The latest version of Pinduoduo's money-saving monthly card includes 6 privileges: daily coupons, subsidy privileges, free order privileges, large coupons, free trials and worry-free after-sales service. The six privileges conform to the five to six quantity principle of the pyramid principle, which is easy for users to perceive and remember.

A typical purchasing decision is divided into: attracting attention - inducing interest - stimulating desire - leading to purchase; the corresponding online shopping behavior of an average individual is: generating purchasing needs - looking up, searching or recommending - evaluating options (value trade-off) - paying for the purchase.

If more is added, it will include express delivery and after-sales service.

Corresponding to user purchasing behavior and decision-making path, from an operational perspective, the main purpose of the current mainstream paid membership (monthly card) is to lower the user decision threshold for conversion, increase activity and retention; taking the monthly card as an example, it also follows these purposes.

The monthly card privileges are mainly focused on conversion, retention and activation, covering the entire purchase decision-making process, focusing on the evaluation and selection stage, and also including after-sales (worry-free after-sales).

1. Daily God Ticket

• Privilege introduction: You can get a coupon code every day for 6 days a week. The coupon codes are divided into 5 yuan coupons with no threshold, 2 yuan discount for purchases over 20 yuan, 3 yuan discount for purchases over 30 yuan, 5 yuan discount for purchases over 50 yuan, 7 yuan discount for purchases over 70 yuan, and 9 yuan discount for purchases over 90 yuan.
• Target group: discount seekers;
• Purpose of privileges: discounts, to facilitate transaction conversions; non-automatic coupon issuance, users can manually receive them once a day, increase PV and UV, and increase the possibility of users opening the app and shopping every day.

1. Advantages

The simple and clear rules for discounts and a 5 yuan discount without any threshold provide a great discount. Compared with JD.com’s higher discount threshold (5 yuan off for purchases over 105 yuan, etc.) and redemption process, it is more attractive in terms of discount (10%) and threshold.

The 5 yuan weekly discount covers a wide range of products, so that users are remembered every week and opening the app every week becomes an inevitable event.

2. Disadvantages

High discounts correspond to high benefits for users, which will inevitably lead to increased costs. Given the characteristics of high user frequency and small consumption amounts, as the number of people activating monthly cards increases, cost expenditures will further increase.

At the same time, the five-yuan no-threshold coupon may trigger users to engage in long-term free-for-all behavior, and the risk control department needs to identify and control the free-for-all users.

Target intention: The advantages and disadvantages of daily coupons are obvious. The high traffic and orders brought by high discounts also bring high costs. For the stage of attracting traffic and cultivating users, high investment can achieve such target intentions; but with product upgrades and the growing user base, anchored user perception may cause privileged transformation and offline difficulties.

3. User experience evaluation

1) Question 1: No-threshold coupons do not support products with 10 billion yuan in subsidies, and users may not be satisfied with the experience

Optimization direction: specify the rules or cancel this restriction.

2) Problem 2: Users need to collect coupons in advance and then go to the product details page to enjoy the discount, or stop placing an order and then collect coupons and return to purchase, especially in the absence of a shopping cart, which increases the user operation path.

Optimization direction: Improve the recommendation algorithm capabilities, recommend the products that users are willing to buy in the monthly card selections on the daily coupon details page, and increase page exposure; educate users on the functional awareness of shopping carts (favorites).

2. Subsidy Privileges

• Privilege introduction: Monthly card discounts added to some of the 10 billion yuan subsidies;
• Target users: Those who seek discounts and pursue product quality;
• Purpose of the privilege: discount upon discount (with the help of category screening and quality control of 10 billion subsidy products, plus monthly card boutique discounts).

1. Advantages

With the help of the existing achievements and brand promotion of the 10 billion yuan subsidy, we can create a further discount effect based on the existing foundation, which will help users to understand the concept of saving money on monthly cards and educate users in the direction of high-quality products.

2. Disadvantages

With the help of existing activities (tens of billions of subsidies), product selection depends on further screening after the big activities, and there are few products; compared with Tmall's membership store and JD's plus store, it lacks the initiative in product coverage and more selectivity.

