Guidance:In recent years, the bottleneck of user traffic makes many enterprises feel anxious and uneasy. The overall growth of Internet users slows down, and the user scale tends to be saturated. At the same time, the number of competing individuals increases exponentially, the competition for traffic resources becomes more and more intense, and the cost of traffic is rising day by day. Facing the huge flow black hole, enterprises have formed the situation of “chasing the bucks”. User growth has become the lifeblood of enterprise products.
For this reason, on October 18, 2019, Alibaba’s Taoxi Technology Department, together with qcon, held a special evening event in Shanghai, “Taoxi technology Carnival – breakthrough night of user growth”. Four technical experts from Alibaba Taoxi were invited to share Alibaba Taoxi’s user growth strategy and conduct in-depth exchanges and knowledge sharing with participants.
01. Thinking and Practice on the growth strategy of Taoxi users
In June 2019, Mary Mikel, known as “Internet queen”, released the Internet trend report for 2019. The first important message is that “the global Internet demographic dividend continues to decline.”.
According to the report, global Internet users grew by 6%, compared with 7% in 2017; global new smartphone shipments fell by 4%. According to questmobile statistics, the number of mobile Internet monthly active users in China reached the top of 1.138 billion in 2019 Q1, and the number of 2019q2 users dropped by 1.93 million.
This shows that the number of users in the Internet industry is no longer growing, and new growth points are hard to find. Mobile Internet has officially entered the era of user stock game.
However, in August of the same year, Alibaba Group announced its quarterly results as of June 30, 2019.
According to the financial report, Alibaba Group’s revenue in this quarter was 114.924 billion yuan, up 42% year on year. Among them, the monthly active users of China’s retail platforms, including Taobao and tmall, reached 755 million, an increase of 34 million compared with the previous quarter, and the annual active consumers reached 674 million. From January 1, 2019 to now, it has increased by 56 million in half a year.
When the era of traffic as the king goes away slowly, the loyalty of APP users is reduced, the market is rising with consumption classification and sinking, and the trend of Pan entertainment to compete for users is becoming more and more popular, how can Alibaba use the least cost to get traffic and really keep users? How to use lean way to improve transformation and realize the current flow quickly? How to explore the core needs of different user groups, and build a methodology of sustainable user growth around the core needs?
In the evening activity of “Taoxi technology Carnival – breakthrough night of user growth”, Ma Dou, technical director of Taoxi Technology Department of Alibaba, gave the strategy of Taoxi to break the situation.
In the past, among all kinds of theories related to growth and fission, we heard the most about aarrr model, that is, from acquisition activation retention revenue referral. This model was put forward in 2007. At that time, the whole Internet was on the rise, with a huge demographic dividend. There was no need to do much, and the traffic was growing naturally. Among them, getting customers is relatively easy to see the results. As long as you are willing to spend money and work hard, you can always guide users in. But the most important and difficult thing to do in practice is to keep, which takes a lot of time to polish products and study user habits through data. If we don’t do a good job of retention, no matter how many users can’t keep it, it’s nothing. Therefore, how to keep is the first strategy to break the new situation.
Take advantage of new resources, follow the trend and iterate quickly
At present, the “gold digging” of small programs has become an industry consensus. The business logic behind it is to establish a set of ecological system, through a reasonable incentive mechanism, to enable businesses and users, to help pull new. Therefore, how to establish this kind of efficient business logic to use the potential to promote innovation is a breakthrough for students who are growing.
Pay attention to product innovation
Product innovation can generate disruptive innovation. Especially Chinese users are very willing to try new things. Once you get used to new products, you may completely forget how the previous generation of products were used. For example, in the field of social communication, when using MySpace, there is a big debate about whether social communication is an acquaintance or a stranger. However, in today’s wechat circle of friends, we have accepted that the core of social interaction is acquaintance social interaction. Therefore, for product innovation, only through the whole process of product iteration and evolution, can we figure out what the user’s mind that a product innovation needs to solve at first and how to design new products.
It’s easy to use, fun and long time to compete for users
If an app wants to obtain a long-term stable user group, whether it conforms to the user’s interests and whether it can bring instant immersion pleasure is crucial. Users will switch the app by whether it conforms to their interests and instant pleasure experience.
At the same time, the sinking market belongs to the acquaintance society and has stronger cultural stickiness, which means that the brand can carry out targeted marketing promotion by breaking through the circle, cooperating with stars and celebrities. With the help of content delivery, live broadcast and video, it can increase brand interest and enhance users’ online time.
Overall optimization of user life cycle
The whole life cycle of users is the top-level design of user growth, which is the overall optimization of pulling new, transforming and retaining, and the establishment of a systematic coordination system. As shown in the figure below, the y-axis is segmented by activity. When your user volume and dau reach a certain scale, you will surely carry out a hierarchical operation of the crowd, because the life line of different people’s preferences on your platform is totally different, only in this way can you accurately guide and transform.
Specifically speaking, how does Taoxi do to pull new recall, transform promote activity and retain these three parts?
02. Panoramic ecological flow layout and new strategy construction of users
The core of Taoxi’s new strategy is to take advantage of the potential, including two-way flow of ecosystem, three-way intelligent advertising, new online pull-down, new natural publishing and fission. Among them, the most efficient way is to pull the two party through the ecological body. The following is an example of Alipay scenario.
Because of the natural characteristics of Alipay tools, it can connect multiple scenes of different channels on line and offline, and reach different users in large scale. At the same time, it also needs to improve the user’s use time and increase the user’s access frequency, so it is naturally complementary to the characteristics of manual Taobao.
