A complete guide to brand growth on TikTok in 2022

Since the second half of last year, many mainstream brands have entered the Douyin store broadcasting market. Some have reaped the benefits of traffic, some withdrew immediately after testing the waters, and most are still confused. How to position Douyin store broadcast? How to combine various delivery tools? How to choose between Tmall and Douyin closed loop? How to balance delivery with limited budget? Today I will talk about the closed-loop growth of TikTok.

In the past six months, we have tried out some Douyin closed-loop projects, and in the process we refined the "FASD Douyin closed-loop growth model" to solve the problem of Douyin's closed-loop growth. With "content-driven" as the core, "live broadcast operation" as the cornerstone, "investment and traffic amplification" as the means, and "scientific measurement" as the guide, we help brands achieve a long-term business model with dual growth of "brand potential" and "sales GMV".

01Consumer Perception

Before we talk about the methodology, we have to reiterate the consumer's cognitive logic. Brands need to understand how consumers think, otherwise growth is just a "wishful thinking" KPI.

Today, when consumers come into contact with a new brand or a new product, many of them come from short video content and many of them come from KOLs. The first step of high-quality content is to achieve the "grass-planting effect", which arouses consumers' interest. The accumulation of a large amount of content will continuously strengthen category awareness and form a "mental position" for the category in the long term.

The recognition of content is based on category mindset but not brand mindset. This is an opportunity in the new consumption era.

A brand needs time to accumulate, requires a large number of KOLs to promote it, and the accumulation of consumer word-of-mouth. The accumulation of "content construction" is the path to future "brand building", and it is a process of "saving money". When enough money is saved, this kind of accumulation will form "brand potential".

In the closed-loop system of Douyin, consumers are inspired by products through active "search behavior" or passive "traffic behavior", and finally complete the purchase in the brand's live broadcast room. This is the most efficient product harvesting and completes the realization of brand harvesting. This is a "withdrawal" process.

Tik Tok’s closed-loop system allows users to “save money” by planting seeds and “withdraw money” by harvesting.

The more content is planted, the more brand building is done, and the greater the potential energy, the more money the brand "saves", and as sales revenue grows, the more money it "withdraws". If a brand doesn’t want to save money and wants to reap the benefits as soon as it enters the market, the result is self-evident.

I believe that the effective growth of a brand in the closed loop of Douyin should be the "balance effect", with the two indicators of "brand potential" and "sales GMV" growing simultaneously.

Let's look at the ROI calculation formula. When simplified, there are four key nodes. "Store entry rate" and "conversion rate" are directly related to brand potential. The store entry rate of well-known brands and popular products is much higher than that of unknown brands, and the same is true for the conversion rate. The other two nodes, "association rate" and "repeat purchase rate" are related to the brand's product positioning and operational capabilities, and return to the fundamentals of brand management.

Effective growth is not just the growth of "sales GMV". If "brand potential" does not increase year-on-year, long-term growth will inevitably encounter bottlenecks.

02The Seventh Rule

There is a well-known consumer reach theory in the marketing industry called the "Rule of Seven", which states that the optimal frequency for influencing consumer decisions is "seven times".

I will not elaborate on the Seven Times Rule itself. If you are interested, you can search it. What I mainly share is the significance and usage logic of the Seven Times Rule in the Douyin closed loop.

The main ways in which consumers are reached by brands on Douyin are: KOL recommendations, Blue V content, information flow ads, live broadcasts, and the traffic strategies behind them of content amplification and investment amplification.

KOL grass-planting and Blue V content are generally more of a "saving money" attribute. At the same time, effective grass-planting can also lead to active search and purchasing behaviors, and also have certain money-withdrawing attributes. The Blue V high-quality content currently mainly improves brand favorability and has obvious money-saving properties, but the traffic is weak at this stage and its value has yet to be developed. The closed-loop business operation platform of Douyin is not essentially the live broadcast room, but the blue V account.

Information flow advertising and live broadcasts are more of a "money-making" nature, realizing GMV harvesting after planting grass.

We talked about the "balance effect" of effective brand growth, the balance between saving money and withdrawing money. Based on this, we apply the consumer reach logic of the "rule of seven times". "Saving money" is an effective reach, and "withdrawing money" is also an effective reach. As long as the balance between saving and withdrawing is not broken, the value of Douyin's closed loop is "coexistence of saving and withdrawing", which is "integration of brand and effect".

