Detailed O2O mode, stop misreading of O2O

O2O This concept was proposed in August 2011 by Alex Rampell, in November by my introduction to the country, an instant became a hot noun. At this time, there is a constant emergence of many companies to advertise their own products are O2O mode, but most of them are only related to the concept, and many people actually do not really understand Alex Rampell put forward the concept of O2O. And I came across some misreading, so, I decided to write down this article, I hope to be able to rely on this article to clarify what is the O2O mode.

Citing my own article in the "Trillion dollar new model o2o:groupon just drop":

In fact, the core of the O2O model is very simple, the O2O model is to bring online consumers to the real store-to pay offline goods and services, and then go to the line to enjoy service. And by discounting (Groupon), providing information, service (booking, such as OpenTable), the message of the offline store is pushed to the Internet users, which translates the Internet users into their own offline customers. And because each transaction is online transactions, then its record and effect is also available to check. This is the difference between Groupon, OpenTable and Yelp, and Citysearch, which only provide some basic information services, and the deal still needs to be done online.

In other words, the O2O scene must be a user who buys or subscribes to an offline service in front of the computer. This model must include "offline Merchant's discovery or recommendation", "online payment", "marketing effect monitoring" these three big chunks.

Perhaps many people's understanding of O2O is: through a number of preferential information or other information on the online delivery, consumers to attract to the offline some of the merchants-such as coupon applications, yellow pages applications (such as the public comments). This is not an understanding, but it does violate the concept of Alex Rampell's original intention. If you want to say so, it can be called "broad o2o", because this kind of service, at least there is no "online payment" link.

Of course, it is not meaningless to discuss a pattern in such a detailed way. I just hope that through this analysis, we can continue to discuss with you the biggest potential market for the O2O model in the future. So here are three points to analyze.

"Below the line merchant's discovery or the recommendation": Below the line Merchant's advertisement focal point will be more and more inclined to the O2O platform

For the offline merchant, O2O is actually a marketing tool. Through the O2O platform, the offline merchant also has the online exposure opportunity, but because the offline merchant is subject to the physical position, therefore, the O2O platform's one basic ability must be pushes a certain line merchant to the offline merchant local potential user. This requires the O2O platform to at least cover a wider user base (preferably a universal user), and then push the position from those users. Such a push is likely to be more efficient and faster than distributing leaflets online. Once the ability of this push is proved, the online advertising fee of merchants under the line will be gradually transferred to these O2O platforms. Needless to say, the size of the market will be large.

"Discovery" and "recommendation" are two different modes, the difference is the user's active and passive. Active discovery of the main form of the platform should be the Yellow Pages category (similar to the public comment), and the passive recommended platform can be a group purchase or push.

"Online Payment": Alipay estimated to be happy

It is easy to create a payment platform that is comparable to the offline UnionPay when the deal that was supposed to be online was moved online. A few 10 trillion dollars in the original online transaction even if 1% to the line, it is a good hundreds of millions of of the turnover.

"Marketing Effectiveness Monitoring": Offline version of Google Analytics

For O2O Enterprises, the quantification of sales data is also a very important link. Traditional e-commerce sites can be monitored access to calculate the ROI value, to judge the effectiveness of advertising or other marketing tools, but these are difficult for offline businesses. And O2O just makes up for this lack of offline commerce, as business is done online, as does the Business-to-consumer. The monitoring of this effect is indeed unprecedented for the offline merchant-just as a barber shop does not have a specific concept of how many customers it has to send 20,000 of leaflets. In addition, for OpenTable and Spafinder, online billing has become a more lucrative business than local advertising-historically, this generation of fee-charging intermediaries are money-making machines.

In other words, for the offline merchant, the marketing effect monitoring is a process from scratch. In the future if there are some longer-term online marketing tools (different from the current one-time marketing), then for online marketing effect monitoring tool will be a very important market demand. Said the popular point, then may appear is the offline trading version of Google Analytics, percent (Taobao store monitoring tools).

In general, Alex Rampell's O2O is the service product version (not in the physical version) of E-commerce, users use the O2O platform is usually the scene in front of the computer. And the kind that passes preferential information, comments on the transfer of information, the user attracted to some of the online merchant model, if you want to name, I suggest M2O (Mobile to offline), that is, users use M2O platform is often the scene is already online even under a certain line of merchants, Provide consumer decision support through mobile devices such as mobile phones.

So, where are the opportunities for the O2O model in the future? or O2O mode of the specific form in addition to group purchase, OpenTable booking services, and what? In fact, I am not clear, perhaps combined with yellow pages, reservations catering, Entertainment (KTV, fitness, massage, etc.) OpenTable Mode is a good way to start a business. (The public comments that there is no reservation, coupons are not enough to monitor the strength of their big problem).