This article comes from WeChat public account: high Rong capital (ID: banyancapital) , author: Liu Xinhua (high Rong capital investment partner, former chief growth officer deft), from the title figure: Fig. Worm

In today’s Internet competition, growth is a topic that is too much talked about and anxious. Fission, KOL / KOC, traffic pool, growth hacker, private domain traffic … various concepts emerge endlessly, dazzling. But how to understand the nature of growth? In the second half of the Internet, is there any opportunity for explosive growth of the product? How do startup teams find the keys to crack growth?

Liu Xinhua, a partner and former chief growth officer of Gao Rong Capital Investment, has more than 22 years of experience in high-tech and Internet company products, strategy, growth, branding, marketing, operations and investment, and has participated in more than ten million grades. Product growth of DAU and 2 billion DAUs.

Recently, Liu Xinhua carried out a systematic sharing of “the password for the growth of Internet products” at a youth innovation camp jointly sponsored by Gao Rong Capital and Ronghui and OnePiece Work. Methodology. ”

How to understand growth? I think the core of growth is “long” instead of “increase”, “increase” is just action, number of users, stickiness and even value”Long” is the core and goal. There are too many false increases in the market.

I. When we are discussing growth, what are we discussing?

Growth is a particularly large category, like a thousand Hamlet in the eyes of a thousand people. In the face of growth, many times they will fall into a situation of blindness, and various concepts will “become glamorous.” The United States has coined only one word over the years-growth hacking, and China seems to have new concepts emerging every day. For example:

Fission. Fission is a very important concept today when the cost of traffic is high. Its essence is to turn users into communicators, to achieve user proliferation and growth, that is, to activate the relationship between stocks and transform it into new traffic.

KOL / KOC matrix marketing. KOL is the opinion leader and super node of social networks. This concept is actually a long time ago in communication studies. This year, the live broadcast of China ’s live broadcast has once again enlarged the concept. Weia, Li Jiaqi, Li Ziyi, Sanda Brothers, Xin The impact of these super KOLs on user behavior far exceeds traditional marketing methods. KOL is not only a super node that reaches a large number of users, but also a super hub that can carry the deep trust of users; through KOL as a communication agent, brands and products can effectively shape product reputation, drive user growth and value realization. KOC refers to product word-of-mouth diffusion through larger-scale core fans in the user network, driving user growth.

Traffic pool. This is the concept proposed by Ruixing’s trading team, which is a container that precipitates user traffic. This container can be in the mind of the user, such as a brand; it can also be a pure private domain of the product, such as App, Website; it may also be the private domain position of other public domain platforms, such as applets, groups, various social accounts, and so on. Flow pools emphasize the precipitation of flow value.

Growth hacking. is a concept put forward by the United States more than 10 years ago, which has been particularly hot in China in recent years. The congregation of American hackers at that time was Facebook, in addition to LinkedIn, Pinterest, Airbnb, Dropbox and so on. This concept was introduced to China 4 or 5 years ago. In the past 2 or 3 years, we have seen fast-paced, hard-to-do and lightning-fast expansion, bringing the growth practice mentioned in the growth hacker with the AARRR pirate model as its core to a higher dimension. . These companies make full use of data, algorithms, and experimentation to find high-value growth levers at the same time in multiple core linksThe use of automation and intelligence to increase growth efficiency and effectiveness, to achieve lightning expansion of products, can also take into account the promotion of long-term product retention, while building a more stable bilateral or multilateral network.

Private domain traffic. The so-called private domain traffic operation follows the essence of the D2C (Directly to Consumer) operation advocated by the new American brand. In the second half of the Internet, the rise in traffic costs is comparable to pork prices, and private domain traffic operations are more important. In fact, the essence of private domain traffic is to operate private domain users, establish long-term emotional links with users, and discover user value in continuous interaction. Private domain traffic has different emphasis in different markets and cultural backgrounds. For example, in the United States, new brand private domain traffic focuses on independent stations, apps, and emails. EDM (Email Direct Marketing) , and even Facebook, Instagram, YouTube, Reddit’s homepage and channel; In India, Indonesia, and Latin America where WhatsApp is a national app, the WhatsApp group may be the focus of private domain traffic operations. Private domain traffic is the basic disk for user growth. Without good private domain traffic, you cannot achieve lean product growth.

