Event Planning丨How to design a bargaining function?

The bargaining function takes advantage of human greed to stimulate users to develop novice users. When bargaining is used to cultivate users' investment behavior, users can obtain both physical objects and the choice of earning profits. Users can then earn profits by eating mushrooms (the target objects grow into objects). So how do we design a reasonable bargaining function?

Industry Introduction

• Core underlying assets: The underlying assets that users invest in are physical objects that can be freely delivered to the C-end; for example: growing mushrooms, pigs, cattle, sheep, etc.
• Target users: users who have clear/intent to purchase.
• Business process: (excluding cash flow).

Difficulties encountered:

• The user groups are: financial investment users, e-commerce consumer users, etc.
• Do users lack trust in this model?
• Is it difficult to acquire customers for Internet finance products?
• Are the types of goods on the platform single (finished and processed products of the target) (for example: companies with pork, mushrooms, cattle, and sheep as their core products)?
• Restricted by policies and market environment?

Social e-commerce

Social e-commerce is inherently centered around circles, bringing people together, selling goods to people in a layered manner, and transitioning marketing from the B-end to the C-end. In essence, it is about building a relationship chain and building sales on it. This is a huge change in model, or a completely new model.

From the perspective of cost structure, the cost of social e-commerce has largely shifted to the social cost of building relationship chains, such as using social red envelopes and bargaining, combined with huge investments to continuously aggregate users to the platform, and the growth logic has shifted from the operation of commodity categories to the operation of relationship chains.

Combining the physical characteristics of planting/breeding, a sub-module of the product is designed with bargaining and free shipping as the starting point.

Guidance Model - Model Y

According to the Y model analysis:

(1) Demand: How to solve the problem of platform customer acquisition in the current market environment?

Method 1: Directly place advertisements in media that can influence the target user group?

Method 2: Utilize existing seed users to generate new users?

(2) Purpose: Quickly acquire new investment users

User process: Buy mushroom sticks - grow mushroom sticks - sell mushrooms - withdraw cash. This process should only be used for well-targeted users.

How to establish links with novice users?

In order to make novice users truly aware of the existence of the target object, some benefits are needed to attract them to participate.

Process: Participate in the event - give away mushrooms - give away red envelopes - give away mushroom sticks - grow mushroom sticks - sell mushrooms - withdraw cash.

The overall process cost is controlled at 100-200 yuan per user, with a single startup time limit. The difficulty of bargaining increases gradually, and the prizes increase gradually.

(3) Human nature: human greed (free/monetary rewards)

Getting a certain amount of reward within a specific period of time will make users feel more involved, and the temptation of money will easily make them want to get involved.

(4) Function: Based on 1-2-3, a solution function is launched: bargain and get it for free

Increase user engagement, quickly attract new users, and build user awareness of the platform.

Specific implementation

Bargaining process:

Purpose of bargaining:

• Step 1: Start by bargaining for dried mushrooms, allowing users to try them for free at a very low cost, and initially build user trust;
• Step 2: After successfully completing the bargaining for the product, the red envelope will be triggered, and the user will receive a monetary incentive and a rebate;
• Step 3: Finally, introduce the subject matter (in the form of goods) for bargaining, allowing users to experience the planting process (similar to online loan experience gold activities);
• Finally, the user experienced the entire process, gained a sense of participation, and received benefits and edible goods.

Bargaining Design:

• Is the product limited?
• Set the total number of people who can bargain for a product?
• What is the user’s first bargaining amount?
• Is there a distinction between the support ratios of new and old users? Can I bargain for the same product repeatedly?
• Is there a deadline for bargaining for products?
• What is the overall customer acquisition cost?

Bargaining logic:

• Product PriceM
• The bargaining coefficient for new users is X
• The bargaining coefficient of old users is Y
• Number of people bargaining for a single item Z
• In order to ensure that the bargaining coefficient is not set properly, the final number of bargaining people is displayed as 0 due to the display of decimal points, but the overall price is less than 100%, so the reserved number is 0.01*Z; the actual bargaining amount = M-0.01*Z.

Summarize

This type of function exploits human greed to stimulate users to develop novice users. When bargaining is used to cultivate users' investment behavior, users can obtain both physical objects and the choice of earning profits. Users can then eat mushrooms (the target object) and obtain the investment mushroom sticks, which can then be sold for profits after they grow.

This feature is highly suitable for the current environment; it can not only achieve user growth, but also give users physical experience and increase their confidence in the platform. The disadvantage is that it cannot establish long-term stable investment users and can only be used as a way to attract new users during the product growth period.

Author: Product Huang Zhong

Source: Product Huangzhong