The Amoy collection has spent more than a billion "buy" users, why have you collapsed?
xiaochengxuguancha· 2019-10-31 09:26:27
Internet entrepreneurship = burning money.
This is the first impression most people have on Internet companies, and burning money seems to have become an inevitable part of the Internet entrepreneurship process. In the past few years, such as the United States Mission, Didi, Mobai; in recent years, such as more than a lot, Ruixun coffee, both rely on "burning money" to occupy a certain market share, and even become a unicorn enterprise.
Although, burning money can help companies quickly achieve a certain size of users in a short period of time, but there is no healthy business model, even if the user volume is large, it is only a temporary false prosperity.
In other words, after "burning money" to acquire new users, how to keep them is the key.
Blood money, only to pull the new, not to adjust the operating strategy, control operating costs, sooner or later will fall into the "abundant abyss",
just experienced "thunder" Amoy collection is such a typical case.
A few days ago, the collection of the capital chain was broken, and the merchants besieged their headquarters to discuss the arrears, which triggered public opinion. At 3 am on October 15th, the founder of Amoy Collection, Zhang Zhengping, released a letter of "A letter of apology to the partners". He said that when the company's growth was stagnant, it still wanted to solve the problem through financing, delaying the most. In the self-help period of gold, the strategy is to choose to continue to lose money to obtain users.
It can be seen that the Amoy collection did not adjust the operation strategy, and turned the users who “burned money” into loyal users, but thought of continuing to “burn money” through financing to acquire users.
The crisis encountered in the collection, once again explained that the crazy "burning money" to accumulate users is not a long-term solution. Companies should consider user retention, repurchase, and a healthy business model.
Crazy without cost" Burning money
Taking in Established in August 2018, its online sales exceeded 2 million in 2 weeks, and its monthly life in 9 months exceeded 40 million. As of now, the number of registered users of Amoy has reached 130 million.
There is such a result, the "trick" of the Amoy collection is: crazy subsidy!
A lot of Amoy merchants have said that there are many activities in the Amoy collection, which will greatly help to drive sales. However, in order to participate in the event, the price of the commodity needs to be extremely low, and it is much lower than the competition.
This is true. In all the growth games of the Amoy collection, there is only one keyword, "making money." For the user, not only is it cheap to buy, but also cash. For example:
Order to make money. In the collection page of the collection, you will see how much you can earn. After the order is placed, you will receive a 24-hour redemption red envelope for each paid order;
Invite friends to make money. A user can get a commission for each new person; and the new user can make money every time he spends, which is cash that can be cashed out;
Help people bargain to make money. A friend sent a bargaining message to help him cut the price, then he can divide the cash red envelope.
These fancy "coin" games, although helping the collection to quickly accumulate a large number of new users and sales in the short term. But In the subsequent retention, re-purchase, etc., the collection has nothing to do, and even the most basic user experience is not done.
A casual search can be said to be endless. For example, the merchant does not return the goods, the pictures are completely inconsistent with the real thing, the red envelopes cannot be cashed out, the platform customer service and the merchants are unable to contact, and so on.
The user experience is so bad, what about repurchase?
It seems that Amoy does not seem to be thinking of creating a benign business model to motivate users to repurchase, but to "burn money." Therefore, once the subsidy is stopped, the user will not stay in the collection.
In fact, the user's payment, the merchant's payment, are collected by the collection to "burn money" to pull new users. Up to now, Amoy has already had a debt of 1.6 billion, and the average monthly loss has reached 200 million. A total of 10 billion yuan in payment has been owed to suppliers.
There is no healthy business model, no good user experience, and merchandise sales can only be maintained by "burning money." Then, not only will operating costs and customer acquisition costs become higher and higher, but user loyalty will become lower and lower. If something is unexpected, the company will collapse.
Does the user stay for the ultimate purpose?
Wrong! Should let users consume!
Public data shows that the current collection is only financing to the A round. The speed of "burning money" has not been able to keep up with the speed of financing; investors have gradually become rational, and no one wants this. When to take over this "hot potato".
In fact, as the cost of getting customers is getting higher and higher, "burning money" is no longer a must for enterprises. Let the users come, and the value (transformation) of retention, and the constant creation of value (repurchase), in order to make the company's vitality.
There is a special fire recently. It’s not that business is getting harder and harder, but people who do business are getting more and more professional. The so-called profession is that enterprises are no longer like the Amoy collection, only to attract users through simple burning of money, and to determine the life and death of the company is refined operation.
For example, if you use a $5 red envelope to attract users, decide that he will stay and there are a few key points to buy or not:
Product quality . After all, goods are the ultimate goal of users, and quality is the key to unlocking users.
Fine operations. This is the topic that companies are most concerned about recently, and it is also the most important part of competing with competitors.
