I explain a business model in five minutes every day. Hello everyone, I am model planner Ah Hao.
As the darling of business marketing in the new era, how can "group buying" become a key factor in business upgrading? With the continuous advancement of Internet technology, group buying, as an emerging form of consumption, is gradually becoming a new favorite in the commercial field. In the fierce business competition, why is it said that group buying can break through many obstacles ?
1. As consumption upgrades, business should also upgrade.
With the continuous development of Internet technology and the continuous upgrading of consumer demands, merchants should not only think about products and services, but also how to market them is also a top priority. The "group buying" I want to share with you today is actually very simple, but I still hope you can read it carefully and think about it carefully.
2. What is "group buying".
Group-building, this seemingly simple business model, actually contains huge energy. It can not only help merchants increase sales and reduce marketing costs, but also increase user stickiness and participation. So, how does the group-building model achieve this?
- By allowing consumers to spontaneously form group buying groups or participate in group buying with other consumers, merchants can quickly open up the market and attract a large number of users. This approach not only saves marketing costs, but also increases brand awareness.
- Word-of-mouth communication among consumers and communication through social media and other channels allow merchants to quickly expand the number of users while reducing marketing costs. Moreover, due to the preferential prices of group purchases, consumers are more willing to purchase, thus further reducing marketing costs.
- Word-of-mouth communication among consumers and communication through social media and other channels allow merchants to quickly expand the number of users while reducing marketing costs. Moreover, due to the preferential prices of group purchases, consumers are more willing to purchase, thus further reducing marketing costs.
3. How to operate the “group-joining” model?
It is necessary to choose appropriate promotion channels and target groups. Clarify the age, gender, region, occupation and other characteristics of target consumers in order to carry out precise marketing and marketing activities. Then, based on the needs and consumption habits of the target group, select products suitable for group buying activities. These goods can be daily necessities, popular products or high-value goods, etc.
Next, establish clear group rules. These rules include details such as the number of people in the group, group time, group discounts and other details. In this way, consumers will have clear rules to follow when participating in group activities.
For example: the platform has a special activity area, in which merchants select a series of hot-selling and high-profit products as attraction points. Set up activity groups, and the rule is that ten people form a group. Well, as long as everyone participating in the group buying can buy this product at a price lower than the market price to participate in this activity.
Of course, only three of these ten people can win the prize. In addition to the product, the winner can also receive points equivalent to the price of the product and an equal proportion of funds. And what about those who didn’t win? Their principal will be returned and they can receive a red envelope that can be used on other products on the platform. This not only increases the welfare of lottery winners, but also brings welfare to non-lottery winners .
4. What exactly are points and funds? What do they do?
Points and funds are important components in the group-building model. Simply put, the platform will set five or ten percent of daily or weekly turnover as a bonus pool.
As long as those who have participated in the event and won the prize will be ranked according to the number of points they have obtained, when the prize pool is released, everyone on the list will receive an equally weighted prize! The fund is released according to the ratio set by the platform.
Let's take an example: If No. 1-10 purchased a product worth 880 yuan, the cost price is 300 yuan. At this time, winners No. 1-3 will also receive 88 points and 880 funds in addition to taking away the products. This fund can be withdrawn, but there are lock-in conditions. According to the platform setting, you will get 10% of the unlocking amount for each participation. As long as you unlock it, you can get the corresponding bonus until the 880 funds are released.
Of course, there is still a trick here, that is, after participating in the lottery for the first time, the 880 fund will only give the winner a quota of 880, but you cannot get the 10% release reward here. You can only get this release reward by continuing to participate in the event. , but as long as you win the prize once, you can get the 10% release reward regardless of whether you continue to win the prize for the second time.
5. Summary
The advantage of this model is that it can use bonus pools and funds to attract consumers to participate in unlimited activities. Through such operating strategies, merchants can not only increase sales, reduce marketing costs, increase user stickiness and participation, but also optimize product and service quality.
Okay, let’s share today’s model here. I haven't finished talking about this mode yet, because of time issues, we will talk about more details in the next issue. If you are also interested in this model, please follow and Q me to explain how this model can be applied to your industry. I am the pattern planner Ah Hao. If you are interested, please follow me. See you in the next issue!
Note: The editor does not participate in the operation of any analyzed projects, does not invest in any projects, does not promote projects for a fee, and does not conduct private evaluations of projects. Please do not disturb players. (The above analysis does not constitute any investment advice) PS: Ah Hao only develops Internet software and will not participate in any operational projects.