High retention methods for acquiring customers by e-commerce platforms such as Pinduoduo!

Speaking of social games, most people may think of Pinduoduo . It is undeniable that in the atmosphere of social e-commerce, the rise of Pinduoduo can be described as a dark horse! With its magical fission gameplay and super cost-effective products, Pinduoduo's market position once reached the same level as Alibaba and JD.com.

Looking back at the essence of social games, the combined structure of social games is composed of two parts: "social" + "game play". "Social" is easy to understand. It originates from users and develops users , relying on the existing seed user group to scale up the traffic pool. "Gameplay" is a formal process . Its core purpose is to allow users to complete a task within a set format and get a reward. The tasks can be complex or shallow, and the formats vary greatly, depending on where we start from.

Due to the essential attributes of social e-commerce, it is also more focused on the application areas of e-commerce. Usually focuses on acquiring new customers/user activity/sales conversion and retention. While ensuring that the user shopping experience is not disturbed by too many factors, appropriately adding some gameplay activities can still be of great help in improving relevant indicators.

one. The fit between social games and new retail

The essence of new retail is O2O, which distinguishes between online and offline application scenarios. As an online traffic operator/activity planner for mini program e-commerce, it is natural to reasonably design targeted gameplay. For example, the promotion and issuance of coupons for private domain traffic, retention and return visits of platform users, and issuance of coupons and conversions at activity nodes.

Secondly, offline scenarios are the core position that distinguishes new retail from traditional e-commerce, and are also the moat of offline user/store resources as a natural advantage. Offline users' customer acquisition/social behavior/store shopping path behavior and traffic digitization are the pain points of stores and points where social games can enter. Examples include offline store coupon issuance, community support for group buying, store customer acquisition, and store users’ in-store entertainment experience.

two. Active/retention and conversion of online traffic

The new retail online operation and traditional e-commerce operation strategies are exactly the same, extending from the main line of attracting new customers - promotion - conversion and repeat purchase. The main line is the same, so the strategies and approaches are naturally similar. On the basis of the main operation line, we grasp several core pain points of new retail and then design the gameplay in a targeted manner. For example, it is difficult and costly to acquire customers for new retail, the retention rate of mini program e-commerce is low, there are too many silent users in WeChat group traffic, etc.

1. The nearby people relationship chain helps attract new customers

The biggest difference between new retail and traditional e-commerce when attracting new customers lies in the audience range. Traditional e-commerce is not restricted by geography, while new retail is usually only within 1-3 kilometers of the forward warehouse. Therefore, it is necessary to acquire customers within a certain range. In addition to a large part of offline fixed-point customer acquisition, some online gameplay can also be designed to help attract new customers.

• Game name: Nearby friends relay race, if you succeed in the relay, you can get a 100-yuan physical gift package

• Game logic: User A initiates a relay race →→ invites 3 new users nearby to take over →→ the system verifies the delivery range through LBS positioning →→ the system verifies new and old users through the platform database →→ the 3 new users complete the relay and receive a newcomer gift package and a special game gift package respectively →→ user A receives a 100-yuan physical gift package →→ the 3 new users who have been forwarded also initiate a second relay

• Prize setting: In the process of designing gameplay, in addition to the underlying logic, the setting of prizes is also very critical. While ensuring a smooth user experience, the platform operating costs can be controlled. For example, the rules of the game are that user A acquires 3 new users. Our offline customer acquisition cost per user is 30-40 yuan, and the online customer acquisition cost is actually higher. Therefore, the cost of three new users is at least around 100 yuan. In the early stage, we can use 100 yuan as a reward return, defined as a 100 yuan physical prize combination gift package.
• Number of prizes: estimated based on the existing traffic of the platform. Assuming that the platform has 1 million daily UVs, the click-to-jump rate of the core resource position is 40%, and the gameplay participation rate of the 400,000 UVs is 30%, that is, only 120,000 users participate in the game, but those who can finally get the grand prize need to invite 3 new users to complete the game. Usually, the success rate of the 1-to-3 gameplay is around 20-30%. Therefore, we can calculate that the final number of winning users is 20,000 to 30,000, and this 20,000 to 30,000 is the total number of our prizes. (In order to facilitate data real-time, the configuration of the prize pool needs to be flexible and the amount can be adjusted quickly)

