1600 words to explain: How to acquire customers at low cost?

• What are the three important factors that affect a company’s value (valuation)?
• How do you define your customers?
• How to acquire sticky and long-life users?

Before discussing customer acquisition, let’s discuss another question: How do we view the value (valuation) of our company when starting a business ?

Three important factors that affect a company’s value (valuation):

1) User scale : directly related to customer costs.

2) Average order value; transaction price and profit.

3) Number of consumptions during the life cycle.

We need to redefine a concept:

Customer acquisition cost: The customer acquisition cost we talk about is often the first customer acquisition cost, but the low-cost customer acquisition we are talking about today is not the first customer acquisition cost, which can be expressed by this formula:

Consumption value throughout the entire life cycle/number of consumptions = customer acquisition cost, which is the average customer acquisition cost for each consumption of a user throughout the entire life cycle.

This formula is related to the scale of the entire consumption frequency. Even if a large amount of cost is invested in the early stage, it is extremely cost-effective if the consumption frequency is large enough. The customer acquisition cost is based on the average consumption per transaction, rather than the absolute value.

If our customers are sticky, long-term customers, it is cost-effective even if the cost is relatively high. Both Changba and Faceu achieved rapid user growth in the early stages, but Faceu eventually became a phenomenal product, while Changba survived and continued to develop.

These two comparisons show that we need users with a long life cycle, rather than just becoming a phenomenal thing. Today, we are in an era of mobile fragmented Internet. Fragmentation includes the fragmentation of information received and the fragmentation of decision-making information. There is more and more information about fragmented products that affect user decisions, and there are more and more ways to influence decisions. Customers often change their decisions midway.

How to acquire customers at low cost, then you must ask this question:

Who are your customers? Who are your customers? Who are your customers?

How to define your own customers? The book "Single Point Breakthrough" gives five labels:

1) Identity tags: basic profiles such as gender and distribution;

2) Demand label: pain point or itch point;

3) Capacity label: consumption capacity or consumption credit;

4) Touchpoint label: Where is the touchpoint of the user's decision-making, and what point makes this person become your customer;

5) Emotional label: Products should have warmth and decisions should have character.

Regarding emotional labels, customers inject emotions into products, share them through word of mouth, and share them through trust. However, users of most products will experience breakpoints: the attenuation of users during the dissemination process. One way to alleviate the breakpoint problem is through emotional communication. User satisfaction with demand is improved, the product reflects the user's emotions, and the product conveys the user's emotional identification.

A classic example is the little black dress :

The little black dress initially conveyed the black charm of nobility, elegance and mystery. This is the emotional value conveyed by the product itself, not just good looks or comfort. Today, in a market where women's clothing has been divided, it is not easy for the little black dress to occupy a place. Through analysis, there are several reasons:

❶ User satisfaction is high and the product exceeds user expectations;

❷ Emotional satisfaction with the product itself;

❸ Combine online and offline marketing , use a three-level distribution mechanism, and build a community .

It all comes down to the product itself, emotion, and leveraging the power of the community. The marketing cost was only the initial cost, and later on, we gained a large number of customers through word of mouth.

Who are your customers? This question must be made clear and users must be screened at the same time.

Because basic needs have been met by large companies, what we are meeting now is the demand for consumption upgrades, that is, personalized and niche needs, which need to be screened out through five categories of labels. In the initial stage, although the user group becomes narrower, user loyalty increases, user rigid needs increase, niche needs become strong rigid needs, and users become loyal fans.

Turn user operations into a long cycle, find loyal and hardcore users in the early stage, find loyal users, and when there are n needs, you will be the user's first choice, and your solution will become the first purchasing solution. These are long-term users.

Through the sense of participation, users become employees. For example, people who have bought a little black dress are willing to share it actively. Then 100 hardcore fans are equivalent to building a 100-person marketing team and 100 test samples. After completing the first stage, these 100 people will become our source of word-of-mouth, and we can truly achieve marketing by transforming the product itself and improving users' immediate satisfaction.

A typical example is Little Black Dress Yoga, which uses annual and per-session payment to avoid user losses. At the same time, large venues will be converted into small venues to improve the yoga environment and ultimately form a stable customer base.

This is to improve users' immediate satisfaction through the transformation of the product itself, while at the same time appealing to the weaknesses of human nature. After ensuring the basic quality of the product and adding some other marketing methods, the user retention rate is twice as high as the market retention rate . Construct the content and structure of the communication through five tags:

• Including satisfaction with the product itself
• Mixed with human characteristics

In this way, putting the source of communication into the market for sharing will have a penetrating effect, and putting it into the social chain for dissemination will have a wide range of dissemination.

Thank you everyone!