Editor's Guide: Why are some paid online readers willing to migrate from the original product to the free content product? On the one hand, because the core deliverables of the online reading product have changed somewhat from paid to free; are there other factors besides that? The author of this article has made a corresponding interpretation, let's take a look at it together.
Mobile online reading is a market with hundreds of millions of users, the head of the paid product (company) is palm reading and reading, early with good content and good products plus industry dividends, both companies have achieved listing.
However, from a few years ago, Byte's tomato and Baidu's seven cats gradually showed the form of catching up, and now they have surpassed two traditional paid online reading companies in terms of user scale, and their participation has expanded the market scale and seized the users of paid reading companies.
At the product level, why are they growing so fast and massively?
As practitioners, the initial cognition is their innovation in business models, as well as the advantages brought by capital and resources, but after in-depth research, it is found that the original ones are only changes in surface elements, and in the growth core, these products do two things right at the bottom.
First, incrementally done well, by changing the core deliverable content, greatly expanding the size of the market, and through their own resources for user acquisition.
Second, the stock eats well, provides more effective user value by reducing prices, and pulls the original paying users to their own products.
Let's talk about these two things separately.
First, on the expansion of core delivery
1. Read online the changes from paid to free, core delivery
The original paid online reading, the core value delivered to the user is the content, the user to consume to make transactions is the content, supply, demand, transaction mode are all around the content.
We will find that many users follow the content, whoever gets the exclusive copyright of "Yuanzun" readers will go where they go, and where to pay, who signs a better author, often the user will go to whose home, and where to pay.
But do free content + HYIP, its core delivery from content to currency (or pocket money), users for money (WeChat Alipay cash out money) to use the platform to use products, enterprises also around the increase in advertising revenue to do strategy, around the expansion of advertisers to build their own internal structure of the enterprise. In the free-to-read model, content becomes a bridge rather than the core value delivered to users.
2. The growth effect of core delivery changes
The original content as the core delivery of the market, according to the data given by third-party companies, the market user size is about 300 million, when the addition of the net earner after the market size of more than 450 million.
But I think it's much more than that. Because after the core delivery changes, the user needs and users who are solved have changed dramatically.
First of all, the original users who read the content are still there, but the original reading of newspapers, reading online news, home embroidery cross stitch, scrap picking (the first two are time-consuming, the latter two are to make a little money), all these users who have time, like to make some pocket money by doing something, can become the target users of these products, I even think that more than 80% of the low-tier cities and low-income people with mobile phones can be counted as target users.
First, my family (hometown, eighteen-line small town) is watching seven cats at home every day in order to make a few cents, telling me that idle is also idle, and I can earn a little; second, my grandfather who collects waste downstairs in my family (Beijing) brushes the incentive video in the free novel while turning over the garbage can.
After the expansion of the user plate, it is only necessary to obtain users through capital and channels, which is also a matter of convenience for these large companies. Moreover, this part of the user is not touched by the original palm reading and reading (my father does not know what palm reading is), and there is no need to compete with palm reading and reading. About free reading to get customers can be re-opened articles later.
Second, about the improvement of user value
1. User value formula
First, let's review the user value formula.
Teacher Yu Jun said: user value = new experience - old experience - replacement cost, slightly flexible, I add a subsidy value: user value = new experience - old experience - replacement cost + subsidy value.
It must be noted that according to the five characteristics of the user, the value mentioned here must be the value perceived by the user himself, not the fair value.
2. Online reading from paid to free, user value increases
Based on the above formula, we analyze the old experience, the new experience, the replacement cost, and the subsidy value factors of free reading.
First, the value of the old experience is reduced.
The old experience is the original user paid to get the content, after comparing the form of getting the content without spending money, it will make the user feel that the original content obtained through payment is very expensive, so the utility is very small, which reduces the old experience of palm reading and reading.
Second, the value of the new experience is enhanced.
The new experience has ads, there are interruptions to the user, these are unfavorable, but their design is better, the product is lighter, not stuck, etc. These make up for some of the old experience; most importantly, subsidize the user, further make up for the disadvantage of the new experience, and even make the user feel that the utility of the new experience is improved.
Again, the replacement cost is negative.
Large companies rely on their own funds to advertise, the original products to undertake, users almost think that the cost of 0 is replaced, and the novel product itself is not to read again, before the palm reading did not insist on doing the community and other things that can increase the cost of user replacement, and free novels will also do new user packages and other products and operating tools to enhance the user's first body experience, so that users not only do not feel that migration and replacement is costly, but feel that replacement is profitable, who migrates first who benefits first.
Finally, the subsidy value can be very effective in supplementing the user value.
The value of subsidies has actually been mentioned above, and it is a new stimulus for users to use such a core delivery form, which can be subsidized accordingly in each link, thus effectively enhancing the final user cognitive value.
Third, the further refinement of growth methods
Three levels of growth:
Finally, I would like to talk about my little understanding of growth. Growth is divided into three levels, from the inside out:
- Core layer: pattern business logic;
- Middle layer: service form and efficiency;
- Epidermal layer: growth experiment.
Simply put, the kernel layer is mainly to see what your core needs to solve users, your supply and demand and transaction patterns; the middle layer is how efficient your product delivery is, including the internal and external of the enterprise; the epidermal layer is what we say to do some landing experiments, ABtest.
The leverage played by these three levels of things for business growth is weakened from the inside to the outside, and the more obvious the growth effect played by the core level of change.
The core delivery and user value of the free reading mentioned above are changes in the core layer, and some students may say that price cuts and subsidies can be counted as changes at the experimental level, but I think there is a threshold and underlying strategy problem here, when you change the price beyond a certain threshold, or the price reduction is not marketing but a long-term behavior, then the price reduction is not just a faded skin level experiment, but can be defined as a change in user value.
In fact, this involves the three layers of growth, which must not exist in isolation, but are interdependent, mutually influencing, and even transforming each other.
Specific content of each level, I will open a separate article to explain. This method is my own precipitation summary, plus after seeing the content of Teacher Arun, I have perfected my own summary.
Author: Xiaohua, a senior growth product; public number: what is the vase bubble
This article was originally published by @Xiaohua on the part of everyone who is a product manager, and reprinting without the permission of the author is prohibited.
The title image is from Pexels, based on the CC0 protocol.