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Insight

when we analyze with retail and consumer goods brand customers what users are contributing to profits and income, and what proportion each part contributes, we can view the data kanban through the Convertlab marketing automation platform DMHub, analyze the status of members, penetration channels and grade changes, subdivide the labels of members, and also analyze the RFM analysis of categories (subdivide the customer value according to the contribution of customer activity and transaction amount), so as to obtain. There are two key words "differentiation" and "operational thinking" in this sentence. Convertlab has shared many successful cases of using digital tools to help users in different industries to operate finely in the past cases of enterprise digitalization, and enterprise customers have deeply understood the importance of "differentiation" and "personalization" in communication with customers. In this paper, we focus on another aspect-"operational thinking" and summarize our experience in the digital operation practice of retail and consumer goods brands. How do these enterprises design "membership mode" and "reach system" with "operational thinking" through data-driven strategy, and effectively improve the "customer unit price" and "purchase frequency" of members? First, a model: how to calculate the "member value" When it comes to members, many enterprises have a lot of questions to ask. How to enhance the value of members varies greatly from industry to industry. For example, in the catering industry, the promotion of member value mainly depends on the promotion of member consumption frequency; The beauty and pet industries mainly rely on "customized service and experience and companion service" to enhance consumers' brand loyalty and establish long-term fixed consumption habits to enhance the value of members; For the retail and consumer goods industries, "establishing sustainable interaction with members to improve retention, repurchase rate and consumption" is the key to enhance the value of members. No matter what mechanism these industries are divided according to, or "high-priced low-frequency", or "low-priced high-frequency" or "medium-priced intermediate frequency". We can always extract two important variables that affect the "membership value": customer unit price and purchase frequency. With the gradual decline of the traffic dividend, the importance of these two variables has gradually increased. If a brand wants to maximize its membership value with limited investment, it must constantly gain insight from the data and form the most correct strategy in order to win growth. According to the experience of Convertlab, we summarized a model. First of all, we believe that the value of members is composed of three important factors-number of members, customer unit price and purchase frequency. Secondly, each enterprise will formulate different membership models according to its own business. The enterprise membership model is the general framework formulated by the enterprise from a strategic perspective, and the corresponding reach system is the strategy of landing from the perspective of implementation and the consumer journey of "innovation, transformation and repurchase". The transition of membership value from low to high is consistent with the direction of the transition of user journey. In the process of value promotion, the two flywheels represent "customer unit price" and "purchase frequency" respectively, and the driving force of flywheel rotation is brand reach system and strategy. According to the consumers in different life cycle stages and the industry nature of "high-priced low-frequency" and "low-priced high-frequency", the way of membership value transition may be the predecessor (driven by customer unit price) or the latter (driven by purchase frequency). That is to say, some industries enhance the overall membership value through the "customer unit price", while some industries enhance the "purchase frequency" is the key. This is a simple strategic analysis model provided by us. Taking low-priced and high-frequency retail and consumer goods as examples, the repurchase rate is the key to enhance the membership value. Then, when making "membership mode" and "access mode", enterprises should choose those forms that can "establish sustainable interaction with members to improve the retention and repurchase rate", so as to enhance the value of members. Second, the 28 th rule: the operating thinking of retail and consumer goods brands 1. The proportion of all kinds of consumers who operate brands by users may also apply to the 28 th rule. Take a brand of shoes and clothing as an example, the high consumption of head customers accounts for 21%, 81% of users or more subdivided 61% of users are moderate consumption, and 21% are tail consumers. In the digital operation experience of Convertlab, we found that the brand incites consumers who pursue cost performance by making profits. Common methods, such as membership points, coupons, member stored value, etc., solve the problem of value operation of middle-share or tail users. Applying the above analysis model, that is to say, for customers who are sensitive to customer unit price, the enterprise's strategy for this part of customers is correct, and we often see the correctness of this strategy adopted by enterprises. But for 21% head users, their consumption power determines that they don't care about the cost performance, and they care more about the sense of belonging of the brand than they do. When enterprises distribute the rights and interests of members to these users, we often see that the effect is not good, and establish exclusive and personalized services and experiences with these customers, improve brand loyalty, and realize the value enhancement of such members by increasing the unit price of customers. It can be seen that the enterprise's operation effect on this part of users has not been significantly improved, which is not necessarily the reason for the failure of the circle group, but the reason for the wrong strategy. Another example: Direct-operated stores in the shoes and clothing industry create brand experience value, or transform the decoration style of stores, or add interactive devices and social spaces, and stimulate users to punch in and spread word of mouth through high experience and delivery, bringing new traffic. This way of contact may be for innovation, but for some head customers, this strong brand interaction, product experience and extended service value is an important link way for them to establish "brand emotion", and this kind of interaction is also suitable for the "high net worth customers" who have remained. If enterprises only use this kind of interactive activities for innovation when formulating strategies, and do not focus on recommending these brand emotional links to "high-net-worth customers", it is also a waste to some extent. However, no matter from which industry, it is relatively easy for high-value users to make emotional connections. However, once the brand can make deep emotional links with middle-value users, it is likely to be a "super growth". A typical example is an international yoga brand, which has established emotional connection with a large number of middle-value users through user operations such as communities and activities. These middle-value users have gradually been cultivated into high-value users and completed online and offline transformation. 