Taobao Tmall upgrades 88VIP rights
Taobao still couldn't hold back and brought a big benefit to users.
Taobao Tmall announced that from April 22, 88VIP can return unlimited shipments with a maximum subsidy of 25 yuan per order, and can be used in conjunction with freight insurance.
This is a major upgrade for 88VIP rights this year. Before the upgrade, 88VIP members could enjoy 6 5 yuan return coupons per month.
Source: Tmall
So far, this benefit has achieved full coverage of 88VIP members, and all members can view it in the "Return Package Freight" in the "88VIP" channel on Taobao's homepage, and it will take effect automatically without manual collection.
In addition to this, 88VIP members also have many other benefits. For example, you can enjoy a 95% discount every day, and this benefit can be used in Tmall Supermarket, Tmall Global, Ali Health, 1000 Tmall brands, and 100+ Taobao hot stores.
At the same time, 88VIP members can also grab big brands with 5% off every day, and enjoy the original price of Moutai every day... It covers the life and entertainment scenarios of users such as eating, playing, listening, watching, buying, traveling, health, finance, homecoming, and traveling.
It is understood that 88VIP will also focus on upgrading related rights and interests such as point exchange in the near future.
In fact, Taobao Tmall's action to upgrade membership rights has long been on the rise. In March this year, 88VIP briefly launched unlimited free shipping, that is, from March 8th to March 10th, 88VIP members can enjoy unlimited free shipping in Tmall Supermarket. At the same time, users can also get exclusive low prices, discounts and other benefits.
Source: Tmall Supermarket
Extending the time to last year, 88VIP also added Mango TV membership rights and interests, and online e-commerce shopping "New Three Guarantees" rights.
After a series of upgrades to member rights, the platform provides more personalized and high-quality services for member users, further increasing user stickiness.
From another point of view, the increase in the number of members in recent years has also forced the platform to upgrade the 88VIP membership system. In 2023, the number of members has exceeded 32 million.
In February this year, Alibaba disclosed its unaudited results for the three months ended December 31, 2023. In the announcement, Ali talked about the double-digit year-on-year increase in order volume in the second half of the quarter after the successful holding of the 2023 Double 11 global carnival season. At the same time, the Group has succeeded in retaining and expanding its high-end consumers, with 88VIP members exceeding 32 million, continuing to achieve double-digit year-on-year growth.
With the increase in the number of members and the increase in loyalty, the repurchase rate and average order value of the platform are also expected to be further improved.
It is worth mentioning that at this year's TopTalk super brand private meeting, Tmall said that it would add tens of billions of yuan to further increase the rights and interests of 88VIP members to help the brand grow more powerfully.
For example, we will further enrich exclusive products, increase membership subsidies, and increase the scale of equity cooperation brands from 4,000 to 10,000.
In the era of stock competition in the e-commerce industry, paid services are an upgrade of user consumption experience, which will also further release the consumption potential of users.
Ali values user experience
Since 2023, Alibaba's internal and external environment has undergone major changes, and challenges have continued. In this regard, Ma Yun spoke on the intranet at the end of last year: Ali will change, Ali will change.
Earlier this month, Tsai Chongxin, chairman and co-founder of Alibaba, gave an exclusive interview to reflect on Alibaba's past and believe that Ali is lagging behind.
In his opinion, "because we have forgotten who our real customers are." Our customers are users who shop using our app and we don't give them the best experience. ”
Immediately after his retirement, Jack Ma released a long article for the first time after retirement, sharing his thoughts on Alibaba's reform, innovation and future prospects. He first mentioned the video of Tsai Chongxin's interview and thanked Tsai Chongxin for his courage and responsibility.
"It's not terrible to make mistakes, no one doesn't make mistakes, what is really terrible is not knowing mistakes, not admitting mistakes, and not correcting mistakes. ”
It is worth noting that Ma Yun believes that the core change this year is not to catch up with KPIs, but to recognize himself and return to the track of customer value.
And the various changes made by the new management are to build the future of Ali. Especially in this era of great technological change, the change is earth-shattering. Jack Ma believes that the important thing is not who to catch up with today, but to think about how tomorrow's e-commerce should improve the consumer experience.
