Tongban Street's transaction volume reached 240 billion in 5 years. You must know these operating experiences

1. Why should we use framework thinking?

As an operator , you often encounter some reliable or unreliable emergency activities, and usually encounter these four major problems:

1. Improve user retention rate on UGC platforms
2. Benchmark your competitors and create a campaign that will attract new customers
3. With existing resources, sales performance will increase by 100% next month
4. Make a recall plan for old users.

What is a framework?

So how do we deal with these problems? Just learn to use the framework. The framework is to break down the central idea into evaluation dimensions, each of which is composed of multiple related elements.

The core of the framework

The core of the framework must follow McKinsey's MECE principle. The first is to ensure mutual independence, and the second is to ensure complete exhaustiveness. In this framework, taking Kung Pao Chicken as an example to evaluate dimensions, ingredients, cooking, and plating are independent on the same dimension, and are completely exhausted in the elements below. Such a framework can comply with the MECE principle.

E-commerce operation framework

This company has an e-commerce division with a team of 40 people, and it needs to conduct a functional division and organizational structure analysis. E-commerce operations can be divided into the commodity side, user side, platform side, product side, and market side. If we further break it down, there will be front-end business lines and back-end supply chains.

The central idea of ​​the framework for decomposing e-commerce operations is e-commerce operations, and the evaluation dimensions are independent of each other at this level. In terms of related factors, user operations include user growth system, outreach and maintenance operations. The platform resources, platform activities, and platform content on the platform side are mutually independent and completely exhaustive.

Some people say that some companies do everything and do not divide it into such detailed categories, but add a concept called " product life cycle ". When a company is in the exploration and growth stages, the organizational structure and division of labor will not be so perfect, but entering the mature stage will inevitably require refined operations.

Then the functional division of labor must be completely separated, and a specific person must be responsible for each task to ensure the normal flow of operations.

2. How to think in a framework

When we encounter a complex problem in an unfamiliar field, how do we create a framework and what does the framework include?

The first thing to do is to break down the problem. Secondly, we must exhaust and classify. The order of exhaustion and classification will change depending on the complexity of the problem and our own understanding.

1. Disassembly

So how to disassemble it? Usually we encounter such problems: First, the boss says that he has conducted activities to attract new customers better than competing products. This is an abstract question. In addition, increasing sales performance by 100% with existing resources is a very concrete issue. The former is more difficult to answer, while the latter allows for quick adjustments to operational methods.

When faced with these two problems, the first thing is to make the abstract problem concrete, set boundaries and golden thinking circles. The second is to reduce the dimensionality of the concrete problem and decompose it from the inside out or from the outside in through the golden thinking circle.

The golden thinking circle is divided into WHY, HOW, and WHAT. When you are faced with an unfamiliar field, such as organizing a new customer acquisition campaign, what should you think? First clearly list what to do, exhaustively, and finally after deriving all the related factors, you will find that there is a classification just like connect the dots and match games. The other type is those who have their own understanding of the industry and will naturally make logical deductions from the inside out.

Of course, when we are faced with unfamiliar fields, we often don’t know what to do. We can try to exhaust them first and then classify them.

How to improve the user retention rate of UGC platform? If you work from the inside out, the UGC platform will have users and retention . The users of UGC platforms are different from ordinary users. There are productive users and consumer users. Only when the two types of users flow normally on the platform will the operation be effective. On the other hand, retention is assessed based on daily activity or next-day retention.

Regarding the recall plan for old users, which old users should be recalled? Here we need to consider lost users, dead users, and silent users. Recall these users to log in, trade or interact, these are all recall incentives.

When you encounter a competing product, run a campaign to attract new customers more effectively. Competitive products include activity forms and activity effects, and attracting new customers is divided into online and offline. The effect is whether it is downloading or trading, and some content platforms may also publish some content.

With existing resources, sales performance will increase by 100% next month. So what are the existing resources? The first is technical resources, and the second is cost budget. Performance, GMV is still the transaction amount of a single category. The transaction amount is different from GMV. The first thing is to find the stakeholders in the problem. For example, improving the user retention rate of the UGC platform and the recall plan for old users are targeted at old users. In addition, sales increased by 100%, including the effect of attracting new customers and benchmarking against competing products.

2. Exhaustion

There are two kinds of exhaustion: the first is to exhaust experience in familiar fields, and the second is to exhaust experience in unfamiliar fields. If you don't understand this industry and position, you need to rely on exhaustive data.

There are three methods here. First, look for valid data by using application markets , professional websites, and industry survey reports. For example, the content and functions of the updated apps in the app market, as well as the number of downloads, as well as the related news or content on 36Kr and Huxiu can be used to split the products.

The second is to use search engines to find valid data. The important information here is PR-related information, such as financing status, revenue, user status, and negative news. The data should be viewed dialectically.

Third, find effective information through interviews with the target users of the product. There is a concept of "user perspective" here, which means that you abandon your own cognition and try to listen to user feedback. For example, you can communicate through QQ groups and WeChat groups , or you can learn about news or content related to products or industries on Maimai and Zhihu.

