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The underlying logic of private domain e-commerce

Today, I would like to share with you about the front-end industry of traffic: the beauty industry. I hope to bring you some thoughts on private domain operations.

Beauty is a category that has no flow and is not happy, and it will be difficult to maintain without traffic. Therefore, the entire industry is very concerned about the acquisition and conversion of traffic. If you understand the beauty industry, you can also understand the underlying logic of private domain operation.

This sharing will be interpreted according to the following three sections:

Based on the experience and data precipitation of Youzan service merchants, the overall trend of private domain is discussed

Disassemble the underlying logic of classic traffic operations

A trilogy of practical problems for private domain operations

For the cognition of private domain e-commerce, there are actually two major prerequisites.

The first big premise: private domain is not only a new shipping channel, but also a new customer acquisition channel

The development of the private domain to today's 4.0 stage, the entire WeChat ecology and social ecological channels are being integrated, many head private domain operators are aware that the WeChat community, public accounts and some more scattered content channels, after integration and screening, can be used as shipping channels. At the same time, through these platforms, efficient customer acquisition and continuous drainage can be achieved.

As a brand, you must learn to balance the equidistant relationship between sales volume and user value. How to do a good balance between the two, how to achieve a better integration in shipping channels and user acquisition, I will explain them for you one by one.

The second big premise: the private domain is not an empty glove white wolf, and a misconception of many enterprises is that the layout cost of the private domain is low.

Some brands believe that the private domain is only dependent on fission communication, salesmen, KOC distribution, can achieve the growth of brand performance, but in fact, this is a very unrealistic cognition.

There are many "slashing" activities in the market now, but for this type of activity, the users attracted by fission are not accurate users, and similar activities will pay a lot of operating costs. What the private domain needs is to reach the target user group in the right channel, the private domain is not an empty glove white wolf, but where it needs to find accurate users, it needs to be delivered, it needs to be strategy, it needs to be drained, which must have input costs.

The concept of a private domain with praise has been born to the present, which is divided into three stages:

The first stage, basically in the form of a personal number, there is a certain micro-business attribute, the core demand is the two-dimensional code collection of WeChat signal, you can put the user's information and the overall cash register directly in the background for precipitation.

In the second stage, the private domain operation changed into the operation of WeChat public account and WeChat community, and many cutting-edge brands began to rise, at this stage, in order to avoid the problem of user loss after the multi-platform layout, the cross-platform transaction mall has become an important means of private domain operation. All product design should start from the user, provide users with a better operation process and use experience, in order to improve the overall conversion rate.

The third stage, which you like, calls the social stage. We have found that many users of platforms such as Kuaishou, Weibo, and video numbers will only initiate shopping behavior in their favorite ecosystem, which is what we call social ecology. This requires the brand to allow all users to directly realize the purchase in the familiar ecology, and the corresponding purchase data is transmitted back to the brand side for meticulous operation work, including the summary of the order source channel and the combing of user portraits, so the concept of middle office is becoming more and more important.

The advent of the private domain era, the rise of Internet e-commerce, and cutting-edge brands have brought new characteristics and new changes in goods.

In terms of the type and quantity of goods, the number of commodity SKUs has increased significantly;

In terms of pricing, there is also a polarization trend, and the amount of goods below 50 yuan and more than 500 yuan have become the pricing choices of most brands;

Based on the deep cultivation of users, the repurchase rate of consumers for a single brand is also gradually increasing.

These changes have made the advantages of private domain operation increasingly prominent, the form of marketing activities is more autonomous, and the brand side can better control the marketing rhythm, which also breaks through some restrictions of the brand's low season. The benefits that can be obtained from private domain operations are also directly proportional to the user life cycle, and the profit advantage is becoming more and more obvious.

Underlying logic: Bow model

In the underlying logic of private domain operation, the butterfly model diagram repeatedly mentioned by Youzan can provide great help to the operator. Three formulas about GMV

Before you learn about the bow model, there are three formulas you want to know:

Brand Private Domain GMV = Instant GMV (40%) + Long-Lasting GMV (60%)

Instant GMV = Traffic × Conversion Rate × Customer Price per Unit (Unit Item)

Long-lasting GMV = user × (repurchase rate + fission rate) × customer unit price (compound)

When you estimate your own private domain and brand GMV, these formulas can be used by reference.

