E-commerce private domain traffic diversion guide!

What exactly is private domain? The author of this article summarized his understanding of private domain in one sentence, namely - having more users with long-term trust relationships! At the same time, the purpose and core value of private domain are analyzed, and it is recommended to those who want to create a truly valuable private domain.

01

I have been chatting with quite a few e-commerce bosses recently and discovered a particularly interesting phenomenon, that is, their methods of conducting private domain traffic are surprisingly consistent.

On the basis of the original business, a card is put in the package with the words: Add WeChat and receive a cash red envelope of 2-10 yuan.

They think that by offering benefits, they can quickly attract as many users as possible . So they all told me that we have private domain users, but it’s strange that they are not active at all and there are no conversions. Then come and ask me what to do?

In a situation like this, it is obvious that the boss only regards the private domain as a place to continuously post advertisements and gain brand exposure. Of course, he hopes that there will be as many users as possible in the private domain pool, and even use the number of users as the only evaluation indicator.

So the colleagues below tried every possible means to add people crazily, without screening or restricting those who entered the private traffic pool.

Such an approach will most likely eventually run into a series of problems: low user activity, indifference to any interaction, there is traffic but it seems to be non-existent, and the expected sales conversion is completely unattainable.

Soon after, the team lost all confidence and could not continue. In the end, not only did they waste financial and human resources, but they also hurt some users.

Seeing this, I think you understand. These e-commerce companies actually made mistakes when it came to attracting traffic to private domains. The private domains they created can only be fake private domains and have little value.

So in the next three articles, I will talk to you about the issue of private domain traffic diversion in e-commerce . Help all e-commerce partners to accumulate truly valuable private domain users and allow them to continuously generate purchasing power in the private domain.

Regarding private domain traffic diversion, you need to understand three things at the core:

1. Private domain, what kind of users do you really need?
2. How to get these users to voluntarily enter your private domain
3. Where can we tell your users that they have to enter our private domain?

Let’s share the first part today: Think clearly about what kind of users you really need?

02

I forgot which big shot once shared: the best business is repeat purchase, and the best management is dividing the money!

The best data indicator in a business is repeat purchases. Then the greatest value of private domain is undoubtedly to increase repeat purchases!

You see, the essence of business is a math game, a process of continuously making your LTV greater than CAC. LTV (life time value) is how much money your user can spend on you in his lifetime; and CAC (Customer Acquisition Cost) is the cost you need to acquire this user. LTV minus CAC is the gross profit you earn.

Then, the private domain is the process of continuously improving LTV. Because in the private domain, you only pay the cost of acquiring users once, but through the private domain, your LTV can be continuously improved. This is the core value of private domain!

Having said that, I would like to elaborate on what private domain is.

The main reason is that too many people do not clearly understand what private domain is, and they blindly carry out so-called private domain operations.

If there are only users in your WeChat or corporate WeChat, does that mean it is a private domain?

In last year’s annual speech, Mr. Liu Run explained private domain in this way:

Private domain refers to those users that you directly own, can be repeated, and can be reached at low cost or even for free.

Then he talked about the three core elements:

The first element is: ownership.

First of all, this well is yours. You don't have to pay for using this well, and you can even charge others for using it.

The second element is: repetition.

A synonym for repeatable is active. After the guests finish their meal and leave, you say welcome to come again. But you don't really know whether he will come again. If he doesn't come to find you, you can't find him, which is very passive.

The third element is: free.

Digging wells only makes sense if water is free. The lower the cost per reach, the better.

Reach that is directly owned by you and is repeatable, low-cost or even free. Is this the underlying logic of private domain?

What Teacher Liu Run said is of course correct. But I think that this level of understanding of private domain is still a bit superficial.

Think about it carefully, if these three elements are met, is the private domain really your private domain?

Then I want to ask: What if these users will not pay for you at all? They just come here because of your prizes and your little benefits. From now on, I won’t read or respond to any messages you send me, but I won’t delete you either. Do you think such a private domain is valuable? Is it valuable to your business?

Therefore, we must not confuse the means and purpose of doing private domain. The purpose of private domain is to increase LTV. Adding people to your private domain pool and generating traffic are just your means.

So my understanding of private domain can be summed up in one sentence - the essence is: having more users with long-term trust relationships!

The private domain composed of such a user pool is a valuable private domain. Only in this way can we realize commercial realization, otherwise it would be charity, and business has never been charity.

03

Now that you understand the nature and core value of the private domain, it is crucial to prioritize what kind of users to add to the private domain pool when diverting traffic to the private domain.

We only need to remember one sentence: give priority to high-value users entering your private domain.

Normally, user value is ranked from low to high like this:

1. Potential Users
2. Users who have purchased once
3. Repeat purchase users
4. Repeat purchase users
5. Member User

The purpose of all companies in generating private domain traffic is to achieve profit growth by increasing the frequency of user repurchases.

Therefore, of course , priority should be given to those users who have a clear intention to repurchase, and priority should be given to serving those users with higher value and greater consumption potential . This is the most effective investment.

Of course, the number of users that a company can reach varies at different stages of development, so the users it wants to attract are also different.

For example, for a mature business, the traffic itself is relatively huge, so it is necessary to give priority to finding users with a high repurchase frequency.

If it is a new business that has just started and has a small number of users, then of course you cannot miss out on new users. It is also necessary to build a potential user pool.

The essence of private domain traffic is: whoever has the higher value and spends more money on you should be given priority by the company. This is the simplest business rule.

The so-called refined operation of private domain is nothing more than:

• Let high-value users continue to generate value
• Turn low-value users into high-value users
• Let users who originally had no value generate a little value

Different operation strategies should be implemented among users in different cycles.

Remember these three sentences:

The best business is repeat purchase!

The value of private domain is to increase repeat purchases!

The essence of private domain is users with more long-term and loyal customer relationships!

Author: Growth Head Horse

Source: Growth Leader (ID: swimming54)