Live delivery. This year ’s live broadcast of the live broadcast, whether it is the 100 billion scale of Taobao live broadcast, or the popularity of Wei Ya, Li Jiaqi, and Simba, you can see that the live broadcast is repurchasing the decision-making process of user purchase, so that people have Of social gurus became a gateway to shopping decisions.

In addition, there are also bought-out, super membership, second growth curve, automated advertising, creative storyline and many other growth concepts emerge.

So, aside from these concepts, how do you understand the nature of growth? Growth is not simply a violent pull-out or a lightning expansion. Growth is a combination of multiple strategies. It is the pursuit of a growth model and a balanced distribution of resources.

Traffic and inventory. A lot of growth traders focus on traffic, but there is traffic coming and going. How much traffic can be converted into stock? Can the new flow be consistent with or better than the quality of the stock? How fast is the traffic growing? With the current tightening of traffic dividends, the optimization and refinement of stocks, and even new flows of stocks, have become more important.

Pull new and promote live. Laxin focuses on continuously looking for new traffic sources, and promotion focuses on improving user stickiness, including churn, which are the basic growth paths. Growth is the continuous optimization and balance of the three basic operations of renewal, promotion, and drain.

Exposure and delivery. Especially when you want to do transaction-oriented growth, you can’t just look at the conversion of the front-end traffic, but trace it back to the conversion of the overall chain and look at the overall ROI.

Consumption and supply. Everyone always thinks that growth must be the perspective of the consumer side, but it is actually wrong. In a multilateral network, we need to balance growth on the consumption side with growth on the supply side. If the two do not reach a balance and match, the risk of a systemic collapse is likely to occur. Generally everyone thinks that consumption and user-side growth can only be improved from the consumer side; but masters of growth can, by improving the supply structure, especially bring high-quality and more yuan supply, in turn force the consumer-side growth. Simply thinking about user-side growth is a typical misunderstanding.

Growth hacking vs growth black. “Growth black” was proposed by me. If growth hackers do not do well, they may become “growth black.” Common “growth black” will make these mistakes: 1) growth does not take into account the ability to accept back-end orders, excessive growth encountered the lack of service capabilities, resulting in decline in word of mouth and user loss; 2) did not achieve the matching of consumption and supply, That is, the users brought by the rapid growth, the platform failed to provide a matching supply, resulting in unintended users, and then lost; 3) Anti-cheating and anti-spam strategies are not appropriate, and received false traffic in the “dark world” of the Internet The secret calculations, labor and people’s financial losses, and disruption of the product ecology require everyone to be extra vigilant.

Buy and natural quantity; endogenous flow and outflow. After a lot of growth has been done, the product may bring a lot of natural endogenous traffic, that is, the so-called “born burst”, “bring your own traffic”, we must think about how to allow natural flow in product design Constantly produced. It is a particularly learned thing to purchase high-quality, high-quality, high-quality traffic, and it is actually difficult to spend money well.

Listed so many concepts about growth. Today, I focus on sharing the way, potential and technique of growth. Real entrepreneurs are especially able to understand the true meaning of growth and leverage the potential of growth; rather than being stuck in the grasp of specific “techniques”. If you don’t have the “Tao” level of understanding and guidance on growth, you may be on the way to losing and returning on the journey.

Many things I have done in the past 20 years are related to growth, and I have experienced many pits in the process. I understandThere are four core modules in the growth system of China. To apply the Chinese philosophical system is- Ming Dao, taking advantage, superior skills, and understanding people.

Two, Ming Dao: the underlying law that drives the growth flywheel

The so-called Mingdao is to drive the flywheel of growth, that is, to pursue the most efficient growth, it is necessary to follow three laws.

