How can Kugou improve the conversion rate of paid members?

The author is a karaoke enthusiast. When using the karaoke APP, he will see prompts to purchase VIP in many scenarios.

For example, when downloading the accompaniment before singing, only VIPs can download the accompaniment with HQ sound quality; when post-production is done after singing, VIPs can enjoy outstanding sound quality effects (so good that I can’t believe I sing so well hh); after singing, I feel that I didn’t sing well, and when I see a teaching video, I am delighted and click on it, but I am ruthlessly told - "teaching videos are exclusive benefits for VIPs", etc., etc., the temptations of VIPs are everywhere.

From a business perspective, paid membership is an important monetization path for tool-based social products. So what are the main factors that affect membership revenue? By breaking down the revenue formula, we found that the main factors affecting membership revenue are DAU, payment conversion rate, membership repurchase rate, and single purchase cost. This article only provides some ideas for improving membership payment conversion for discussion~

1. Analysis of Paid Membership Revenue Indicators

Paid membership revenue formula:

Membership revenue = number of paying members * ARPU value

Number of paid members = DAU*payment conversion rate

ARPU = number of membership purchases * single membership purchase fee

The main factors affecting membership revenue are: DAU, payment conversion rate, member repurchase rate, and single purchase cost.

2. How to improve the conversion rate of paid members?

When users consider whether to purchase a membership, they will consider whether the membership is cost-effective (high cost-performance), that is, "whether I have purchased high-quality services at a low price." Therefore, there are two ideas when designing membership benefits: one is to expand value-added services based on user pain points, set membership benefits that can impress users, and enhance the sense of premium of membership services; the second is to efficiently reach users with membership benefits/value in a reasonable way.

1. Enrich member value and enhance member service premium

Generally speaking, the value provided by paid members is mainly reflected in three aspects:

1. Privileged status: reflects the sense of privilege and exclusivity of paying members;
2. Service value: Membership benefits are based on basic services. We provide value-added services that can effectively solve user pain points, create a sense of premium for member services, and enhance user experience.
3. Benefit value: Members can obtain exclusive benefits when using certain product features or purchasing certain services. (For example, JD.com members have exclusive coupons every month)

When users come to Kugou , they mainly record and publish works, watch their own works and watch other people's works. Other behaviors are derivative behaviors based on these three behaviors. Taking the process of recording and publishing works as an example, the ultimate goal of general users who come to Kugou to sing is to obtain positive social feedback and achieve self-realization.

The main pain point for users during karaoke is that various factors lead to an unsatisfactory recording experience or unsatisfactory recording results . Therefore, membership design mainly focuses on helping users output higher-quality works and obtain more positive feedback. During the recording and publishing process, value-added services are provided to create a sense of service premium and guide users to pay for conversions.

The rights and interests provided by WeSing during the user recording and publishing process are as follows:

So, what other value-added services can Kugou provide to enrich the value of its members?

(1) Higher service value: Providing value-added services that can effectively solve user pain points

1) More powerful post-production functions

A personal tone, balanced vocal accompaniment volume, perfect pitch, no external noise, no obvious breathing sounds/lip and tooth sounds, excellent reverberation, and stable breath are essential elements for high-quality karaoke works.

The main functions of the National K song post-production include:

Pitch correction : Pitch correction to make the vocal pitch consistent with the accompaniment.

Only some songs in Kugou can use the tuning function. The author tried it and found that the effect of this function on the transition of words and sentences when correcting the pitch was not ideal. After the tuning, it felt like a complete mess.

Adjust the rhythm : Correct the vocal rhythm to match the accompaniment, making the recording sound more rhythmic.

Kugou provides the function of automatically adjusting the rhythm, and users can also adjust it by themselves.

Adjust the volume : including the accompaniment volume and vocal volume to achieve a balanced volume.

Reverb : Polishes the singer's timbre by creating spatial echoes and adjusting the echo length to make the singing sound more layered.

In addition to providing primary reverberation mode services, Kugou also provides VIP services for customized sound effects, which is the main paid function in the post-production scenes of songs.

Reduce noise : Noise during singing includes: more obvious breathing sounds, external noise (such as other voices, environmental noise, etc.), and vocal noise (such as harsh sounds caused by pronunciation problems when singing).

Kugou provides noise reduction services, but the effect of reducing noises such as breathing sounds, lip and tooth sounds is not particularly obvious.

Stable voice : When most people sing, their voices may fluctuate due to unstable breathing or poor sound reception.

