How to quickly build an operating system for a new project?

I believe that many operators will encounter this problem. When going to a new company or operating a new project, how should they quickly familiarize themselves with the project and propose their own operating system?

Being able to quickly build your own operating system can not only help you quickly become familiar with the work and improve efficiency, but also enhance your control capabilities and increase your competitiveness.

Today I will briefly talk about the thinking and methods of quickly building an operation system and share my own experiences and experiences.

This article mainly has two parts;

• Dismantling Thinking
• Execution Model

Use "disassembly thinking" to sort out the project framework and clarify the "driving indicators"

Disassembly thinking means clearly understanding the company's assessment indicators for this project, breaking down the indicators step by step through mind mapping, and sorting out which indicators should be completed to drive the growth of the project. The ultimate goal is to break down abstract indicators into specific and executable indicators.

Disassembly thinking is actually very common in daily life and work. For example, when planning an operation activity, you can disassemble it according to the steps of planning the activity:

For example, if a public account needs to increase 10,000 new users within a month, it can be broken down according to the source of the user acquisition channels, and then targeted growth activities can be carried out:

Learning to use disassembly thinking at work can significantly improve your work efficiency. The following will explain it in detail with a simple example:

For example, for an e-commerce APP product, the company's assessment indicator is mainly revenue growth. The task assigned by the leader is to increase revenue by 50% month-on-month. However, this indicator is relatively abstract and has no specific execution direction. So we need to break down the indicator.

First, make the goal clear: increase turnover by 50%. Next, break down the goal and first break it down into a conventional formula, as follows: turnover = number of users × user conversion rate × average output value of a single user.

After breaking it down, the executable direction will be relatively clearer. The goal can be achieved by considering three indicators: user volume, user conversion rate, and average output value of a single user. As long as one of the indicators is improved by 50%, the task can be completed.

The above indicators are not yet executable, so we can continue to analyze them individually:

1. Continue to break down based on “number of users”

Number of users = activity entrance + home page banner entrance + novice entrance + other entrances.

After breaking down the number of users, the execution will be much clearer. If you want to increase the turnover by 50%, then the number of users must also increase by 50%. Through the breakdown, you can also understand which entrances the traffic can be optimized and increased, so that you can develop improvement plans in a more targeted manner, and bring growth through operational means such as optimizing entrances or increasing promotion channels.

2. Breakdown based on the “ user conversion rate ” indicator

User conversion rate = conversion rate from home page to product list page × conversion rate from list page to product details page × conversion rate from product details page to order submission × conversion rate from order page to payment page.

This is mainly the user's conversion path. By establishing a user conversion loophole, you can see specifically which step has a conversion rate problem and optimize it in a targeted manner. For example, the conversion rate from the list page to the product details page is 80%, but the conversion rate from the product details page to submitting the order is only 20%. In this case, is the product details page not attractive enough or the color of the submit button not obvious? After discovering the problem, you can quickly test and optimize it in a targeted manner.

3. Breakdown based on “average output value per user”

Average output value of a single user = average consumption amount of a single user × number of shopping times.

This is also easy to understand. If you want to increase the turnover by 50%, you can increase the user's shopping amount or the number of users' shopping by planning activities related to consumption. Both can be quantified with indicators.

Based on the above goal breakdown, we can suggest a relatively simple indicator system as follows:

After establishing a relatively clear indicator system, when abnormal data occurs, we can gradually identify which link has the problem based on the broken down indicators, and then quickly formulate strategies and implement adjustments.

Using the "User Growth Model" to Build an Operational Execution Model

User growth is a popular concept on the Internet in recent years, but I will not explain too much about this area below. I will only use the growth tool model to sort out my own operational execution framework. It should be noted here that there is no fixed model formula for using as an operational methodology. As long as it can drive the establishment of one's own operational execution framework, any tool model can be used.

After the above indicators are disassembled, several more important indicators are sorted out:

1. User volume: number of portals and active portals;
2. User conversion rate: user conversion rate, completion conversion rate;
3. Output value of a single user: purchase frequency and single purchase amount of a single user.

These indicators can be directly applied to the user growth model to identify current shortcomings and indicators that can drive growth, and operate projects in a targeted manner.

The following is a summary of the indicators for each stage based on my understanding of the growth model and the actual cases in this article. The main purpose is to give myself a grasp of the overall framework and provide methodological guidance for specific operational execution actions.

Step 1: Get users

This is the first step of the user growth model. According to the previous breakdown indicators, the increase in the number of users should be the source of traffic from the split entrance. Data analysis tools can be used to conduct point monitoring and analysis. Different operational methods can be used to increase the number of users, establish monitoring of customer acquisition channels, entrance copywriting, and promotional design drawings, and optimize customer acquisition methods through continuous testing.

Step 2: Stimulate activity

Whether the landing page after the user comes in can attract users has a great impact on activity, such as the degree of match between the content of the entry page and user needs, product function introduction guidance, etc. Here we need to focus on the user's bounce rate and the length of time they stay on the landing page.

Step 3: Promote purchases

This step focuses on the number of orders completed by users. The main indicators include user completion rate, funnel user conversion rate, etc.; the main purpose is to promote user purchases. Conversions can be improved through limited-time promotions, novice coupons, etc., and product functions can be optimized according to user habits, such as optimizing the purchase button UI. The user purchase path can also be optimized to analyze at which step the user generally loses more, and then targeted user grouping can be carried out to increase the purchase rate.

Step 4: Improve retention

For e-commerce products, retention can be improved by establishing membership systems and user communication groups. For example, JD.com’s PLUS membership and Taobao’s user VIP communication groups can both effectively retain users. In addition, you can also find the magic retention number of the product through data analysis. For example, if a new user completes his first purchase within a week, his retention rate is about 10% higher than that of users who do not complete their first purchase within a week. In this case, you can give new users limited-time coupons within a week after the user comes in, or push a limited-time price reduction event to trigger the new user to complete his first order.

Step 5: Increase repeat purchases

Repeat purchases are mainly to further increase the output value of individual users. This is the last link of growth, and we need to focus on the repurchase rate. In this step, we can establish user groups based on user attributes and find out the user's demand points for repurchase.

To give a simple example, through the data we found that among users who bought rice cookers, 60% of them would come back to buy rice bowls. So we can regularly push some rice bowl products to this type of users, which can effectively encourage users to buy again.

Conclusion

(1) When establishing an operation system, the most important thing is to exercise the "dismantling" thinking, which can break down some abstract indicators into specific and executable indicators. This can help to clarify one's own operation direction and achieve twice the result with half the effort in operation work.

(2) For operators with several years of operation experience, there are actually more differences in thinking and cognition. When encountering an unfamiliar field, they will have their own set of operation frameworks to quickly familiarize themselves with the field. Therefore, on the road to operation growth, they need to exercise their own thinking and improve their cognition to form their own operation framework.

(3) The user growth model is mainly used to provide methodological guidance for the specific execution of the decomposed indicators, but the execution model can be adjusted according to the actual situation. The main purpose is to discover the current shortcomings of the product as a whole and where further growth can be achieved, so that we can flexibly adjust the pace of operations.

(4) After forming your own operational thinking system, you need to constantly summarize and iterate your cognition and always maintain a positive learning attitude.

Author: Grizzly Bear

Source: Grizzly Bear