How to attract new customers?

This article mainly focuses on how to achieve growth within the product, and has little to do with investment and attracting new customers.

It is impossible for me to write a perfect system, but I will keep updating it later~

1. Definition of Growth

Growth is a big word. It’s not just about attracting new users, but about being responsible for the entire life cycle of users.

• Increase, increase the number of users, focus on the efficiency of user acquisition, and pursue the optimization of ROI.
• Long, the growth of user value, pay attention to user activation, retention, activity, churn warning and recall, and pursue maximization of total life cycle value.

By investing resources, we can acquire the highest quality and largest number of users at the lowest cost.

• The key to growth is how much money you spend and how much you get done (ROI).
• There is no standard answer to growth. What is honey to one may be poison to another. The strategy depends on the product and stage.
• Good growth points to the ability to trade sustainably, but also to the ability to survive in the present, that is, to pursue a balance between long-term and short-term value.

2. Growth Model

ROI=revenue/cost, revenue = the value of a single user behavior calculated based on the total lifetime value of the user, for example, the UV value of a certain behavior is 0.8 yuan.

Cost = the cost to guide users to complete this behavior. Cost tips: some users have high costs, some have low costs, and the total cost can be balanced. For example, pdd red envelopes are part coupons and part cash.

3. Growth based on the main chain process

1. User acquisition

The goal of this stage is to increase user reach as much as possible. This can be done in conjunction with the marketing department or with user recommendations in point 5. Another approach is to look for blue ocean channels.

For example, in combination with the market, it means optimizing advertising delivery strategies, quickly using BD to acquire more channel resources, etc. The feature is that it can quickly increase the volume, but the disadvantage is that it requires continuous and rapid investment, and the uncertainty is relatively high.

For example, combined with user recommendations, it is a series of product-based growth methods (main chain and non-main chain), through a continuous and continuous flow of old customers bringing in new ones. Its characteristics are that it can increase the volume steadily and stably, and can continuously optimize ROI with high certainty . Its disadvantage is that it is difficult to increase the volume quickly.

Of course, there is also a blue ocean strategy, which in plain words is to look for various unconventional ways. These unconventional ways have extremely high ROIs, but their disadvantages are that they are difficult to sustain and require costs to find and experiment with. For example, the bar barrage channel bonus [Brain Hi], and the WeChat coupons I wrote below, are generally innovative projects.

2. User activation (new customer conversion)

The significance of this step is to convert the users reached in the first step. A common strategy is to provide benefits to users who currently have needs to stimulate orders, provide subsidies + guide users to complete core behaviors (Aha moments), and increase memory points for users who currently have no needs.

When it comes to distributing benefits, the key is to accurately stratify users based on algorithm data, increase the perceived value of distributing benefits (such as gift packages for new customers) at the lowest cost, and thus stimulate users to place orders. Keywords: user segmentation, value perception, ROI calculation.

To guide users to place orders, you can refer to the mechanism of games, allowing users to stimulate and guide them to complete core behaviors just like playing games (single main goal, random benefits, low-cost operations, and behavioral feedback). Keywords: game mechanics

To add memory points for users who have no demand at the moment, you can give users operational requirements for memory behavior when reaching them. For example:

• When users are helping, they are asked to input: Orange Heart Optimization (fill in the blanks);
• When assisting, this page is used as an advertisement for product promotion;
• Tell users how to find us, etc. (Refer to PDD, the first step of each growth function is to tell you where the activity entrance is).

3. User retention (product value)

This is a product design issue. What is the core value of the product? What needs of which users in which scenarios does it meet? Whether it can be satisfied repeatedly, etc., is generally the responsibility of the business line, so we will not discuss it here.

4. User conversion (commercialization or repurchase)

This is for non-transactional products. For transactional products, the purpose here is to promote user repurchase. Generally, growth is achieved through membership and business line strategies. This is the same as 4 above. It is a product design issue or membership system design issue, so we will not discuss it here.

5. User Recommendations

This part can generally be about implementing strategies to guide users to share with friends, invite friends to help or show off after they complete the core behavior (after placing an order).

