AARRR model | 4 key points to attract new users!

High-quality new customer acquisition is inseparable from appropriate content, product positioning, users and channels. This article analyzes and introduces these four key points in detail for your reference and study.

In the "AARRR" model, a classic operating system in the Internet industry, attracting new users is the first link, that is, attracting new users for the current product. The quality of attracting new users directly affects the subsequent activity and retention quality. So how can we achieve high-quality new customer acquisition? This article will discuss the issue from the perspective of "content" through the three elements of "product", "user" and "channel". That is, when you have the right product, use the right content to attract the right users from the right channel.

1. Content - How to convince users?

When planning to attract new customers, we often think about what kind of strategy should be used to communicate with users so that they will want to download the product, use the product, or even convert immediately? The point of this article is that good content is a comprehensive consideration of the three elements of product, user and channel:

• Content + Product: The premise is that "the product itself must be worth owning." Therefore, the description of the product should have clear functions and positioning to meet the needs of users.
• Content + User: Content copywriters should understand users and reach out to different user groups. Is the target student group or working professionals?
• Content + Channel: The content format should take into account the types of different channels and the types of people gathered. Is it text type or video type?

The following article will break down these three elements one by one and discuss how to produce suitable products, users and channels.

2. Product perspective - What is the product positioning?

As the saying goes, "A good blacksmith must first sharpen his own tools." Making good products is the prerequisite for the above five links. I believe that most products need to complete the following "cultivation" before they can successfully move towards growth.

After the entrepreneurial team has created a product that they believe is qualified, they will launch it into the market with great enthusiasm. However, what awaits them may not necessarily be a flood of users, but rather no one is interested. What's the problem? The problem is that the popularity of a product is not determined by the team itself, but by whether the market is willing to accept it. Therefore, if any product wants to successfully enter the market, it must first fit the market, which is the PMF (Product/Market Fit) stage .

So, how can we successfully achieve PMF status and enter the market smoothly? Ultimately, the creation of a product must truly meet the needs of users. Tool products should be able to meet users' needs for improving efficiency, social products should be able to meet users' needs for making friends conveniently, and transaction products should be able to meet users' needs for convenient shopping. It proves whether the various functions of the product can meet the corresponding needs of users, clarifies the positioning and advantages of the product, and lays a solid foundation for subsequent publicity, promotion and even active retention.

How to conduct demand analysis? The author believes that this can be done in the following three steps.

1. Split different functional modules

Currently, many products have more than just a single function. When various functions are combined, sorting out the different functional modules of the product can more clearly and intuitively measure its effect.

Taking the live broadcast application YY live as an example, according to the breakdown of the functional structure in the figure below, it can be seen that the product is mainly based on "content" + "social" functions:

2. Measure the needs met by each module

So, what is the greatest significance of this module for users? What needs of users can it meet?

The following figure cross-divides the four major types of apps on the market in terms of “time consumption” and “source of value”:

YY live’s main “content” and “social” modules satisfy users’ needs to kill time, which is consistent with the product’s positioning as “entertainment live streaming”.

3. Verify product requirements

After clarifying the product positioning and the "expected needs to be met", you also need to verify whether it is truly feasible and whether it can really meet the needs of users. In the context of market uncertainty, it is obviously irrational to obtain user opinions on a large scale. Even if the sample size is large, the cost will be huge.

The "Minimum Viable Product (MVP)" proposed by Silicon Valley writer Eric Ries in his book "The Lean Startup" can solve this problem well. MVP means developing a product prototype in the simplest way, retaining the most basic functions and design, quickly launching it into the market for a small number of target users to use, and then iterating and optimizing it based on feedback to reach the PMF state as soon as possible. There are three keys to this process:

• Product simplicity : Based on the above positioning of the product itself and its functions, the most core functions are extracted, such as a short video with simple interactive functions. It can save costs while helping users focus on their core needs.
• User feedback: Users can express their feelings about the product through the feedback channel. The core is whether the product meets their needs (for example, whether the content can attract their attention). It also includes suggestions such as whether the opening process is smooth and whether the operation is cumbersome.
• Rapid iteration: Based on user feedback, continuous review can verify ideas or find directions for improvement more quickly, and move closer to a more perfect product step by step.

After completing the above steps, you will have a certain grasp of the product's functions and positioning, and have a clearer direction for subsequent publicity and promotion.

3. User perspective: Who are the users of the product?

The accuracy of user screening is also a process of continuous iteration and improvement. From the time a product enters the market to its stable development, the formation and refinement of user portraits generally go through three stages.

1. Basic properties

When the product first entered the market and was not vigorously promoted, the number of users was very small. But precisely because of this, the downloads and use of this group of users may be largely attracted by the core functions of the product, which also reflects their needs. This group of users is also called seed users. In the early stage, users are not familiar with the system, have few permissions, and have not generated many behaviors. The user profiles at this stage are mainly based on the following basic attributes:

• Basic attributes: such as gender/age/occupation/marital stage/education level, etc.
• Geographical attributes: such as region/province/city/city level, etc.
• Hobby attributes: such as shopping preferences/APP preferences, etc.

