Derivation and thinking of user operation system

A system is a whole composed of similar things within a certain range that are connected and combined in an orderly manner. The user operation system is a combination of user needs and enterprise needs, and is a solution for both parties.

The purpose of planning a user operation system is to clarify the business operation model and prepare capacity reserves in advance to facilitate subsequent product planning.

When thinking about system planning recently, I also tried to summarize a logical and more general approach.

This article will take Internet insurance as an example and explain the derivation thinking process from four aspects: designing operation model, drawing core path, demand analysis and disassembly, and sorting out operation boundaries.

01 Design operating model

The operation model is derived from product goals and user behavior, which can help us evaluate the priority of product goals and conduct operations and product planning accordingly.

1. Model selection

The operation model is the starting point of the user operation system. It has a wide audience and covers most business departments of the enterprise. The model should be as general and simple as possible to reduce the cost of understanding.

Secondly, the subdivided operational dimensions must be abstracted, and the refinement can be further broken down during execution.

There are many reference models for selection, such as: industry life cycle, growth model AARRR, user journey UJM, etc. However, it must be adjusted according to actual conditions when using it.

2. Model Adjustment

The adjustment of the model comes from the fact that the reference model is often too abstract or segmented and may not directly match its own product goals.

For model selection, I adopted the AARRR model. The life cycle is too abstract and requires extra effort to define and explain.

Regarding "activity", insurance is essentially a low-frequency, non-essential product. In actual operations, it pursues the number of active people rather than the duration of activity. Therefore, “Active” was deleted and the number of active users was incorporated into “Retention”.

However, the sharing behavior of users who purchase insurance is relatively weak, and most of the purchases are made by one person to purchase insurance for the whole family. The sharing behavior does not match the user behavior very well, and it is not the core goal of the product, so "sharing" has been deleted.

Insurance products have high customer acquisition costs, so preventing user churn and encouraging users to repurchase and renew their policies is crucial, which also adds to the "churn" link.

02 Draw the core path

The operating model is the embodiment of product goals, and the core path is the key behavior for users to achieve their goals, which should be highly consistent with the designed operating model. We should make the core path flow with greater flow and less loss, and vice versa for abnormal paths. Based on the core path, we can also answer the following questions:

• What is the actual behavior of users?
• Where is the offset from the core path? At which link did the loss occur?
• What is the actual trend after the loss?
• Is there a chance to regain traffic?

These issues may become the focus of operations, commonly known as "growth".

03 Demand Analysis and Disassembly

The reason why users use products is to be able to exchange value with them. If we want users to achieve product goals, we must answer what we can provide to users? What do users need?

The "demand" in this section is divided into product indicators and user needs. The former is a quantitative breakdown of product goals, and the latter is the key factor in improving the former.

1. Product indicators

The above figure shows the product indicators broken down into different operation stages based on the core path. It is meaningless to break down the indicators without considering these two.

The indicator classification method is used during the decomposition, and classification is carried out from top to bottom based on the company's strategic goals, the division of labor in the organizational structure, and the actual business execution level. It fits very well with the derivation of the operating model.

Indicators at the enterprise strategic level are used to measure the achievement of the enterprise's overall goals and are oriented towards decision-making. Business strategy indicators are the methods of achieving corporate goals by setting operational strategies based on improving corporate indicators after the indicators are split into subordinate business departments. The business execution layer belongs to the completion process of the business strategy layer and is used to guide the execution process of the business.

Taking the total transaction amount as an example, the disassembly process is as follows:

Combining the first order and repeat purchase of the core path, the total transaction amount is broken down into the first transaction amount and repeat purchase transaction amount.

Among them, repurchase includes the generation of non-renewal policies and the renewal and premium renewal of the original policies. The generation of non-renewal policies is set in the conversion link, and the improvement of renewal and premium renewal rates mainly depends on reducing losses and is placed in the loss link.

The untransacted users are broken down into new users and existing users, corresponding to the new stage and retention stage respectively.

In the above figure, the indicators of the business execution layer are further subdivided in practice, which will be described below.

2. User needs

The user needs in this section are generated by users during the core path process, and they are the key elements for improving product indicators.

The core path is the behavior that the product wants users to complete, and the user path is the actual behavior that users take.

When user behavior deviates from the core path, it means that the product cannot meet user needs, or the way of meeting the needs is wrong. If the deviation is too much, you need to be alert to whether there is an error in the product positioning and target group.

The description in the above picture is mainly positive thinking. If it is difficult to get started, you might as well think about the reasons for each breakpoint of the user in reverse.

3. Solution

Based on the operating model and core path, we analyzed and broke down product indicators and user needs, and the last step was to propose solutions.

The same solution combined with different operating departments will produce a variety of solutions.

04 Sorting out operational boundaries

With the operation stages, core paths, corresponding core indicators and solutions, the next step is to sort out the operation boundaries, which is used to answer who will solve different problems at different stages.

1. Operational boundaries

As early as 1769, the British had implemented the division of labor in factories. The purpose of division of labor and boundaries was to make efficient use of operating resources.

Utilization refers to whether operating resources are idle or conflicting, whether user flow is reasonable, and whether there is traffic loss. A common misunderstanding when sorting out boundaries is to only divide the work content but ignore the allocation of indicators and the flow of business.

2. Operational Method

Section 03 presents product indicators, user needs and solutions, while Section 04 explains who is responsible for the indicators and what the respective solutions are.

In the new stage of operation, the advertising department mainly uses delivery methods, while content operation is to establish a matrix of self-media to divert traffic, such as: short videos, knowledge communities, grass-planting communities, etc. During the retention stage, almost every operations team needs to make an effort.

For event operations, high-frequency activities should be designed to increase the frequency of visits. Product operation distributes traffic based on the policy life cycle and core paths. The insurance recommendations mentioned in the conversion stage are user education for community operations, personalized recommendations for product operations, and service conversion for after-sales departments.

3. Segmentation indicators

The above chart shows the product indicators that business departments may match based on their boundaries and operating methods.

When matching, you must pay attention to your own business model. For example, in terms of conversion, content and community operations are more long-term and focus on improving the average number of items. The operation of activities is more short-term and focuses on the conversion rate of the first order.

However, detailed indicators are generally not reflected in the operation system, but tend to be more focused on the planning of the business itself. When segmenting indicators, it is recommended to use the OSM model.

O refers to the operational goal, S refers to the operational strategy to improve the goal, and M is the metric to measure the quality of the strategy. When setting goals, qualitative descriptions need to be converted into quantitative indicators.

Taking the renewal indicator as an example, since the renewal time is a long time away from the insurance purchase time, we need to remind users to renew their insurance.

The first step is to assess the recall success rate. If the success rate is low, it is necessary to consider adding other recall channels.

The second stage of visit conversion strategy is personalized copywriting and interest stimulation, and the message click-through rate is used to evaluate the quality of personalized copywriting and the driving effect of interests.

The third stage uses the payment click rate to assess the rationality of the interaction and the convenience of payment, and uses the payment rate to assess the overall conversion situation.

Based on this method and combined with the operational capabilities of your own business, come up with your own solutions. (After all, every department looks at ROI.

05 Global view of the system

Finally, by combining the results derived from the above four steps, a simple operation system diagram can be output.

06 Conclusion

The starting point for writing this article came from accidentally reading the UJM user journey map. At that time, I was thinking whether the user operation system could be substituted into this model.

But I found myself stuck in a deep pit. The topic was too big to focus on. After writing for a long time, I only achieved basic logical consistency. I would like to throw out some ideas here and hope to discuss and exchange ideas with friends.

Author: Wise Wong

Source: Becomewiser (becomewiser)