Note: the US regiment and the drop wars in the last few days have once again seen the power of the crazy subsidy. In recent years, Internet products almost spoilt the users, burning money is normal, red packets, coupons, free gifts and other subsidies are often the most favorite ways of marketing staff, but also one of the standards for users to choose products.
We find that a lot of new Internet products are basically without profit, and even some of the products that have been operating in N years are still losing money and making money by other ways to support their own business.
Most people can understand these Internet Co and their products. Why do they pay users?
Because the early point of point money is expected to be doubly earned later.
1. Four reasons for the current common money discount
1. to pay for the habit
Regardless of the original offline shopping to the mobile phone shopping, the offline payment adjustment to the mobile phone payment, the shop purchase change to the delivery of goods, customary adjustment can not be a few external factors to stimulate and incentive. For example, WeChat paid a lot of early encouragement, cash free activities, that is, through subsidies to allow users to pay cash from WeChat to pay the transition.
2. in order to seize the market
The market capacity of the same industry is limited. When the competitors aim at the same market, when the blue sea becomes the Red Sea, to survive and even break through the blue sea, it can only be robbed. In the way of robbing users, the most direct and most effective way is to smash money, turn the original market share of other people into their own, and hope to be their own forever. For example, the “Crazy” coupons on the line of the US group taxi.
3. to pay for the amount of money to finance
For some start-ups who are counting on capital to join in “artificial hematopoiesis”, all they do is attract capital attention and satisfy investors. And no doubt, for these companies, the early money discount is like the common saying “fish with shrimp”, the amount of users and transaction data made by the discount money are all the names of investors. Once it attracts the investors’ attention, it has no harm to reinventing a “blood system”.
4. in order to create an atmosphere of herd effect
Some people are willing to spend money on water army. The 50 Fen party is very useful for creating atmosphere to guide public opinion. This is because the Chinese have a certain mentality of conformity. We all say so. Maybe this is right. Everyone is of this view. If I act alone, I may be besieged.
So the product is also the same, the money to create a temporary feeling of fire, combined with some public relations and opinion leaders of public opinion guidance, the curiosity of the user has been driven, the user also has.
Two, the bad news of the money discount
From allowing users to spend money on products, to give users experience free of charge, and to try to buy money to buy users, the trend of the Internet circle has become more and more out of the direction of the tradition.
So now people who do Internet products often say: no background, no financing, can you afford it? Can the product be made without burning some money?
Despite the heart, but in a large number of products burn money to seize the user era, this often poked a lot of product growth on the road tragedy. However, there is also a problem of paying money, so it is not a long-term strategy to attract money from a rich two generation.
Products that are developed on the basis of money are often faced with the following situations:
1. users are who have more money to use who
All the world is prosperous, and all the world is bustling. It is all for profit. Since it is the trend of interest, users lack loyalty. In the homogeneity of the product, the user is often compared to whose subsidy how long to use who, after all, with less money to buy the same or similar service, how can the user’s heart be without this account?
2. no money is not needed
The user is used to buy an egg fried rice with five dollars. Suddenly, you raise the price to ten yuan and one egg fried rice. Most of the users can’t avoid the difference in their heart.
The result of thinking is probably to spend two yuan on a single piece of fried eggs. So we often find some products that are used to subsidize marketing, and the amount of users will be reduced after the discount is stopped, which makes the operation of many products dare not make the decision to stop the subsidy easily.
3. stickers make the market chaotic
This kind of thing always attracts a lot of interest sensitive people. They will try every means to gain more benefits. Because of this, if the money is not well controlled, it will make the whole market form a mess, and let the money itself lose meaning.
4. it is difficult to monopolize money, unless powerful giants support it.
Speaking of most of the products that burn money before, they are counting on being able to seize the market and become the unicorns of the industry. However, the fact is: the Internet’s draught is replaced by stubble, group buying, video, takeaway, sharing bicycles, and balance financing. But the stickers stick to the end and become the battleground of the two giants Tencent and Alibaba.
Once two fathers fight, the end of the product is either not heard by the pressure, or is bought by a big hand to become a “dry son” or a “son of a child”. It’s not so easy to grab the market. Who calls too many users, and it’s getting harder and harder to make the competition without a breakthrough.
5. once the capital chain can not keep up, the money will be lost.
For the startups, the biggest tragedy of money is probably this, burning the burning of their own capital burned, not burning and feeling just a death, burning up and no head. If there is a good connection, if it is not, or if the capital chain has made a mistake, it can only be death. Every year, many products are dying on the road of burning money. It is no exaggeration to use corpses everywhere.