Bow model diagram

The underlying logic of private domain e-commerce

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The butterfly model diagram is a very practical tool, throughout the model, we label the various nodes of the operation, so that students can clearly understand what should be done in each node.

Through this diagram, we can clearly understand the connection between the public domain and the private domain. Here I will explain a few points for you, from point to point, I hope to bring more thinking.

Accurate traffic acquisition

For the acquisition of accurate traffic, we must keep in mind that the private domain is not an empty glove white wolf, as a business operator, we must have a clear understanding, what is the source of traffic for brand stability?

Is it a constant stream of information to acquire customers? Is it through the drainage of offline stores? Or the introduction of online e-commerce platforms?

After obtaining traffic, to match the appropriate brand, choose to precipitate through WeChat public accounts, Mini Programs or WeChat communities. Consumer contacts and diversion channels must match each other, once the collocation is wrong, it may lead to the rupture of the marketing link and the decline of user conversion rate.

Marketing model reference

Regarding the marketing model of the brand, there are bright ideas here, hoping to throw bricks and jade for everyone to learn from.

The first is marketing fission, such as multi-person group zero-yuan lottery, such as slashing a knife, which may obtain a large number of users, but may not be able to be very accurate, which depends on the attributes of the enterprise and the purpose of marketing activities, what is needed is your accurate insight into the user, otherwise it is very likely to spend money to buy lively;

The second, in fact, is based on the distribution model of people, which we refer to the distribution posters that can often be brushed in the circle of friends, but the people's network resources are radiating, and when the distributor covers the existing network group, the brand needs to consider providing him with new traffic.

Value-added and released of traffic

After obtaining user growth, what needs to be done below is to layer users and iterate on user value, and finally form their own user resource packages and crowd portraits. According to this crowd portrait, establish a user model, carry out public domain advertising, such as WeChat ecological circle of friends advertising, such as Vibrato, Kuaishou, headline information flow advertising, and constantly acquire new users, and constantly refine the user model.

Taking the beauty industry as an example, the proportion of short video platforms and information flow ads is relatively high. From the overall trend, the launch of new media platforms has great growth potential. In particular, many cutting-edge brands can obtain a good brand living space by continuously optimizing the overall new media channels.

Another point is that almost all beauty brands are diverting traffic to the private domain through e-commerce platforms. At present, the most effective way is still the more classic means of package cards, text messages, and telephone calls, which can be used as a reference for their own brands.

It is worth mentioning that, according to incomplete statistics, the high-quality beauty community (non-personal number), the annual consumption contribution of loyal fans can exceed 10,000 yuan / person, so community-based marketing is also very necessary.

The butterfly model diagram can run through the entire life cycle of user operation, and at all stages of private domain operation, it can be referred to according to the modules in the diagram, and I believe that it can be pointed out for everyone.

Private domain operations are a practical trilogy

Next, I want to talk about the landing trilogy of private domain operations.

Based on the entire marketing link, how to turn traffic into retention, we designed the following chain steps.

The underlying logic of private domain e-commerce

Through the acquisition of accurate traffic, the content of their own output is planned, relying on live broadcast operation, micro-individual operation, community operation, event operation and other ways, and finally realize the empowerment and fission of commodities.

Private domain operation trilogy

Based on the overall private domain system, I suggest that you can start with three stages.

The main goal of the first stage is the private domain infrastructure construction architecture, and the core work of the private domain layout of 0-6 months mainly builds a relatively complete private domain operation basic system, including 3 blocks of content: running through the traffic model, building a complete membership system, and creating a complete set of human content.

The second stage should have relatively stable sales output, and strive to complete the landing of five core matters in 6-12 months: perfect product matrix, systematic community management, planned traffic import, fan empowerment system, and operation SOP precipitation.

The goal of the third stage is to scale and systematize the private domain operation, and after establishing a complete private domain operation system in about 1 year, beauty brands can realize the independent operation of the private domain and the stable realization of user assets through SOP standardization and combing, building a sound SCRM system, and an independent and controllable private domain sales team.

Private domain ecology is a co-construction project, hoping to work with all brands to operate the private domain ecology efficiently and take over the final baton of the traffic era. Don't forget the two cognitions of the private domain, in order to understand the private domain thinking from the underlying logic:

First, the private domain is not only a new shipping channel, but also a new customer acquisition channel; the second point is that the private domain is not an empty glove white wolf.

Author: Kale Youzan KA Operations Expert

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