Demand is business

Source: Internet
Author: User
For fans, who are eager to find their way out, the website is a fortune. No matter whether it is free or charged, if someone uses it, it is valuable, to change to a value that can be measured in business, you need to understand that demand is business. Demand is the fundamental element of business. You are willing to pay 5 yuan for a box lunch because you are hungry and you have a need to eat. Therefore, the fast food restaurant knows that there is a need to eat, provide goods, and solve your needs, although you know that it is not easy to come, you have to pay for the demand. But with the demand, it is not necessarily possible to turn into a business. What is easy to transform is the essential needs of people, such as the needs of clothing, food, shelter, and travel, but the spiritual needs of people are difficult to transform. I really want to watch my favorite stars on-site concerts, but I can't survive until I get there, so I can bear it. Think about buying a ticket and making a phone call, get the ticket... I have endured it. Although this demand exists, it cannot be converted into commercial behavior. However, if I just need a few mouse clicks, I can solve these problems, then I will turn my demand from impulsive decline into buying tickets to become a field enthusiast. This conversion is a skill. To clarify the requirements, you also need to check whether the conversion is necessary, taking into account various factors. For example, Sina satisfies everyone's needs to watch news, but no Sina user is so stupid that every visitor must pay for the news. Why? Because there is competition in business, and no competitors are also monopolized (if the world's websites cannot log on to the news, only Sina can, maybe Sina will ask you to pay at that time ). If Sina wants to transform such a demand into a commercial one, it must: 1. Is the charging reasonable (price strategy ). Some people have discussed before that if Google and Baidu charge fees, are you willing to pay? 2. Whether there are substitutes (whether there is competition ). Further, if there are alternatives, is there a competitive advantage in comparison, such as the speed and personalization of services... in short, the demand is segmented to avoid homogeneity. 3. Cost Accounting. If the cost is not enough, and the cost is not as high as the cost (in the long term, it is not just a short term), then this conversion is unreasonable. So does Sina have to lose money? No. For basic users, Sina cannot convert users' needs, but it can segment users' needs. There are two directions: 1. segment the data from the user perspective. The so-called User segmentation is to consider the composition of the user, such as the type of user that a user may have. If many of the people who came here read the news, but many of them want to watch the financial news, they can grasp the needs of this user, to meet the needs of Sina's commercial enterprise users, they need to be exposed to these end users. Sina can push advertisements for enterprises to meet their needs. In this way, users are subdivided and you can know that those users can be converted. 2. further subdivided from requirements. Similarly, Sina users may also have subscription needs such as SMS/MMS, or even game needs. Sina is sure to launch the so-called value-added telecommunications service, this is also transformed into business by dividing the demand. Using the above theories, I can explain many Internet phenomena. Why are yellow websites first profitable from the Internet? Because he has solved the needs of Internet users, and it is more competitive to convert such needs through Internet means. Websites can segment users, transform users, or even cultivate users. They can segment user needs and control costs. So they succeeded.


Finally, the most important thing is to analyze the requirements accurately. In particular, website operators cannot replace user segmentation requirements, assume that users are interested in what they are interested in (that is, they are not necessarily interested in or explicitly convertible) and need to use quantitative methods for analysis. This also explains why so many research websites and companies are emerging, they can aim at the needs of website operators who cannot clearly understand the future of the industry and the needs of industry users.

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