cost of retaining an old customer , which is basically 10 times. This is the experience I have gained from operating multiple projects.

On this basis, 20% of users bring 80% of profits, so capturing core customers is the key . What is a core customer? It is the classification and collection of users and the classification of their values. There are 100 users on a platform, but the behaviors and values ​​of each type of users are different. We can classify these 1 million users by labeling and profiling them. Each type of user is converted into ABC sub-libraries. Assume that there are 100,000 users in category A, 250,000 users in category B, and 350,000 users in category C. In each sub-library, the user behaviors are the same or similar. Therefore, when merchants are doing marketing, they will make targeted marketing plans for each type of sub-database, in order to capture VIP customers.

The second is that the level of loyalty determines the company's profits. Normally you have 100 users. If their loyalty is very low and they leave at any time, they will easily leave and it will be difficult for them to create value for you. It is because of the value of this platform and the services it provides that this product will create the relevant value and profits that you deserve.

The third one is to retain old customers, which is actually very easy compared to new customers . Determine the behavior of Class A sub-database, which is the old users in it. The frequency may be 3 times a month, and the consumption value is between 50-80. The stickiness to the platform is price sensitive, so some targeted stimulation is given. These three points are the labels of users in Class A sub-library. With these labels, we can develop an automatic marketing system. Now Duiba has developed a marketing system, but I believe we have not yet reached this step. After user classification, the next step is to construct value. Different labels are determined for the behavioral data of different sub-databases of users. Targeted point promotion plans are designed based on the labels. Once the promotion plan is in place, the next step is to disseminate value certification. Because the plan is set up, the next step is to implement, market, publicize and promote it regularly according to the plan. When marketing, different points can be buried on the marketing page, and the marketing effect of the data throughout the entire process can be monitored and analyzed.

Many people who do marketing don’t know how effective the marketing is, so before we do any marketing, we must find the right marketing points. This is the key. You spent 1 million on marketing, but in the end you still don’t know what the actual conversion rate is. The boss is not stingy about investing money in marketing, but for the boss, he needs to know the value and return of every penny invested. If everyone can do it , I believe the boss will agree.

Points system operation strategy and case analysis

For example, whether it is Ping An Bank's Miles Points or ICBC's Rong E-Shopping Mall, the entire comprehensive points system has classified the points generated by all users' financial purchases, credit card consumption, borrowing, loans, savings, etc. into comprehensive points.

The most basic operation of points is the redemption and exchange of points, the mutual use of points, and the comprehensive collection of points.

The first step is to collect the users' comprehensive points . That is, a user has only one points account in a merchant. It is impossible for store A to have three businesses, each with different points. So for customers, they only recognize the store and not others. Therefore, the first step is to make all points redeemable.

Many domestic companies that make PC and APP products are unwilling to build their own systems. They use the standardized points system and marketing system provided by Duiba, which has low investment costs and standard functions. On the basis of the system, Duiba has integrated a large number of high-value goods, gifts, and various marketing activities . Duiba has even achieved template configuration and parameter configuration for marketing activities. These two can support all points operations and user operations of other merchants. Because the investment cost is very high and you are unwilling to invest, then the third-party system is very suitable. Once connected, you can directly redeem your points. It is just embedded in your surface layer. After redemption, there are high-value goods, and users will be motivated. With enthusiasm, users will stay and be more active. In fact, this strategy is very good.

Marketing system.

First, free configuration of activities;

The second point is that there must be enough types of activities , such as limited-time sales, flash sales, group purchases, etc. The strategies and methods of each activity are different. Different templates can be configured for gifts. Based on this marketing system, Duiba can hold dozens of events in a day. With these, the next step is to expand the value of points. The points mall has achieved this through flexible and diverse promotional activities. The combination of the two solves the pain points of low value of points and value communication, which is the core pain point of current domestic product operations . Duiba has seen this and solved it for merchants through reasonable means. Therefore, Duiba has the fastest development speed, and 72% of the top 300 apps have been connected to Duiba's points system.

Ping An Bank Financial Mall, as a visiting user, as long as you register once, I will give you 2 million Miles points. The value of Ping An Bank's Miles points is much higher than other domestic points. The points of every channel in China, including Tmall, JD.com , airlines, and telecommunications , are connected. Users can use Miles points to directly redeem Tmall points for shopping in Tmall and spend points as money, so its value is relatively good.

After it has value, there will be a big lottery for free points, and a big roulette wheel. If you spin it once, you can get 50 electronic coupons. For domestic users, when it comes to buying financial products, most of them are low-risk and conservative in their pursuit of returns. These users have a very low risk tolerance, so we recommend them products similar to bonds, money market funds, or fixed-income tickets; these products have returns of around 3%, sometimes up to 4%, which is much better than banks. Yu'e Bao also has 4.1%, and the daily returns are similar, so why keep it? Because we give you high-value Mileage points.

When a user just registers, you will be stimulated to make your first transaction on the platform by giving you points. No matter the value of this transaction is one dollar or ten dollars, it at least allows you to take the second step and make a transaction. In the third step, you will be pushed a product with higher value, such as winning an iPad by purchasing specific financial products. Then you will be interested again and the platform will continue to stimulate you, from the initial 10 dollars to the second 200 dollars. If you make a second purchase, you are already a loyal user of the platform.

For example, at specific times, such as National Day, Mother's Day , or birthdays, we can push you an investment with a higher return of around 800,000 or 1.5 million, and recommend you more favorable investment and financial management products. This will stimulate you to favor the platform and even consume multiple times. The platform also increases the activity of the existing inventory, which is the goal.

In general, the first is to attract new users, the second is points conversion and activation, the third is the re-marketing of points, and the next is the secondary marketing of old customers. Each layer is closely linked, guiding users into Ping An Bank step by step. This is Ping An Bank’s Mileage Points, which focuses on marketing around user touchpoints.

Some suggestions for operators:

1. Product operation must be considered from the perspective of the entire operation system. There are operational correlations between each other. Points operation must be combined with user operation, and the points operation work must be operated from the user life cycle .
2. To do a good job in product operation, we must understand the relevant business rules and main logic of the product from the product design level, so that we can formulate product operation plans and implementation steps from a deeper level.
3. Product operation must be linked to indicator effects. Operation without indicators is pure busywork. The indicators for points operation need to include the number of new users attracted, activation conversion volume and user retention rate.
4. The core of points operation is to solve the pain point of low points value, and to increase the value of points by connecting with more points-consuming merchants and redeemable high-value goods.
5. Taking merchants as the dimension, it is necessary to achieve effective integration of different business points from different channels to form comprehensive platform points, and by connecting to a third-party points mall system, improve the stickiness and loyalty of platform users.