2. Experience operation Whether it needs to promote the value of members through "customer unit price" or "purchase frequency", or consumers with different consumption levels, it is the same for enterprises to attach importance to transforming users from "process loyalty" to "brand loyalty" by "providing user growth system, personalized experience and service, etc.". With the rise of the Z generation and the growing marketing ecology, brands pay more and more attention to the design of experience. In addition to external factors, the internal reason is that more and more enterprises are no longer in the state of split online and offline channels. Now stores are no longer focusing on selling products, but they also need to take into account brand interaction, product experience and other contacts to win more customers' active communication and user fission through high-quality offline experience. Taking a head retail brand of Convertlab as an example, the brand integrates with the local urban characteristic culture by building a customized store in the city, such as integrating elements such as retro brick walls in the shanghai new world experience store, enhancing the visual image of the store and enhancing the comprehensive expressive force of product functions, specialties and colors; In addition, a digital interactive device is added in the store to create a social interaction area for consumers, carrying themed activities such as drinks, leisure and flash, as well as exclusive workshops for members. The brand's high-quality store experience inspires users to spread a lot of word-of-mouth about stores and products. Combined with the data of Convertlab platform, the correlation between marketing content and actual sales transformation is tested and analyzed, which confirms the positive correlation between the dissemination of UGC content in experience stores and the sales of online e-commerce products. Three or three cases: How do these brands do it? Convertlab, a new generation of a fashion collection brand store, starts from this value model, defines the core goals and needs of the user stage, and sets different levels of rights and interests. In order to effectively achieve user retention, different goals and sales strategies are formulated for different levels of users. For newly registered SliverV1 customers, focus on planting grass and sending samples with the order to guide users to find products that suit them; For PlatinumV2 and DiamondV3 customers, we will pay a return visit to customers through various ways, such as integral reminder, birthday wish and fission sharing. For customers of BlackV4, the repurchase conversion rate and user stickiness can be improved by guiding the old and bringing the new. For the brand, this is not only the promotion of professionalism and customer trust, but also the effective interaction of users' personalization. This customized service makes the brand's "purchase conversion rate reach 45%". Another consumer brand customer, the brand divides the refined operation of members into three dimensions: the new member transformation process, the value scoring and stratification of the member's whole life process, and the activity Campaign trigger plan (purchase promotion) to set up welcome and guidance interaction through different platform contacts, initially evaluate the value of fans, and realize accurate promotion and preliminary classified management. Value-scoring the corresponding scores of member behavior events and data items (transforming fan interaction behavior into systematic objective scoring), establishing a label system of the whole life process, and empowering store operations. Divide fans into groups according to users' portraits, and plan the grouping push and refined management of daily marketing and festivals with different themes. The refined operation of members requires different plans to increase purchases and promotions for different groups of people. In less than one year, it has achieved initial results, helping customers to precipitate 11w private domain users, reducing the customer acquisition cost by 31%, increasing the fan interaction rate by 51%, increasing the conversion rate of personalized menus by 21%, transforming 11% of existing users (not retaining capital) into retained capital users, and increasing the participation rate of sharing fission by 121%. Another operating experience of fast-selling products, after the standards of the Convertlab team for the division of operating needs and channel sources of brand departments, such as basic population attributes, brand communication and interaction, practical habits and behaviors, purchase behaviors, etc., has built a complete label system for this customer enterprise, with 6 label types and 4,111+labels, and realized refined user operation through multi-dimensional user stratification. These detailed labeling systems have also laid a solid foundation for the latter enterprises to carry out automated marketing, and can accurately reach consumers and realize large-scale personalized communication through more subdivided channels, scenarios and product purchase preferences. Within two months after the project started, the total number of users increased by 211%, the total number of operational users increased by 51%, the operational efficiency of omni-channel users increased by 51%, and offline channels were continuously empowered. Why do we have to have an insight into operation? A great god said, "Operation is a brick, where it needs to be moved; Operation is a box, and everything can be put into it. What I want to say is that operation is a very broad concept. For corporate customers, "digital operation" is to maximize the value of users, through data-driven insight and decision-making, and use various operational means to improve activity, retention rate or payment indicators. The business nature of marketing digital products is the basis of digital operation. According to a set of rules of digital operation tools, we accurately selected all kinds of people and formulated a suitable membership model, but the results of operation are not very clear. What's the problem? We believe that "the accuracy of data insight" directly affects the result of landing operation strategy. Perhaps this simple model we summarized can guide enterprises to formulate operation strategies that are more suitable for their members. More cases and product features can be found in Convertlab official website, and you can also apply for a trial.