4 case studies: The fission model of “group buying”

The method of group buying is to use social relationships to promote conversions. Pinduoduo is an expert in this form of fission. This article mainly uses four typical cases to analyze the fission model of group buying.

Group buying is a means of bringing in new customers through sharing. It makes greater use of social relationships to promote sales conversions and also has the effect of attracting new customers. However, once a group is formed, the spread will stop once and a new group buying must be initiated to continue the spread.

Pinduoduo is the most popular platform for group buying, a fission model. We will talk about some typical group buying cases later.

From a product perspective, a complete group buying process must include at least the following elements:

1. Products that can be purchased in a group: If you want flexible configuration, it is recommended that you set a group purchase switch for a certain product in the background. If it is turned on, it means that the product can be purchased in a group.
2. Number of people required to join a group: that is, the number of people required to meet the conditions for a successful group joining. Usually, if you want to join a group purchase, you need to register and log in, so it is also a way to attract new users.
3. Price after group buying is achieved: that is, the selling price of the product after the group buying conditions are met. This price can be 0.
4. Group formation time limit: After all, it is a costly activity, so it is necessary to limit the time for forming a group. It is recommended to use 24 hours as the time limit, otherwise the group formation will fail.
5. Group buying status: including: group buying available, group buying in progress, group buying completed, group buying timeout and failure.
6. Group buying initiator: refers to the person who clicks the "start group" button. He or she initiates the invitation and shares it with friends to let others join the group buying.
7. Group buying participants: refers to those who see the group buying invitation page and join the group buying. Once you join a group, you can become a "group member" and then invite others to join. One thing to note here is: if someone has already participated in a group purchase, it is necessary to stipulate whether this person is allowed to "initiate a group purchase" for the same product. If allowed, the advantage is that transactions for the same product can be completed as quickly as possible, but the logic complexity is higher.

The approximate flow chart is as follows:

The above is a simple description of the main process. When designing the actual product, you also need to consider scenarios such as login status, group buying status, group buying user roles, and activity online and offline times.

From an abstract perspective, group buying is a set of general logic. Different scenarios can be derived based on different usage conditions and participation rules. For example:

Scenario 1: Group purchase to enjoy preferential prices

Typical case: Lian Coffee

Product A is priced at 100 yuan, and I participated in the "invite five people to enjoy 30 yuan" activity.

When user A sees the product, there are two buttons: 30 yuan and 100 yuan. He chooses to pay 30 yuan. Within 24 hours, he needs to invite 4 friends and each of them pays 30 yuan to successfully form a group. Otherwise, if more than 24 hours pass, the group formation fails and 30 yuan is refunded.

Scenario 2: Free group purchase

Typical case: XiaoDengTengLite ( Mini Program )

Product A is priced at 100 yuan, and you can get it for free if you invite 50 people.

When the user sees the product, there are two buttons: Invite 50 people and 100 yuan. He chooses to invite 50 people. Within 24 hours, he needs to invite 50 friends to join, and the group will be successfully formed and the product will be obtained for free. Otherwise, if more than 24 hours pass, the group formation will fail.

Scenario 3: Group buying helps bargaining

Typical case: Pinduoduo

Product A, priced at 100 yuan, participated in the invite friends bargaining activity.

When the user sees a product, there are two buttons: Invite Friends to Bargain and 100 Yuan. He chooses Invite Friends to Bargain. Within 24 hours, he can invite N friends, and each friend can help bargain (according to a certain ratio), up to 0 Yuan.

Scenario 4: Group buying for discounts

Typical case: NetEase Yanxuan

Product A, priced at 100 yuan, participated in the invite-friends discount event.

When the user sees the product, there are two buttons: Invite Friends for a Discount and 100 RMB. He chooses to invite 3 friends for a 30% discount and pays 70 RMB after the discount. He needs to invite 2 friends within 24 hours and both pay 70 RMB. If the group is successfully formed, otherwise if it exceeds 24 hours, a refund of 70 yuan will be made if the group is failed.

The above are some basic application scenarios, and some traditional marketing methods can also be added to expand the influence or reduce operating costs. For example: group buying + lottery . When the inviter gathers everyone together and successfully forms a group, rewards will be given to those who participated in the group buying through lottery, and those who did not win will be refunded. Or all participants can get the group purchase price, but there are also extra chances to win a lottery, etc.

Finally, what kind of group buying activity can really become a hit?

• The first is the explosive product: that is, the big IP and well-known brand that can arouse interest at the first time, such as: Zojirushi cups, Wu Xiaobo ’s courses, and Dyson vacuum cleaners.
• The second is that the price is attractive: especially taking the 1 yuan group buying as an example, the gap between big brands and low prices can greatly interest people and arouse their mentality of "picking up a bargain", which is the same routine as the previous one yuan treasure hunt .
• The third is the number of people that can form a group: no matter how attractive the activity is, the consumption of social currency is limited, otherwise it will become micro-business. Therefore, the number of people that can form a group should be designed so that most people’s social friends can make it successful, rather than gathering hundreds of people at once.

In actual application, I think the pricing strategy of group buying is a point worthy of study . It needs to be calculated comprehensively based on conditions such as the advertising budget, estimated order volume, estimated number of new customers, growth trend, etc. At present, I am not sure how to do this and I am still learning.

The author of this article @申悦 is compiled and published by (Qinggua Media). Please indicate the author information and source when reprinting!

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