E-commerce purchase frequency and customer lifecycle

Why does Jingdong expand from 3C, why expand the first category to choose Books? Why the red Child wants to go online plantronics to buy a net, do you think Plantronics buys to be successful? Why does the electric Chamber of Commerce conduct membership programs and develop communities? Behind this series of questions, I think one of the most critical factors is the frequency of purchase and customer life cycle.

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For 3 C to start the Beijing east, operation two years later, I think they should find a problem, on Jingdong shopping users, buy up to two or three times a year. And it to maintain high-speed development, it is necessary to continuously marketing, constantly develop new users, there is no end.

Stand on the user's point of view, the frequency of the purchase of mobile phones is 1.5 years, the frequency of purchase of computers, routers, 3 years, the frequency of purchase of large appliances 5 years, and often within three months will be refrigerators, washing machines, water heaters and even TV once bought, because the general is to stay in the new home will bulk purchase them. Although users will buy a variety of 3 C and small appliances, but for such durable goods, the overall purchase frequency is not high.

If most of Jingdong's users buy more than 6 months, that's basically new users.

Moreover, because the 3C purchase frequency is low, the Jing Dong does the large-scale promotion, the audience most is indifferent, neither buys the demand, but does not have the impulse shopping. Besides, how to promote? Buy a mobile phone on Jingdong? Buy a computer on Jingdong? Or buy 3C on the Jingdong? It's estimated that 3C doesn't know many people.

Since 3C in the marketing and retention of users on such a high cost, and 3C such large, standardized products, the demand for parity is very prominent, convenience demand is weak. Because competition means high profits are unlikely, then Jingdong will definitely break through.

Breakout includes three points: let each marketing infiltration to more relevant people, so that new users to buy, so that old customers buy again.

Books may be the best marketing tool because it fully meets its breakout goals: Universal demand (audience wide), micro-standardization (suitable for the first shopping attempt), and high frequency of purchases (retention of users). Liu said the book is not allowed to profit within five years, it is not difficult to understand.

About Building Materials Vertical consumer

When it comes to Jingdong, have to mention building materials such as e-commerce sites, such as the great southwest of the Million Road Mall (now renamed as Le Home Easy). This kind of business-to-consumer survival is even more difficult. Because the building materials class site is generally oriented to decorate the new home users, and the new home decoration finished, the user's life cycle announced the end (generally 3 months). If the category extends to large appliances, will continue for another 3 months (after the renovation to start purchasing electricity). If the category extends to small appliances, it will last for another 6 months. The problem is that after the purchase of electricity, the house will normally be idle for at least half a year, while the purchase of small household electrical appliances is usually new home after check-in. The premise of the above scenario is that the user is very loyal, only in this one shopping, and actually buy home appliances will around, offline selection, online parity, the user transfer cost is almost zero.

Because the life cycle of building materials users is very short, so the site is almost every two or three months a group of new users, and open up new users of the marketing costs are very high, doubling over the year. Not only the cost of advertising coverage, users are more willing to go offline building materials market to buy, go online procurement is generally based on the price or the design of building materials are not high requirements, very familiar with the building materials users.

and offline entity shop, there is no marketing costs or people's problems. For example, in Chengdu, buy building materials to the rich, businesses just passively waiting for customers to visit.

and the Business-to-consumer Mall, not active marketing, almost no people. Rely on the natural flow of search engines, e-commerce sites are increasingly declining, SEO is mainly targeted at information-type sites, shopping users more attention to convenience and trust, comprehensive categories of search engines in these two areas have no advantage (how many people are willing to search half a day to lock a website, but also to study, identify Half-day)

And the settled day cat, can reach the offline entity shop effect, because can use its hundreds of millions of of shopping flow. Taobao Store Trust is not enough.

Tip: Le home easy has been transformed from building materials to home appliances, but I still do not look good.

About the red children's mother and Child mall

Red Children mother and Child Mall, if from the analysis of Jingdong and Le Jiai angle, it is not difficult to understand.

If the category expansion of Jingdong is due to the purchase frequency of 3C durable goods, the problem of red children is the customer life cycle.