• Gameplay packaging: The concept of "people nearby" is particularly important. In the atmosphere packaging and copywriting guidance, highlight the "office colleagues group"/"community owners group"/"school class group" as much as possible to guide users to forward to these relationship chain groups. The gameplay visual design also adds visual scenes such as office/community/school, and users can switch freely.

2. Collect fragments to exchange for physical prizes

As a community under private domain traffic has always been the entry point for new retail traffic, it is necessary to add active gameplay within the community. Several prerequisites need to be noted: New retail communities are usually divided into communities within a 3-kilometer radius, so most of the communities have acquaintance relationship chains and have certain online shopping consumption power and brand awareness.

• Game name: Collect commodity fragments to exchange for physical prizes

• Game logic: User A enters the activity page and shakes it →→ Random product fragments are dropped →→ All fragments can be requested and given to friends in the WeChat group →→ Exchange with friends and shake →→ Collect the fragments and redeem the corresponding physical prizes

• Prize setting: Physical prizes can be set to include a variety of high-frequency commodities, such as whole boxes of milk, toilet paper, rice, flour, grain and oil, etc. The total number of all prizes can still be estimated based on the platform UV funnel conversion. Assuming that the platform has 1 million daily UV, we need to prepare 20,000 to 30,000 total prizes. Then distribute the prizes in proportion according to the prize types.

• Gameplay packaging: In addition to creating an atmosphere that guides consumers to continuously collect product fragments to fill up their shopping carts, it is also necessary to continuously enhance the influence of high-frequency products on the minds of platform users through the exposure of high-frequency products and prize redemption.

3. Check-in/development gameplay/daily free treasure hunt and other retention gameplay

As a new retail business model based on mini programs, it often encounters the bottleneck of low retention. On the one hand, the reason is related to Tencent itself. In order to avoid user harassment, the user notification and wake-up capabilities of mini programs have been greatly suppressed by the official, so that our mini program service notification function has been repeatedly restricted. Therefore, some very light retention and interactive gameplay can be added to the platform.

• Punch in and sign in: Punch in and sign in is a common retention method. The page guides users to return to the platform to punch in and sign in every day. Continuous or cumulative check-ins can obtain certain benefits. It is a simple and crude use of interest incentives to increase user return visits.

• Cultivation gameplay: Similar to light games such as Ant Planting Trees and Manor Ranch, it guides users to cultivate their own exclusive "plants or pets". During the cultivation process, many consumer behavior task cards will be added, such as the number of orders, customer unit price threshold, number of shares, etc. The higher the task completion rate, the higher the growth value of the plant or pet, and the greater the sense of accomplishment and rewards given. Gameplay to enhance platform consumption behavior and user stickiness.

• Daily treasure hunt: Use the "one free draw every day" lottery opportunity as a gimmick to guide users to come in and draw every day. Through probability settings, the concepts of time nodes such as the first treasure hunt, 3 consecutive days, and 5 days can allow users to win prizes, increase users' credibility in the lottery, and thus attract users to come in every day and draw the lottery.

three. Acquisition and digitization of offline traffic

Offline users are abundant and multi-dimensional. As our main battlefield for acquiring customers, we naturally cannot do without various tools and means. Of course, gamified social gameplay can also be considered. Secondly, offline stores have a sufficient variety of merchandise and venues, and users can also consider implanting light gameplay to enhance the in-store experience during shopping interactions.

1. Let’s catch monsters together. All stores are open to catch monsters.

"Let's Catch Monsters" is an AR exploration mobile game launched by Tencent in 2019. Players use the AR function to capture monsters around them, cultivate them, and complete PVE/PVP battles, displays, transactions and other functions in the game. The interesting point is that based on AR virtual reality, it can cooperate well with offline stores, and you can catch exclusive monsters in designated stores.

