Common and typical user growth flywheel model

Today we will share the growth flywheel models corresponding to several typical user stratification models.

User life cycle growth model

Based on the life cycle growth model, growth actions are divided into four directions:

1. Efficient customer acquisition, migrating potential and new users to mature users
2. Improve the life value of mature users, so that they buy more and buy at a higher price
3. Extend the user life cycle and prevent user loss
4. Recall dormant users and continuously expand our active user pool

Corresponding strategies are designed based on these four directions, so a company's growth department is often divided into teams in these four directions to be responsible for the growth of users throughout their entire life cycle. Although the strategies corresponding to different life cycles are different, the idea of ​​breaking down the design strategy is the same: determine the goal → formulate measurement indicators → analyze and break down users and scenarios → formulate operational strategies. The following figure shows an idea for designing a strategy to recall dormant users:

FAST Growth Model

It mainly corresponds to the growth flywheel of the AIPL user stratification model we introduced earlier.

The FAST model breaks down the two dimensions of sedimentation user pool and super user pool from the perspective of quantity + conversion rate:

F: Increase the total number of users that the brand can operate

A: Improve user conversion and consumption conversion in the public domain traffic pool

S: Increase the total number of super users of the brand

T: Increase the conversion rate of users to super users

The corresponding strategic measures are:

F: Increase the total number of brand-operable users

• Use GMV prediction algorithms to estimate the total gap in brand consumers and calculate marketing budget investment based on the gap
• Use multiple channels outside the site to attract new customers and expand brand consumer assets
• Guide brands to carry out product planning and market development, and expand consumers

A: User conversion and consumption conversion

• Multiple scenarios increase consumer activity. Promote the positive flow of crowd links
• Multi-channel crowd conversion precipitation, further screening out high-quality crowds
• Brand internal precipitation crowd segmentation, layered operation, differentiated marketing, promote consumer circulation and conversion

S: Total number of super users

• Set superuser definition
• Using clustering similarity algorithm to mine potential super user targets

T: Super User Conversion

• Event Operations
• Privileged Design
• Tiered operations for members/fans, optimized activation efficiency, and integration of public and private domains

GROW Growth Model

This is the e-commerce growth model proposed by Alibaba. It is mainly suitable for the growth model of relatively mature brand user forms. It may be more suitable for e-commerce formats, but it also has certain reference significance for brand retail. I would like to share it here.

G: gain penetration, consumers buy more categories

• G1 extends the target population to drive category penetration - core population, sinking market, segmented long-tail population
• G2 Cross-category/brand cross-penetration – identifying highly related categories and conducting joint marketing;
• G3 multi-channel linkage penetration - all channels guide each other, all channels reach penetration
• G4 trend new products accelerate penetration

R: retain repurchase rate, consumers buy more frequently

• R1 category consumption life cycle is extended to prevent loss
• R2 Category consumption scenario expansion - exploring segmented scenario needs and cultivating new consumption habits to increase repurchase frequency
• R3 Triggering high-frequency repurchases - matching high-repurchase groups with high-repurchase products, combined with marketing methods, to stimulate repurchase
• R4 Reawakening and recalling old customers - strengthening communication with consumers and increasing purchase frequency and quantity
• R5 membership deepens, accelerates repurchase
• R6 membership category migration to prevent loss of members
• R7 consumer experience and service upgrade

O: boost price power, consumer purchase price

• O1 Old customers’ repurchase upgrade——Repurchase upgrade of old customers with low average order value, and increase of high-value old customers’ average order value
• O2 product packaging upgrade - leverage price upgrade through packaging upgrade
• O3 achieves premium based on emotional appeal
• O4 Product function/attribute upgrade
• O5 New product supply for high net worth target groups

W: Widen extension, the brand provides other related products outside the existing categories

• W1 Industry trend analysis to identify new category opportunities
• W2 helps develop new categories by identifying the needs of the population
• W3 product value chain derivatives to discover new categories
• W4 omni-channel insights help new product development

The growth model provides us with a thinking framework for user growth ; when it comes to specific strategies, there are different designs under different brands.

Author: Houlang New Retail Marketing

Source: Houlang New Retail Marketing