The red child locates in the mother and child market, namely pregnant woman, young mother (infant). After several years of operation, red children estimate also found these young mothers, after the child's year of age, they gradually leave, because the site is most attractive to their infants and children are no longer needed, and the site does not have special things, can attract them to continue to stay.

As a result, red children began to expand the category, such as cosmetics, food. In particular, "two mall one account a shopping cart" Plantronics Purchase network (binggo.com), but also provide health care products, home, home appliances. If the Red Child site's category expansion is to retain the "young woman", then Plantronics purchase is to extend forward to the "mature female" (also includes backward extension).

The question is, are young moms who treat their children as the apple of their eye, for their needs, such as cosmetics and gourmets, to be so attentive to their children? From the red children to a shop and Jingdong, is there a willingness to leave and transfer costs? From the operational point of view, the daily FMCG has serious localized dependence, such as rice edible oil, no large-scale and local warehousing and distribution advantages, do not see the profit prospects.

From the red child Han purchase Alexa Traffic curve contrast, the two fluctuations are almost the same. This is even more dangerous, because it means that the Plantronics purchase is heavily dependent on red children, Plantronics purchase of the user is entirely because of red children left.

As a result, the Red children continue to expand into the Plantronics girls living Community (redgirl.com.cn and redmama.com.cn), where Redmama is the young mother community.

The nature of the electrical business community to retain users, that is, to extend customer life cycle.

The problem is that people in the community interact, generally based on interest, such as outdoors, collection, photography; young mothers are concerned about the childcare community, belong to the functional type, utilitarian is very strong, not suitable to build interpersonal feelings, that is, it is difficult to establish user viscosity: Users stay because there are a group of people I like and like me, I like to mix with them. Excuse me, net every day a lot of posts, users can form a community?

Moreover, the young mother over the lactation, to their mother's identity, will gradually weaken, so will choose to leave, because the demand does not exist. Moreover, pregnant women who have just given birth are often afraid of radiation, stay away from the computer, how much time they spend online?

From the Redmama for the young mother opened up the plate, such as childcare, life, shopping, the city, interactive effect is not ideal, daily posting volume is also very few. And the flow of red children, the last two years is a downward trend.

Focus on the mother and child of the baby tree community, there are similar crises.

The problem of loss of website users is not significant to the knowledge or professional community, although its user lifetime may be about 2 years, but because users are willing to share and disseminate such sites or articles, such as Douban and iteye.com (well-known software development community), new users are always endless. For red children This type of electricity business site, user sharing will be very low, and from the point of view, the mother's friend Circle is also the same age of the pregnant mother, it is difficult to relay to those newly married ripe female.

About a store

From the above analysis, a shop from the daily necessities to expand to the whole category, is a business, there is no user purchase frequency bottlenecks and no customer life cycle constraints, and the use of Wal-Mart distribution of the country's powerful warehousing, logistics distribution system, can significantly reduce its supply chain costs. A shop will certainly expand to a wide range and depth, such as books, airfare hotels, etc. (scale effect can further reduce operating costs).

About the vertical traveling electric business

For tourism line products (not air tickets and hotels), at least 50% of the market of various types of small tourism sites (online travel agencies), such as Zhangjiajie tourism Network, facing the new users forever, because a tourist in three years to a very distant destination travel, the probability is extremely low. Therefore, customers are one-time guests. For this kind of website, member management is almost worthless, it is enough to serve the current guests well.

The nature of the membership program is also to increase the frequency of user purchase and extend customer life cycle.

Of course, for the integrated tourism site, because its goal is to run a group of users, rather than to meet the needs of the user's single (such as Zhangjiajie tourism network). For example, Ctrip, you go to Beijing on business today, next month to Huangshan tourism can find it, so loyalty program is very critical.

Like the current group buying sites such as the United States Network, formerly Gongchenglvede tens of millions of users, now just give them a day to push a very tempting discount mail can, the previous monthly tens of millions of marketing costs to skip, the profit is not far.

Well, that's all I've written. The above on a few electric business big guy's comment, may be biased, because as an outsider, put into thinking time is very limited.

More electric business thinking, please pay attention to my Sina Weibo: Http://weibo.com/zwchen