If you understand this logic, you will understand why Douyin's marketing efficiency is still the most efficient so far. In an ecological closed loop, there is no loss of jumps. The behavioral labels behind the users then feed back to the data efficiency. This is the value of the brand's closed-loop growth in Douyin.

In a sense, Douyin's closed-loop ecosystem is the best platform for practicing the "Seven Times Rule" in the field of brand marketing.

03FASD Douyin Closed-Loop Growth Model

Based on the closed-loop ecosystem of Douyin, FASD applies the "Seven Times Rule" to the practice of effective brand growth. By balancing the allocation of "traffic supply", it either amplifies the "planting grass and saving money" effect or the "harvesting money" effect, thereby maintaining the synchronous growth of the two indicators of "brand potential" and "sales GMV" of the brand Douyin ecosystem.

Ultimately, through the "Cloud Map", we will scientifically measure the "5A crowd assets", feed back the data assets into the marketing strategy, iterate the Douyin business strategy, and finally achieve effective growth in the "content-driven" brand Douyin closed loop.

04FASD: Business Field

First of all, let us define what exactly is Douyin’s business position? Judging from the current results, everyone would be more inclined to use a live broadcast room, or a matrix live broadcast room, because it directly contributes to the brand's GMV. I think this is both right and wrong.

Yes, because without GMV there is no value in operating. After all, there will be investment only when there is output, so there is chaos in the live broadcast matrix account. That’s not right because the GMV carrier of Douyin is quite special and fundamentally different from Tmall, and it has the characteristic of “account and store integrated”.

Let me first talk about the "right" cognition, which is the logic of the "store".

The core of Douyin's closed-loop GMV comes from live streaming, so many brands have many matrix accounts. Obviously, the matrix account is a harvesting logic, and its operating logic is very weak and has obvious drawbacks. From the user's perspective, when searching for a brand, a bunch of blue V accounts appear. What is the experience and feeling? Users have been diverted here, resulting in a waste of accounts. From the brand perspective, the reservoir is limited, and matrix numbers are competing with each other for volume in the existing market, which results in either low efficiency in terms of total GMV or low efficiency in terms of incremental ROI.

Compared with Tmall, the closed-loop trend of Douyin follows the same logic, that is, the flagship store logic. The flagship store will take away most of the investment, traffic, and GMV, while the exclusive stores and franchise stores are just supplements. Most of Douyin’s matrix accounts will only become cannon fodder for testing the waters.

Compared with Tmall, the closed-loop trend of Douyin also has a different logic. That is, based on positioning, different categories and different groups of people will have their own "Douyin flagship store." The principle behind this is that different categories may have different population portraits. Based on the Douyin algorithm recommendation mechanism, the conversion of type B people in a live broadcast room labeled as type A people may be a mess. Therefore, independent flagship stores will appear for different categories and different populations.

Ultimately, the emergence of live broadcast flagship stores with different brand positioning will make it possible to carry out refined operations for various groups of people, which will inevitably involve further content operations.

As mentioned above, you can search for "Newsy Mystery" and "Olenas" to verify what I said.

Let me talk about the "wrong" cognition, which is the logic of "Haodian".

If a brand wants to operate on Douyin for a long time, while GMV grows, the Blue V number must also grow year-on-year. Then the operating entity will not only consider GMV, but also consumers' awareness of the brand, brand favorability, and even reputation. Blue V may be the best innate carrier.

The emergence of live broadcast flagship stores with different brand positioning and a stable target population portrait will require vertical content scenes to achieve effective communication with the target population. Good content will accumulate brand fans (A5 group), improve brand favorability, feed back natural traffic and fan traffic, and help the live broadcast room harvest GMV.

When it comes to operating skills in live broadcast rooms, I believe there is a lot of experience in the market, and I don’t need to elaborate on it. However, Douyin live broadcast has now entered a stage where there are almost no skills required, and any magical operating skills will disappear with the iteration of platform rules.

The essence of live streaming is still the relationship between people, goods and places, which is very similar to the logic of brands opening physical stores offline. At this stage, many brands with counter channels have shown higher comprehensive capabilities than DP in this link.

