Apr 09, 2022
In General Discussions
The acquisition of private domain traffic is not easy. If you want a higher conversion rate, you need a lot of activities to fission, and you need a higher cost; how can you get users at a lower cost? In what areas should we work harder? The author of this article thinks from the perspective of the CFO, let's take a look. When we look at some of the things around us from the CFO's point of view, there are surprising discoveries. Why learn to think like a CFO? Because the CFO needs to control the flow of all the company's money, where does the money come from? Where will the money go? The CFO needs to know where every cent of the company is going. Therefore, the CFO needs to know very clearly the business model of the entire company, how the company operates, and the company's profit model. If we can think about some of the problems we encounter from the perspective of CFO, there will be unexpected discoveries. 1. Ledgers in the private domain of ordinary job title email list people Why talk about private domain operations? I completed the first article on my official account last week, and I feel that the threshold for operating the official account is very high, so I think of the example of a relative doing business in WeChat Moments; and many companies based on the S2B2C business model will also use ordinary people’s WeChat friends circle (private domain). Let’s start a detailed analysis: when ordinary people sell things on WeChat, it is nothing more than posting a circle of friends, and forwarding the purchase link in the WeChat group; if there is a distribution function, then you can expect relatives and friends to help forward to expand the influence; we assume that each of her I can make a net profit of 3,000 yuan a month, an average of 100 yuan a day. Use our most familiar e-commerce GMV formula: GMV= traffic * conversion rate * customer unit price According to the above formula, start to push backwards. Assuming that the profit rate of ordinary commodities is 10%, and the unit price of each order is 100 yuan, then each order can earn 10 yuan, and 10 orders are required to make 100 yuan a day. Further, if the conversion rate is 1% (one order per 100 friends), we need to have 1000 friends and push product information to them every day to be able to reach our goal. Do ordinary people have so many friends? Most WeChat friends will not reach 1000. Is this model just a false proposition? If you only rely on the circle of friends, it may be very difficult; if you add some relatively large WeChat groups, the network of contacts can be quickly enlarged; but since WeChat groups are a weaker social relationship, the conversion rate may be lower than 1 %. In the case of limited reach and low conversion rate, how can we intuitively achieve our goals quickly? Increase the unit price of a customer: For example, if you sell something for 1,000 yuan, you can earn 100 yuan per order. But the higher the customer unit price, the longer the customer makes a decision, and the lower the conversion rate is generally. Improve profit margins: such as selling cosmetics, beauty products, etc. with high profit margins. A higher profit margin of 50% or even 80% means that the number of items sold per day can be achieved with fewer items. Improve the repurchase rate: let friends buy every week or even every day. In order to achieve the goal, the selection will be limited. Considering that big brands control channels and prices, it is basically impossible to sell big brands in the circle of friends (except for second-hand and inventory). Due to decentralization, it is impossible to gather everyone's shopping needs together to gain the bargaining power of the supply chain like PDD; therefore, in the circle of friends, you can generally only sell products of not too well-known brands, or categories with weak brand minds such as fresh fruit ; Moreover, the after-sales of goods is also more difficult than centralized platforms. Therefore, it is not easy to continue to do private domain business in WeChat Moments. Like Yunji, as we know well, the business model is S2B2C + membership system, and end users are enlarged through Xiao B's private domain.