Why do we say “third-rate plays with products, second-rate plays with traffic, and first-rate plays with users”!

There has always been a tradition in Zhihu, which is "Ask if first, then ask why"

Is the saying “third-rate plays with products, second-rate plays with traffic, and first-rate plays with users” true? Yes and no.

Why was it established? I searched on Google and found that this sentence was first seen in an article shared by a product manager of Tencent Group Buying Business Center, namely "Self-cultivation of an Operator : Books, Websites, and Tools that Primary Operators Need to Know"

What is operation?

Third-rate people play with products, second-rate people play with traffic, and first-rate people play with users.

Take e-commerce as an example. Operations are divided into many modules, including channels, categories, users, activities, public relations... Each module is a gear, complementing each other, but with the same purpose, which is to have more and more users, higher frequency of visits, and greater revenue. Therefore, the essence of operation is iteration and optimization, discovering the crux of the problem, solving the problem, and optimizing and improving through repeated iterations.

The operation mentioned here refers to the operation in the e-commerce field. Combined with the operation of e-commerce products, this sentence is actually true.

What it says

Third-rate products. The products here refer to the goods sold in online stores, such as "foreign trade, last order, original order, A-goods, high imitation, secondary factory", etc. The indicator of concern is SKU

The second-rate traffic game is to obtain traffic inside and outside the site, and the indicators of concern are traffic and conversion rate.

The first-class user's standard is the repurchase rate, and the indicator they pay attention to is the repurchase frequency.

The three indicators corresponding to these three aspects are the relatively core indicators of e-commerce operations. In addition, the author's original intention is not to divide operations into three levels, but to remind operators who focus on products and traffic to pay attention to user operations. There is no definitive answer as to which of the three is more important. Just like a question that everyone often discusses, only children would discuss questions such as "Which is more important for a company: technology, products, or operations?" which are either right or wrong. Mature entrepreneurs are more concerned about how to maximize the value of the three and ultimately form a competitive barrier for the product. Technology-driven companies usually have very strong product and operation aspects.

Operators need to selectively absorb some opinions without judging whether they are right or wrong. We are faced with a non-ideal reality when doing any operations work. If you are good at traffic and products, you should absorb some knowledge of user operations. Like the author above, if team members pay too much attention to products and traffic and ignore operations, it may be a good idea to write an article criticizing them for second-rate or third-rate operations and improve their vision.

If I am happy, I can also say, "Third-rate makes users, second-rate makes traffic, and first-rate makes products." This view can also be self-consistent. As for those who do operations, who can say that their traffic is particularly good, or their users are particularly good, or that their operations are particularly good by relying on products? No one!

90% of operations’ worries are far from thinking about “what the first-rate does and what the second-rate does”. There is no third-rate or ninth-rate in operations. If SEO is done well, there are many people with an annual salary of more than 500,000 yuan. If SEO is done very well, it means that your attention and awareness of users, products, and traffic are very high. All the same, there is a way forward.

What you should worry about is how to make the subdivision you are responsible for the best and become a big shot.

Back to another question, what are the first-class users playing with?

What matters is conversion rate, repurchase rate, and repurchase frequency.

Conversion rate: How to convert traffic into users (e.g., only those who register are considered users, and only those who place an order are considered users)

Repurchase rate: What is the proportion of users who make a purchase for the first time who make another purchase? This indicator can directly reflect whether your product is good, whether the service is in place, and whether the traffic is accurate.

Repurchase frequency: number of orders/user, that is, how many orders each user purchased. Directly reflects user loyalty.

This is the ultimate goal of playing with users, making users sticky and continuously contributing profits. Other reputation and brand are built on continuous profits. To achieve this goal, we need to do a lot of user-related work, such as attracting new users, retaining users, recalling users, promoting activity, and converting users to paying users.

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