A complete breakdown of Luckin Coffee’s private domain

Recently, Luckin Coffee released its financial report for the fourth quarter of 2021, which once again attracted people's attention.

The report shows that Luckin Coffee's total revenue for the whole year of 2021 was 7.965 billion yuan, a year-on-year increase of 97.48%, and its store operating profit turned positive for the first time in an annual period. As of 2021, the total number of stores has reached 6,024, with private domain users exceeding 1.8 million, more than 60% of which are active users, contributing more than 35,000 direct orders per day and promoting more than 100,000 orders per day.

At present, the contribution of private domain orders is second only to APP and mini programs, far exceeding third-party food delivery platforms. It can be said that Luckin Coffee was able to "regain new life" thanks to its strong expansion speed and deep private domain scale.

Below we will analyze how Luckin Coffee’s private domain operates.

The contents of this article are as follows:

1. Case Background
2. Traffic Matrix and Distribution
3. IP character dismantling
4. Community Operation Analysis
5. Disassembly of fission channels
6. Membership system breakdown

1. Case Background

1. Case Introduction

In 2017, Luckin Coffee opened its first coffee shop. In less than a year, it received multiple rounds of financing, its valuation quadrupled, and became a "unicorn" in the coffee industry. In 2019, it was successfully listed on the Nasdaq in the United States, setting a record for the fastest listing of a domestic company in 18 months.

After being exposed for fraud in April 2020, the company experienced a series of turmoil including delisting, lawsuits, management turmoil, and fines from regulators. Afterwards, Luckin Coffee clearly focused on the coffee market, strengthened the construction of three core departments: stores, products, and users, and successfully turned losses into profits. As of the end of 2021, the total number of Luckin Coffee stores reached 6,024. There are more than 1.8 million private domain users, contributing more than 35,000 direct orders every day . The overall user scale and revenue are steadily increasing.

2. Market size

The Chinese coffee market has entered a stage of rapid development. In 2021, the size of China's coffee market was approximately 381.7 billion yuan. The industry is expected to maintain a growth rate of 27.2%. In 2025, the size of China's coffee market will reach 1 trillion yuan.

3. User portrait

Users aged between 20 and 29 account for 50%, corporate white-collar users account for more than 60%, and users in Beijing, Shanghai and Guangzhou account for more than 30%.

2. Traffic Matrix and Distribution

1. Private Domain

Official Account : Luckin Coffee’s official account has over one million followers, and the number of headline readers is over 100,000. There are private domain traffic entrances in the menu bar and tweets of the official account. Specific path:

"Join group link" in the public account menu bar/tweet – add the welfare officer's corporate WeChat – the welfare officer invites you to join the group – enter the community.

2. Public domain

Offline stores: At the checkout counters of all Luckin Coffee stores, there will be QR code cards to guide customers into the group, and store staff will also guide customers to join the group by adding WeChat.

Xiaohongshu : Currently, it has more than 150,000 fans, and its main content is product introduction, welfare activities, and store introduction.

Bilibili: Currently has 12,000 fans, not many works, and the main content is advertising videos.

Video account: There is a link to corporate WeChat on the homepage, guiding users to add corporate WeChat and communities. The main content of the video is product introduction and situational drama. Live broadcasts will also be held every day, where coupons can be redeemed and paid membership cards "Freedom Cards" can be sold.

Douyin: Douyin currently has three official accounts. Each account features a different IP character. The main video content includes sitcoms, coffee knowledge, and product recommendations. The three accounts will start live broadcasts every day, mainly selling coffee products.

Weibo: Currently has 762,000 followers, with the main content being event draws, daily recommendations, and users' reposts, comments, and likes.

3. Analysis of the IP of the Character

1. Personal positioning

Positioning of group owner/operator : welfare officer (uniform cartoon avatar)

Nickname: Chief Welfare Officer Lucky

The account for private domain operations uses corporate WeChat, and each employee’s homepage is linked to the video account homepage, the mini-program order link, and the working hours are clearly stated. In addition, using a unified avatar and nickname is conducive to building a brand image and strengthening the user's mind.

2. Automatic welcome message

After adding "Chief Welfare Officer Lucky" through WeChat for Business, a welcome message will be automatically sent, and the community link and ordering mini program will be sent as soon as possible, and recent welfare activities will be informed , so that users can grasp all valuable information in a timely manner.

3. Moments content

The content of the Moments is mainly divided into three categories: new product introductions, discounts, and welfare activities. In addition, we will appropriately publish some life-related content, accompanied by heartfelt copywriting, to make the circle of friends less "advertising".

4. Community Operation Analysis

1. Community Positioning

Group name: composed of "brand + region + store name + community serial number", for example: Luckin Hangzhou Haichuang Technology Store Group 4

Positioning: Welfare group

Content format: text, pictures, mini programs, video accounts

2. Community Management

Welcome to the group:

@Users are welcome to join Ruixing Xingfu Lishe!

There are various drink coupons, flash sales and other rich activities here, remember to participate!