Let me share some of my understanding of live streaming:

Pallet (cargo) logic:

The live streaming product line is just like when offline brands started doing e-commerce and opened an independent online product line. In the future, live streaming operations will become normalized, so the live streaming product line will inevitably be tailored for the live streaming channel. Everyone knows the routine of live streaming, buy one get eight free. Although the samples given away are small or medium-sized, in some categories, the cost of small or medium-sized samples may not be much lower than that of the full-size products, so this account needs to be calculated.

The value of hot products to the merchandise tray is self-evident. The more obvious the hot product effect is, the higher the circulation efficiency of the merchandise tray. If the hot product is the hook product of the live broadcast merchandise tray, the conversion efficiency of the live broadcast will be greatly improved. If there is a problem in the circulation of the hot product to the main product, either the hot product is misplaced or there is a problem with the main product.

Crowd (people) logic:

The live broadcast room has clear labels for the portrait of the crowd, which are continuously accumulated during the operation process. Just as a company that relies on 9.9 flash sales to attract free traffic may obtain a crowd portrait that is contrary to the target population, making it impossible to achieve long-term operation.

Douyin store broadcasts are still mainly driven by paid traffic. The Douyin algorithm is based on a live broadcast room model, which continuously amplifies the effect. If the model is wrong, it will either fail to enter a positive cycle or the ROI will be unsatisfactory.

Traffic injection methods can also accelerate the construction of live broadcast room models in the early stages, which is to attract target audiences and continuously label the audience in the live broadcast room until the model is stable. In principle, before the live broadcast crowd model is stabilized, there is no need to invest in large-scale traffic to avoid scrapping the live broadcast room model.

Anchor (field) logic:

In the business arena, the anchor actually plays the role of communicating with the target users. In a sense, the anchor itself is the "communication scene" of the live broadcast format. Since the anchor has risen to the level of communication scenario, the anchor's content includes:

First, in terms of personality, temperament and appearance, whether they can carry the temperament and tone of the brand. You can go and watch the anchors of Neiwai and Ubras to feel it for yourself.

Second, in terms of expressiveness, the host’s language expression ability, sense of rhythm, appeal, and even brand sentiment. There is a brand that uses its own BA as the anchor. When communicating with users, the anchor is proud to be a brand person, and such emotions are bound to be high.

Third, at the content level, that is, the script, I believe that the content level should be continuously iterated, based on positive feedback amplification and negative feedback optimization. This requires a team that strives for excellence. There was a case before where the anchor and the creative team often took questions from users in the live broadcast room and shot Blue V short videos to give feedback, which aroused strong resonance and interaction among fans.

05FASD: Talent Matrix Alliance

The media era has changed, and consumers’ cognitive habits have changed, but the logic of brand potential has not changed. It has only changed from CCTV, Hunan Satellite TV, and Watsons in the past to Douyin today, and the KOL has the greatest potential on Douyin. The accumulation of effective KOL potential has basically achieved the "explosive effect" where this product is very popular, this brand is very hot, and many celebrities are promoting it. The brand has also accumulated "brand potential" on this basis.

A short video of a KOL recommending a good product has planted the seeds in the minds of consumers. Consumers have discovered a new treasure and click on the shopping cart or enter the live broadcast room to place an order with one click to complete the purchase. In the closed-loop ecosystem of Douyin, the entire communication chain has been extremely shortened, and it only takes two steps from "planting grass" to "harvesting".

Because of their unique personalities and the personal stories they embed in their promotions, whether they are personal experiences or blood-and-tear histories, the more "real" the stories are, the easier it is for consumers to "resonate" with them and "remember" the content. If the product highlights the characteristics of the category, the content will strengthen the status of the "category mindset". Consumers' purchasing decisions will not be affected by your advertising. On the contrary, storytelling is more likely to touch people's hearts.

I have shared in the past the Douyin KOL content co-creation methodology "4T Content Rule". For details, please refer to the content section of "Douyin STOM Full-link Delivery Solution".

Attraction: 0-3s

For short video content with effects, the topic scene introduction in the first 3 seconds can both attract accurate users to stay and discourage non-accurate users. The first wave of loss (i.e. normal loss) ends in the first 3 seconds. If there is still a large loss after 3 seconds, it is mostly because the prelude to the content is too long, resulting in delayed loss of invalid people.