At the front is the touch mode of user products. The horizontal pull is smart banner. Through the previous information and end intelligence scenarios, users can be divided to judge whether they are new or have been here before, and the conversion can be improved according to the relevant interests. The backstage is mainly divided into three parts. The first part is the thermal distribution of potential customers in the new scene, to judge where users like to appear and what they like to do, and to classify them into groups; the second part is to reflow the effect data of different receiving pages, and analyze them through the iterative optimization funnel; the third part is the AB experiment, which repeatedly polishes products and receiving efficiency.
Apart from that, fission is also a good way to pull new things at present. The traditional way of pulling new products is through the advertising platform. But fission actually skips the middleman, does not have the middleman to earn the difference, directly subsidizes the marketing expense to the user, completes the pull new through the user, has promoted the efficiency. This is a big marketing innovation.
03. Full link operation scheme and user growth platform construction
There are two parts to promote the transformation of Taos: one is the whole link operation, the other is the user touch.
As shown in the figure below, the lower layer of the whole link is a systematic system structure, the upper layer is a policy layer, mainly for the personalization of rights and interests, and the latter is mainly for the support of reusability and branch expansion, which can be quickly applied to many different scenarios. At present, Taoyuan mainly uses full link incentive. For example, in Taoxi, different users can intelligently guide dozens of different banner users.
The other is touch matrix, as shown in the figure below. The more effective guidance for users is through multiple touch in a short period of time, so Taosi has made a global linkage touch matrix. Set contacts on each node of the user’s moving line. The goal of these contacts is not to drive the user to the next node of the funnel, but to drive the user to jump between life cycles under the unified control of the user life cycle intervention system. And through the basic ability provided by the algorithm for intelligent reach, with the method of multiple guidance for the target population, through the extension of scalability, it can quickly expand and support multiple business scenarios.
04. Construction of user membership system and promotion system
The most difficult thing to achieve in the process of growth is retention. For the user retention system of Taoxi, there are two representative product systems, one is membership and the other is gold coin.
In the past two years, the most powerful member of each company is the member, but it is not particularly clear what the member will do. This is an open problem. The best solution is to look at the benchmarking.
Here’s a Forbes study. Amazon released its membership data last year. Based on this data, we can make a linear prediction that its own fees can bring us $18 billion in revenue. What is the concept? This is about 6% and 8% of Amazon’s revenue. What’s the concept? At present, Alibaba cloud’s revenue may be close to 10 points. How big members can be? Now they have a very clear sense of body.
So what is the role of membership system? First, it can improve the user’s stickiness, including tmall supermarket, Ali health, Taobao new selection, etc., which are often used on hand Taos. The more you buy, the more discounts you get. In addition, the membership system is a good bridge to get through the whole Ali economy. When you become an 88 member, you will issue gift packages containing a variety of rights and interests, such as the rights and interests of Taobao tickets. When users use these rights and interests, they complete the two-way drainage. Therefore, 88vip membership is an efficient way to quickly expand the two sides.
The second is the gold rush system. Open hand Taos, there is a “gold” entrance, it is a tripartite circulation system. The core is that consumers get gold coins through interaction on the platform, which can be deducted when they buy goods. In this way, the traffic of users can be distributed directionally. When users do tasks or check-in, they can guide them to the newly developed conference and functions.
For businesses, they can participate in the promotion activities of the gold coin channel, which is a good way to improve the transaction efficiency of businesses and the interaction of specific groups. For the platform, through the system of gold rush, all kinds of interactive ways and transaction links can be opened, all users can be encouraged to participate in various interactions, and the purchase volume can be stimulated through this incentive way.
05. Future prospects for user growth
For a company, the short-term growth depends on competition, but the long-term growth depends on layout. The core of the layout is to see clearly what changes are taking place in the nature of consumption in each stage. We all don’t know what China’s consumption will become in the future. But the best way to solve the open problem is to find a similar problem, a similar situation, for derivation and verification.
Compared with the consumption process in Japan, the first consumption era in Japan is mainly centered on the city. A small part of the middle class began to enjoy consumption and pursue modernization and Westernization. In the second consumption era, the family is the main consumption unit, and people continue to buy things at home, mainly electrical appliances and cars, which has the corresponding logic with the rise of tmall Taobao. Tmall’s core bonus is the process of Chinese retailers embracing online retail, mainly electrical appliances and clothing, which is very consistent with the characteristics of the second consumption era.
In the third consumption era, Japan has two obvious numerical characteristics, one is the slowdown of GDP growth, the other is the decrease of birth rate. Therefore, a new consumption change will take place at this time, from uniform consumption to individual consumption. People will prefer personalized and diversified things, and they will especially like the pursuit of sophisticated lifestyle and products that make people feel happy and happy. This is the essential reason why pan entertainment or various interaction and game methods are popular now.
At present, China is in the process of transformation from the second consumption era to the third consumption era, and from family consumption to personal consumption. It is not only to meet the individualization and diversification of products, but also to meet different levels of people. For Taozhou system, the whole life cycle of Taozhou will be used to precipitate, complete the strategic layout of multi app matrix, and complete the transformation of new users for specific groups and methods.
With the slowdown of the growth of mobile Internet users in China, the traffic dividend gradually disappears. Every Internet company is seeking new growth mode and has established a user growth department. User growth is not only a customer acquisition strategy, but also a key factor to determine the future development of enterprises.
Let’s focus on the topic of user growth. Starting from the practice of mobile Internet user growth, this activity will show you the traffic layout of Alibaba’s panoramic ecology, explain the construction of Taobao user growth and promotion system, the whole link operation scheme of hand Taobao, the platform construction scheme to support the growth of users in the economy, and how technology can promote the improvement of user acquisition ability.
One More Thing
Taoxi Technology Department – user growth team is engaged in social recruitment, including: Java technology experts, algorithm experts, data analysis experts, data research and development experts, front-end technology experts.
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