Marketing is undergoing profound changes: from “taking goods as a link” to “connecting as a link”; from selling goods to operating users.
In the early 1990s, the German Federal Railways fell into a deep operational crisis. At that time in Germany, cars began to spread, resulting in more and more users choose to travel by car.
The German Federal Railways has come up with a self-help approach. They have launched the “Concession Card 50” program: passengers pay a membership fee of $140, and then enjoy a 50% discount on each ride. As soon as the “Concession Card 50” was launched, it was enthusiastically sought after by the market. In the following four months, the German Federal Railways sold more than 1 million discount cards.
German Federal Railway Diesel Train
On the surface, users seem to get a big discount on the “concess card 50”. In fact, by paying membership fees, the German Federal Railways has locked in consumers, which has greatly increased the attendance of trains and made them stand out from the competition.
Starting with Costco
“Costco Shanghai store sold 160,000 membership cards, each 199 yuan before opening. That is to say, if the store has not opened, it will first receive 32 million real silver, which is also very rare in China. What companies can do.”
Not long ago, the first store in the mainland of Costco (opening market) was opened in Shanghai, and it was forced to suspend business in just five hours due to the full flow of passengers. The next day, many people went to the queue at four in the morning, and even some people teased: “Everyone who grabs roast chicken is a winner in life.”
Lei Jun once said that there are three companies that have a profound influence on Xiaomi, and Costco is one of them; Besso Stan, Amazon’s Prime membership service is borrowed from Costco; and many founders Huang Wei also said that the future fight A lot of will become a combination of Costco and Disney; Ye Guofu, the founder of Mingchuang, has repeatedly called Costco. After the opening of the Shanghai store, he also paid a tribute to Costco late at night, saying that he understood the essence of human nature and seized The essence of retail.
What kind of magic does Costco have? It can make the fights of the five rings, the cost-effective millet, the Jingdong, which is both self-operated and the seller of the three parties, the Netease, which is the best of the cheap goods, and the box horses that are integrated with the store. Ming Li secretly “stealing the teacher to learn art”?
The answer is clearly easy to see, and it is the Costco membership that is recognized worldwide.
Costco three membership cards (from left: senior members, corporate members, ordinary members)
The essence of Costco membership is that consumers pay the purchase fee to Costco: you have to pay for my purchase fee, you have to help me to “buy” the best quality, lowest price products. Well done, I will renew the next year; if not, Say goodbye.
This supermarket that encourages consumers to buy more at a time, the main source of profit every year is not the sale of goods, but the membership fees paid by consumers. Costco currently has more than 92 million members worldwide, with a global membership renewal rate of 88%, and membership costs of only 2.2% of total revenue contributed almost all of the profit to $3.142 billion.
Membership is a big trend
Marketing is also undergoing profound changes: from “taking goods as a link” to “connecting as a link”; from selling goods to operating users.
This is an era of universal membership.
Following a drama requires a member, listening to a song requires a member, flying a member, a member, a hotel, a member, a member, and a member. The life of contemporary urbanites is full of various members.
Then let’s talk about it first,What is the membership system?
Many people mistakenly believe that it is a misunderstanding to give members a membership card. The essence of membership is a contractual relationship similar to group buying: I promise to spend more on you, and you promise to give me more benefits.
Membership can be explained by the sunk cost effect and anchoring effect in economics and psychology.
The sunk cost effect means that people indulge in past contributions in order to avoid the negative emotions caused by losses, and choose irrational behaviors. When a customer spends money to run a membership card in a store, the next time they need to shop, they will first think of the store.
The anchoring effect means that when people make judgments about something, they are easily influenced by the first impression, just like the anchor that sinks into the sea, fixing people’s minds somewhere. Membership fees are like an anchor. After becoming a member, everyone will be more inclined to continue shopping at this store in order to earn back the membership fee.
The success of Costco, Adobe, Amazon, Netflix and Starbucks is inseparable from membership. According to CIRP data from the research institute, Amazon Prime members spend an average of $1,200 per year on Amazon and $500 on non-Prime members. Starbucks members spend three times as many non-members, and members are growing at an annual rate of 18%, and the amount in Starbucks member accounts reaches $1.2 billion.
Amazon Prime Member
Why is the membership system the next intersection of the entire e-commerce and the entire retail industry?
Today, traffic is getting more expensive, growth is getting harder and harder, and profits are falling sharply. Marketing is also undergoing profound changes: from “taking goods as a link” to “connecting as a link”; from selling goods to operating users.
At the same time, getting new users has never been more difficult. Instead of spending a lot of money to acquire new users, it is better to dig deeper. Coupled with mobile Internet and big data technologies, it’s easier for companies to offer customized services based on user behavior patterns.
As a result, many companies are starting to compete for paid membership cakes. Collecting membership fees on a per-cycle basis not only enhances the member’s brand stickiness, but also provides more accurate and cost-effective products.
Back to China, Alibaba’s 88VIP is defined as “No. 1 Project”, covering more than 600 million users of the EMI, more than 500 million users of Ali Entertainment; Jingdong is based on Jingdong PlusMembers create 10 million paid members; Dingxin also launched a family-wide exclusive card, easily sitting on 7 million paid members. It is now difficult to find completely free VIP services on the domestic Internet platform.
88VIP
At the Future Investment Summit, Ye Chunyan, a partner of Zhengxin Valley Innovation Capital, once said that “the membership system can certainly be done, and the membership system is very suitable for China because China has a very strong Chinese manufacturing, but Chinese consumer goods circulation. There are a lot of levels, and the combination of the two is conducive to deepening and deepening. It can make a membership system based on small SKUs and deep warehousing.”
