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A detailed explanation of the value-added consumption model: how to rejuvenate your business

With the advancement of science and technology and the improvement of quality of life, the consumption value-added model is quietly rising, leading the consumption trend of the new era. In this innovative model, consumers can not only enjoy the pleasure of consumption, but also have the opportunity to obtain additional income, realizing the perfect integration of consumption and investment, in order to better understand and use this model for the majority of merchants, we will deeply analyze its characteristics, core principles and practical methods.

A detailed explanation of the value-added consumption model: how to rejuvenate your business

First of all, let's understand the basic concept of consumption value-added model, which refers to the process of consumers purchasing goods or services, the platform gives certain points rewards, which can be accumulated and used to exchange goods or services, or directly exchanged for cash. In addition, merchants can also invest sales profits into profit pools to increase the value of points, thereby attracting more consumers.

A detailed explanation of the value-added consumption model: how to rejuvenate your business

Specific implementation steps of the consumption value-added model

1. Gift points for consumption: Merchants can set a certain percentage of the product's profit as a reward for points, such as 70%, and then give these points to consumers, which can not only increase consumer stickiness, but also promote the growth of sales.

2. Order profit into the pool: Merchants can include the profit of each order in the profit pool, and then give consumers points according to a certain percentage, which can stimulate consumers' desire to buy, and is also conducive to the accumulation of profit pools.

A detailed explanation of the value-added consumption model: how to rejuvenate your business

3. Points selling and repatriation rules: When consumers use points to exchange for cash, merchants can set a certain percentage of repatriation rules, such as 20%, and return these points to the profit pool in order to continue to add value, which can ensure that the capital consumption of the profit pool is less than the consumption of circulating points, so as to maintain a stable increase in the price of points.

4. Forced Exit Mechanism: Merchants can set a certain revenue multiple, such as 2 times or 3 times, if the total amount of points obtained by the consumer reaches or exceeds this multiple, the system will automatically sell their points in exchange for cash, which can avoid excessive accumulation of points by consumers, and also help to maintain a stable increase in the price of points.

A detailed explanation of the value-added consumption model: how to rejuvenate your business

Analyze the advantages of the value-added consumption model.

1. Improve consumer satisfaction: Through the consumption value-added model, merchants can give consumers a certain number of points to make them feel valued and cared for, which can improve consumers' loyalty and satisfaction with the brand, thereby driving sales growth.

2. Increase profit channels: Through the consumption value-added model, merchants can invest sales profits into the profit pool, thereby increasing the source of profits, which can reduce the operating pressure of merchants and improve business efficiency.

3. Improve brand awareness: Through the consumption value-added model, merchants can attract more consumer attention and participation, thereby increasing brand awareness and influence, which can lay a solid foundation for the long-term development of merchants.

A detailed explanation of the value-added consumption model: how to rejuvenate your business

For example:

Take the user's consumption of 1,000 yuan of products, the cost of 300 yuan, the total distribution ratio of 300 yuan, the platform commission of 100 yuan, the points into the pool of 300 yuan and the customer 210 points as an example. After the first consumption, the profit pool and circulation points are 300 yuan and 210 points, and the real-time price of the points has appreciated to 1.43 yuan; the second consumer also consumes 1,000 yuan, the profit pool rises to 600 yuan, and the equivalent points are 210 yuan given to this user, which is equal to 147 circulation points, with a total of 357 points, and the value of the points rises to 1.68 yuan / piece; After the third consumer consumes 1,000 yuan, the profit pool reaches 900 yuan, and 210 yuan of points are given, which is equal to 125 circulation points, with a total of 482 points, and the value of points rises to 1.87 yuan per point. And so on, with each new order, the price of points will increase accordingly.

A detailed explanation of the value-added consumption model: how to rejuvenate your business

When the price of points rises to 4.76 yuan / piece, the value of points in the hands of the first consumer is equivalent to 1000 yuan (210×4.76 = 1000 yuan), you can choose to cash out or continue to hold and wait for value-added, if you set 3 times to force out, when the point price rises to 14.29 yuan, the first consumer will be eliminated, when the point price rises to 20.41 yuan, the second consumer will be eliminated.

The repatriation mechanism of points exchange is as follows: assuming that the points rise to 9.52 yuan, the first consumer holds the value of points 2,000 yuan, and his consumption is only 1,000 yuan, and he obtains the product. At this time, if you choose to make a profit and exchange 2,000 yuan points for cash, the platform will pay 80% (1,600 yuan), and the remaining 20% (400 yuan) will flow back to the profit pool for reinvestment. While the profit pool decreased by 1,600 yuan, the number of circulating points also decreased by 2,000, thus driving the price of points to continue to rise.

A detailed explanation of the value-added consumption model: how to rejuvenate your business

Remember, when your product gross profit is about 50% or more, don't just sell products, you have to find a way to support, so that others are getting better and better, because others are getting better and better, you can get better and better, we believe that only by understanding customer needs and providing innovative and unique solutions can we win more users and partners, we look forward to working with you hand in hand to create a better future! If you are interested in our business model, please feel free to contact us, we will wholeheartedly answer your questions, provide detailed program design, we work together to create brilliant!