Common tactics include bargaining, providing support, trying your luck for red envelopes, pushing other activities or growth features, etc.

The core of this is not the innovation of the model, but to play a single model to the extreme. The competition is about whose mechanism and process can better grasp the user psychology and improve the ROI of a single growth activity (for example, Ctrip’s train ticket function relies on ticket grabbing to accelerate a function, which helps the page UV reach hundreds of millions during peak hours). The one who is doing the best right now is PDD.

6. Loss warning

The cost of retaining an old user is far less than the cost of acquiring a new user.

At this time, it is necessary to quantify user behavior and formulate rules for determining churn. When the rules are triggered, various means should be used to retain users. Retention can be based on interests, emotions, or of course, understanding the user's psychology (for example, when encountering certain bugs) to try to optimize.

The core lies in the formulation of rules and the establishment of an automated recall platform.

7. User recall

A common tactic is to recall gift packs.

Label lost users and trigger a recall mechanism when encountering lost users through existing user contact channels.

My current contact in this area is just the recall gift pack, and I will continue to update if there are any subsequent iterations.

4. Growth based on non-main chain processes

1. Take over the traffic in cities where no stations have been opened and preheat in advance

For example, to add a button: it is recommended to activate Orange Heart Preferred. Then guide users to follow the service account, authorize template messages, and obtain user information from the social database. On the one hand, it accumulates user information, and on the other hand, it accumulates contact channels. The three can also be used as reference indicators for opening a website.

2. WeChat Cards and Coupons

As long as users pay through WeChat, they can set up WeChat to automatically issue membership cards to users. This membership can actually configure itself as an activity center. This activity center can connect the membership center and growth activities to encourage user repurchases, or drive traffic to growth activities, thereby driving user growth .

Please refer to the official WeChat document: https://developers.weixin.qq.com/doc/offiaccount/Cards_and_Offer/Membership_Cards/introduction.html

I am still in the exploratory stage of this function.

3. Growth Function Or Activity

For example, big promotional activities, and various common growth functions on the market are decoupled from the business. .

4. Growth based on membership system

For example:

• Membership experience card, you can get it by inviting friends to help.
• Take out some membership rights and interests as welfare fission.
• Introducing third-party interests to grow. In this regard, my attempt at Ctrip was to create a student travel card, and then based on the student travel card, I added various benefits (third-party brands, free highway ticket grabbing, lucky draws, student invitation rebates) to implement a growth strategy.

5. How to formulate a growth strategy

1. Understand the product

(1) Understand product features

（2）Understanding the target users

（3）Understand the stage the team is in

• Business-based growth
• Platform-based growth
• Growth platform empowers business

(4) The main starting point for solving the problem

(5) Six growth models

https://www.notion.so/dbba8c2db3324ceda240986f7159689e

Understand the highest priority needs today: North Star Metrics

2. Disassemble indicators and find strategic solutions

List the process of users achieving the North Star indicator by using the product step by step, that is, draw the "user journey".

Then, find a corresponding indicator for each step of the "user journey", substitute each indicator into the formula, and continue to decompose each indicator until it cannot be decomposed.

Analyze the disassembly results, propose response strategies, and prioritize the strategies.

(1) Strategy Source

• Competitive product analysis
• Data Analysis: Funnel Model
• Brainstorm
• Vertical analysis: vertically analyze functions or product upstream and downstream to find new growth points

3. Experimental verification strategy

Select high-priority strategies for A/B experiment verification.

During the experiment, data under the same conditions will be compared between the experimental group and the control group, and will also be compared with previous operating data to make a two-phase judgment on the feasibility of the growth method.

Finally, the experimental conclusion was drawn.

4. Experimental follow-up

If the strategy experiment is effective, more resources will be invested through technology, algorithms and other means to expand the strategy effect.

If the experimental results are not ideal, you need to find out the reasons, where the problem occurred, and how to optimize it in the future.

Author: Tang Yihang

Source: Tang Yihang