How do operations control user payment data indicators?

Whether it is basic data such as new users or user activity, operations should have a clear control over them. Today we will talk about the control of user payment data.

In this article, I will explain the knowledge about user payment from the following four aspects.

1. User payment data indicators

2. Factors that influence user payment

3. Methods to increase user payment

4. The value of user payment

1. User Payment Data Indicators

Paying rate: the ratio of paying users to active users. Generally speaking, the daily payment rate is calculated by dividing the number of people who recharge on that day by the number of active users on that day. For example, if the number of people who recharge on that day is 20 and the number of active users on that day is 500, the payment rate is 20÷500×100%=4%, that is, the payment rate on that day is 4%.

AR PPU value: the average payment value of paying users. Generally speaking, the daily ARPPU value is referred to, which is calculated by dividing the total recharge amount on that day by the total number of rechargers on that day. For example, if the recharge amount on that day is 2,000 yuan and the number of rechargers is 10, the ARPPU value is 2,000 ÷ 10 = 200 yuan, that is, the ARPPU value is 200 yuan, and the average paying user pays 200 yuan.

ARPU value: average payment by active users. Generally speaking, the daily ARPU value is referred to, which is calculated by dividing the total recharge amount on that day by the total number of active users on that day. For example, if the total recharge amount on that day is 2,000 yuan and the total number of active users is 1,000, the ARPU value is 2,000 ÷ 1,000 = 2 yuan, that is, the ARPU value is 2 yuan, and one active user can contribute 2 yuan in revenue.

LTV: User lifetime value, generally refers to 3-day, 5-day, 7-day, 14-day, 30-day, 60-day, and 90-day LTV, that is, the value brought by the user's first login to the above dates. Take 7-day LTV as an example. For example, if there are 1,000 new users and the total payment within 7 days is 9,000 yuan, 7-day LTV = 9,000 ÷ 1,000 = 9 yuan. That is, the value brought by a single user in 7 days is 7 yuan. If the customer acquisition cost is lower than 7 yuan, it is a profit. If it exceeds 7 yuan, it is a loss.

2. Factors that influence user payment

Product quality

Product quality is the first factor that determines whether users pay. This is true whether it is an APP or a traditional industry. Taking games as an example, high quality is already standard for games. If the UI, system, and gameplay are not good, users will be lost. If users cannot stay, how can they pay? Once the game quality is up to standard, it will be a natural thing to stimulate users to pay through in-game activities and other means.

For applications, product quality is more inclined towards content. For example, for online education software that requires payment, users pay attention to whether the courses provided by the platform can meet their needs. Product quality requires that the platform has enough content and that users can listen smoothly without lag, loading failure, etc. Basic functions plus content determine the quality of the application.

Natural Cycles

Holidays and weekends are peak payment periods for users. Students who play games should all have the impression that during the May Day, National Day and Spring Festival, there are many in-game activities and great benefits. Our previous game revenue during the National Day was close to the normal revenue of half a month. This has little to do with the product itself, but is related to the natural cycle and user payment behavior. Although the weekend payment is not as high as statutory holidays, it is still gratifying compared to weekdays.

Based on this feature, operations must seize weekends and holidays to plan activities. There are only two or three major holidays each year, and if you miss them, you will never have them again. There are also only four weekends a month. Whether we can seize the payment of users in the natural cycle directly determines the amount of our year-end bonus.

Is there any incentive?

Users love to take advantage. When users are between paying and not paying, with a little incentive, non-paying users can be converted into paying users, and small-amount paying users can be converted into large-amount paying users. For example, the vouchers issued by e-commerce platforms to users offer a 50 yuan discount for purchases over 100 yuan. People may have originally planned to buy items worth around 20 yuan, but when they see there is a 50 yuan discount, they will choose items worth over 100 yuan, and ultimately spend dozens of yuan more than expected.

3. Methods to increase user payment

Activity

Activities are the most effective way to increase user payment. Some companies even have dedicated event operations and plan events to increase product payments. Here are a few activity cases for you.

Activities to increase payment rate: Recharge 6 yuan in Honor of Kings and get Zhao Yun for free. There is only one way to obtain Zhao Yun, that is to recharge more than 6 yuan. In order to get Zhao Yun, users must make a small recharge. In fact, as a developer, increasing the payment rate does not necessarily lead to an increase in revenue. The purpose is to cultivate users' payment habits. Once users have recharged and know the recharge process, some of them will be converted into medium R or large R when they participate in other recharge activities later.

The essence of increasing the payment rate is to sell high-value props at extremely low prices. Just imagine that props that usually cost hundreds of dollars can now be obtained for a few dollars. Most users are not immune to this. For example, the monthly card follows the same principle.

Activities to increase ARPPU: recharge rebate. Whether it is a game or an application, recharge rebate is the best way to increase ARPPU and is also a form of disguised discount. For example, a daily recharge of 1,000 yuan can be exchanged for 1,000 points, and a recharge of 1,000 yuan during the event can be exchanged for 1,500 points. For paying users, they will recharge more money than usual. The disadvantage is that it overdraws user consumption, and the recharge in the following days will drop a lot.