No related functions yet.

National K song post-production interface:

In summary, in addition to the existing intelligent sound effects functions, the post-production function modules of Kugou also have many directions for providing value-added services. It can provide more powerful post-production services through VIP service stratification or setting one-time payment points to help users who pursue better results to output better works.

(2) More equity value

There are three main benefits for members of Kugou: more flowers (for social gifting), work submission coupons (to increase work exposure) and VIP gift boxes (including K coins, chorus coupons, etc.). Basically, these are benefits to help users improve their social activity, but the quality of these benefits is not high enough for the content output itself, which leads to low perception among users who have weak social desire. We can add some equity value to help users produce better works and increase the willingness of these users to pay:

1) Benefits for purchasing karaoke equipment

When recording songs online, you can only use simple recording tools (for most people, it is the microphone that comes with the mobile phone), so it is difficult to sing a song well. ——VIP members can enjoy exclusive discounts when purchasing karaoke equipment, or points can be exchanged for karaoke equipment coupons, which is also a good incentive for users.

2) Customized Karaoke teaching mode

The karaoke teaching entrance of National K Song is mainly set under the single song, as follows:

The single song teaching video is a good entry point. When you just can’t sing a song well, you may be tempted to pay after seeing the teaching video. The author has a simple experience and found several problems:

• The teaching is more about inspiring how to sing a certain song, and has little effect on improving the user's overall singing level.
• Singing lessons lack customization, and each user's singing level is different, so the learning effect varies from person to person.
• The levels of singing instructors vary widely.

The author personally believes that karaoke teaching is a relatively viable business model. Offline singing classes often have problems such as information asymmetry (difficulty in finding suitable teachers) and difficulty in arranging time and place. Online personalized customized teaching can solve these problems to a certain extent.

It is recommended to increase the sale of systematic karaoke tutorials based on the single karaoke teaching guidance. If the course system is of high quality and has a good reputation, then while increasing one-way income, you can also conduct joint marketing with members, thereby driving the conversion of paying members.

However, to create high-quality courses, you first need to strictly screen the teachers, and then design course content suitable for users (you need to know your users very well, and you can use user surveys and data-assisted judgment to determine the main categories and teaching methods of initial courses, and combine user feedback to continuously improve course quality).

Polishing a good course is a huge project. Due to the length of the article, I will not discuss it in detail here. I will talk about it in detail when I have time~

In summary, Kugou can expand on the existing VIP benefits, increase the one-way income of high-quality services and drive the conversion of paying members:

1. Provide more professional customized tuning services, members can purchase at a discount.
2. Scenario-based guidance of users to purchase karaoke equipment and reminders to VIP members of the exclusive discounts they can enjoy when purchasing karaoke equipment is also a good incentive for users.
3. Create a high-quality karaoke teaching system, and members can purchase courses at a discount.
4. In addition, linking with QQ Music members (Karaoke lovers are generally music lovers~) may also be able to improve the paid conversion rate of Kugou to a certain extent.

2. Efficiently reach users with membership value through reasonable means

(1) Scenario-based Reach

In order to make users have a higher perception of the value of membership, efficient scene-based reach is needed, that is, to grasp the corresponding pain points of users in each scenario, use efficient membership benefits to solve the pain points of users, and guide paid conversions.

During my use, my payment behavior was mainly guided by AI smart sound effects and karaoke teaching. Taking AI smart sound effects as an example, users process songs on the APP at a high frequency. AI smart sound effects can easily make users "sing well", with amazing results that directly hit the pain points.

(2) Reasonably design the member trial function

In the later stage, users can use the VIP function - intelligent sound effects to process songs. After trying it, users will experience the huge difference between intelligent sound effects and ordinary sound effects, and their expectations of receiving positive feedback after publishing their works will be greatly improved, making membership very attractive.

It should be noted that if it is not possible to determine whether VIP benefits can really effectively solve the user's pain points (such as the current single karaoke teaching), users may pay on impulse. After the trial, it may affect the user's judgment of the value of the membership. Early trial may not be a good choice.

at last

The above are some of the author’s thoughts on improving the conversion rate of paid members of Kugou. The author believes that paid membership is not only a way to monetize, but also to increase user stickiness and activity. The VIP function should be designed to focus on user pain points, help users get a better experience in the APP, and realize their self-worth. When users feel that membership benefits are truly valuable, conversion rates will naturally increase.

Author: Liu Yuaner

Source: Liu Yuan Er