Law 1: Power Law

We have to understand that everything in this world is naturally not evenly distributed. The “Matthew Effect” is the truth of the world. We see the distribution of influence of global wealth, successful entrepreneurs and even influencers.

For growth, we must consider the law of power, that is, to find growth leverage . In the face of complicated growth tools and pressures, many times we tend to fall into an all-out attack and a mess. But when you are faced with 100 growth tactical choices, naturally there are several that are the most effective. To be a good growth master, you must grasp the most critical points, find the growth lever with the highest ROI, and then add this leverage to maximize the benefits of growth. Keep in mind that not all points can become fulcrum points, and only a few points can become fulcrum points.

The second law: the law of compound interest

There is a mathematical formula for the chicken soup. A power of 1.01 equals 37.8 and a power of 0.99 equals 0.03. If you are 1% better and harder than others on average every day, focusing on the right things, then after one year, you may throw your opponent away from multiple positions. So continue to do the right thing for growth, and over time, you can use the compounding effect of the growth bar to gain an advantage over your opponent. If ableGetting fast feedback can make compound interest flow faster, which can further magnify the growth advantages brought by compound interest.

Why can the Internet force traditional industries to accelerate the upgrade? Why do many things have to be digital today? Because only digital can get feedback faster and more comprehensively; based on feedback, it can iterate out more correct growth direction and functional improvements; superimposed by data-driven growth leverage and compound interest effect of fast feedback iteration, the Internet can therefore help traditional industries Evolve faster.

Law 3: System Law

All product growth is achieved through complex various systems; but in the abstract, any complex system and structure are simple and are a set of elements. If these elements can be disassembled and the connection relationship of the elements can be identified, the evolution direction of the system can be optimized. The study of system operation is system dynamics. Some people call system dynamics the “eye of God.” System dynamics was also the earliest science to study growth constraints, dynamics, and boundaries.

In the system, the connection between all things can be summarized into four kinds of connection relationships in the simplest way: Causal chain, enhancement circuit, regulation circuit and lag effect. The cause-effect chain is self-explanatory; the cause-effect chain becomes dynamic and forms an enhancement circuit and a regulation circuit. Among them, causal enhancement and causal enhancement are “enhancing circuits”; causal enhancement and causal suppression are “regulating circuits”. To achieve a growth flywheel, in short, to find an “enhancement circuit”; in the real world, a more continuous combination of “enhancement circuit” and “regulatory circuit” may be required.

It is recommended that students who have a relatively deep interest in growth can spend some time studying system dynamics, especially Wollstenholm. (EF Wolstenholme) related research. He summarized the more complex and dynamic combination of the four connection relationships of the system into four model groups and nine basic models.

The four model groups are:

1,The hindered model group (Underachievement) means that the expected enhancement circuit encounters an unexpected regulatory circuit and growth is blocked. For example, we have seen the tragedy of the commons, insufficient growth and investment, and even the upper limit of growth.

2. Out-of-control model group (Out of Control) refers to the expected regulation loop, which encounters an unexpected enhancement loop, and the situation is out of control.

3. All-in-one model group (Relative Achievement) refers to the expected enhancement circuit, which encounters an unexpected enhancement circuit, which leads to the winner’s pass. eat.

4. The lock-up model group (Relative Control) refers to the unexpected regulation loop encountering an unexpected regulation loop, triggering a zero-sum game . Usually manifested in vicious competition and target erosion.

I will use the three basic models included in the hindered model group to see how we can understand the nature of growth based on our knowledge of system dynamics.

The first is the basic model of the tragedy of the commons. (Tragedy of the Commons) , Profits are obtained by grabbing limited public resources, resulting in mutual benefits eventually reducing to zero. The essence is an “eating more and occupying more” enhancement loop, and encounters a regulatory loop with limited resources. For example, investing in a mining machine for Bitcoin mining is a typical “tragedy of the commons.” As you know, the Bitcoin network issues a fixed amount of 12.5 bitcoins every 10 minutes to the mining machines that participate in the global accounting. This revenue model is a commons with rigid constraints. It was indeed profitable in the early days, but with more mining machines added, the average rate of return will quickly decrease. When the electricity cost consumed by all mining machines every 10 minutes reaches the value corresponding to 12.5 bitcoins, which is equal to the mining revenue, everyone ’s revenue will shrink to Zero, leading to a total loss.

