At the end of the line, traffic is not the root cause of the electricity quotient

Abstract: There may be such a business, do not show the Mountain Dew, and so you notice it has been in their own vertical areas to do the most. Taobao ecology outside, understand the number of clouds this name is not much, but if you ask a Taobao or cat on the big sellers,

There may be such a business, do not show the Mountain Dew, and so you notice it has been in their own vertical areas to do the most. Outside Taobao's ecology, know the "number cloud" the name of the estimate is not much, but if you ask a Taobao or cat on the big sellers, it is likely that you have met a number of cloud CRM customers-after all, in the Sky Cat's first-line big-name, nearly 70% have been the CRM manufacturer.

The number of clouds located in Hangzhou began in 11, with three years to do three things: one, Taobao is the most expensive to sell CRM. Second, Taobao's first-line brand to achieve the highest coverage. Third, get two rounds of investment from Sequoia. If asked how the cloud does this step, there must be some reason than the product itself is more decisive, this is my Cloud founder Song Xiangping meet the motives.

The meeting with Song Xiangping was after the meeting of the Sequoia National TMT Conference. That night we sit in a small have characteristic Beijing restaurant, I basically eat, to flat basically say. Ping said that there were 9 points, a personal grasp to 5 points, tinkering to make this article into a 7-point dish, here to share with you.

One, from 11 to now, what happened in the electric business industry

For many electric business enterprises, the most intuitive impression may be that the flow of more and more expensive, more and more difficult to make money, which directly reflects the past few years, vertical electrical business closures, transformation, prostitution tide. As early as 11, Lok Amoy Bi Sheng issued a "vertical electric quotient is a scam," the thesis, since then led the Lok Amoy network began to struggle to brand business transformation, until recently the transformation failed to sell. In the past few years, the companies that have been cut off from the list of independent vertical electric dealers have cotton, first-time, red-child, Amoy, and so a long series of goods, such as the guests, good music buy, Macaulay Lin These are still in the swing of turbulence, as well as cool days, Xun such as the back of the tree did not do it-the hot discussion of the hoax, seems to be a little bit to be verified.

Lead to high flow prices are many reasons, the most important can be grouped into two points: 1, the industry dividend end 2, the entrance more powerful.

In the early years of the national Internet, the power of the Great Leap Forward of the era, from capital to public opinion are warmly sought after by the electric business. As long as you go to this road, whether it is to do independent electric business or Amoy brand, almost a pig can take off.

Standing at the time of the entire Internet, a large number of offline consumers are still moving to the line, bringing huge demographic dividend. As the platform eco-circle is still in the training period, the platform will also provide some concessions to businesses. That is really an electric dealer's barbaric growth era, according to Song Xiangping said, at that time to talk about some customers, asked the customer "how much UV" "order How Much" "transformation", this customer can be familiar with. But if you ask "how many users you have", the other side will be a blank--focus on traffic, focus on a single transformation, rather than care, this is the era of many electric business people's thinking.

But as Taobao's entrance became more entrenched, the golden age of electric-business start-ups was ended. In the past 3 or 4 years, only Taobao eco-promotion costs rose more than 10 times times. Flow of the import of the scarcity, coupled with Taobao ads for the essence of the profit model, will inevitably flow prices to most businesses can not bear the high point. According to the uncorroborated news, this year to now the whole day the cat closed the number of close to 8,000, in the days of the cat's tens of thousands of businesses, real money less than 10%.

Second, in the final analysis, the flow is not a drag on the fundamental causes of electricity business

In fact, the "flow of expensive" feeling is just a symptom, even if it is expensive, can always find affordable people, as in China's real estate. Electricity business people here should most ask their own question is: why can someone two or three times times higher than you price to scramble for the same traffic, just because the other side financing ability than you?

In fact, the key difference between good and bad electric dealers is that the depth of user value mining is different. Give three examples: Taobao, where guests, only products will:

1, Taobao is a typical large platform. One-hand docking C-side, one hand docking small B, the middle relies on a complete service system, built a set of internal circulation. Taobao every introduction to a user, can be in their own ecological circle to digest countless times, and many times as long as the user will not lose the entry. For each user, Taobao calculates its value based on his entire online shopping lifecycle, not on a single consumption. Taobao heavy hit is a lifetime user, other electric dealers spend money to buy only passing traffic, who will win in this game of burning money? The answer is self-evident.

2, where the essence of a brand business, become also Word-of-mouth, failure also word-of-mouth. Where customers initially rely on direct control of the supply chain, products, logistics and services, does shape a more pleasant experience. Good experience + social communication + brand advertising, transformed into a huge free flow. When an electric dealer's traffic is cheap enough, all problems are not a problem, even if you are very thin on the value of each user. But if one day the Word-of-mouth effect of the recession, your brand is no longer a topic, users no longer actively landing, you need to pay real money to win the user's time, you will find that the previous seemingly good business model no longer works, and then began to swing between the brand and platform.