Therefore, when the product is in the market environment, it must follow the rules of the market. Having feelings, though they can pay their own money is doing public welfare, but survive, so that the real cause of public welfare can be extended for a longer time. Whether investors or product operators, ultimately want users to pay, free and pay are only means to this goal.
So the next thing you want to say is two questions:
- How can users be allowed to break up with the “pay mode”?
- What does a user pay for money?
These two questions are the key points to be considered in the bottleneck of paying money.
Three, how to let users and “subsidies” gracefully say goodbye?
1. from fixed to random to increase interest
The longer the subsidy time is, the easier it is for users to form dependence and inertia. Once adjustment is made, the more easily they are adjusted, the more vulnerable they are. So the way and the amount of the subsidy, after a fixed period of time, must be adjusted to a random way, different subsidy activities, the amount of random subsidies, can make the subsidy more interesting, but also make the budget more controllable.
With less subsidies, the same effect can be achieved, which can gradually reduce subsidies among users.
2. from the general benefit to the special benefit to improve the pertinence
- From the user’s point of view, of course, everyone wants to get subsidies.
- But for the core users, they expect their loyalty and rewards to be rewarded, and the core users want different interests.
- In terms of the product: as the famous 8020 rules reveal the truth – in fact, 20% of the core users are much more than 80% of their products.
Therefore, in a certain stage, the policy of subsidize the sunshine subsidy is distinguished from the special preferential policy of the targeted subsidy. It can not only stimulate the ordinary users, avoid the meaningless loss, but also retain more core users.
3. from the real price to the price increase, to strengthen the selectivity
This is the way most ecommerce will use it. Discounts and subsidies are based on the price increase, although the subsidies seem to have disappeared, but for the cost of the operation of the product, the subsidy is actually recovered in the payment of the goods. In order to confuse users, most products will give users more choices.
If you want to subsidize, you can only choose the price increases, and if you choose a discount commodity, you may not be able to enjoy the subsidy, because the autonomy in the hands of the user, it makes the user feel that everything is their own choice, not the wrong product. In fact, it is a game between products and users on price calculation.
Of course, most of the enterprises that end up choosing to end subsidies are the only choice for users because they have finally succeeded in suppressing other competitors by subsidize them. It is better to adopt some of these strategies than to cut off subsidies after achieving the goal, so that users and subsidies can be gracefully said “goodbye”.
After saying goodbye to the subsidy, the next step for the product is profit. It is obviously a more difficult proposition to pay users than to pay no more money to users.
It’s easy to say, but it’s very difficult to do it. Only a few common ideas can be generalized.
Four, what does the user pay for?
1. from pleasing to seduction, buying privileges is the glory of achievement.
As mentioned earlier, subsidies need differentiated treatment for users with different contributions. In fact, to let users pay money, users need to enjoy privileges of honor.
A paid member of a video product can go to ads to see VIP movies as a privilege; a pay member of a download tool can speed up a privilege; a paid member of the recruitment software can be a group of resumes, a top and a privilege. The key is this privilege, which enables users to feel the need and satisfaction, and at the same time can enhance their sense of achievement.
2. from reality to emotion, what we buy is feelings and achievements are believers.
People’s emotions are the most special things in the world. In addition to paying for their own interests, there are also many “believers” who are willing to “pay for the feelings”.
- This feeling may be public welfare, for example, paying 1 yuan can give a child a love for autistic children.
- It can also be a dream, such as paying for a dream.
- This feeling may also be a common belief and favor, such as paying for the signature items of heroes or stars.
The important thing is to find the emotional sensitive points of target users, so that they can have some kind of common emotion, and it is easy to motivate them to become believers in fees.
3. from the present to the expectation, what we buy is the future, and what we hope for is hope.
When it comes to hunger, carrots and donkeys, sometimes, users will pay for a good future that they expect, so “the boss of a big pie” and “the leader of a carrot that will never be able to eat” always exist.
The same is true for products, drawing a good blueprint for users.
- For example, if you buy a member, you can save XXX yuan a year in the future.
- For example, if you pay one yuan, you may share the box office return of a movie in the future.
- For example, to pay a fee, you can become a great God in the future with the help of products, with a monthly salary of 50 thousand.
And so on, the cake draws more and more close to the expectations of users, and users pay more quickly and consciously.
In a word, there is no profit model, no “let the user pay” ability, unless there is a good “Dad”, or in itself is to do public welfare, otherwise it is absolutely a hooligan, if the ability to make money can not catch up with the speed of money, it is also playing hooligan at the same time also set a cool, attract no more. To be unjust is just to accelerate death.
About the author
Running big oranges, master of Huazhong University of Science and Technology, graduated 6 years ago. He has worked in 4A advertising company, OTA and management consulting company.