Target intention: Currently, JD.com and Tmall are both building discount boutiques, adding similar functions, creating boutiques, covering preferred products, and ensuring the quality of the products covered by the monthly card.

3. Problems and Optimization Solutions

1) Problem 1: Personal Center - Deep entrance, path: Monthly Card Page - Subsidy Privileges - 10 Billion Subsidy * Saving Monthly Card, and no labeling of products on the 10 Billion Subsidy page, resulting in low user perception

Optimization: Added a money-saving monthly card discount label to the 10 billion subsidy page.

1. Display before purchasing a monthly card: Add a monthly card discount label display;
2. After the monthly card is purchased, the user awareness of the monthly card will be increased and the renewal rate will be increased; the subtitle of the money-saving monthly card subsidy privilege "Exclusive lowest price" will be changed to "Hundreds of billions of subsidies and additional discounts" and other similar copywriting to increase the user's perception of the privilege and the 10 billion subsidies.

2) Problem 2: Product coverage relies on 10 billion yuan in subsidies, and product coverage is too small

Optimization: Increase the coverage of the 10 billion yuan subsidy, and the product selection principle is high coverage of high-quality products.

3) Question 3: On the 10 billion subsidy*saving monthly card page, the product list page only displays the joint subsidy, and does not customize the label of the monthly card subsidy amount, which affects the user's perception of the monthly card discount.

Optimization: Display the grayed-out 10 billion subsidy price and increase the monthly card discount savings.

Later optimization directions: independent, high-coverage boutiques; cultivating and screening high-quality merchants or brands.

3. Free of Charge Privileges

• Privilege introduction: After purchasing and confirming the receipt of 15 non-restricted goods within the validity period of the monthly card, you will be drawn to get a chance to get one free order;
• Purpose of privileges: Increase the order volume of a single user and stimulate high-frequency purchases; increase the transaction speed of user orders, speed up the transaction speed of the platform and the capital flow of merchants;
• Target users: those who seek discounts with high frequency of purchases.

1. Privileged Advantages

1) The temptation of free orders increases the purchase frequency of high-frequency users; gamification rewards increase the fun of shopping, reward high-frequency users, and indirectly reduce dependence on other shopping apps; forming a crowding-out effect, which is conducive to cultivating core high-frequency users;

2) Confirmation of receipt reduces the time interval between when users actually receive the product and when they confirm the order, increases the speed of capital turnover for merchants, cultivates users’ trust in the platform, and indirectly provides support for the platform’s payment and financial system;

3) Accelerate the welfare special event to reduce the difficulty of adding free orders and increase the availability of this privilege. It can recommend targeted products to attract traffic for activities or special products;

4) Accelerate special sessions to increase the turnover of clearance and sale products, and speed up the capital recovery of merchants.

2. Disadvantages of Privilege

1) Cost control: If a large number of users flock to this privilege, it may cause a sharp increase in costs and a decline in the quality of free operations;

2) Users who take advantage of loopholes in the rules may take advantage of loopholes in the rules, which requires the attention of the risk control department and even manual review;

3) Cost budgeting is more difficult and requires consideration of multiple factors and estimates.

Target intention: Increase purchase frequency, increase user stickiness, and squeeze other shopping websites.

3. Problems and Optimization Solutions

1) Problem 1: The privilege rules page is not easy to read

Optimization: Improve readability of the rules page.

2) Problem 2: There are too many categories that are not included in the privilege scope, making it difficult for users to remember

Optimization: Divided into major categories and displayed in table form for easy reading.

3) Question 3: Items in the Acceleration Benefit Special Event are not counted as accelerated items in the favorites, which may lead to user complaints

Optimization: Accelerate the special session page to make corresponding prompts or users will have corresponding prompts when entering the collection at the special session entrance.

4) Question 4: The product introduction column below is for the monthly card selected products, not accelerated products, and the entrance display is small. Users need to click on the special sale to see the special sale products, which is very laborious.

Optimization: dedicated page scenes, unified hanging goods and privilege themes, and changed the monthly card selection to an accelerated special.

