Reflections on User Thinking (I): User Thinking —— Fast Food Books Related to Membership System
On weekends, I read between the lines and saw the people next door reading this book. The word "user thinking" just hit my pain point, so I bought this book without hesitation at the moment and finished it quickly in a weekend. Generally speaking, this is a "fast food" book.
John Warrillow, the author, became famous in World War I with the book "Building for sale" (sell your company at any time). He has his own studio, focusing on entrepreneurial guidance for small and medium-sized enterprises. The English title of this book is Automation Customer, which literally means manufacturing automation customers. The book focuses on how to use membership system to grab more value and benefits from existing customers, with clear conditioning and rich cases.
This book is divided into three parts. The first part emphasizes the value of membership system. The second part emphasizes nine subscription business models; The third part summarizes the transformation and retention of user experience.
First of all, why is membership important? The reason lies in the belief that everyone has their own full understanding. The author lists many reasons, but the main one is the higher premium. Under the membership system, users can be regarded as a part of enterprise assets, thus helping enterprises to obtain stable cash flow and resource allocation.
Secondly, the author illustrates the main ordering modes with examples, namely
Membership website mode: a website that requires payment to have browsing permission.
Do not * * * provide database mode: subscribe to iTunes.
Private club mode: such as senior member club.
Priority mode: such as the rapid passage of money.
Consumables mode: such as consumables mailed regularly.
Surprise gift box mode: pay a fixed amount and get a gift box for skin care products every month.
Simplified mode: for example, complete a fixed amount of all-inclusive housework service according to the preset contract.
Network mode: such as a fixed amount of XX product use rights.
Worry-free mode: For example, the services of patents/novel products obtained at a fixed amount will only be started when necessary.
Finally, the author gives an example of the user's experience in the transformation and retention of the acquisition experience, mainly focusing on the dot+example.
Generally speaking, this book is more suitable for people who have just started a business, and I believe it can give them some inspiration.
Reflections on "User Thinking" (II): User Thinking in the Order Mode
It can be used as a supplementary book for business models.
After reading this book, I began to think about the characteristics and feasibility of ordering mode in the Internet age.
First, the advantages of the subscription model-capital risk sharing mechanism. From the user's point of view, it is to divide the one-time high expenditure/routine expenditure into several small expenditures and store them in one basket; From the enterprise's point of view, it is to turn the sudden influx of cash at the end of each big contract/quarter/year into a continuous cash flow every month. For users and enterprises, it is a mechanism to share capital risks. At the same time, to maintain this continuous trust relationship, enterprises need to continue to provide quality services, otherwise users will clap their hands and leave. This model puts high demands on the continuous user experience, such as the black socks and surprise boxes listed in this book.
Second, what kind of enterprise is suitable for the order mode. The most common daily cycle or consumable consumption-barber shop, razor, clothing, film and television industries. Knowledge-based services such as consultation and training. Insurance business is also suitable. The biggest order for insurance is our current five insurances and one gold; At present, there are two kinds of slow-growing Internet. One is the so-called surprise box model, which is aimed at pet dogs, men's wear, flowers/fruits and so on. Its essence is to provide a worry-free professional service on the basis of regular consumption. The second mode is free+membership, which is typical of major video websites at present. Free for everyone, but there are 60+s lengthy advertisements. I am a member of a video website, and I pay 15 RMB per month. Without advertisements, VIP movies and TV series are the first to watch, which is worth the money.
Third, the operation of subscription mode is a difficult point and the core of user experience. The difficulty lies in the acquisition, transformation and retention of users, especially for startups. This book introduces some monitoring indicators and some methods for users to obtain and maintain, which is worth a try.
Reflections on users' thinking (III): Sustainability and Stunning —— Reflections on two ordering modes
In the process of reading, I have some unique ideas about two cases in nine subscription business models. The first is the consumable mode, which provides regular distribution of consumables to users who order products, including but not limited to socks, razors, T-shirts and so on. The author believes that the consumable model is based on the following: there are natural consumption items, and consumers are tired of constantly choosing products. In my opinion, the latter is more critical. I remember that there is a website called "Men's Socks" in China, which provides socks ordering service and distributes socks of the season to consumers in a way ranging from 3- 12 pairs every quarter. This model can only be effective for men, because compared with women, men are less inclined to choose their own socks and don't care about their functionality. This website has been in operation for five years, serving 265,438+00,000 people. This is the advantage of accurate positioning. At the same time, through this process, men's socks have established their own brands and gradually entered major e-commerce brands, which can win in the homogenization competition.