When faced with competing products, how can we conduct activities that are more effective in attracting new customers? To attract new users, you need to provide red envelopes and sharing for new users, and by giving rewards in advance, you can keep users moving forward along the process. At the same time, corresponding traffic should be obtained through resource replacement, advertising and other means. This part requires competitor analysis and user breakdown, etc. After exhausting all of these, the rules will naturally emerge.

Similarly, with the existing resources, sales performance will increase by 100% next month. These are the points I can think of: buy one get one free, price reduction, second item at half price, red envelopes, these are promotions. There are also SMS group messaging, home page banners, push notifications, traffic, etc. After these are categorized, you will find that through classification you can truly implement operational methods.

3. Classification

There are three methods of classification: first, the formula method, which is a quantifiable goal. Second, process-based and clear processes. Third, branch method, broad indicators.

Improve the user retention rate of the UGC platform and use the formula to break it down. Daily active users = new user activity + old user retention - old user churn . Retention = production user retention + consumption user retention.

Benchmark against competitors and create a campaign with better effect in attracting new customers. This is the process method, which starts from user attention, APP downloading, first transaction, and repeat purchase transaction.

A recall plan is made for old users, which is to recall transactions for silent/lost old users, and secondly, to recall and log in dead users. The difficulty and cost are also different.

With existing resources, sales performance will increase by 100% next month. Performance = traffic × conversion rate × average order value. Doing these can improve performance.

So the advantages of the formula method are: first, it is directional. Second, when the boss proposes an overly high KPI, you can calculate the resources needed to achieve the goal based on the existing resources. At the same time, when resources are limited, priorities can be arranged based on the company’s current resources.

3. How to use framework thinking

If one day my boss says that the number of high-net-worth users will increase by 1,000 people per month, I will say that I will come up with two plans tomorrow. Why two plans? How should we solve this problem?

First, let’s go back to the tips for breaking down the problem, the adjectives in the question, high net worth users and net new additions. Is the core reason for the problem the decrease in new users? Or is it the loss of old users? The formula method is used here for decomposition.

Monthly net new high-net-worth users = high-net-worth old users at the beginning of the month - high-net-worth old users at the end of the month + high-net-worth new users at the end of the month. At the beginning of this month, there were 10,000 high net worth users, and at the end of the month, there were 9,000, which means a loss of 1,000 people. Continuing to break it down, high net worth old users = high net worth retained old users - high net worth lost old users. High net worth new users = new trading users who meet the high net worth standards.

The first thing is to focus on retention and loss, and the second is to attract new customers and transactions. The key to the problem is to motivate users, including user stratification, reach and motivation, which is one of the most important means of user operation.

Plan A focuses on retention and churn. When doing user stratification, it is important to focus on standard Internet stratification ( RFM model ) and financial stratification (user risk level). User motivation involves user stratification, reach and motivation, which has two steps: retention and churn.

Retention should take into account the users’ continued repurchase on the platform. Ordinary users will make normal contacts and send red envelopes. There will be different rewards for users according to different levels. The third is guidance on product forms and services, namely smart investment advisors. The fourth is content guidance, which uses live broadcast to tell you how to buy funds, relevant knowledge on financial management , and relevant guidance from financial advisors.

Secondly, in order to recover lost users, we also need to stratify them into active levels. First, conduct user stratification screening to identify users at the recovery level. Secondly, design different incentive plans, design return rewards, and distribute high-subsidy red envelopes. Ordinary users usually use SMS and PUSH as incentives. On the other hand, historically high-net-worth user groups will specifically assign dedicated financial advisors to do the work.

Plan B focuses on attracting new customers and transactions. The stratification here is channel stratification, and the user quality of different channels is different. To provide user incentives, we must follow the process method. The first is user attention, the second is APP installation, and the third is the first investment (first transaction).

In terms of user attention, it depends more on brand endorsement. Tongbanjie is celebrating its 5th anniversary in September this year. So far, the platform has accumulated a total transaction volume of 240 billion yuan and 12 million registered users, so these data will give the brand an endorsement.

Second, guide users to install your APP and register successfully. It is necessary to guide through the task mode and reward through the functional connection of the product. At the same time, rewards are placed in front to ensure a coherent process, allowing users to conduct transactions according to logic and quickly guide real-name registration and card binding.

Finally, guide high-net-worth users to convert to first-time investment. Through exclusive benefits for new users, such as the new user homepage, new user education, including new user short-term high-yield targets, and novice cards and coupons. After a user registers as a trading user, the user will be verified through card and coupon reminders, novice mark reminders, exclusive investment advisor reminders, etc. After such multiple transactions, he will naturally become a high net worth user.

To summarize, the first is the definition. The framework breaks down the central idea into evaluation dimensions, and each evaluation dimension is composed of multiple related elements.

Second, three methods to make a framework: disassembly, exhaustion, and classification. The analysis mainly focuses on the core cause of the problem, who the stakeholders are, and what the adjectives of the problem are. There are two steps to exhaustion: exhaustion of experience in familiar fields and exhaustion of data in unfamiliar fields.

Third, classification. There are branch method, process method, and formula method.