The current or future trend of privileges: Commercialization, the privilege of charging merchants fees, becoming a gathering place for merchants to clear out their goods and a gathering place for brand discounts.

4. Large-value coupons

• Privilege introduction: Users can get the chance to win a larger coupon by inviting friends;
• Target intention: To acquire new users and increase the social capabilities of platform users with coupons with no or low thresholds;
• Target group: Those who are free and like social sharing and seek discounts.

1. Advantages

1) Use game-like methods and large, low-threshold coupons to stimulate users to invite friends and gain user interpersonal networks, form social networks, accumulate underlying relationship data, and facilitate targeted product push in the later stage (refer to Douyin algorithm recommendation);

2) Attract new customers and acquire them at a lower cost;

3) Coupons guide and increase orders.

2. Disadvantages

1) It has a new appeal to low-unit-price and low-income users, but is difficult to reach high-income and high-value users;

2) Different denominations and thresholds of coupons correspond to different levels of difficulty in obtaining them (such as the number of friends invited and whether they are new customers). Users are likely to feel cheated and feel that what they get is not proportional to their efforts.

3) The gamification and randomness attributes may not be able to meet the paying users’ rigid demand for 100% certainty.

3. Problems and optimization solutions

1) Question 1: There is a share button next to each coupon code. It is unclear whether the share button is a one-to-one relationship (one share button only corresponds to the coupon next to it) or a one-to-many relationship, which increases cognitive difficulty

Suggestion: If it is one-to-many, consider packaging the coupon code and only provide one sharing button; however, if it is intentionally set to increase the number of shares, it is recommended to keep the current design.

2) Problem 2: The daily settlement cycle for coupons may lead to crowded sharing in the morning and declining sharing in the evening. At the same time, the rule that coupons expire on the same day and can only be shared by one friend may lead to user dissatisfaction and complaints, affecting the reputation of the privilege.

Optimization: Relax the time limit.

3) Problem 3: Paying users prefer to be 100% certain of events and to be informed in advance. Different thresholds and coupon amounts correspond to different difficulties, which may cause users to give up the game after just a brief try.

optimization:

1. Tiered rules for coupons, with difficulty levels marked on the page. For example, the rule for "spend 99 yuan and get 20 yuan off" is set to invite 3 friends, and the rule for a 50 yuan coupon without a threshold is set to 15. Clearly inform the degree of difficulty to increase participation;
2. Brand integration, referring to Meituan’s red envelope redemption with merchants, the costs are shared by merchants, reducing the difficulty for users to obtain coupons.

5. Free Trial

Privilege introduction: Free daily draw and free trial.

1. Target Intention

1) Increase daily activity and user stickiness;

2) Increase the fun of privilege games;

3) Merchant product promotion

2. Target audience

A heavy discount seeker who loves new things.

3. Advantages

1) Take advantage of users’ desire to earn money for free to increase activity;

2) Merchant brand promotion: emerging brands can increase brand awareness through trials;

3) The no-return rule increases user appeal.

4. Disadvantages

Low probability and low expectation. Free trial products are not appealing to deep online shopping users, and the privilege effect may decrease with the consumption of new online users (new users going downstream) in the later stage.

Future optimization directions: commercialization of privileges, daily brand special events, highlighting the free trials of brands and products, increasing the number of products, becoming a column for brand traffic diversion, and charging merchants traffic advertising fees (refer to Meituan’s free meals and JD Brand Day).

6. Worry-free after-sales service

• Privileges: 3 times of quick refund and 3 times of quick return;
• Target intention: Add a monthly card function for after-sales service on e-commerce platforms;
• Target group: All platform users.

1. Advantages

Covers the privileges after users place an order and pay.

2. Disadvantages

Quick refunds and returns are essential skills for large e-commerce platforms. Packaging them as privileges makes them seem useless and not very attractive.

Optimization direction: The group-free service is a rigid demand for niche products and urgent users. It is recommended to add packaging to the privileges, and develop towards service guarantee (high customer response and distinguished identity, etc.) and logistics distribution in the later stage.

Author: Dreaming of Xizhou

Source: Dreaming of Xizhou