Pinduoduo operation: 1 yuan purchase for new customers + cashback for group purchase

Pinduoduo, a magical e-commerce platform, was once used by 300 million people and laughed at by 1 billion people. Today, it is a listed company with a market value of more than 130 billion US dollars.

Pinduoduo has now become the third largest e-commerce platform in China, alongside Taobao and JD.com.

Pinduoduo is such a magical software. You may not have used it, but you must have been dominated by it in your WeChat groups and Moments.

"If you are a brother, come and chop me up", "Your ex may not contact you to get back together, but just to ask you to chop him up", each of these popular jokes seem to indirectly confirm the popularity of Pinduoduo.

It is undeniable that Pinduoduo is successful, and there are many reasons behind its success.

I am not a business genius, so I won’t talk too much about business matters. Let's analyze Pinduoduo's activity cases to get a glimpse of the big picture...

1. Case Introduction

Activity case: [Pinduoduo] Newcomer 1 yuan purchase activity

Activity purpose: attract new users, retain users, and convert users

Activity Rules:

2. Activity Disassembly

Event gimmick: Newcomer benefits – surprise gift pack for newcomers

Activity benefits: 1 yuan for all purchases

How to play: Nine-grid lucky draw

Activity content: For users who use Pinduoduo for the first time, a new user welfare poster will pop up on the homepage when they open the Pinduoduo APP. The entire page design is very simple and clear.

When we click on it, the page will jump to a nine-square turntable lottery for a surprise gift package for new members.

I, Pi, asked a dozen friends to help with the test, and found that all the lottery results were "1 yuan purchase".

So I am more inclined to think that the design of the nine-square grid lottery is more to increase the fun of the event. The final results were almost all set to "1 yuan purchase" (of course, this may also be caused by the fact that I did not collect enough data when doing the test, but this is not important).

Activity Path Analysis:

3. Activity Analysis

Event Highlights:

1. Low prices to attract users

For users who are entering Pinduoduo for the first time, purchasing for 1 yuan is indeed very attractive. Moreover, most of the goods purchased for 1 yuan are daily necessities. This is consistent with Pinduoduo's target audience. It is very easy for users to find what they need among these products.

2. Nine-square lucky draw

Users receive the 1 yuan purchase not as a gift but through a nine-square grid lottery.

Although this step seems redundant, it adds an extra link in the user path. However, the lottery process also takes advantage of the user's gaming psychology, allowing users to experience the joy of winning a prize and enhancing their sense of participation.

3. Set up a limited time purchase for the event

While providing huge benefits, a 15-minute limited-time shopping period is set to give users a sense of tension. The eye-catching logo and the countdown time setting effectively utilize the user's impulse, thereby promoting the conversion of new users.

4. 1 yuan purchase still needs to be completed in a group

At the beginning, Pi Ye thought that the 1 yuan purchase meant that new users spent 1 yuan to buy goods, but after placing the order, he found that Pinduoduo was still the same Pinduoduo, and the group buying form had been deeply rooted in its bones, and this activity was no exception.

When we select a product, pay and place an order, an interface for inviting friends to group order will appear.

In other words, 1 yuan purchase does not really mean spending 1 yuan to buy a product. Instead, the newcomer acts as the group leader and initiates a group buying activity.

When a newcomer selects a satisfactory product, places an order and successfully pays, he or she becomes a sharer. In order to realize the expectation of shopping for 1 yuan, people will unconsciously share this activity.

Pi Ye conducted several tests, and there was no active sharing each time. However, the result was always a prompt indicating that the group purchase was successful within 10 minutes. I don’t know if those who joined the group also only spent 1 yuan. But the advantage of such a design is that it not only allows users to truly feel the discount, but also allows them to fully experience Pinduoduo's purchasing method while completing the transaction.

We all know that on Pinduoduo's product details page, the prices of individual purchases and group purchases are usually put together. The purpose is to allow users to have a strong comparison. With price discounts, most people will be moved to forward the product.

Pi Ye discovered that in this activity, users can directly jump to group purchasing, which means that the entire path is simplified. If the user directly clicks on the 1 Yuan Purchase button, he will be directed to the payment interface, and there will be no prompt to initiate a group purchase on the payment interface.

To put it bluntly, users will not realize before placing an order that your behavior is to initiate a group purchase rather than a direct purchase.

The biggest advantage of doing this is that it allows users to passively become sharers. Users' tolerance for sharing is different before and after payment.

5. After the group purchase is successful, cash back will be given to new users

When a new user completes their first order, a cashback red envelope window will pop up on the page.

When we click in, we will be told that there will be a random cashback amount for each completed order, and this amount can be withdrawn directly as long as it reaches 20 yuan. There will also be a reminder that this amount will expire after 30 days.

This kind of cash back activity is a common practice used by many e-commerce platforms today, and can very effectively improve user retention and repurchase.

IV. Conclusion

We all know that an event will be planned accordingly according to different purposes.

Often, the purpose of an activity does not have just one indicator, so the usual practice is to first break down the activity goals and then sort the goals. According to the principle of priority, plan related activities. For example, if you want to attract fans, do fission; if you want conversion, create content, etc.

Therefore, it is very difficult for an event to achieve multiple goals at the same time. However, after we disassembled this Pinduoduo event, we found that the entire chain from attracting new users, retention to final conversion and even fission has been opened up, forming a closed loop.

The simple 1 yuan purchase + group purchase cashback allows new users to seamlessly connect and even fully experience Pinduoduo's unique shopping method and the shopping pleasure that is different from Taobao and JD.com.

An excellent event must have many things worth learning from! As for Pinduoduo’s 1-yuan purchase activity for new members, Pi Ye believes that the most worthy thing for us to learn is the choice of activity gameplay.

There are many ways to play the activities, including group buying, bargaining, support, lucky draw, challenge, etc.

Many operations personnel, when planning an event, do not actually think too much about how the event will be played. But in fact, the form of activity gameplay is very important. The reason why Pinduoduo chose the 1 yuan purchase + group purchase cashback method is because this combination fully meets the attributes of the target users of the Pinduoduo platform.

Pinduoduo's main user groups are mostly concentrated in the sinking market, and the population classification is mostly: housewives, young people who have just started working, etc. This group of people are either price-sensitive or students. As long as they can find cheap goods, they will spend more time and share more.

Precisely because the gameplay is in line with the user attributes of the platform, multiple goals can be achieved simultaneously through one activity. Therefore, any event operator should pay attention to the choice of event gameplay. You can't just use whatever is popular. You still have to decide the most suitable way of playing according to your own situation.

Author: Pi Ye Operation

Source: Pai Ye Operation (pyyunying)