Top up the recharge ranking to receive rare items. Once this activity is launched, it will definitely cause a bloody storm among big Rs. We once held an event in our game where the top recharger would receive top-quality items. The top two players were fighting each other fiercely. You recharged 10,000, and I recharged 15,000, and we went back and forth. The income of that server was almost entirely contributed by these two big Rs.

Activities to increase the recharge amount: limited-time discounts. Taking offline stores as an example, during Christmas and New Year’s Day, all items are 50% off; on weekends, two items are 30% off, which effectively increases user consumption. For example, for online courses, the original price of a course package is 2,000 yuan, but it is now 1,000 yuan after a 50% discount. Users who have paid attention to this course before but were turned away due to price factors will now purchase it because of the discount, thereby increasing recharge.

Referral Rewards

Referral rewards are an unconventional way to increase user payments. This function will be developed in the later stages of product operation . Referral rewards refer to old users bringing in new users. After the new users make recharges, the old users will receive rewards. The content of the reward depends on the nature of the product. For example, for games, the reward is game coins, and for courses, the reward is cash.

If referral rewards are used well, everyone can be a promoter . The NetEase course that was all over the screen a few days ago is essentially this routine. After sharing the course, if a user purchases it, the person who shared it will get 60% of the profits. In addition, the cashback process is extremely simple and is directly paid to the WeChat wallet. Enticed by this, they will promote it in more places and attract more paying users. I have promoted similar courses on the "Tiger Talks Operations" public account before, but I deleted it in the end considering the user experience .

Customer Service System

Customer service is the guarantee for maintaining large R customers from leaving and continuing to recharge. The customer service system and GS can be discussed together. Continuing with the example of games, the game divides recharge users into small R, medium R and large R. Customer service will treat users of different levels differently, commonly known as VIP service. For large R, not only will they be informed of in-game activities in advance, but they will also receive some additional benefits, such as mailing small gifts during festivals, inviting them to visit the company, etc.

The purpose is not only to give them the in-game experience, but also to tell them in reality that you are our VIP, we have dedicated people to serve you, and any feedback from you will take precedence over other users. With this sense of dignity, paying users will not easily leave. After all, as long as you spend money in the game, you can rush to the first place and get the feeling of being the best among the crowd. However, the noble experience in reality still requires an excellent customer service team to provide.

GS will not be brought to the table to talk about. In the game, if it is found to be a sting when competing with it, for users who have really spent real money, they will switch platforms to play in minutes. If GS is operated well, the increase in profits will be quite obvious. How to judge it depends on the operation level of GS.

Dark Means

When talking about recharge, we can’t avoid single-player games. When talking about single-player games, we have to mention some dark methods. Apart from Happy Match, there are almost no stand-alone games that can really encourage users to recharge on their own initiative. So why are the recharges for stand-alone games so high? Here are a few simple points to start the discussion:

1. The consumption prompt is not obvious, and users do not know that the props are charged, and the fee is deducted after clicking.
2. Direct deduction for accidental clicks.

After the user opens the game, there will be several buttons to click on the next step. The billing button is mixed in among them. The user may accidentally click it and be charged. There are even darker methods, which I cannot discuss here, but they are darker than you can imagine.

The means to increase user payment can be divided into positive and negative. Which method to choose depends on the leader's values. If you can make money without doing anything, don't choose despicable methods.

4. The value of user payment

User payment is an endorsement of the product. Once a product is made and launched into the market, it is easy to attract users. If the product functions are used normally, retention will not be too bad. The real way to tell whether users approve of the product is to look at the payment data. When users choose our products, it may be because they have no other choice, or because they were recommended by friends. They are too lazy to delete them and just use them as is, treating the products as if they are dispensable. Users with this attitude will not make payments. Only those who highly recognize the product, such as those who recharge within the game, will make recharges. Most of them do so because they want to play longer. Users who can continue playing for a long time must be extremely supportive of the product.

User payment is the prerequisite for the company to continue operating. What is meant here are companies like games, which rely on user recharges as their main source of revenue. Tool companies that rely on advertising for monetization do not fall into this category. For example, a game company invests one year and several million in manpower and material resources. After the product is launched, if the revenue is good, the company has the financial basis to continue operating, and then develops the second game. If the revenue exceeds expectations, it develops multiple games, and even gets involved in film and television, peripherals, etc. Without user payment, subsequent business will be out of the question. Even for Tencent, games still account for the majority of its revenue.

User payment reflects the value of operators. As an operator, how to increase the amount of user payments is a problem that we face every day. Good operations can stimulate users to pay through operational means, and the revenue will continue to rise. Due to poor operations, I get anxious when I see dozens or hundreds of recharge amounts in the background every day. Whether you can make users pay willingly, and pay more fees, depends on the level of operation. Which type of operation are you?

In summary:

The above briefly explains some knowledge about user payment. Things related to money are more complicated. After all, most users are very savvy. As the saying goes, there is endless fun in fighting with users. The process of increasing user payment is also a process of improving operational level. I hope everyone can think of better operating methods so that users will spend money while enjoying the service.

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

Product promotion services: APP promotion services Advertising platform Longyou Century