Trust: 5-20s

What kind of content will create a higher level of trust? It must be the KOL’s own “true feelings”, even a history of blood and tears. The more real and tragic it is, the more it can hit the pain points. Fans can empathize and have a strong emotional resonance, which lays the groundwork for the solutions launched in the temptation stage. The essence of content co-creation lies in leveraging the KOL’s influence, KOL’s personality, KOL’s fans’ trust, and ultimately KOL’s words to effectively communicate the brand from category positioning to brand attitude to product efficacy.

Temptation: 20-50s

If the trust link is laying the groundwork, then the temptation link should be the one to solve the problem. When brands co-create content with KOLs, the only aspect that needs to be strictly controlled is the appeal, while other aspects should be left to be freely created. The key to temptation lies in the clear expression of the product brief. Whether consumers can be tempted and attracted by the product depends on whether the product’s selling points can be effectively expressed.

Action (ACT): The last 3-5 seconds

In the short video promotion scenario, after the temptation stage is completed, KOLs need to provide trust endorsement again, using trust endorsements such as "believe me" to influence user decisions, achieve the final touch, and issue "action instructions" to turn the desire into action. It is obvious that using trust endorsement to drive conversion is far more valuable than scene mindset and promotion mindset.

Why do I say that "expert recommendations" are "saving money", but information flow advertising is not?

From the perspective of the 4T content rule, among the four links, in the "Trust" link, the KOL is telling a story, not about the brand, but his own. In the "Action" link, the topic of the second link is finally answered, and both the front and back are endorsed by the KOL's trust, which greatly strengthens the mental attributes of the content.

On the other hand, when we look at information flow advertising, after the “attraction” stage, we directly enter the “temptation” stage, enter the advertisement to promote the product selling points, and finally the “action power” is driven by interests to guide conversion. In other words, the advertisement itself lacks the trust endorsement of KOLs in the mind, making it difficult to create a "money saving effect."

Today, brands understand the relationship between "saving money" and "withdrawing money" in Douyin's closed-loop growth, so it is easier to quantify KOL seeding. KOL carries the content carrier for building brand potential and also carries the effective voice in communication. In the closed loop, the sales GMV business trend can be judged to feed back or quantify the implementation of KOL seeding.

After brands have clearly calculated the accounts of "saving money" and "withdrawing money", they will gradually have the opportunity to form a "snowball effect" of growth. When grass-planting drives GMV sales, or GMV sales feed back the investment in grass-planting, brands will increase grass-planting and enhance the "saving money effect". More money saved will in turn promote more GMV growth, forming a "withdrawing money effect" of live streaming to reap greater rewards. In the long run, the snowball will get bigger and bigger.

Of course, the premise of the money-saving effect we are talking about is effective KOL promotion. If the KOL you choose is a water account (an account of poor quality), it will not only fail to achieve the effect of promoting products, but will also greatly waste your budget.

I recently took over a full closed-loop case for TikTok. We helped the client review the KOLs they had previously invested in. It was very distressing because 70% of the playback and interaction data were faked. The brand is in the transition stage of the Douyin closed loop, and the founder’s attitude is also very firm, but judging from the results, the brand not only wasted a lot of budget, but also wasted precious time.

Regarding our "CAFE Methodology" for KOL number selection, please refer to the number selection section of "TikTok STOM Full-link Delivery Solution" for details.

06FASD: Traffic Supply Source

In the closed-loop ecosystem of Douyin, traffic investment is a tool and a means, not an end. The goal is to either amplify the "saving effect" or the "withdrawal effect."

First, let me talk about the amplification logic of the "saving money effect".

We believe that the concept of how brands achieve social growth is called the "10 Rule", where content is "1" and traffic is "zero", and content drives brand social growth.

The influencer marketing matrix is ​​"saving money" for brands. Today, the natural traffic of KOLs is very limited, but their star map quotes are very high, which leads to higher and higher costs for marketing and lower and lower ROI expectations, greatly affecting the brand's decision to market.