How to build a membership system?
“A set of replicable models that enable accurate marketing and business growth through member data operations.”
“Members” have become a business idea for companies to achieve business growth, and almost all companies facing C-side business have begun to try to launch their own membership system.
In order to help the company solve the above problems, Kailu specially invited the original top group (Master Kong/Family) new retail executive, former eBay China vice president, and dean of business school from October 19th to 20th. Hu Xingmin offline (Shanghai) personally – how to design and build a membership system, through member data operations to achieve precision marketing and business growth.
Professor Hu Xingmin, who helped Metro supermarkets and Dingxin Group (Master Kong/Family) to build a membership system, believes that a good paid membership system should be both attractive and not worth the money, from “flower-to-province-rich” “The four aspects of the design of the membership system model.
Flower: refers to how much the customer spends to get your paymentFee member. Too high may cause the customer’s participation to decline, too low, the customer will not cherish.
Get: It means what the customer gets for free. This is an unconditional gift, generally called a card-opening package, and the recommendation is about 1.5 times the membership fee.
Province: refers to the money that customers can save in the future consumption. The amount of money that can be saved in a year should be 1.5-2.5 times of the membership fee.
Enjoy: Enjoy the privilege, such as exclusive services, or enjoy cross-brand offers.
It should be noted that building a membership system does not mean that you can lie down and rest, but also need to work together from the management team to the executive level to solve the following practical problems:
How to design membership benefits, both attractive and not losing money?
How do I activate a member after designing a membership system?
How do you use data to guide your operational strategy after obtaining membership data?
How have members who have paid for one time increase their spending?
How to create the maximum value of a single member?
……
Why choose Professor Hu Xingmin
Professor Hu Xingmin has nearly 30 years of experience in retail/internet practice. He has served as an executive at IBM, P&G, Intel, eBay, Metro, Haier, and Dingxin multinational companies, and is based in Peking University, Shanghai Jiaotong University, and Fudan University. As a visiting professor of EMBA, he has been teaching in the retail industry for more than 10 years.
In 2003, Professor Hu Xingmin entered the Internet field and competed with Taobao, Jingdong and No. 1 stores. In recent years, it has entered traditional large enterprises such as Metro, Haier and Dingxin to help them transform the Internet, and has experienced the wave of Internet +, O2O and new retail.
In 2016, it entered the top stage and built a membership system and big data platform for 50 million members and 7 million paid members for Dingxin Group (Master Kong/Family) in three years. In order to cultivate a group of loyal users, the daily income of the membership fee is as high as several million, which has greatly increased the performance of the whole family convenience store and Dicos, and created the whole family.The frequency of consumption of the store has increased by 2.6 times.
There is not only the experience of helping traditional enterprises to transform, but also the practical experience of building a membership system. He is also good at teaching Hu Xingmin, who is very good at teaching. It can be said that it is the best person to fully explain the game system of the membership system at this stage.
Course Highlights
-
EMBA Systematic Course: Systematic Course, suitable for large, medium and small businesses;
-
Front-edge practical cases: not talking about concepts, each practical methodology is combined with a theoretical model that has been demonstrated;
-
The trader personally teaches: nearly 30 years of actual combat notes, first-line traders personally combat cases;
-
The consultation below the line: With the questions to class, the instructor answers the doubts in the heart and breaks the one-way output of the online class.
You will learn
-
One set of solutions: low cost to enhance the attractiveness of membership cards, establish a “sustainable profit” paid membership system;
-
3 ways to play: Increase the point exchange rate from 20% to 80%, activate the sleeping user;
-
5 steps: “In-live-stick-value-recommended” to build a membership growth model, rapid growth at low cost;
-
6 Labels: Build a million member tag to improve your marketing skills without wasting a marketing bullet.
In addition to Professor Hu, we also specially invited Cheng Jianzhi, who is responsible for member points management of China Resources Group, to share his 23 years of practical experience in FMCG and CRM (customer relationship management) and explain the points. Operational play.
Who is suitable for listening
– Entrepreneurs and management members who are exploring the membership system
– Entrepreneurs who are in the midst of a traditional enterprise transformation and are seeking breakthroughs
– The person in charge of the design, construction and operation of the corporate membership system
– Business operators with existing membership systems but with growth stagnation and marketing bottlenecks
– Department heads of Internet C-side business, e-commerce, catering, business and other industries
Preliminary student evaluation
Yu Huiyong | Chairman of Baiguoyuan Group
If you make a loss for reform, it is not responsible for the company. I strongly agree with the teacher that “the purpose of business model transformation is to increase corporate profits and create corporate value”
郁瑞芬 | 来伊份 President
A lot of people are talking about the membership system and new retail, but they are all talking about concepts. Mr. Hu is a case that he personally did.”
Yu Genling | Fosun Group Former Investment President
“It’s not a concept of empty talk, a very pragmatic course! Measuring the value of a company by its data value is very good for a decision.”
Class time: 2019.10.09-10.20
Class location: Shanghai
Two-day course price: 2399 yuan / person
????????????
The following is a detailed arrangement of the two-day course:
In addition, Kailu also specially invited Mr. Hu Xingmin to add a new link: to lead the developers to deeply dismantle the Costco membership system and help everyone apply to the actual business.
Deep thinking: For example, the cost of goods sold, why does Costco sell the same goods, can be cheaper than the opponent price?
????????????
Class time: 2019.10.09-10.20
Location: Shanghai (a week before the start of the class)
Limited time group price: 2399 yuan / person