In the new traffic era, how to understand the essence of growth?
Editor’s note: This article is from WeChat public account “九合创投” (ID :jiuheguancha).
In the second half of the mobile Internet, new platform dividends continue to emerge, and the rapidly changing traffic portal poses an unprecedented challenge for startups: how to understand the nature of growth? How to achieve the delivery of growth? How to solve the problem of user retention? How to operate the community and establish a high-binding membership system?
On November 7, 2019, at the closed meeting of the third phase of the “Private Board of Directors” of Jiuhe Venture Capital, former Ali, Baidu Product Design Director Xiang Hui, former Yahoo China, Tencent Product Director, Difeng Jelly Huang, general manager of the car business unit, and Chen Hao, a member of the founding team of today’s headlines, have deeply shared the issues of the nature of growth, membership system and service design.
On-site big photo
We compiled the following dry goods based on this internal sharing record to readers.
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What is the nature of growth?
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How to establish a business model?
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What are the factors that affect growth delivery?
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What are the major changes in the membership system design?
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How do you understand the design of the membership system?
The reason for the growing problem is that growth is becoming more and more difficult to achieve, and the scarcity of innovative platform products has led to more and more expensive traffic. The difficulty of growth is that it has a close relationship with the changes in the industry and the flow, and the growth modelThe change of style is also very time-sensitive.
The hardest part of doing business operations is the sense of rhythm, which is what stage to solve. Grasping the sense of rhythm first requires understanding the three logics within the industry.
From the perspective of capital logic, investors need to grow both in size and profit. However, from the perspective of industry logic, it is possible that scale and profit cannot grow at the same time. It is an important choice to maintain growth or maintain profits. The logic of the user is neither caring about profit nor caring for scale. Users only care about buying services at the right price.
Most companies need to solve the problem between the three. The key issues that need to be addressed at different stages are very different, but it is unlikely that any of these stages will be resolved at the same time. If the price and profit are high, the user experience may not be good; if the user experience is good and the growth rate is fast, it may cost more money. Who can better handle this complex relationship, who can get the most benefit. This is entrepreneurship, relying on innovation.
Jelly Share at the event
The core of solving this problem is to return to the user logic, which is the most important reason for users to purchase products and services. This is the essence of growth, and it is also the innovation orientation of enterprises, which is a barrier and a moat. As an entrepreneur, the leverage that users are instigated is higher. Companies need to discover new demands, generate new ones, or create new ways to connect deals.
If the above three items change dramatically, it will make great companies across the era; if there are huge changes in one or two, there will be opportunities to create great companies of a certain era; if one of them changes dramatically, it may A successful unicorn. If the three items have not changed, although it may be a good business, it is difficult to become a very high valuation company. In the later stages of entrepreneurship, the founders must rationally look at their own tracks and solutions, and whether there is a possibility of reaching a certain level.
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Three steps to building a business model
The first step is the choice established by the trading market. Creating new supplies is the best business model. And from the perspective of barriers, creating new supplies is the most difficult to be copied by latecomers. From the input-output ratio, it is easier to generate incremental demand in the short-term, such as adding new categories. But in this growth mode, there is essentially no change in supply.
The second step is the possibility of scale growth. After establishing a business model, the ability to achieve scale growth is the second issue that companies need to think about. What matters is whether the company has a very strong growth loop. Enterprises must have the logic of the right supply and demand. The general logic is that supply is a serious excess, and companies must jump out of supply to find the needs of users.
The third step is the sustainability of scale growth. In theory, there is no scale growth that can continue indefinitely, and growth must be cyclical. So which indicators can prove the sustainability of scale growth? Is it scale growth, penetration or profit margin? What kind of indicators are sustainable in the industry?
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Elements affecting growth delivery
The first factor is the organization. Startups often face problems with execution, and execution is behind organizational health. To solve this problem, the first step is to form a team. Different modes and stages require different talents. It is a mismatch to put the talents that meet the needs of the D round into the A round. This is not a problem with the judgment of the person, but a deviation of the judgment of the matter. Once the company has defined the development goals of the current stage, it can quickly establish a suitable team.
The misunderstandings that companies are prone to when forming a team include: the lack of talents that complement the existing team’s capabilities; the management does not understand the areas in which new employees are responsible, neglects management; the channels for finding talent are too single; and the amount of information Insufficient problems.
The second factor is management. In the process of growth delivery management, companies should manage the organization as a product, clarify the responsible person of each job, where the key decision nodes circulate, and pay attention to organizational design, architecture design and process design.
After doing all of these things, it will involve the setting of internal KPIs, including the regularization and specialization of management. Without the guarantee of a management mechanism, the decision-making and execution cannot be guaranteed. Enterprises need to strengthen their awareness in this area, and establish “clear rules” internally from the initial stage.
The third factor is talent. Talent is a “sweet worry.” Cultivating talent from within may be better than choosing airborne executives. Ordinary startups may not have the right soil for airborne. The internal governance of large companies is relatively standardized and the business is diversified. The style of the founder of a small company will directly affect the company’s culture. If you are looking for an airborne executive, the failure rate may be very large, but the internal promotion of young people is more suitable for the current stage.
After the company understands the nature of growth from a macro perspective, one of the difficulties in the business operation level is the design of the membership system. The membership system is delivered from business to humanities.
In recent years, the membership system design has undergone the following four changes: from traffic thinking to super user thinking, from extensive operations to tiered services, from product supply to life proposals, from brand distribution to brand building. The design process of the membership system is very complicated, but as long as you master the above four core ideas, you will grasp the key to design.
