Case analysis of private domain growth of new tea drinks!

The tea beverage industry market has continued to heat up in recent years. Even in 2020, affected by global economic changes and the epidemic, more than 4 billion yuan of funds still poured into the new tea beverage track. This time we sorted out a private domain growth case of new tea drinks, and here we share the case data:

• Panda Tea’s private community adds more than 100 new customers every day, and by directly reaching consumers through the community, it has promoted an 18.86% increase in store orders.
• Within 24 hours, the store’s single event was exposed 1,714 times, with 252 participants, including 140 new customers and 49 people joining the group, accounting for 35%.
• Within 14 days, the turnover of a single tea shop increased by 6.34%; orders increased by 12.76%; and takeaway orders increased by 9.2%.

This article will analyze the growth case of Panda Tea from the following four perspectives:

1. Breaking through the difficulties of the tea beverage industry
2. The cost of tea shop growth
3. Panda Tea’s refined operations
4. Focus on customer LTV

1. The private sector breakthrough of the tea beverage industry

Faced with fierce competition in the market, tea beverage brands are focusing on two new directions to open up the market: upgrading new consumption and empowering private domains.

The model of private domain empowerment: It is mainly different from the investment in a single tea product. It focuses on collecting customer preferences, helping old customers find the tea products they want, and stimulating old customers' repurchase. Through private domain empowerment + tool operation + customer LTV development, a new growth highway is combined.

New consumption upgrade model: Marketing through new media to create a lifestyle brand: Develop innovative joint products with well-known lifestyle brands and partners to enhance brand awareness; in the site selection and design of tea shops, focus on creating comfortable and high-end social places.

However, for small and medium-sized businesses, trying new directions means new costs. To achieve revenue growth in stores, cost can be said to be the biggest obstacle.

2. The cost of tea shop growth

Any effective revenue growth cannot avoid cost control. Focusing on growth while ignoring costs is like talking about efficacy without looking at dosage.

If growing tenfold requires ten times the cost, it is ineffective growth. The three major cost structures of traditional tea shops are: raw materials, labor, and rent, with the main costs being the main ones.

In order to achieve growth targets, maximizing the reduction of labor costs is an unavoidable factor.

If you still take the route of focusing on old products, you will have to start facing the three types of continuously increasing cost expenditures: R&D investment in new products + promotion of new products + investment in advertising materials.

The truly meaningful growth is the amplification of the value of employees' individual output.

3. Panda Tea’s Refined Operation

1) The first step in operational planning is to make good use of the original offline customer flow

The Panda Tea Nansha store used offline store display posters, cash register cards and other materials to divert customers from offline to online private communities. It went through a three-day offline new customer acquisition period and initially built the first batch of traffic in the store's private domain.

When designing poster materials, Panda Tea generated its own unique ID for each product in different tea product promotional posters. Customers will be labeled with differentiated information based on their taste preferences through different poster QR code entrances.

2) Differentiate customer preferences and classify operations

With the initial first batch of customer preference information, Panda Tea planned three promotional activities for customers in the private community: a lucky draw, brand activities, and daily activities.

• Lucky Draw: Maintain the same activity format as the new customer acquisition activity to help customers form a habit.
• Brand activities: Brand heart activities on fixed days: promote community activity and create brand activities.
• Daily activities: irregularly issuing coupons, bargaining, inviting gift activities, guiding customers, repeat purchases, and attracting new customers.

The main function of Panda Tea’s private community is to awaken and remind, reactivate customers, and increase the consumption frequency of old customers; just like sending text messages.

In private domain communities, more than 60% of customers are loyal customers. The definition of a loyal customer is: a customer who has placed an order before and has placed 1 order within 30 days. This group of customers is the key target group of Panda Tea.

At the same time, by utilizing the unique customer value algorithm of the Bancheng Cloud Platform, all tasks can be completed by just one employee in the store. Customers are automatically differentiated by value, and different group robots are set up in the community around different valuable customers to automatically reply to activity content and perform more refined community operations.

3) Choose targeted meal times

The welfare group will send out several activity benefits every day, and for high-value customers, they will send products that are more suitable for this group of people, while increasing the frequency of information reach:

• During the morning rush hour around 8:30, we will mainly send out reminders and posters, and customers will place orders on their own after seeing them.
• At 12 noon, flash sale coupons will be distributed in the group. There will be 10 coupons in one group, which are 15 yuan instant discount coupons.
• During tea time, we will launch a series of activities, such as a juice series.

Through the combination of daily activities + brand activities + lucky draw activities, the Panda Tea Nansha store saw a 6.34% increase in sales for a single tea store within 14 days; orders increased by 12.76%; and takeaway orders increased by 9.2%.

On the day of the event, the store had 1,714 exposures in a single event, with 252 participants, including 140 new fission customers. For customers who have shared and attracted new customers many times, Panda Tea will annotate this group of customers with a high-efficiency fission label as the preferred customer group for subsequent activities.

4. Focus on Customer LTV

For tea beverages with strong repurchase rates, private domain empowerment is a powerful promotional tool, and it can even help stores lock in customers.

However, simply locking in customers and stimulating consumption is not all there is to private domain traffic . (Private domain can bring low-cost, repeatable, and high-reach long-term value)

In addition to helping stores consume, customers can also help stores with publicity, conduct product taste tests, and make market price determinations. Customers have long-term and high-value potential. In the private domain, we should pay attention to the customer's LTV model (lifetime value map).

Whether it is a value-sensitive customer of the store or a customer with a preference for product tastes, Panda Tea can clearly see the customer data, preference classification, and whether they have the desire to share on the product backend of Bancheng Cloud.

By paying attention to customer LTV and relying on data support, stores can establish their own customer LTV marketing model (lifetime value map) to make activities and products more accurate and closer to customers.

Only by getting closer to people can you get closer to growth opportunities. Only by understanding the real needs of customers can you understand the direction of the industry market.

Author: Yang Junorlo

Source: City End