For users who join the group for the first time, [48% off drink coupon] will be automatically sent to the luckyncoffee account in about 5 minutes!

If you haven't received it, please click on the [Guide to Joining Ruixing Lishe Group] below to receive it!

I hope all the blue friends have fun in Lucky’s Coffee Planet!

PS: [Guide to joining Ruixing Lishe Club]

After users join the group, they will be sent community-exclusive coupons and informed of welfare activities and other information immediately, so that users can understand the value of the community at the first time.

Group announcement:

The group announcement will publish the method of collecting coupons within the group, and will also publish the corresponding group rules, so that users can understand the relevant group regulations and know that this group is managed by someone, and users have stronger sense of belonging.

Automatic reply:

A group robot has been activated in the group, and relevant automatic replies have been set up. Users can get answers to their questions as quickly as possible by sending @小助手, which improves the efficiency of communication between users and welfare officers.

3. Community Operation

Luckin Coffee’s community content mainly focuses on product recommendations, welfare distribution, and interactive gameplay .

Take the community sop of a certain day as an example:

8:30 a.m.: Publish breakfast-related copywriting with relevant breakfast products; 12:00 p.m.: Send out a 30-yuan coupon package for a limited-time flash sale;

1:30pm: Launch an interactive activity called "Questions and Answers with Prizes" with corresponding rewards;

3:00 p.m.: Sharing video content and recommending corresponding products;

5:00pm: Popularize coffee knowledge/content;

8:00 p.m.: Promotion of Luckin Coffee’s peripheral products;

The community is very busy every day, and the content will be adjusted accordingly based on the different levels of activity of each community, holidays and weekdays.

5. Disassembly of fission channels

Luckin Coffee has been able to maintain high growth in both user numbers and private domain scale, thanks to its fission model and the mining of private domain traffic. Luckin Coffee has set up fission entrances within its own private channels, and through welfare inducement, it continuously attracts new users to maintain the scale and vitality of the private domain.

Official account: There is a link in the menu bar of the official account that says "Invite friends to get 20 yuan". You can get rewards by inviting new users to register and place orders.

Mini Program: There is a welfare entrance in a prominent position on the homepage, and you can get rewards by inviting new users to register and place orders.

APP: Same as mini program, with the same rewards.

Employee corporate WeChat homepage: There is a "38% discount coupon" link on the employee corporate WeChat homepage. Invite friends to get a 38% discount drink coupon.

Community: Coupon information will be sent when users join the group. Users also need to invite friends to add the employee WeChat account to get a 38% discount coupon.

6. Membership System Analysis

Currently, Luckin Coffee has a membership system in its Taobao store and mini-program/app. There is a difference between the two. There is no paid membership card in Taobao, but there is a points system; there is no points system in the mini-program/app, but there is a paid membership card.

1. Mini Program/app membership system

There are 6 membership levels in the mini program/app. The points are named "little blue beans". The number of little blue beans obtained in the mini program is the actual payment amount * 10, and the number of little blue beans obtained in the app is the actual payment amount * 20, which means that orders placed in the app will get double points for the mini program . In addition, the membership is valid for 90 days and there is a relegation mechanism.

The specific benefits of each level are as follows:

Paid membership card: There is a paid membership card "Freedom Card" in the mini program/app. The normal price is 15.9 yuan/month. If you choose to pay continuously on a monthly basis, it is 9.9 yuan/month.

Paid membership cards have three major privileges:

Privilege 1: You can enjoy the purchase of 1 designated drink at a special price of RMB 10.9; Privilege 2: You can enjoy the purchase of 8 designated drinks at a special price;

Privilege 3: Enjoy 55% off on some drinks;

2. Taobao membership system

Taobao members currently have no threshold to join. First-time members can receive a 3 yuan gift package and 3 yuan coupon benefits every month.

There are 5 levels of membership in total. Different levels can receive different benefits every month. The specific levels are as follows:

VIP1: Cumulative consumption of RMB 200 or more or more than 1 consumption VIP2: Cumulative consumption of RMB 500 or more or more than 5 consumptions

VIP3: Cumulative consumption amount reaches 1,250 yuan or cumulative consumption times reaches 10 times

VIP4: Cumulative consumption amount reaches 2,500 yuan or cumulative consumption times reaches 20 times

VIP5: Cumulative consumption amount reaches 5,000 yuan or cumulative consumption times reaches 40 times

Member points: Members can earn points through shopping and daily check-ins, and the points can be used to redeem good items.

VII. Summary

Here are some highlights and areas for improvement of Luckin Coffee’s private domain operations:

1. The community adopts the LBS approach : based on your geographical location, you can join the store community closest to you. This is more humane and also helps to increase the community’s repurchase rate.
2. The themes and times of daily push notifications within the community are relatively fixed , which helps to increase user stickiness. For example, breakfast coupons will be sent regularly at 8:30 in the morning to help users develop a habit.
3. The amount of content pushed by communities and employees every day is too much and too frequent , making it difficult for users to focus. Users can be managed in layers and the frequency of interruptions can be reduced for users who do not like to receive information.