Similarly, in the past 2-3 years, many offshore tool companies have exploited the advertising system vulnerabilities of Facebook and Google Network Alliance, and have tried to realize some illegal realizations.Violation of the policy red line of the Facebook and Google platforms eventually led to Facebook and Google’s large-scale blockade of illegal offshore tools, and even completely halted the originally valuable advertising forms, and the overall offshore tool industry’s decline.

Growth ceiling model (Growth Limits) , means that the fast-growing growth circuit encounters growth-suppressing adjustments The circuit, also known as the growth ceiling and plateau period. In the second half when the penetration rate of mobile Internet is close to the peak, many C-oriented products have reached a plateau of growth. A product grows very fast, often because of its small volume. When a fast-growing reinforcement circuit encounters a regulating circuit, it will encounter a growing ceiling. Therefore, when investing and products, you must always think about TAM (Total Available Market, Total Addressable Market) If a product’s natural TAM is small, Or TAM has already penetrated very high, and even if the growth team is excellent, it is unlikely that there will be big growth achievements; unless the growth team and product team can restructure the system’s growth loop or remove the original regulation loop. The second most popular growth curve in the past two years is to find a new breaking point under the growth ceiling fundamentals.

Growth and Underinvestment Fundamental Model (Growth and Underinvestment) , refers to an enhanced circuit if it grows rapidly Encountered regulatory loops in which R & D, production, service, and even management capacity are underdeveloped or underinvested, leading to a decline in service reputation and experience. In the past few years, Tesla has encountered problems of capacity traps and lack of service capabilities. Despite the surge in users, it is facing bankruptcy. It was not until the opening of the Chinese super factory and the completion of service capabilities in the past two years that Tesla returned to the fast-growing runway. Why do some people say that sometimes growth is slow but fast? It is to constantly review whether the back-end R & D, sales and service undertakings, and even the audit and quality control capabilities match; adjust the growth rhythm in a timely manner to ensure that back-end capabilities are in place to achieve sustainable development. Healthy growth.

Those companies that are really successful have done the right thing at the right time. They can avoid the tragedy of the commons according to the system laws of the blocked model, go through the growth cycle, and take off while refueling to make up for the shortcomings. Obstructed curse, achieving double-speed growth.

TotalIn other words, the Penetration System Law can help entrepreneurs understand the underlying logic, boundaries, and constraints of the growth system with the help of the “eye of God,” and build a more flexible growth system.

The “Tao” sounds very virtual, but it is also about life and death. It is very important. I hope that all entrepreneurs will become the “reasonable people” for growth.

Three, take the lead: growth masters are trend masters

This year, I hear entrepreneurs complain about why they do n’t have the right time. As soon as they start a business, they enter the “second half of the Internet.” But from the perspective of growth, there are opportunities and opportunities for growth at any time.

A counter-common sense rule is that it is sometimes easier to get a 10-fold increase than 10%. Why do you say that? A 10% growth usually only needs to be optimized according to the original logic; and to obtain 10 times growth will force you to transform logic and ideas, thinking about the really important driving engine. Entrepreneurs are prone to get caught up in the day-to-day operations of little detail at the initial stage; they are not thinking enough about forcing themselves if there are more trends and growth levers to use.

Andy Grove said a word that every strategic turning point shows a 10-fold speed change, and every 10-fold speed change will lead to a strategic turning point. How to understand? As an entrepreneur, you must always care about the surrounding ecology. What are the key factors that are undergoing qualitative changes at 10 times speed, and then grab it. The qualitative change of these key factors can affect a single factor of the product ecology to undergo a huge change of five to ten times in the next six months to one year.