Based on the above basic attributes, we can have a general understanding of the users of the current product and know "what kind of people will be attracted to my product?" Using the user tag combination presented by the current portrait to attract new users can avoid ineffective contact with "people who are completely uninterested" to a certain extent, but it is still not accurate enough.

2. Behavioral attributes

When the product has accumulated a certain amount of users and the behavioral data becomes more abundant, there will be more materials to help us identify users more accurately. Still taking YY Live as an example (just an example, not considering the actual stage of the product), we can split it based on the business dimension according to different user behaviors:

• User roles: There are two distinct roles in the app, the host and the audience. Different roles may have completely different demands for the same product. Larger audience groups seek entertainment and killing time, while anchors are more concerned about how to attract fans and monetize. Similarly, this situation also exists in other types of apps. For example, taxi apps are also divided into drivers and passengers. Paying attention to different types of groups can attract different users in a more targeted manner.
• Usage preferences for each module: For example, live broadcast viewing time, video viewing time, etc. Based on this type, you can distinguish groups that are interested in different forms of content, and reach different groups in a refined manner.
• Preferences for various content themes: For example, singing, talk show live broadcasts, etc., can discover users' different content preferences, and also have certain reference value for the selection of new content and platforms.

The splitting based on behavioral attributes varies greatly for different types of products and requires specific analysis based on specific circumstances. With behavioral attributes, we can know "What aspects of the current product are users interested in?" and further divide users into finer categories.

3. More sophisticated user segmentation

When the product has developed to a relatively stable and mature stage, and has accumulated a large amount of user and behavioral data, and there will be new and stable paying users, it is possible (and necessary) to use more scientific, comprehensive, and verifiable methods to build a user profile for the product and to understand the users in the current product pool more systematically. The most classic method for building user portraits is the RFM model:

• R stands for Recency: the user's most recent consumption since the data retrieval date. It can measure the user's consumption cycle.
• F stands for Frequency: the number of times a user consumes within a specified time period.
• M stands for Money: the amount of money a user spends within a specified time period.

The above is the representative meaning of the most classic RFM model. In actual applications, other types of products have different profit models, and the measurement indicators are naturally different. Taking YY live as an example, users of live broadcast products can be divided according to the following indicators:

• R stands for Recency (the most recent time a live broadcast was watched): the user’s most recent live broadcast watching behavior since the data was collected. It can measure the user's usage cycle.
• F stands for Frequency (frequency of users watching live broadcasts): the number of times a user watches live broadcasts within a specified time period.
• M stands for Money (recharge, payment amount): the amount of recharge, payment or reward made by the user within the specified time period.

Based on the three dimensions of the RFM model, a user stratification model with at least eight quadrants can be created. The following picture comes from Baidu Encyclopedia:

Under this model, we can summarize the general communication strategies for different stratified groups of people:

On the premise of sufficient user volume, we believe that this model can achieve accurate user segmentation in a relatively stable manner.

User portrait involves the stratification of paying users and even loyal paying users. It is an operational work throughout the entire product life cycle. In the stage of attracting new customers, it mainly utilizes the feature recognition of important customers, which can have a clearer portrait of the target users when attracting new customers, helping the product and operation teams to better achieve accurate new customer acquisition.

4. Channel perspective: where can you find the core users of your product?

When it comes to new customer acquisition channels, there are two essential considerations: channel effect and channel cost. The choice of any channel should be based on a comprehensive consideration of both.

1. Channel Effect

With limited external information, we may not be able to obtain the performance of all new customer acquisition channels in all dimensions in advance. Therefore, the selection of new customer acquisition channels may be a process of continuous experimentation and search for the optimal solution. In the process of exploration, I think the following three dimensions are more important:

• Channel Type : Is this a paid or free channel? What are the main types of content? What form? What groups of users are the majority? This information can help us roughly understand whether the crowd gathered in this channel is similar to the core users of this product, and whether there is a high content match, so as to improve the accuracy of delivery.
• Channel exposure volume: Channel exposure volume needs to be determined based on the current development stage of the product and different cost pricing methods.
• Channel traffic conversion rate: The conversion effect depends on different business scenarios. It can be the registration conversion rate or the purchase conversion rate.

Based on the above three factors, we can have a more comprehensive evaluation of the effectiveness of the delivery channels.

2. Channel costs

The cost of channel placement varies in different channels, business scenarios and even industries, but the basic principle is that "the average user cost cannot exceed the average user value". The following are some common pricing methods, which will not be discussed in detail:

• CPM: cost per impression. Refers to charging per impression.
• CPC: cost per click. Refers to pay-per-click.
• CPA: cost per acquisition. Refers to charging based on the number of customers acquired.

Based on the above considerations on effect and cost, I believe we can determine several new customer acquisition channels that are suitable for the current products as stable new customer acquisition channels.

In general, attracting new customers is a task that runs through the entire life cycle of a product. It is the mission of product and operations personnel. The only goal is to find a development direction that is more suitable for the product through repeated attempts and verifications.

Author:ywmw_

Source: ywmw_