In the closed-loop ecosystem of Douyin, a more rational approach is:

First, pay less attention to the results of ROI, that is, the ROI brought by the KOL's natural traffic. After all, the purpose of the brand is to plant grass and save money, not to harvest;

Second, we should improve the process of focusing on content quality, that is, improve the process indicators of account selection and content co-creation. Instead of making random mistakes, we should do the process right. How can we get melons if we plant beans?

Third, we invest in "content traffic" to amplify high-quality content. Effective content will have a certain ROI performance in the investment. This is equivalent to maximizing the dissemination of the highest-quality content and obtaining a certain ROI and sales conversion at the same time.

Please remember that in the process of "content amplification", our goal is to amplify the "money saving effect" rather than GMV harvesting. During this process, the brand will acquire a large number of "A1-A3 people", complete the expansion of the reservoir in the Douyin closed-loop ecosystem, and realize the harvest of "A4 people" in the "live broadcast conversion" link.

Then, I will talk about the amplification logic of the "withdrawal effect".

Douyin's closed-loop GMV harvesting is mainly completed through live streaming. Live streaming has become the most efficient conversion tool. Theoretically speaking, as long as enough traffic is purchased for the live streaming room, the GMV should also increase year-on-year. But in reality, many brands do this, only to find that there is an obvious ceiling or the ROI cannot sustain.

Without "saving money" as a basis, "withdrawing money" will either be overdrawing existing brand dividends or eating up the local dividends of Douyin. In short, it will be difficult to last long. "Saving money" is the way.

But from the perspective of operation, there are skills in the art. Based on the model of short video streaming in the live broadcast room, the scale of delivery can be greatly increased. If the materials come from KOLs, celebrities and other content with strong trust endorsement, it will greatly increase the ROI of the live broadcast room conversion.

The case of "Future 7" shared before, Li Xueqin's version of the TVC, was used for short video live streaming to attract traffic, with good ROI, and daily sales reached 1.66w+, a 50-fold increase over the previous daily sales. More importantly, the user's stay time, UV average value, fan conversion rate, and payment conversion rate, these core indicators related to user quality have been comprehensively improved, which shows how much influence "content cognition" has on user minds and actions.

Douyin's closed-loop traffic strategy can complete the closed loop from content to live broadcast. Based on KOL's content promotion, it uses traffic promotion tools: Sui Xin Tui, content services, and Qianchuan's native information flow to achieve brand communication, product promotion, and "content amplification", completing the accumulation of "A1-A3" population assets, and then achieving "GMV amplification" through live broadcast room delivery, direct investment, and short video drainage strategies, ultimately achieving the brand's integrated growth in the Douyin closed loop.

For information about Douyin's traffic investment tools and strategies, please refer to "Effective Traffic Investment Strategy (Traffic Investment Chapter), Attached Douyin's Seven Major Traffic Investment Products and Core Strategies".

However, how much grass should be planted, how much content should be amplified, how big the reservoir should be, how much can be harvested in the live broadcast room, and at what point will you encounter a ceiling. To address issues like these, we introduced the Tik Tok "Cloud Map" to help brands effectively measure their crowd assets.

07FASD：Digital asset

Above we talked about the relationship between "saving money" and "withdrawing money". To balance this scale, we need a scientific measurement tool, so we introduced the "cloud map".

The cloud map divides people into five levels according to the closeness of their relationship with the brand: Aware, Appeal, Ask, Act, Advocate, and Opportunity. Through the population stratification model, Yuntu focuses on analyzing the characteristics of user groups at each level of O-5A, in order to gain insight into the potential of people at each stage of the brand, monitor the health of the population, and deeply analyze conversion motivations through flow analysis to further accelerate action conversion.

The two major goals of Yuntu crowd asset management are:

First goal: expand the total number of crowd assets

All the brand's operating crowd assets in the Douyin domain will be included in the Yuntu statistical system, and the asset scale is also based on the "15-day cycle" as a dynamic statistical benchmark. When a brand markets in the Douyin domain, the first goal is to expand the total number of crowd assets and open up the crowd "reservoir" so that it may be possible to obtain enough GMV in the subsequent harvesting and conversion stages.

The larger the crowd's assets, the more money they "save" and the more money they "withdraw".

Second goal: Promote the advancement of interpersonal relationships

Our goal is to harvest. To be more utilitarian, all marketing purposes are actually to reserve "A3 population assets". From the A3 weighted dimension, we mainly focus on content seeding or in-depth advertising, or a combination of measures, to promote the progressive goal of the A3 population. The core marketing strategy will revolve around this.