Next, I summarize 8 potential energy dividends, including big trends and small trends. In fact, phenomenal Internet companies in China and the world have basically eaten these bonuses, and they may have eaten more than one bonus.

1, Internet infrastructure is changing at a rapid rate

This wave of emerging Internet phenomenon companies has, without exception, captured the dividends brought by the rapid migration of Internet infrastructure from PC to mobile Internet and 3G to 4G. It can be said that all super unicorns are unicorns of the times, and behind the extraordinary growth is the super potential energy that seizes the rapid changes in infrastructure.

For example, the popularization of 4G in China started at the end of 2013, and it will be basically every year from 2018 to 2018.The speed of 200 million new users is increasing. The explosive growth of domestic short video applications is in line with this double-speed growth curve. It can be said that short videos and live broadcasts are one of the biggest beneficiaries of 4G.

2, the emergence of a new speed traffic platform

Capturing new speed traffic platforms is essential for entrepreneurship. For many new brands, whether it is selling goods or services, if you have not started WeChat + Mini Programs in the past two or three years, if you have not taken advantage of the new traffic opportunities of Quick Hands, Douyin, Xiaohongshu, and B Station, you have failed If you try to carry live broadcasts on short videos and e-commerce platforms, it will be difficult to stand out and stand out.

While the Internet industry as a whole has reached a plateau period, there are still many opportunities when you look at it with growth thinking. The flowers are similar every year, and every year is different. Every year, new traffic platforms appear. In addition to the various video and community platforms mentioned earlier that are still growing wildly, perhaps the upcoming WeChat 3.0 enterprise is one of the new traffic platforms that can be expected in 2020.

2020 is the first year of 5G. Maybe in the second half or even 2021, there will be a big wave of replacements. Each rotation is a new opportunity for App to reshuffle. The growth potential of users brought by 5G may not be as large as the coverage of massive users brought by 3G to 4G, but if you look at the growth of certain categories from the perspective of device coverage, it may be an infrastructure level rather than a simple one. Traffic bonus for the new traffic platform.

3. Intergenerational changes and opportunities to squeeze out the big platform

The rise of the Yangtze River pushes forward, and the rise of Snapchat is to benefit from intergenerational changes and crowding out opportunities provided by the Facebook platform . There are still many young entrepreneurs trying to launch a new generation of social platforms today. Although there are many difficulties, there are definitely opportunities. In essence, they use new experiences and innovations to please the new generation of young people.

4, category change

Entrepreneurs and investors in the consumer industry are thinking about whether they can get the dividends of category change almost every day. When a category has the opportunity for structural change, either the demand based on new scenarios begins to flourish, or the category innovation brings new and strange functions and experiences to grow savagely, which may indicate that category changes are beginning to appear. Category changes can often be straightforwardHitting users’ minds and bringing unconventional growth.

For example, Ruixing and Hi Tea, the former enjoys a category dividend with a lower penetration rate of coffee in China, and the latter enjoys a new category bonus of premium instant tea with social currency attributes; a perfect diary for young consumers based on makeup The high-quality supply chain and excellent product capabilities cut into the young people’s make-up category, and made use of new traffic platforms such as WeChat, Xiaohongshu, and short video to achieve detonation.

5. Technology innovation or supply chain revolution

At the moment when the to C platform-type opportunities are becoming fewer, technological changes or supply chain innovations from the B-side have become particularly important. If new technology or supply chain reconstruction can bring 5 to 10 times or more cost reduction or efficiency improvement, it will also eliminate the adjustment loop caused by the original technology and the supply chain efficiency ceiling, and realize a new enhanced loop; applying our previous obstacles Model, the growing ceiling is broken, and the product is back on the growth track.

Also based on the winner-take-all model in the law of the system, when Google and Apple competed with Microsoft, facing the Windows ecosystem established by Microsoft, there was no possibility of breaking the game, so they chose to start a new growth loop, namely mobile Android ecology and iOS ecology of the Internet. So, really great entrepreneurs don’t have to go to war on the old battlefield, but use the opportunity of technological change to decisively start a brand new growth curve.