• Gameplay logic: The user opens the game AR and visits a designated store in reality →→ scans around the store to grab the exclusive monster →→ randomly drops the store coupon →→ hits the store drum to get the game treasure chest again to unlock the mysterious benefits

• Cooperation case: In 2019, NIKE JOYRID and “Let’s Catch Monsters” had an in-depth cooperation. The concept of “running for fun” proposed by NIKE JOYRID is extremely similar to the concept of “refusing to stay at home” advocated by “Let’s Catch Monsters”, so the two hit it off. From August 1st to August 31st, you can find customized NIKE store drums by logging into the game at 201 designated NIKE stores across the country. There is a small chance that you will get the game JOYRIDE treasure chest by hitting the customized NIKE store drums. Open the treasure chest to get a 5-day NIKE JOYRIDE game set and an exclusive monster spirit. Similarly, the mobile communications brand "Honor", the convenience store brand "FamilyMart", and the supermarket brand "Carrefour" have all carried out cooperation to varying degrees, using the concept of gamification to issue coupons and gift packages for offline stores, increase store visits, and so on.

2. Face-to-face bargaining and digital customer acquisition tools

As the name suggests, face-to-face bargaining is based on high-density crowd areas in residential areas/CBDs/schools. Users initiate face-to-face bargaining through online shopping and invite new users nearby to scan the code and bargain face-to-face.

Game logic: User places an order → → Jumps to face-to-face bargaining on the payment settlement page → → Generates a QR code for bargaining → → Nearby friends enter the mini program and scan the code face-to-face to start bargaining → → The main user enjoys the preferential price and the platform acquires a new user

3. Offline face-to-face group buying and social promotion

When offline users go into stores to shop, I believe that most of them are hoping for a discount. In addition, offline users have a strong herd mentality. The combination of these two psychological characteristics just matches the attributes of social promotions.

Game logic: Offline stores set up exclusive group-buying promotion counters or displays →→ Select 5-10 high-frequency categories, focusing on livelihood products →→ User A enters the page to start a group →→ User A generates an exclusive QR code →→ User B scans A's QR code to start a group →→ A and B successfully start a group and generate a group password →→ Enter the password at the checkout counter and the price changes from the original price to the group price

4. Get commissions through fission distribution of friend relationship chain

Distribution to acquire customers, using commission benefits as a stimulus to guide users to actively share and invite new users to place orders. At the same time, under the fission of the secondary relationship chain, it brings a large amount of commission income to the first batch of users.

Game logic: User A enters the platform and obtains an exclusive QR code →→ guides new user B to scan and successfully place an order →→ User A obtains a commission for the first order →→ After B successfully places an order, an exclusive QR code is generated and C is guided to scan and successfully place an order →→ B obtains a commission for the first order and A obtains a commission for the second order

5. Smart screen entertainment applications to enhance the shopping experience

There is no shortage of family groups when shopping offline. Data shows that 20%-25% of users who shop in stores every day are family groups. This group of family group users is one of the core groups that we can interact with in conjunction with smart screens in stores. Usually, smart screens in stores are used more for displaying promotional advertisements/product information, and are very inefficient in user perception and information transmission.

Through content updates, we replace traditional information advertisements with interactive experiences, such as online photography, scanning codes to grab coupons, online scanning codes to trace sources, online light interactive game experiences, etc. It not only improves users' shopping experience in traditional offline stores, but also provides a source of users for user digitalization.

New retail e-commerce and traditional retail service concepts are consistent, and everything is done to enhance the user shopping experience. The combination of social gamification is innovative and diverse in form, closely following user pain points and shopping needs. Rationalized social gameplay implantation will make shopping more interesting and more humane.

Author: Leon New Retail Notes

Source: Leon New Retail Notes (Leonnote123)