When designing a membership system, companies need to think deeply from the following aspects.
First of all, the design of the membership system is the definition of the life scene, not the accumulation of rights.
Only the formation of user perception will make the user system more powerful. This requires companies to think about how to build cognitive scenarios, how to use user power and user experience, and grasp the bottom user feedback. When companies design a membership scenario, they need to leave enough room for development. Any new scene design must establish a scene that the user can perceive through a process of gradual expansion.
Second, look at business health with data granularity.
If you only focus on new, daily, retention, conversion, and dissemination, the data will be relatively coarse. Only delicate data can give us a more intuitive judgment. We need to look at the health of business as much as we observe a society. In addition, companies must clarify the user growth path. The behavior habits of users are constantly changing. Enterprises should adjust and enhance product strategies according to user behavior habits. This is the content that the membership system should focus on.
Third, use emotional design to improve business efficiency.
First of all, the unique design of the membership system design allows users to quickly remember the product and reuse it continuously. At the same time, emotional design has a compound interest, which can continuously deepen emotions through each story.
Emotional design will make the user and the businessCommunication is more active. This deep communication between each other and the emotional experience users get is far from being achieved by pure copywriting and cash subsidies. If the design of the membership system wants to impress users and let users immerse themselves in the experience, they must be emotionally resonated.
Shenghui shares at the event
Fourth, the operational ecology cannot only consider GMV.
If companies want to make the ecology grow elegant, they can’t just look at transactions, consumption, GMV, cash flow, but also ecological contributions. Some users contribute to their beliefs and they promote the expression and dissemination of ecological values. In the C2C community, some users contribute values, and some users contribute actual business results.
When the company is operating the ecology, it must adhere to the red line planning, the bottom line can not be touched. At the same time, users are encouraged to contribute to each other and achieve good mutual promotion between ecological users. Users will contribute their own value, which will be a long-term healthy ecology.
Five, fight against short-term interests and define long-term logic.
Enterprises should rationally look at short-term gains and long-term logic. Otherwise, they will be easily dragged by short-term logic, and they will only look down on the road. Only when the company sorts out the internal business clearly can the user have complete expectations of the enterprise and the service has a boundary. The membership system has different mechanisms in different consumption scenarios, and the user-based scenario is the source. On this basis, companies need to consider whether the membership system uses a single track system or a dual track system, whether it is a purchase system or an accumulation system.
Finally, the membership system is essentially a business model design.
The underlying logic of membership system design is to change from product thinking or traffic thinking to sustainable service thinking, to serve super users, to form long-term contracts, so that users can operate their own scene behaviors, so that each behavior is transformed into User’s capital. A higher level approach is to use an ecological self-purification and upgrade system.
Enterprises should deliver to users a complete, long-lasting, manageable, and user-friendly product rather than a streamlined product. Art, solving the problems of people and mind, and designing and solving the problem of people and things, with heart carving, will make a charming business.
At the closed meeting, the guests of the guests and the nine-family Portfolio also asked about the growth of some specific tracks.The topic was discussed. The following are some wonderful questions and answers.
The core logic of a member is to make consumer behavior a cumulative asset and treat the user as an individual rather than a traffic. The characteristic of the community convenience cabinet is that the purchase behavior is over and the user will leave. In your scenario, it may be better to focus on low prices and you can make a point system directly. I used to make a membership system for Suning stores, and did a lot of low-frequency service aggregation around each store, such as unlocking services, to meet the needs of the community.
It can be considered to provide other services around the lifestyle, and pure product promotions may not have user scenarios. For example, the activities of the offline store, the sale of second-hand mobile phones by users are related to the release of new models. It is recommended to do a deep digging of a single user’s high-frequency scene, providing a service with relatively low cost and constant access to the user. The model is designed according to the life scene, and it can maintain long-term growth and contract in business.
In order to grow fast, you need to do it, and set your growth goals. Online delivery is a great tool because it is mature and there are fewer alternatives. Generally speaking, high-platform products are subsidized, and low-platform products are put into the market. In fact, there are no shortcuts for the core, that is, online, offline, and fission.
Sometimes changing the fate of a productIt is a kind of thinking on the track type, sometimes it is an efficient thinking. The East is a practical mind, and we tend to be good at maximizing the operation of one thing; the West is deducing a possibility to do it. I think that people who make products in the future must take their own out of the sensibility and rely on rationality to do it, but when delivering products, they must put the soul into the flesh and create products that impress people. This is the future for each. The requirements of business people.
Either designing a business strategy, product appearance or experience is a process of translating adult language into a commercial structure. Therefore, it is necessary to find a bridge in two dimensions of thinking. This requires a commercial humanity, and a human being without technology is called a sentimental. No humanistic technology is called arrogance.
Every sensibility is for rational service, so judge the stage and category. You have already defined the stage so you need to find a more efficient method.
Users at different stages have different needs. Consider building a community mechanism for core users to help them gain more emotional identity and turn their interactive experience into assets. For example, Alipay is not just a cash flow, but a credit plus data system for everyone. It’s important to improve the user’s presence, satisfy their curiosity, and turn social relationships into assets.
In this event, the founders and executives of more than 20 To C companies invested by Jiuhe Venture Capital came to the event and actively discussed with the guests and learned together. Jiuhe Ventures is willing to make progress and encourage each other with the invested companies. It also hopes to hold more valuable and meaningful activities in the future and to do more practical help and empowerment for the entrepreneurs who are dreaming.