How to acquire users and traffic?

Today, let’s discuss with you about user traffic acquisition. Before acquiring traffic, let’s think about these three questions:

1. Acquire users

One accurate user is better than 1,000 invalid users.

Ask yourself: Who am I going to sell my product to, what kind of group are they, what is their purchasing power, what is their working environment and what circle do they belong to? Age group, gender, marital status, and where are they most likely to appear?

Taking a cross-border e-commerce platform as an example, it collects user behavior data: such as the number of active users, page views, visit duration, browsing path, etc.; collects user preference data: such as login method, browsed content, comment content, interactive content, brand preference, etc.; collects user transaction data: such as average order value, return rate, churn rate, conversion rate and activation rate, etc.

Collecting these indicative data makes it easier to conduct targeted and purposeful operations on users, commonly known as labeling.

User profile:

We label their age, gender, marital status, position, income, and assets, and through scenario descriptions, we dig out user pain points and thus understand user motivations. Among them, 21 to 30 years old is taken as an age group, and the salary of 20K to 25K is taken as an income range. Data analysis is used to obtain data label results, which ultimately meet the target users, thus building a closed loop of user portraits.

2. Advantages Analysis

It has irreplaceable advantages over its peers, and its own weaknesses will not harm market development.

Having the advantages that others lack is the core competitiveness. In simple terms, it means being irreplaceable in products and markets. Try to avoid directly exposing your own shortcomings to become your competitors' expertise, and highlight the differences in homogeneous products. Uniqueness is the advantage.

The most commonly used strengths and weaknesses analysis is the SWOT analysis method, also known as the situation analysis method, which was proposed by American professor Werick in the 1980s and is used for corporate (product) strategic decision-making and competitor analysis.

In strategic planning, SWOT is a commonly used analysis method, S (Strength) competitive advantage, W (Weakness) competitive disadvantage, O (Opportunity) opportunity, T (Threats) threats.

Advantages and disadvantages are internal factors of the enterprise (product):

Affected by factors such as product quality, materials, personnel, machines, channels, and services.

Opportunities and threats are external factors of the enterprise (product):

Influenced by market, economy, society and policies.

Through SWOT analysis, we can find out the development advantages, disadvantages, opportunities and threats of the product. Only by better understanding ourselves, our competitors and the environment can we do it with ease.

3. Ways to survive

How to make yourself profitable is the key to long-term survival.

Whether an enterprise can develop over the long term depends on whether it has the ability to make long-term profits. This is not only related to the future development prospects and policy trends of the industry, but also requires analysis of market saturation and its own creative ability.

For operators, there is a very important key indicator - conversion rate/repurchase rate, which determines whether a user is a one-time consumer or multiple consumers, whether he or she can bring value to you, convert into a KOL/KOC, and become a precise lifelong loyal user.

From the perspective of financial analysis, operators also need to be familiar with these profit indicators:

(1) Net profit margin: Formula: Net profit margin = net profit/sales revenue*100%.

This indicator reflects the net profit brought by each dollar of sales revenue, indicating the profit level of sales revenue. While increasing sales revenue, companies must also obtain more net profit accordingly in order to keep the net sales margin unchanged or increase it. The net profit margin of sales can be broken down into indicators such as gross profit margin, sales tax rate, sales cost rate, and sales period expense rate.

(2) Gross profit margin: Formula: Gross profit margin = [(sales revenue - sales cost) / sales revenue] * 100%.

It means how much money can be used for various period expenses and generate profits after deducting sales costs from every dollar of sales revenue. The gross profit margin is the initial basis for a company's net profit margin. Without a sufficiently large gross profit margin, it is impossible to generate profits. Analyze sales gross profit margin regularly, and analyze the occurrence and ratio of the company's sales revenue and sales costs based on the data.

(3) Net profit margin (return on total assets): Formula: Net profit margin = net profit / [(total assets at the beginning of the period + total assets at the end of the period) / 2] * 100%.

Comparing the net profit of an enterprise over a certain period with its assets indicates the comprehensive utilization effect of the enterprise's assets. The higher the index is, the more efficient the asset utilization is, indicating that the company has achieved good results in increasing revenue and saving funds, otherwise the opposite is true. The factors that affect the net profit margin include: product price, unit product cost, product output and sales volume, and the amount of capital occupied.

(4) Return on net assets (return on equity): Formula: Return on net assets = net profit / [(total owners' equity at the beginning of the period + total owners' equity at the end of the period) / 2] * 100%.

Return on equity reflects the rate of return on investment of a company's owners' equity, also known as return on net worth or return on equity. It is highly comprehensive and is one of the most important financial ratios.

It is not easy for every operator to do a good job in operations. It is not just about working overtime, coming up with plans, revising copy, organizing activities, looking at data, and making reports. It is far more than that.

Without a systematic professional knowledge system to support it, it is difficult to achieve results; without profit-making thinking and marketing capabilities, all actions will be meaningless and ineffective.

Author: Coconut Purple

Source: Coconut Purple