6. Sudden changes in population structure

Population is one of the most important variables affecting growth in economics. Changes in the global demographic structure have created many opportunities for growth. For example, the single population in China is on the rise, with more than 200 million single adults and more than 80 million adults living alone, and it is still expanding. This has led to mini appliances becoming standard for singles. Double 11 single rice cookers, single washing machines and singles People refrigerators have become explosive. In the next year, more than half of the world ’s elderly population will have a good growth potential.

7. Subculture becomes mainstream culture

We see that the more subcultures that represent young people are more likely to break into circles and become mainstream culture, the evolution of station B is an example. Similarly, the trendy play may also evolve from the niche interests of young people into the interests of larger circles in the next few years. When subcultures break through the walls of the circle and are understood and accepted by more people, they will have the opportunity to grow faster.

8. Major regulatory policy changes

Changes in major regulatory policies may also be catalysts for growth opportunities. For example, the rise of China’s electric vehicle industry, one in every two new energy vehicle owners worldwide, comes from China, which is highly related to the country’s strong support for electric vehicles and new energy vehicles.

The above 8 potential energy dividends are the main scenes and important levers that affect the quality change. Entrepreneurs should always think about how to take advantage of growth.

Trends are so important, so how do you get them? Why are some entrepreneurs naturally sharper and better able to understand and grasp trends?

Applying the concepts in economics to summarize: To determine whether traffic can become popular, we must detect the leading indicator of dust. >, Also observe the synchronization index (coincident indicator) , and also evaluate the dust lag index (lagging indicator) .

For example, when investing in the secondary market, you need to understand the economic operation of the macro level. GDP growth rate should be an effective indicator, but usually the GDP data of each country is issued quarterly, so that until the GDP data is released, Making investment decisions again is obviously too inefficient. If you can find the leading indicators and grasp the more sensitive signals to judge, you will have a more timely grasp of the economic pulse. For example, Purchasing Manager Index (PMI) is a very important monitoring indicator system in the economic leading indicators, which can be reflected at the beginning of each month Changes in the economy.

Entrepreneurs learn to compile their own index system, and track and observe the changes of the industry in time, it is possible to gain recognition beyond others. Some alternative leading indicators may not be accurate, but vague correctness is better than precise error. The growth team of a mature Internet company must compile three types of indicator systems that monitor competing products, channels, and their own products. For example, various search indexes, downloads of competing products, competing products in the upstream of the supply chain, or changes in orders of certain categories may be noteworthy leading indicators; activation of app products, and the coexistence ratio of competing products and their own apps Changes, product social media reviews and shipments may be synchronous indicators; and the app traffic of the operator platformConsumption, the number of parcels shipped by the logistics platform may be a lag indicator. Dynamic monitoring and analysis of three sets of indicators can provide insight into the evolution of trends.

Next I’ll talk about how to do it better, a practical methodology for growth.

Fourth, excellent technique 1: optimize the five major factors, it is easier to absorb traffic

First of all, it is clear that good growth starts with the construction of products with a traffic niche, and it is most important to create a good product with natural traffic.

Niche means that in the ecosystem, each species has its own role and status, occupying a specific space and performing a specific function. No two species have the same niche. Those species that can reproduce often occupy a comparatively superior niche, making it easier to obtain survival and living resources, and easier to avoid the attack of predators.

The Internet ecology follows a similar pattern. Certain products naturally grow on the fertile soil of the flow, and can be better nourished by the flow. The characteristics of Internet products, I define it as “traffic niche” , refers to products and services that have the physical constitution and potential to absorb, carry and diffuse traffic, and it is easier to accumulate traffic potential energy and shape Born to burst.

A good product usually has the following characteristics or factors. If you do it right, your product will naturally absorb the flow more easily than other products.

