Local businesses must understand POI when entering short videos

The shift from demand-driven to interest-driven consumption patterns marks the reshaping of traffic hubs. This article will reveal the business strategy behind this change, as well as the importance and potential of short video marketing in the current business ecosystem. If you're interested in how local businesses are finding new growth opportunities in the digital wave, this article provides in-depth analysis and practical insights.

Some time ago, a friend and I did a simple grassroots survey in Shandong, focusing on the issues that local businesses are concerned about in digital marketing promotion.

The research took a week, and I had some feelings and insights. Based on this research and feelings, I will talk about what changes have taken place in the business model of local businesses from the two levels of operation and marketing? What are the pain points in marketing promotion? Finally, let's talk about it, is it still a good time to enter the short video?

1. POI: A new generation of traffic hub

Regarding the changes in the business environment of local businesses, my view is that local consumption has shifted from demand-driven to interest-driven consumption patterns.

For example, when I usually go to find a rut to eat, most of the time because I am hungry. The behavior path is roughly as follows: demand - search - comparison - order - in-store verification.

This model seems quite logical, but from the perspective of local businesses, there are at least 4 disadvantages in operation:

1. Long user behavior path: Every link in the middle will cause user loss, which is a great test of the merchant's operational ability.
2. The higher the operating cost: the bulk of the traffic is eaten by brand merchants, and new merchants want to increase the ranking weight, so they have to invest more traffic costs.
3. Low ceiling for business growth: This demand-driven consumption has limited room for growth, because the number of users with demand is also relatively fixed.
4. Falling into the trap of low price: Users are more sensitive to price and tend to constantly compare cost performance, so merchants can only continue to transfer profits to fight for low prices.

One day I swiped Douyin and saw the video of "Special Wulala" eating a lot, and I immediately became greedy, and I, who usually don't eat mutton, immediately bought the nearby Ningxia Tan sheep. This is a typical interest-driven consumption pattern.

From demand-driven to interest-driven, user behavior motivation has changed, and so has the traffic hub.

1. In the traditional stage, offline stores use the location as the traffic hub

Because the location is fixed, the passenger flow is also relatively fixed. And because merchants can only do inefficient means such as pushing, distributing leaflets, and shouting in stores to increase to stores, the ceiling of the store attendance rate is not high. At this stage, the function of traffic is to ensure the basic plate of operation, and the increase in store business comes from the repurchase of old customers, which is why many traditional merchants believe that "the fragrance of wine is not afraid of deep alleys".

2. The first generation of digital stores used rankings as the traffic center

In the shelf flow, due to the influence of weight, word of mouth, star rating and other factors, the location of the store is not fixed; At the same time, the traffic is also not fixed, and you must buy keywords, category screening, channel display and other positions on the advertising platform in order to have more traffic. At this time, as long as it is ensured that consumers can find stores when they have needs, they can generate conversions.

You will find that whether it is a traditional offline store or a first-generation digital store, the traffic hub is the location.

3. The new generation of stores uses POI as the traffic hub

Driven by interest consumption, POI (Point of Interest) has become possible as an independent traffic hub, and has also redefined the "store location" in the short video era.

Based on the connection between online and offline with POI, short video platforms are incubating a new type of store that is different from the shelf: interest stores.

From the perspective of merchants, with the help of POI anchors, you can accurately display the store location, featured products and services; After being touched by the content, users become interested and planted by the store/product, which in turn improves the penetration of the store in the regional population.

2. Marketing: Promote penetration and conversion

In this grassroots research, I found that many merchants not only face the dilemma of store operation, but also have many pain points in marketing:

1. Unstable and imprecise effect: Some merchants are worried that the accuracy of the target user is not high, and the target area cannot be covered to achieve accurate delivery, and the effect is always high and low, which is unstable.
2. Low conversion rate: Obviously your price is very low, but you still can't afford it, and the drainage effect of the store is not obvious. Even if there are merchants with experience in digital marketing, although they have accumulated a lot of fans, the transaction rate and write-off rate are still not high.

Personally, I would like to summarize it in a sentence from a politics class: "One center, two basic points".

To put it simply, interest-focused POIs have become independent traffic hubs, and local merchants have a clearer goal in marketing:

1. Accumulate store interest groups and increase regional penetration
2. Build links to promote the conversion rate of group purchase verification, direct to the store, and lead retention

In my opinion, these two goals focus on the breadth of market coverage and the depth of sales efficiency, and local merchants only need to master these two action essentials to increase penetration and promote conversion.

1. Let's start with increasing penetration

Penetration has two meanings: breadth coverage + depth impact. Just like irrigating a farmland, it is necessary to keep the rain and dew evenly wet, and to allow the water to penetrate deep into the roots of the seedlings.

In other words, the pond has been dug and the fishing nets and fishing gear have been prepared, and the merchants can reap the rewards as long as they take action.

According to data, the average volume of advertising merchants is 9 times that of non-advertising.

If you have a deep impact, you will have more tools and gameplay. For example, merchants can influence users' minds through short video opening, content IP, and local product advertising; It can also heat the content of the talent and realize the content planting; You can also use the local delivery of information flow and target delivery based on LBS to make the delivery more accurate.

2. Let's talk about the conversion link

When the interest is stimulated, there are three conversion paths for users in short videos: (1) direct online transactions to meet immediate needs; (2) After being planted by the content, go directly to the store for consumption; (3) Keep money online, and then spend it in store.

How to accurately and effectively stimulate user behavior conversion?

First of all, take the global ROI of the live broadcast room as the optimization goal, explore high-quality traffic in the whole region, and achieve long-term stable exposure, so as to effectively increase the transaction volume.

Secondly, by targeting the people with high store intentions and merging the browsing of the store details page and the group purchase detail page, merchants can more comprehensively and accurately judge user intentions, thereby improving the accuracy and efficiency of drainage.

Finally, make good use of the clue ability + expand the group buying scene to develop new business increments.

3. Can I still enter the short video game now?

Finally, to sum up, POIs can be independent traffic hubs. For local merchants, it is necessary to do a good job of "one center, two basic points": store operation and marketing are centered on POI, global operation is to promote penetration, and link construction to promote conversion.

It's a new way to maximize the size of your business.

In fact, many local business models have not changed much. Even with the emergence of digital platforms, many merchants only use them as a tool for drainage and payment, and their business models have not changed substantially.

However, short videos are different, driven by interest consumption, so that the potential demand is released, and more monetizable traffic is generated.

During the survey, more than one business asked: Is it too late to make short videos?

My answer is: a good meal is not afraid of being late.

Author: Knife Guest, Public Account: Knife Guest Doc

This article was originally published by @刀客 on Everyone is a Product Manager. Reproduction without the permission of the author is prohibited

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