The deeper the relationship between people, the higher the quality of "saving money" and the better the efficiency of "withdrawing money".

The "Four Major Strategies" of Cloud Map's Crowd Relationship Flow:

In terms of the flow of relationships among people, Yuntu officially provides six flow links. In view of the balance between depositing and withdrawing money in the FASD model we proposed, I will simplify it into four major strategies:

Crowd flow strategy 1: Breaking the crowd circle

The core logic of breaking the circle and transforming into the A group is to find the brand's target group, such as the new eight groups given by Douyin, or the refined population granularity of OCPM, and carry out target group promotion. There are many ways to break through the circle of people, such as opening screen, TOPVIEW, challenge competition, KOL recommendation, information flow, etc. However, everyone has felt that new brands that use traditional media strategies at the beginning are becoming less and less effective in front of emerging groups. Obviously, it is necessary to start from the cognitive logic of consumers and formulate a "bottom-up" communication strategy.

Crowd flow strategy 2: Planting grass and storing water

The weight of the A3 population is mainly composed of "high-frequency advertising interaction", "deep grass-planting behavior" or "search behavior". We will use multiple delivery links to simulate and review marketing feedback.

Delivery strategy 1: High-frequency advertising is equivalent to users being scanned by information flows for many rounds. Most people are labeled A2, and a few are labeled A3. However, if consumers are not motivated, it is highly likely that they will not be able to achieve A4 conversion. This is a pure "cash withdrawal strategy" and is not very efficient.

Delivery strategy 2: Use KOL to promote products. Shallow interaction is A2, while deep interaction or search is A3, which is more likely to be converted into A4. This is a simple "savings strategy" with a relatively high cost.

Delivery strategy 3: Strategy 2 (planting grass) + Strategy 1 (information flow), mixed delivery, first "deposit money" and then "withdraw money", moderate cost and good efficiency.

Delivery strategy 4: Strategy 2 (planting grass) + content amplification (traffic investment), a combination of planting grass and traffic investment, all of which are "money saving strategies" with moderate cost and highest efficiency.

Crowd flow strategy three: harvest conversion

There are two ways to harvest conversions. One is to target the deep A population, such as A3 or A5, mainly to reach this type of population in a targeted manner. The Looklike efficiency of the A4 population is also good. Another approach is to directly attract new conversions. The core lies in the accuracy of OCPM's targeted population. It is very difficult to operate the investment flow, and there is often no basis for planting grass, and the harvesting efficiency is not high. Even if the short-term harvest is completed, what is overdrawn is the existing brand potential. Long-term growth will inevitably encounter bottlenecks.

Based on the concept of the "balance effect", there is no shortcut to brand growth. "Saving money" and "withdrawing money" are in a balanced relationship. Either both indicators grow year-on-year, or they become unbalanced and start over.

Crowd flow strategy 4: fan conversion

Everyone understands fan conversion, and there is actually not much to discuss about it. However, fan management deserves attention because, judging from various data, the fan traffic of excellent live broadcast rooms today already accounts for a certain proportion, and the conversion rate is higher than that of ordinary users.

This is why I said earlier that the logic of business operations is not just live streaming, but "account and store integration". Blue V accounts are more likely to retain fans, reach and harvest more efficiently, improve brand favorability, and communicate directly with consumers. In the long run, I believe that "Douyin private domain" is the last mile of the ecological closed loop. From the perspective of Douyin's strategy, it must be the top priority and cannot be missed.

Recently, we helped some brands diagnose and analyze the crowd assets of Yuntu. Combined with the relationship between depositing and withdrawing money in our marketing strategy, almost all of them were matched in Yuntu assets. We already have the ability to scientifically measure Douyin’s digital assets.

08RECAP: FASD Growth Model

The influencer matrix (Alliance) has achieved the accumulation of assets among the A1-A3 population and completed the "saving" of brand assets.

The live broadcast of the business field has achieved the harvesting and conversion of sales GMV and completed the "withdrawal" of brand assets.

The relationship between "saving money" and "withdrawing money" builds the basic "operating model" of Douyin's closed loop.

