There are five key indicators for private domain traffic operation

This article sorts out the five key indicators and three KPI setting logics in private domain traffic operations.

Key indicator 1: Number of assets of shopping guide customers

The essence of a brand’s private domain traffic is the process of establishing efficient contact and conversion between the brand and consumers. Compared with the public domain, the private domain is more convenient to reach and has lower customer acquisition costs.

For brand companies, direct communication between shopping guides and customers lays a good foundation for brands to establish relationships, build trust, and establish high-frequency interactions with customers. In the initial customer information import stage, a very important indicator is: the number of shopping guide customer assets - the number of customers that the shopping guide can directly reach through WeChat, social groups, etc.

Shopping guide customer assets are the basis of shopping guide operations and are also an important indicator for measuring the number of customer groups that can be efficiently connected. Through private domain operations, brand companies continue to accumulate shopping guide customer assets, and these assets become the basis for brand companies to achieve explosive performance in various channels.

The private domain energy formula of the super shopping guide: private domain performance = number of shopping guide customer assets * marketing delivery rate * scene conversion rate * average order value. It can be seen from the formula that in the process of operating private domains, the primary concern of brand companies is no longer how many fans the official account has, nor how much customer information and tags are retained in the system, but the number of shopping guide customer assets that have truly established a communication foundation through the shopping guide role.

Key indicator 2: “User asset table”

Whether it is a listed company or a small and medium-sized enterprise, the operating conditions of a company are often measured by looking at three statements: "Balance Sheet", "Cash Flow Statement" and "Income Statement". But in the era of mobile Internet, there is another table whose data determines the operating conditions of the company, and that is the "user asset table."

With the increase in various social media, most companies will operate their own life accounts, public accounts, Weibo accounts, Douyin accounts, etc., thereby attracting a large number of fans, and these fans are likely to contribute profits. This is the number of "private domain users" that companies can repeatedly operate for free. In other words, in the mobile Internet era, the "number of user assets" is the "fourth table" that determines the company's development profits.

To quickly form a closed loop of private domain data belonging to different touchpoints of an enterprise, and to precipitate and connect these scattered data, quickly apply them and empower the business, four key words are involved:

The first is business dataization. Whether the enterprise's embedding points are correct and whether the data at all ends are connected; second, data assetization. Whether data can be managed as well as assets; third, asset application. Can the company's assets be used effectively? How to empower business with data assets? The fourth is application value. All applications must ultimately serve the purpose of growth and customer acquisition and must be valuable.

Behind this, the most important thing is that the scenario must be closed-loop and the data must be sedimentable, so that the data middle platform and data energy will ultimately be sustainable.

Key indicator three: data accumulation and quantitative management

In the entire marketing process, the accumulation and quantitative management of process data are very important. Establishing an evaluation baseline for the effectiveness of each key marketing link based on historical experience data will help companies to manage the marketing process in a refined manner. Team members will be able to promptly identify business problems and make rapid responses and adjustments in the actual work process by comparing the actual marketing results with the evaluation baseline.

However, this is also a common problem for traditional brand companies, which only look at input and output, and judge and manage based solely on whether revenue ROI meets standards, while ignoring the ability to build refined and quantitative management capabilities for the marketing process. The room for improvement in private domain traffic management is often hidden in the key links of the marketing process.

Therefore, customers are advised to integrate data from the entire marketing process, break down the data granularity and quantitative management mechanisms as finely as possible, and ensure that data from the entire process is online. After running for a period of time, through analysis and insight into the rich process data, we can implement better business strategies for private domain traffic, find optimization directions in business processes and marketing effects, and achieve business innovation.

Key indicator 4: 3 data in the private domain operation of WeChat

When using WeChat for Business to operate private domain traffic, three key indicators need to be considered:

The first is the success rate of drainage. At present, as long as the company has its own business scenarios, the success rate of traffic generation in actual work can reach 70%.

The core is in the traffic generation link, reducing the sense of compulsion to add friends, reducing deception in the friend-making process, finding a suitable "meeting gift", and using greetings to quickly express the personality - such friends are more conducive to later conversions and transactions.

The second is the service success rate. The long-term positioning of WeChat for Business is to become a carrier of warm service, building customer relationships through WeChat for Business, rather than adding friends and then doing a marketing campaign, which will only make more customers choose to delete you. In this indicator, the trust relationship between the enterprise and the user is preferably a service delivery process.

Currently, this proportion in the market is not high, only around 40% to 50% - here you can refer to the model of the VIP service group pioneered by Yizhuan Technology, which can make part of the services pre-sale, online, and free. When customers experience online services, it will be more conducive to the subsequent monetization conversion.

The third is the monetization success rate. The monetization success rate of the old version of WeChat for Enterprise was not high, only between 10% and 20%. With the iteration of the new version, the monetization success rate has exceeded 30% to 40%. Now, as long as most customers can achieve successful traffic generation, they can realize order conversion through enterprise WeChat + live broadcast model, enterprise WeChat + VIP service group model, enterprise WeChat + community operation model, etc.