Jack Ma posted a long article
This also means that Ali will follow up to do a good job of user experience. Nowadays, the continuous upgrading of members is also to further upgrade the user experience.
If we talk about 88VIP, this is the paid membership system launched by Alibaba in 2018, and the "naughty value" is the basis for Alibaba's 88VIP members to divide their grades.
Naughty points below 1000 points are called 88 members, while more than 1000 points can become 88 super members and enjoy more membership privileges.
However, while this membership service can bring good service to users, it is not good. Jia Luo, the current vice president of Alibaba Group and president of Tmall, once said that 88VIP is an unprofitable project, "since the day it was launched, it has been losing a lot of money".
Similarly, it is difficult to make a profit for JD PLUS members who benchmark Taobao 88VIP. In 2020, Han Rui, vice president of JD Group at that time, also revealed that if you look at income and expenditure, JD PLUS members are "far from making ends meet".
In this way, Taobao and Tmall are still investing heavily in paid members, which is obviously based on long-term considerations, rather than simple short-term profit goals.
In the face of fierce market competition, Alibaba needs to constantly change, break through the original comfort zone, and focus more on the user side.
On March 28, Taobao announced that it would add 10 billion yuan in cash and 100 billion yuan in traffic this year, and real money will increase investment in content e-commerce. This also means that Taobao will pay more attention to live broadcast and short video content, attract users with content, and improve user retention and conversion rates.
At the ceremony, Cheng Daofang, general manager of the content e-commerce division of Taotian Group, announced a higher growth target for this year, that is, the user scale increased by 100% year-on-year, the monthly transaction exceeded one million anchors increased by 100% year-on-year, and the GMV increased by 80% year-on-year.
On the other hand, Ali has also focused its resources more on Taobao. For example, the relocation of Taote and the entry of millions of source manufacturers into Taobao in 1688 have not only injected new vitality into Taobao, but also improved the richness of its product categories and the perfection of its supply chain.
The entry of source manufacturers will help Taobao provide more high-quality and low-cost products to meet the diverse needs of consumers.
In the increasingly competitive e-commerce market, Alibaba is deepening its strategic adjustment to provide users with better services.
E-commerce platforms have made paid memberships
Nowadays, the e-commerce industry has shifted from incremental competition to stock competition, which makes the importance of the paid membership model more and more prominent.
Therefore, paid membership services have become a key strategic measure for major e-commerce platforms to seek sustainable growth, improve user stickiness and optimize revenue structure.
In 2015, JD.com launched PLUS membership, becoming the first attempt to localize the paid membership system of China's e-commerce platform, and subsequently, paid membership systems, including Ali 88VIP members, have appeared on major e-commerce platforms.
It is understood that as of the end of the first quarter of 2023, the number of JD.com's PLUS member users has reached 35 million, of which more than half are users in high-tier cities. It can be seen that JD.com has a strong influence and user base in the field of e-commerce.
At the same time, in order to enhance user stickiness and improve user shopping experience, major platforms have also launched their own paid membership systems.
In 2021, JD.com revealed that the average annual consumption of PLUS members is as much as 10 times that of non-members. The purchasing power of Alibaba's 88VIP members is more than twice that of ordinary users, contributing 1.4 trillion GMV in 2022.
For e-commerce platforms, building a paid membership system is not only to collect membership fees, but more importantly, to value the consumption power behind these members and the long-term value they bring.
Taking Vipshop as an example, the data released by it shows that the number of active users on the platform will reach 87.4 million in 2023, of which 7.6 million are super VIP (SVIP) active users, although super VIP users are less than 10% of the total active users, but contribute 45% of online consumption.
In general, the membership system helps the e-commerce platform to screen out high-net-worth users, and by providing targeted operations and rich value-added services for these users, the platform can further enhance user stickiness, improve the repurchase rate, and then maximize user value.
In the context of the e-commerce industry entering the stock era, the pursuit of increment is no longer the only goal. On the contrary, how to refine operations and dig deeper into the value of existing users has become an industry consensus. The paid membership system is the key for e-commerce platforms to tap existing users.
Author | Zhou Wenjun