1. S-factor / search factor

In essence, Internet traffic can be divided into two categories-search traffic and social traffic. Of course, part of today’s search traffic has evolved into recommendation traffic; moreover, today’s search is increasingly integrated with communities and scenarios, such as YouTube, Instagram, and Amazon with a large number of searches.

It is inconvenient for mobile users to input manually in many scenarios, coupled with the popularity of recommendation engines, and search is often overlooked, but today search is still an important source of traffic. For example, it is known that a large percentage of traffic originates from search; one of LinkedIn’s core growth strategies is to make a lot of optimization of personal profile for search engines, which is helpful for crawling and search engine indexing. In turn, the natural flow of search engines drives LinkedIn increase.

If the startup company can optimize some features for search engines, create words of sufficient magnitude, be crawled by crawler machines, and do targeted optimization for different search engines, precise traffic from active search will naturally emerge.

In addition to general search optimization for Google and Baidu (SEO) , Today’s search is being integrated into more and more scenarios in.

For example, store search optimization (ASO) is increasingly important today. To a certain extent, App stores are reducing the weight of traffic brought by rankings and increasing the weight of searches and recommendations. ASO does not mean to brush words, but to transform the characteristics of the product in a way that search engines can more easily index. Such as optimizing the collection of high-frequency words and store search rankings, expanding the collection of large long-tail words, positive real-time comments, and so on.

Social search optimization (SSO) is also worthy of attention. Today, WeChat in WeChat has become an important traffic portal. The search results are direct. You can hit keywords when searching for a public account, brand, and applet, and directly display the public account and relevant results within the applet. Close the transaction. The mini program’s targeted search optimization for WeChat in 2020 may bring unexpected growth dividends. Similar other social platforms also have search dividends that can be explored.

The last is e-commerce search optimization (ESO) . JD.com and Ali are essentially search companies, and search is the core distribution logic of the product, and targeted optimization will naturally have good returns.

2, I factor / interaction factor

Good products, learn to use gamified design, interaction design, andIP attributes create flow for users.

First of all, the strong value of a product is very important. 80% of the receptors in the human brain are vision-related and require good design of the product.

Second, if the product achieves a good gamification design, users can easily enter a flow state . “Heart flow” was proposed by psychologist Mihari Chiksenmihari (Mihaly Csikszentmihalyi) , which refers to people focusing A kind of psychological state manifested in the behavior-entering the state of selflessness, forgetting the existence of time.

Good flow design requires people to have clear goals and timely positive feedback. Why is it fun for everyone to buy on Pinduoduo? Because there are a lot of game participation and reward mechanisms in Pinduoduo’s product design, people can generate dopamine, become excited, and don’t feel pain when spending money.

Designing creative tools in your product is also very important. Many traffic-based products can provide users with good creative tools and encourage users to share and produce content. According to the endowment effect of behavioral economics, once an individual owns an item, his evaluation of the value of the item is greatly increased than before. So the platform will encourage users to create. For example, LinkedIn encourages users to create resumes. Once you pay time and participate in the creation, the probability of your retention on the platform will increase.

3. H factor / hook factor

Hook factor (Hook Factor) There are two types of “routines”. The first category is value front , which uses explosive and drainage funds to speed up the user’s use. For example, you sell high-price products with a long decision-making period. You can design drainage products to attract users to complete their first order, and then guide users to convert. The earliest rise of Taobao relied on “9 blocks and 9 free shipping”; Tmall Double Eleven also has a similar routine every year. The deposit is paid first, and a certain amount of money can be returned to double ten.

The second category is value reservation , which extends user retention. When designing the product, users should leave some regrets or thoughts every time, and leave a “hook” to attract users to come again. For example, the second cup is half price, full coupons, etc.Value reserved.

As a consumer investment, I also prefer products with natural taste memories. Why did Moutai and Cola sell so well? Why do Fuling mustard and Haitian soy sauce perform well? In addition to brand awareness, it actually has taste memory and weak addiction, with hook factors.