The second example is a negative example. The mode of private clubhouse is actually the enjoyment of social status. The "destination clubhouse" is a scheme for * * * to enjoy high-grade tourism resources, which is also called "timeshare". The subscribers share the maintenance cost of a property. In foreign countries, timeshare is developing in full swing, but in China, it used to be synonymous with fraud, and many enterprises could not fulfill their promises when placing orders. Excluding those enterprises that deliberately cheat, there are also some objective reasons that restrict the development of this business model in China. For example, participants in "timeshare" may not get a visa for the country they want to go on holiday and can't afford a house. The proportion of middle-class income earners in China is low, and new consumption habits have not yet formed. Coupled with the ambiguity of policies and regulations, this business model is deadlocked. Therefore, a business model cannot be simply transplanted, and it needs accurate analysis and judgment of the target market.
Reflections on User Thinking (Ⅳ): Notes on User Thinking
On Saturday, I went to Read Between the Lines and read User Thinking, with the subtitle: User acquisition, experience, transformation and retention in the era of mass creation. The author John Warrilow is the owner of a subscription consulting company. At first, I thought it was just a general introduction to user development methodology. In view of my curiosity, I read some books in the cafe and felt good. I borrowed it to take home and spent four hours reading it in detail.
In fact, the author mainly talks about the transformation of a business model-subscription system. From one-time user charging mode to annual/monthly installment charging mode. Generally speaking, it is not difficult to understand that large software companies, such as Oracle Bone Inscriptions, SAP and IBM, have experienced this transformation, that is, SaaS model. But for SMEs in more industries, many cases are still available for reference.
Adopting subscription system is valuable for enterprise valuation. With the same flow and subscription model, the average valuation of the company is three times that of the one-time charging model company, and there may be more Internet companies. WhatsApp was acquired by Facebook for $654.38+09 billion, which is an important case. The most important thing is to turn the "cash straw" into a "cash pipe".
The book analyzes nine subscription business models: membership website model, no * * * supply database model, private club model, priority model, consumable model, surprise box model, simplified model, network model and worry-free model. Each model has both business model analysis and actual case analysis, and provides guidance on why enterprises and users are suitable for which model.
After the business model, it is mainly user development guidance. Subscription business model is based on fixed monthly income (MRR). The relationship between the total value of user life cycle (LTV) and user acquisition cost (CAC) is put forward. If you can make your LTV:CAC exceed 3: 1, you can expand the scale. If your ratio is below 3: 1, you may need to slow down your expansion and adjust your model until you reach the ratio of 3: 1.
The book also puts forward some methods about how users acquire, experience, transform and retain. What kind of user objects to choose, what methods and strategies to give, and how to keep them effectively are all guided by methods. But fundamentally speaking, products and the value provided to users are the foundation and cornerstone.
Reflections on user thinking (IV): Summary and experience of user thinking: user acquisition, experience, transformation and retention in the era of mass creation
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Note: part of the author's experience is not an excerpt from the original text.
If you want to get a high marketability score, the most important thing is to see how well your business can operate without an owner.
There is only one thing financiers really want to buy: discounted future cash flow.
Regular income makes the enterprise more valuable, and at the same time, the operating pressure is less.
The most commonly used method to evaluate the value of small and medium-sized enterprises is the discounted cash flow method.
There are two most important measures to improve the value of a traditional enterprise: one is how much income you expect in the future; Second, the reliability of your valuation.
Slow-growing subscribers will get a considerable premium.
The subscription business model allows you to communicate directly with users and track their performance in real time.
Subscribers are more sticky than customers who buy once and never look back.
Subscribing to the service will have the following effects:
Enhance the value of the company;
Enhance the lifetime value of users;
Steady demand;
Reduce the cost of user market research;
Automatic collection;
Stabilize your temporary users (wool party and the like);
Attract users to buy more of your products and services;
Vaccinate your business against recession.