Traffic supply (Source) amplifies brand potential and realizes the possibility of "content-driven growth" through the "content amplification" strategy. The traffic strategy of "GMV amplification" has magnified the sales scale of the live broadcast room.

Yuntu Digital Asset realizes marketing "strategy empowerment" based on the "data feedback" of crowd assets, and then continuously optimizes and iterates marketing strategies. The brand's closed-loop operation in Douyin has gradually entered the "snowball effect", and the "brand potential" and "sales GMV" are getting bigger and bigger.

FASD Douyin closed-loop growth model can not only quantify the asset structure and value of the population, but also quantify the closed-loop ROI of brand management. One end is "saving money for investment" and the other end is "withdrawing money for output". In the end, whether the brand makes a profit or a loss can be calculated clearly, and it is no longer a confusing account.

09FASD+: Global Growth Model

Last year, I was involved in a new consumption case. As the new brand was unable to grow in traditional e-commerce, it chose to break through in the closed loop of Douyin. As a result, within three months, the monthly sales increased from hundreds of thousands to 10 million, of which the Douyin closed loop contributed 5 million and growth from other channels contributed the other half. At that time, I was studying how to quantify the potential of Douyin and the growth in the entire region driven by it.

Based on the FASD growth core, I proposed the FASD+ global growth model, which focuses on building Douyin's potential, influencing the external sales platform, and ultimately driving the brand's global GMV growth.

The core circle is the "TikTok closed loop", and the snowball effect is getting bigger and bigger, which in turn drives the "brand potential" and "explosive effect", forming the core of brand growth efficiency. Obviously, the value of Douyin in the entire domain is definitely not the value of harvesting, but the value of planting grass in the entire domain. Douyin is "saving money" and the entire domain is "withdrawing money". If the closed-loop ROI of Douyin is unprofitable, whether to continue or not depends on how you calculate the significance of the global ROI.

The second circle is the "Dabo channel". When a Douyin hits a blockbuster, the one that reacts the fastest is Dabo. Note that it is not Douyin Dabo, but the live broadcasts of celebrities in all domains such as Douyin, Taobao, Kuaishou, and private domains. The coverage of live broadcast distribution directly affects the brand's harvesting efficiency. If live broadcast is not profitable, then there was a problem in the initial design of the "business position" tray.

The third circle is the "private domain channel". Whether it is the brand private domain or the community private domain, the response speed of the private domain is very fast, and the leverage effect of the explosive product effect is more obvious. The content produced by Douyin is also mostly used for content distribution in private channels, allowing the content to create the value of "killing two birds with one stone".

The fourth circle is the "online channel". Tmall is still the first platform for Douyin's traffic overflow, followed by online e-commerce platforms such as JD.com, Vipshop, and Pinduoduo. Today, the business logic of the e-commerce platform waiters is "icing on the cake". If a brand becomes popular on Douyin, the e-commerce platform is willing to give more resources to help them achieve their KPI because of the high conversion rate.

The fifth circle is the "offline channel". The offline response speed is the slowest, but it will extend the life cycle of explosive products. Brands that have advantages in offline channels also have the greatest advantages in the FASD growth model because the channels are deep enough, the profit margin is thick enough, and in turn the investment is also large enough. If channel brands fight this battle, if they choose the right track and do not act recklessly, they will "attack at a lower dimension" against new consumer brands in the competitive dimension.

Based on the principle of "FASD+global growth model", brands with channel accumulation (private domain, online, offline) will have greater advantages in Douyin's closed-loop operation. Douyin's closed loop has also become the best opportunity for traditional brands to transform and "overtake on the curve".

10. Summary

It took me a lot of courage to write this article. After all, we only entered the live streaming track in the last six months, and the entire closed-loop capability was only achieved in the last two months. Even I continue to learn and iterate new knowledge about Douyin, which shows the huge challenges faced by brands.

I believe that this year will be the year when Douyin's closed loop needs "co-creation" the most, because there is indeed no company that can use the digital assets of the crowd to feed back, empower the implementation of marketing strategies, and achieve content-driven growth. This requires the platform, brand, and service providers to co-create and explore together to create a more efficient growth model.

I have analyzed ten thousand words to stimulate discussion. I hope you will share the path to growth.

Author: Qinggua Media

Source: Cucumber Morning News