4. K factor / fission factor

For growth, we often talk about when there are N users retweeting your product or content and see how many people return. Sometimes KOL retransmissions can achieve a great return through fan communication, and the K factor is particularly large instantly; some are because the product has vitality and the K factor is stable, but it can continue to win user reputation.

In product design, you can design viral creative tools, optimize retransmission scenarios, mobilize social KOL / KOC participation, and accelerate product proliferation and fission.

5. W factor / Word of mouth factor

Word-of-mouth factors are also critical. Good word of mouth comes with growth momentum. In the process of product design and growth, you can build a core fan base of the product by providing a more friendly word-of-mouth collection and feedback mechanism to stimulate user participation.

In growth hacking, there are also some indicators to judge word-of-mouth factors. For example, a user disappointment survey asks users how they would feel if there is no way to use this product again. If more than 40% of users answer “extremely disappointed”, it means that the product has good growth space.

Net recommendation value (NPS, Net Promoter Score) is also an indicator that is often measured. Tesla, Peloton, Apple, etc., all have relatively high NPS indexes, which will provide invisible help to brands and drive growth.

Fifth, excellent technique 2: digital drive optimization and growth revenue

After talking about how to optimize the five major factors to make products more easily absorb traffic, let’s look at how to optimize growth revenue based on digital drive.

1. Rich user portrait dimensions are the foundation of growing hacks

First need to be clear, the user portrait has rich dimensionsIt is the foundation of growth hacking and the core foundation for product optimization, retention enhancement and transaction conversion. Mature Internet companies are constantly capturing user portraits. In addition to the natural attributes of today’s user portrait dimensions, scene attributes and social attributes will also be examined more.

If you look at growth from the user’s perspective, there are three core issues, which are what we often call “growth axe”-pull new, activate, and drain.

The core of Laxin is to constantly search for changes in flow water sources and value depressions, and high potential flow energy; activation focuses on enhancing user stickiness, increasing user frequency, and maximizing the conversion of traffic kinetic energy. Actively awaken low-frequency users and fully tap user dividends.

To analyze user portraits, you first need to examine the natural attributes of the population, such as region, age, and gender. Mature growth teams will also conduct cross-research on these attributes;

Through behavioral characteristics, we are constantly looking for high-value user behaviors and focusing on optimizing these characteristics, because these characteristics are important growth levers. Behavioral characteristics can include browsing content, social network / node distribution, purchasing behavior / consumption interest Wait;

In addition, you need to analyze the environment attributes based on the user ’s scene. For example, takeaway products need to consider weather attributes, and live products need to consider the user ’s network environment. Facebook’s growth team will target users in regions with relatively poor network infrastructure, such as Africa, Latin America, and India, and work with operators to create a light-weight product, Facebook Lite, with high-speed growth.

2. Conversion funnel: From AARRR Pirate Growth Model to RARRA Lean Growth Model

The traditional AARRR funnel model, also called the “pirate model”, is a five-level funnel, which contains Acquistion (user-acquired) , Activation (user activated) , Retention (user retained) , Revenue (get a profit) , Referral (Recommended by users) .

The AARRR funnel model is a typical traffic dividend thinking, that is, to maximize the flow opening and reduce the layer-by-layer loss.

The improved RARRA growth model focuses on the enhancement of user value and efficiency bonus, maximizes traffic closing, improves user stickiness and fission efficiency, and pursues the most efficient growth. RARRA follows the philosophy of Lean Startup. I call it “Lean Growth Model”.

The RARRA model emphasizes Retention (user retention) is the first and core of all growth optimization, and cannot retain users No matter how powerful the function is or how the design is unconventional, it is worthless. Best practices for different types of products have different retention indicators, such as Facebook’s classic “40-20-10” rule, which is a reference retention indicator for evaluating whether a content or community social product has basically passed.

After Retention (user retention) , please optimize Activation (User activation) , let users find the moment of ahha as early as possible; then optimize the Referral (user recommendation) , improve Fission factor, expand sharing scenes, drive sharing reflow; on this basis, calculate the Revenue model (gain) ,