If the following conditions are met, you can consider the membership website mode:
Owning a company that is firmly defined as a niche market;
Be able to access unique or highly specialized information stably, and these information often changes, and subscribers need to understand these changes;
You can also sell other products or services to your subscribers.
The most profitable member websites are often B2B websites.
The * * * supply database mode cannot be considered if the following conditions are met:
There is an "evergreen tree" database, which can also be obtained through various methods;
Have a group of existing fans who have consumed your free content.
Private clubs are valuable, one of which is privatization itself.
For some success-oriented people, the higher the entry threshold you set, the more they want to get over it.
In some cases, private clubs sell social status.
Private club mode can be considered if the following conditions are met:
Have products or services that are in high demand by wealthy people;
With an achievement-oriented struggler market, these people will always be attracted by people from another class.
The essence of priority mode is to sell special rights to your users.
Most people can understand that enterprises classify users. As long as you explain clearly how you classify users, they will not object.
When the group is large enough, every extra small sum of money means that it can increase a regular income stream, increase the basic monthly sales, stabilize the cash flow and enhance the value of the company when it is acquired.
Priority mode can be considered if the following conditions are met:
Have complex related products or services;
Have users who are not too sensitive to price;
Queuing users can have serious consequences.
Companies that can survive have two similarities: they pay more attention to products and create brands at the same time.
Creating a unique brand requires your product or service to meet two standards: first, it must be important to users, and then it must be unique.
Entering the consumable industry, if you don't build a brand, the best user experience is invisible.
The most important factor in building a brand is the control of the product itself.
The more you believe in the uniqueness of products, the better the user experience, and the greater the pricing space for product suppliers.
If the following conditions are met, the consumables ordering mode can be considered:
Products with natural consumption are sold to users;
With products, users will get tired of constantly replenishing.
The surprise box model is usually based on the user's preference concept.
Diversity is the spice of life.
When users take the time to tell you what they want, they want you to use this information to enhance their experience.
If you have the following conditions, you can consider the surprise box mode:
Have enthusiastic users with clear market positioning;
With a huge and diverse manufacturing network, they have the ability to complete orders at the same time, have the ability to handle logistics, and are willing to give you a one-time discount on orders;
Know how to use the Trojan horse model to build a large-scale e-commerce website through ordering.
The richer users are, the more urgent their need for simplification is.
Consider simplifying the business model if you have the following conditions:
Your users need to deal with some trivial things that must be done;
Ability to serve relatively rich and busy users;
Can provide personal services such as pet cleaning, * * *, tutor, window cleaning, home cleaning and book maintenance.
One of the fundamental reasons for the uniqueness of network mode (such as telephone network) is that users can obtain vested interests from extended subscription services. The more people subscribe, the greater the benefits users get.
There must be a good mechanism to listen to users' opinions, so that when you hear their dissatisfaction, you can adjust quickly before it has a significant impact.
Network mode can be considered if the following conditions are met:
One of your products or services is increasingly enriched with the increase of users;
There is a very high-quality user experience, and users should share it, so that the network model will have the best effect. If the advantages of the product are not obvious compared with other competing products, the network model is not the most suitable model for you;
Have technical users and potential users. The closer you are socially connected with users, the faster your network model will grow.
One of the challenges of adopting worry-free mode is the need to accurately predict how often you will provide services to users.
What commercial insurance really makes money comes from so-called floating deposits. Floating deposit refers to the use of funds paid by insurance companies to invest before making a claim.
You can consider worry-free mode if you have the following situations:
Having something that is difficult, expensive or impossible to replace;
There is a business that allows you to reduce your claim costs through your existing property instead of paying a lot of cash;
Customer service phone records can help you predict the possibility and frequency of future claims.
It makes more sense to put the churn rate and the cost of acquiring new users together.
Three basic options for finding funds:
Tear down the east and make up the west;
External funds;
Charge in advance.
Seven ways to sell and order:
Think about "10 times" vs. "10%";
People who are extremely disgusted with ordering will not give in just to save 10% of the money, but if you can successfully get them 10 times more feedback than other enterprises, they will be persuaded;
Impress the rationality of users;
Give the user an ultimatum;
Provide "free value-added" option;
Provide a trial;
Offer your order as a gift;
Light a fire for the user.