3, as in the first big demon stock, only goods will have a lot of people can not understand the place. The company, which bled out two years ago, surged from $6.5 trillion to $164 to see the market capitalisation equivalent to 10. What sustains the market value of the only product? There are many reasons, but the less controversial point is that the home appliance business repurchase rate is much higher than peers. As early as 12, the company's prospectus showed that its active users had already supported 90% of orders. Recently released some data, but also revealed that its monthly repurchase rate has been as high as 90%. This means that even now the only thing that can cut off most of the marketing spending is to survive well.

These three examples are in fact illustrative of a problem: the good operation of the electrical business model, either have their own low-cost sources of traffic (such as Community + electricity dealers, or media + electricity), or the user value of digging enough depth (stickiness, repurchase, customer orders high enough). If you feel that your business is not following the flow cost, it may only mean that you have not paid enough attention to the product, brand and customer base.

Third, in the flow outside, the electric business enterprise's outlet where?

In Song Xiangping's opinion, whether the electricity business is "internet" or "business" is the problem that the whole industry has not thought clearly. The "Internet" logic is "agglomeration", start to stop burning money, and so burned a critical point, B, C can pull each other natural growth, it is safe ashore (so Taobao is China's most "internet" electric dealer). and the "Business" Logic is "subdivision", first find their own market positioning, and then in this location to all the effective requirements together to provide targeted solutions.

From the "Internet" logic, a lot of previous electric business people are pursuing the "financing-hit advertising to do data-refinancing-quickly on the scale and then profit" path, this road can be a big platform to go, and other players have repeatedly failed to replicate. From the "Business" logic, it is relying on accurate positioning, the ultimate product, continuous "customer introduction-precipitation-two consumption-Word-of-mouth transmission" cycle, this is the industry is forming a consensus of things.

So put aside the flow, the core of the electric business enterprise is the product, brand and customer, which is consistent with the traditional business. But compared to the traditional business, the external environment of the electric dealer is very different, which requires the electric business in some places to do than the traditional more "traditional".

Online business, the user's choice is actually limited, the competition is not fierce. In the game between the customer and the merchant, the customer often belongs to the disadvantaged party. and online, goods and brands unlimited supply and full competition, customers have the greatest voice. In the view of marketing, the traditional business era belongs to the "shelf scarce", thus emphasizing the channel for the King. And in the internet age is "attention scarcity" + "psychological space scarce", who can seize the eye of customers, who can put their own brand into the hearts of customers, who will eventually win.

Another important point, the traditional business era does not exist a well-developed interpersonal communication network, Word-of-mouth is not strong diffusion, the mass media dominate everything. But online, social media are fully developed, and the good or bad experiences that brands bring to customers are magnified by social networks.

All of these factors add up to making users the real masters of the business world. The core of the traditional business, which focuses too much on channels and advertisements, and focuses on products, brands and customer experiences, is picked up again by the electric dealers.

Iv. Why is it that CRM is ushering in a golden opportunity for development

In fact, everything we said above actually leads to such an answer: for the entire electrical business industry, focus on customers, brand building has become the key to sustainable management, and "Customer Relationship Management (CRM)" Natural services to this goal.

From the demand point of view, the number of clouds in the early start of the market education is still very difficult. But now, "customer-oriented" has become the consensus of most enterprises, in the enterprise performance appraisal, the repurchase rate, customer unit price and other indicators reflect the loyalty of customers is becoming more and more important.

From the competition, China's traditional enterprise software for many years lack of substantial changes, and the internet giants, for a variety of reasons can not provide products to meet customer demand. In fact, I have questioned, since Taobao also has its own seller tools, data and grasp in its hands, Third-party CRM can be to how much bigger? This Song Xiangping has its own view:

What Taobao does is ecology, something that is not. Even if Taobao is really going to do it, it may also be a small team that is similar to ours, at the same starting point. ”

Speaking of which, ping the key to the problem:

In fact, this is not important, the most fundamental is two: first, Taobao's goal is to allow users to precipitate in the platform, the platform to control the distribution of traffic. And CRM's essence is lets the user precipitate in the brand, this and Taobao own value orientation is not consistent. Second, stand on the enterprise customer's point of view, they want is cross-platform integration, and Taobao obviously do not, it is difficult to imagine it will integrate Jingdong into their own seller tools inside. ”

There are two factors, we can think of Taobao in the Enterprise service market is also a soft rib.

Finally, from the point of view of capital, based on SaaS, large data and intelligent some of the new CRM products, is attracting the close attention of VC. Only CRM startups we have covered have been sold easily, the customers (the two are business-to-business take a single CRM, more focus on sales), as well as small energy technology and cloud (both are CRM, focus on two times marketing, and small can more biased customer service management).

In the future, when O2O is further developed, smartphones and mobile payments become more popular, companies will be aware of the need to use the new Internet marketing tools online. At that time, this will become the new blue ocean of CRM.