However, recently some WeChat+information models have also emerged in vertical industries; WeChat+article customer acquisition systems have also emerged in the field of full-staff marketing. In short, more and more models are quietly emerging.

Key Indicator 5: CAC and LTV in Private Domain E-commerce

The key essence of private domain e-commerce business lies in the calculation of CAC (customer acquisition cost) and LTV (customer lifetime value). For merchants, when the user lifetime value (LTV) at a certain stage is greater than the user acquisition cost (CAC), it can be proved that the private domain e-commerce business is established. Through continuous data accumulation, traffic acquisition, and continuous optimization of user operations, the profits can be even higher.

Although we have been talking about private domain traffic or private domain e-commerce, if brand merchants only want to make use of the existing volume without effectively acquiring customers from the public domain, then this "private domain" is unsustainable and does not have sufficient commercial value on a large scale.

A typical example is WeChat business. Some successful WeChat businesses are constantly developing channels. This action is equivalent to obtaining new traffic from the public domain, but the form and efficiency are different.

In addition to paying attention to the above key indicators of private domain traffic operations, the three major KPI setting logics and precautions that should be followed when setting the KPI of the private domain traffic department are as follows:

1. KPI design needs to clarify the purpose first

When designing the KPI for the private traffic department, the purpose should be clear first: if it serves GMV, the KPI can focus on sales targets; if it serves brand temperature, the KPI should be based on customer satisfaction and customer activity. Once the major KPI is clear, auxiliary KPIs can be designed, such as assessment of business flow links such as the increase in fans and interaction rate.

Private domain operation is a long-term accumulation process. In the initial stage of startup, you should pay attention to data such as fan addition rate, fan deletion rate, and interaction rate; in the mid-term, you should pay attention to performance data and label data; in the stable period, you should pay attention to management efficiency and labor efficiency. It usually takes 3 months from startup to stabilization period.

Private domain operation refers to the management of a brand’s old customers. The current common measurement standard for “the value of old customers” is the contribution of individual customers. Regardless of the operating method used, the final performance result is the most core indicator. It is also an inevitable trend to carry out tiered and refined operations based on the different levels of customer contribution.

2. KPI design principle: ROI maximization

In private domain operations, each merchant's operating methods will be adjusted according to its own circumstances, and there is no completely universal standard method. But there is one principle, which is to maximize ROI.

Each operation technique needs to be flexibly tested according to the situation of your own fans. You can draw inferences from one example and find out the method with the highest ROI is the most suitable method for you. The issues that need to be paid attention to are as follows:

a. The current mainstream private domain operation methods are not suitable for all industries;

b. Private domain operation is a CEO project;

c. Private domain is not just about adding customers to WeChat, but requires refined operations based on different circles;

d. When doing private domain business, you need to consider the purpose, whether it is to build brand warmth and stickiness or simply to make money;

e. Private domain operation is a sales behavior, not a simple customer service behavior;

f. Tools can only solve 30% of the problems, such as improving efficiency, data-based management, and more importantly, operational methods;

g. Private domain is a new method of traffic management, which requires a reorganization of the internal organizational structure to avoid conflicts of interest and organizational barriers.

3. How to set the team’s core KPI?

1) Set marketing conversion efficiency KPI for marketing activities

The core purpose of operating private domain traffic is to effectively utilize the company's existing user assets through operations in marketing activities, content, services, etc., in order to achieve more efficient new customer acquisition and transaction conversion than public domain traffic delivery methods.

For example, during the preset six-month observation period, if the expected average marketing conversion efficiency of the company in the process of operating private domain traffic is much lower than the marketing conversion efficiency of using public domain traffic, the company should promptly adjust the work direction and methods of the responsible team.

The KPIs that can be set for reference include: a. Conversion rate of each key link in the entire marketing process; b. ROI of each key link.

2) Set KPIs for marketing performance growth goals

The contribution of performance growth brought by operating private domain traffic to the overall business goals of the company is also an important criterion for measuring the success and development potential of private domain traffic marketing. The KPIs that can be set for reference include: a. The number of new customers acquired and the number of users converted in each key link; b. The transaction amount; c. The average unit price per customer and the number of items sold.

3) Set team productivity KPIs

Operating private domain traffic focuses more on the operation of user resource pools, so the average labor efficiency can be used as a reference standard for measuring the work efficiency of the business team. Based on the team's historical work situation, a series of quantitative baselines for self-comparison can be set as a criterion for judging personnel work efficiency.

In the case of employing a service provider to perform operations on behalf of the business, the relevant input costs should also be converted into per capita amounts based on the average salary of the team members responsible for the relevant business, so as to evaluate the labor efficiency. You can refer to the set KPIs, such as: a. Number of projects/sub-projects per person; b. Output revenue per person.

Author: See the truth

Source: Jianshi

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