The process from drainage to fission growth

Nowadays, the whole world is experiencing the stage of fighting the epidemic. In this severe situation, everyone initially began to change from the excitement of enjoying the short holiday to anxiety and uneasiness. Affected by the epidemic, large, medium and small enterprises have begun to gradually transform, using practical actions to demonstrate the latest strategic plan of suspending work but not business.

Quoting The Wealth of Nations, 1776—Aston Smith believed that there are two main ways to increase wealth: first, to strengthen the division of labor to improve labor productivity; second, to increase capital accumulation, thereby increasing the cooperation of more professional people to improve efficiency.

All over the world, it is now an era where professional players are defeating amateur players. The growth, new customer acquisition and traffic generation we are talking about today all rely on vertical specialization to lock in users and value. In the past, enterprises had a "long and narrow class" structure, but in the future, enterprises will exist as a "platform + maker" structure.

For example: During the epidemic, Xibei Catering took three actions in succession that are worth our consideration. First, Xibei Catering borrowed 120 million yuan from Pufa Bank as working capital to ensure that it could survive the "cold winter"; second, it selected highly skilled and good-looking chefs to start live broadcasts, and guide users online on how to make delicious dishes; third, Xibei Catering conducts comprehensive military training for each employee to be prepared in advance for "revenge consumption" after the end of the epidemic. The above three points are Xibei Catering’s practical actions to demonstrate vertical specialization and thus lock in users and value.

Elimination battle and achievement battle, time battle and traffic battle

The battle to resume work and break through growth is a battle of elimination and achievement, a battle of time and traffic, and even more a battle of growth. First of all, the elimination war is to eliminate companies that are too heavy offline, companies that require a high staff density to conduct business, and companies that do not have a traffic pool. As the name suggests, companies that do the opposite will be able to win in this battle.

Secondly, during the epidemic, many companies raced against time to transform their offline businesses to online, seizing the initiative in the battle against time by adopting the three indicators of online communication, online payment, and online distribution logistics. At the same time, all industries are creating their own traffic pools to seize market users, convert, activate and serve users within the traffic pools, and gain a foothold in the competitive traffic war.

Four dimensions of growth

So, many people must be wondering what exactly is growth? We divide growth into four dimensions: cognitive growth, user growth, online growth, and professional growth.

1. Cognitive growth - Every profession has its own expertise. Professionals in each field give full play to their own level and connect and collaborate in all links within the company to achieve the true win-win-win goal of good products, good marketing, and good companies.
2. User growth - establish user communities, clarify user purchase and repurchase paths, meet user needs, and quickly perform user fission.
3. Online growth - Increase online time. The online system must meet users' needs for product selection and logistics speed.
4. Professional growth - Improvement in three dimensions: growth in professional knowledge, growth in service specialization, and growth in the value of professional time.

The three most important things for growth

Next, the three most important things to achieve growth are: first, find a handle to turn other people’s hot products into our gifts; turn products with strong demand into gifts to attract traffic; and turn your professional knowledge into a handle. Second, to establish a community, three types of personnel are needed in the initial stage of community establishment: managers, operators, and lecturers. Establish a theme for each community, cultivate community leaders, and form self-driving forces for the community. Third, upgrade the model, establish a complete sales dividend sharing mechanism, and form a user purchasing experience return path.

The four elements of growth

Now I will continue to share with you the four elements of growth:

1. Growth team - break organizational boundaries and build a cross-departmental growth team through personnel expertise and specialization;
2. Good products - Products without repeat purchases and referrals are definitely not good products, and marketing without fission is definitely not good marketing;
3. Growth Strategy - There is a strategy in psychology called "delayed gratification". Polish high-quality products and high-quality teams to deeply explore user needs and ensure continuous user satisfaction;
4. Rapid testing and iteration - continuously launching products to the market for testing, and continuously updating and iterating products based on user feedback;

Two core ideas of growth strategy

Regarding the growth strategy mentioned earlier, please think about the two core ideas behind the strategy? Here I summarize it as: traffic thinking and incremental thinking. First, traffic thinking, converting super users into traffic users, transforming the weak relationship between the enterprise and the user into a strong connection, and finally upgrading it into a membership relationship; second, incremental thinking, driving the incremental growth with the existing stock within the enterprise, and continuous high-frequency actions driving high-frequency reflux.

Growth-based competitive strategies are divided into three dimensions: cost leadership strategy, differentiation strategy and specialization strategy. First of all, the cost leadership strategy is called "supply chain", specialization and efficiency. In the past, most companies advocated reducing costs and increasing sales. Reducing costs does not mean reducing the cost of products, but reducing staff waste and communication costs, and improving the efficiency of corporate personnel to achieve "fewer, better, and more specialized people."

Secondly, we use the example of Haidilao to illustrate what differentiation strategy is. While ensuring the deliciousness of the dishes, Haidilao Restaurant has improved its diversified service standards to gradually differentiate itself. Improving service is the superficial phenomenon we can perceive, but the real action behind it can be described in one word: “fast”. Haidilao guarantees a turnover rate of 6-7 times per table per night. Haidilao reflects service satisfaction through the speed of table turnover, becoming a hotpot catering company that provides the best service in the entire Chinese hotpot industry.

Finally, the specialization strategy states that all small businesses need to find a small incision to enter the big market, then accurately locate customers, and then enter from the small incision, gradually forming growth wheels. Nowadays, many companies are implementing diversification strategies, but the actual development of diversification strategies has not led many companies to success. For example, everyone thinks that Xiaomi is engaged in diversified businesses, but in fact Xiaomi specializes in mobile phones. Mobile phones are Xiaomi's traffic-generating products, and the rest of its products are used for distribution.

The process of drainage fission

We use the growth hacker model (AARRR model) and the traffic pool thinking of mobile marketing to explain the process of traffic fission. First of all, the AARRR model finds target users through the user iteration thinking of the product life cycle: acquire users - activate activity - improve retention - increase revenue.

Secondly, the traffic pool thinking of mobile marketing is through three steps: source - operation - closing. Find the source through brands, WeChat, fission, digital advertising, etc., then operate through DMP, CRM and effect monitoring, and finally use APP, WeChat and purchase page to settle and close.

The above content is a summary of the knowledge points in teacher Sun Bowu’s live speech "The Process from Traffic Generation to Fission Growth". Great epidemic, great counterattack, let us meet at the Student and Entrepreneur Association: learn together and create a better future.

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Author: Liu Yidao

Source: Liu Yidao