Look at the relationship between the company and the user at this point. First of all, companies need to bring in users, this is the so-called pull new, and secondly need to leave the user. Here, we especially emphasize a time period. That is:
Leave him when the user completes the transaction
In the applet, leave the user’s best entrance or payment. Social reduction is a great way to not only pull new users, but also to be a "good hand" in the transformation of old users.
In this gameplay, Mushroom Street is a good case. After shopping in the Mushroom Street applet, the user can get a "deduction" on the payment completion page or receive it via a template message. Then, the user can share the "deduction" to his friends and WeChat group, and after the friend receives a "deduction", he can also complete the new transaction through the quick entry.
It’s worth noting that social reduction Through WeChat social, Kim has opened up functions such as small programs and card packs, allowing users to continuously recycle consumption in the closed loop of WeChat - sharing - consumption, and using social sharing means to continuously bring new traffic.
Mushroom Street took part in the WeChat "Social Finance Reduction" function on July 27, 2017, and it took only 12 days to bring in new users with 500,000 small programs. The user’s purchase conversion rate reached 18%.
Next, it is the repurchase that companies often mention, and the core of the repurchase is:
Wake up users, the repurchase rate will be greatly improved
" The wake-up function makes the applet perfect and perfect like the App." This is a comment from Xiao Wan Ma Ma CEO Jia Wanxing. This is indeed the case, "template message" has always been effective in waking up users, it allows small programs to form a perfect service closed loop, which is favored by developers.
Small package of Ma Ma's small program "Bao Ma Mall The repurchase rate is as high as 80%. In the entire operating system, this step is necessary to wake up. The ability to wake up a user in an applet is a "template message."
According to the applet rules, after the user touches the applet, the developer can send 3 service notifications to the user through the template message within 7 days. In the opinion, the three opportunities do not need to be used at all. It is enough to use twice: the first time, the payment notification page; the second time, the delivery reminder page.
The template message of Xiaobu Ma Ma, in addition to the logistics information, delivery time and other content that users are very concerned about, will also give the user a coupon. The logic for issuing coupons is thousands of people. If users buy diapers, they will push milk powder coupons. The face value is mostly more than 10 yuan. The threshold is lower and the write-off rate is not bad.
Not long ago, template messages were upgraded to subscription messages, which were more feature-rich. WeChat has adjusted the conditions for sending template messages. The newly subscribed "subscription message" supports one-time and long-term subscription messages. Subscription messages are actively subscribed by users, not only for an unlimited period of time, but also provide long-term subscriptions for some scenarios to achieve efficient message access.
Besides waking up users with features such as template messages, we mentioned in the article "Xie Xiaoping: From small programs, growing hackers to the underlying logic of private domain traffic, deconstructing future business." The growth hackers often mentioned have an important trend: focus on the user's full lifecycle management and build enterprise user data assets. What is the most valuable data for users? In our opinion, there are two:One is the payment (determined by the company’s consumption preferences and standard habits), and then the membership system (a deeper understanding of the user, such as living at home) Where is the birthday?), the former understands the depth of the user, and the latter gives the user temperature. We also have a case of "Pay + Member":
"Pay + Member" Achieve 200% increase in repurchase rate
Yes For any platform, it is not enough to accumulate users. How to use users efficiently and generate repurchase is the key. Therefore, members become the common choice of all businesses.
In the applet, the best solution for members is, "Pay + Member."
Specifically, every time a consumer uses WeChat payment, they will receive the member information pushed by the merchant's public number. Due to the opening of the payment and membership growth system, the members' rights are more transparent, checkable and available every time they consume. In this way, the merchant's WeChat public account is no longer just a channel for pushing content, but also provides a larger operating space and establishes a more loyal interaction with consumers.
Taking the Rainbow Shopping Mall as an example, after the WeChat payment and its own membership system, the conversion rate of members of the Rainbow Shopping Mall has increased by 10 times in the past two years, and the monthly average repurchase rate of members has increased by 200 compared with the traditional membership model. %.
The company not only built a 7*24-hour membership Interactive channels, in addition to fan precipitation, can also use big data to more accurately analyze members' shopping preferences, shopping habits and other data, and ultimately achieve social, precise value-added operations, bringing long-term benefits to brands and stores.
In addition, the "Pay + Membership" program brings more space for the merchants to operate, and merchants can carry out more points activities, such as WeChat payment points, festival double points , points redemption gifts, and so on. At the same time, merchants can also carry out cross-industry joint operations based on point activities (for example, after the restaurant consumes parking coupons), in order to achieve different levels of value for consumers.
Now, Amoy is still seeking financing opportunities, and hopes to reorganize with other platforms to solve the capital chain break crisis, which is also the premise of its commitment to repay the merchants. However, without a healthy business model, the false prosperity brought about by the "burning money" model is not only the merchants do not believe, but I am afraid that there is not much confidence in the collection.
The Amoy collection has spent more than a billion "buy" users, why have you...