How to implement a product from 0 to 1 and increase user growth?

The goal of this series is to help product novices get started with product implementation from 0-1-N by just reading this series of articles.

This article uses a project that I have done as an example to briefly describe the implementation method and process from 0-1-N.

Contents of this article:

• A brief description of the product landing process from 0 to 1
• From 1 to N: Breaking down GMV targets to increase sales
• From 1 to N: User stratification operations to increase sales

1. From 0 to 1

Project description: Brand inventory e-commerce special sale platform; based on social marketing, to meet consumers' demand for brand, quality and low price

Project Background:

• The company has more brands, and using WeChat Moments as the main channel for broadcasting products has limited the number of activities that can be broadcast every day;
• The order volume increased, users were pushing for orders, and customer service was not responding in time, which affected the user experience.
• The number of people doing reconciliation increased, and manual reconciliation was slow and prone to errors, which also affected the display of goods and the delivery cycle; 4
• If the products of an event are not sold out, you have to post them on WeChat Moments again for the next event, which is very inefficient.

Target:

• The short-term goal is to improve the efficiency of transaction flow;
• The long-term goal is to differentiate by firmly safeguarding the interests of the small B population and increase the market share of the company's business in the inventory e-commerce industry; establish a data system to promote accurate matching of inventory goods and user preferences and promote efficient circulation of inventory goods.

action:

The first step is the market analysis stage: output industry market share and growth trends, output the lean canvas of industry players, find the direction of differentiation, and plan the development direction of product differentiation based on the company's existing resources.

The second step is the MVP development phase: produce multiple demo tests, produce PRD after confirming the demo, arrange R&D review schedule (require R&D to feedback the requirements), produce Gantt chart, follow up on R&D progress and control the quality of requirements.

The third step is to launch MVP:

• Get seed users, and determine which channel the target user group may be in based on user population characteristics; prepare promotional content, prepare a quick and explosive one-picture flow (including copywriting design and conversion path design), and iterate promotional content based on data feedback;
• Collect data on seed users’ behavior in the product, giving priority to data that can reflect business conditions, such as new users’ next-day retention, 7-time retention, etc., and iterate based on user behavior data needs;
• Due to financing needs and brand negotiation requirements, we developed a method to implement the GMV growth target of 20 million.

score:

The key indicator of GMV 20 million was achieved 4 months after going online.

2. From 1 to N

1. Breakdown of GMV target indicators

Break down the target indicators of GMV and the ideas of breaking down a certain indicator into something that can be directly implemented:

GMV = total number of users × payment rate × ARPU value (average order value)

From the above formula, we can see that GMV can be increased by increasing the total number of users, or the payment conversion rate, or the ARPU value, or by increasing all three dimensions.

How to increase the total number of users?

• First-level analysis: New users = new website visitor traffic × average site user conversion rate;
• Second level analysis: The composition of new website visitor traffic = second-hand market transaction shop owners + sales staff community + Douban group + Zhihu + Weibo + others;
• Level 3 analysis: Douban group traffic = group basic user volume × promotion content display rate × promotion content conversion rate.

How to improve conversion rate? Process streamlining and AB testing:

• The first step is to sort out the processes that users need to go through to achieve the conversion goal;
• The second step is to design strategies to maximize the conversion rate of each step based on user scenarios;
• The strategy designed in the third step requires preparing plan A and plan B, observing which plan A and plan B has a higher conversion rate, and continuously iterating the strategy.

The following figure is an example of some of the strategies I used in the project for your reference:

How to improve ARPU value?

• Step 1: Increase the listing and scheduling of high-value brand activities;
• Step 2: Sales volume of high-value brand activities = APP basic traffic × APP high-value brand activity forwarding rate × activity product purchase conversion rate.

2. User stratification strategy operation

• Select the RFM hierarchical model applicable to the inventory e-commerce industry. The key behaviors that can measure user value in the product include the number of login days, number of forwarding activities, and total consumption of users in a 15-day cycle;
• Arrange R&D to compile reports and statistics on these three dimensions;
• After getting the report data (using Excel to clean the data and using the IF function to calculate the corresponding RFM value), define the interval value and median value of RFM (i.e. the evaluation model);
• Data processing: converting the user’s raw data in these three dimensions into the language of the evaluation model;
• After stratifying users by referring to the evaluation model and the median, we formulate operation strategies for users at different levels, promote implementation, and continue to pay attention to whether the indicators have improved, and constantly explore iterative strategies.

Below are some examples of strategies I used in my projects for your reference:

• Important value users (R high, F high, M high), strategy: increase the number of scheduled activities that this type of users like; increase the cash back for this type of users; give this type of users free coupons, give users some surprises to maintain a good relationship with users.
• Important development users (low R, low F, high M), strategy: increase the awakening of such users (sending text messages, message notifications, community activity messages, etc.); send forwarding activity rewards (forward 5 activities every day and receive a 10% discount coupon on the entire order).
• Potential users (R high, F high, M low), strategy: develop courses for the purchasing agent training program to cultivate purchasing agents who want to make money but lack the ability; add activity recommendations and best-selling product recommendations to help such users choose products.
• New users (low R, low F, low M), strategy: plan benchmark cases (how much money a user made on the platform, and the products received a lot of positive reviews from C-end users); add a large number of popular and low-priced products to convert new users.

Author: SiegZhong

Source: SiegZhong