Deep understanding of O2O business model and strategy

Deep understanding of O2O business model and strategy

Chen Yongdong

For many people, O2O (Offline to Online) is not difficult to understand. More than 10 years ago, there was a reference to brick and click, in fact that is the prototype of O2O. With the further development of electric business and the development of mobile Internet in recent years, the O2O business model has become richer and o2o more mentioned. However, at present, most of the O2O discussion often flow in the shallow level, so that O2O often appear "wool". Therefore, it is necessary to understand the O2O business model and consider the effective O2O strategy.

Background and objectives of O2O business model

O2O business model is the background, in addition to pure offline business or community outside, other business or community may be wired (Offline) and online (online) Two, need to get both.

The current situation is that many enterprises in the online and offline business/community links are not close, or even fragmented, this on the enterprise's online and offline business or community development are not good, this is clearly also contrary to the idea of integrated marketing communications.

In fact, online and offline play a different role, mutual through can make offline and online resources play their respective characteristics, the two sides form a collaborative relationship, which is more conducive to the all-round development of enterprises, and thus generate more benefits.

In the final analysis, O2O's basic goal is to get through offline and online. From the specific situation, O2O divided into the development of new customers and retention of old customers two major stages, two stages have different goals.

For the development of the new client phase, the main objectives of O2O are two types: one is to drain to the line, the other is to drain to the line.

For the retention of the old customer stage, O2O's main goal is to let the line and the line to get through each other, and to form a continuous benign cycle of the closed loop, so that customers are happy to travel back and forth online and offline.

Ii. four different modes of business combination of O2O

For the application of O2O, it is necessary to first clarify the idea, that is, O2O oriented to both offline and offline business or community enterprises, it has four kinds of line on the combination mode.

The first category is "online community offline consumption/community". This is a kind of O2O mode that must be consumed under the line, mainly online interaction, and carry out certain preferential or promotional activities. This model adapts to hotels, restaurants and other areas that must be consumed in person.

The second category is the online consumer/community offline community. This is a O2O mode of online sales, online communication or promotional activities, the main line is face-to-face interaction or live display. This model is adapted to the wireless store only wired online store of pure online electric business field.

The third category is "online consumption/community offline consumption/community". This is a line and offline at the same time to sell the O2O mode, online and offline There is the need for interactive interaction, online and offline can also carry out preferential or promotional activities. This model is adapted to the online shop and offline stores under the field.

The fourth category is "online community offline". This is a O2O model with no sales business, suitable for social platforms that simultaneously require offline and offline interaction.

If you carefully analyze the online consumption/community, it may also be divided into several positions, such as the official website/shop, mobile app/Mobile Shop and the official accounts on various social networks, there are drainage problems between them.

No matter which combination of the above O2O business model, it is necessary to drain new customers and retain old customers. Only, the drainage may originate on the line or the line. The drainage initiated from the line may lead the new client to the line or line, and the drainage initiated by the line will lead the new customer to the line (the line below the line is not covered by this article).

When new customers are led offline or on the online platform, there is a need for streamlined registration and service processes to enable them to translate into your real customers and start consuming or integrating into the community. Then, the focus of the goal is to let those who have become customers willing to spend or use your community for a long time, and have them willing to go back and forth online in a closed loop.

Third, the development of new customers O2O drainage strategy

The primary task of O2O drainage under the line is to lead customers to official accounts on the online website/shop, mobile app/Mobile shop or various social networking sites.

If it is normal to drain from the line to the line, the main means usually have three kinds: first, online advertising stimulation, which can provide the URL or the corresponding two-dimensional code, for customers to enter or take photos, it is obvious that the latter is currently more popular, because the former input more trouble; Drive potential customers to the Internet through search and other means to find the appropriate online shop or community; third, the offline offer coupons that can be used on the line.

If the consumption of the business from the offline drainage to the line, the customer will eventually lead to the official shop or mobile shop. Consumption type drainage, in addition to the above strategy, there are two other ways: first, through the subway station or bus station and other public space to set up a virtual supermarket, the potential customers through the above two-dimensional code into the corresponding purchase page, the second is to directly provide payment-type two-dimensional code, directly complete the consumption.

The drainage initiated by the line is usually divided into two types: one is the line drainage to the line, and the other is the line drainage to the line.

If the wire is drained to the line, the latter may also be official accounts on the official website/shop, mobile app/Mobile shop or various social networking sites, while the former may come from other online platforms. The method and the above from the offline drainage to the line close, just ads, URLs, two-dimensional code and coupons can be directly available online, more convenient to operate.

If the line is drained from the wire, the main means usually have three types: first, online release can be used for online coupons, the second is to pay attention to an online account on the line can be discounted consumption or receive gifts; The third is to design lottery, some of these links must be completed online.

Have to remind again, drainage is only the first step of O2O, the corresponding website or community, must continuously optimize the service process, so that attracted potential customers can register and real consumption. Obviously, simple, practical or affordable, plus the aforementioned ads, Word-of-mouth or coupons, is to attract potential customers to register and consumption of power.

Four, retain the old customer's O2O operation strategy

Many of the O2O operational strategies for retaining old customers are similar to the drainage strategies above, but its goal is to enable customers to become their loyal customers for a long time, long-term consumption or use of the community, it is best to long-term have a higher amount of single consumption and consumption frequency, or long-term become active community customers, and in the necessary reasonable premise, Consciously walk in the offline and online platform.

The emphasis here is on letting customers consciously and reasonably go offline or online, which requires a deep understanding of the business logic behind them.

Take the first category of "online community offline consumption/community" O2O business mix model For example, to seriously think, why and how to get customers from online to offline? Why and how do I get customers offline?

In the first type of O2O mode, because your service must go to the offline consumption, and then loyal to the old customers, and ultimately must be from the line to the line, otherwise can not achieve real consumption, even not known as loyal customers.

So how to get old customers offline? The problem is actually how to make old customers repeat consumption. The main or classic strokes: First, the attraction of new products or services, the second is the integration of preferential or promotional activities, the third is limited use of coupons. However, these things can be widely disseminated online, and often have a virus or word-of-mouth effect, and thus stimulate customers to the offline and repeated consumption.

On the contrary, why does this mode bring the customer back online? The main purpose may be to allow customers to interact with each other, to provide customers with aftermarket or additional services, so that customers share a good experience and then generate Word-of-mouth effect.

So how do we get the client back online? Some are the value of online services or beyond the imagination of customers, stimulating customers to share in the Internet, and others to organize lottery or competition, prompting customers to help expand the scope of corporate brand spread.

In short, O2O seems to be easy to understand, the business model behind the variety is many. More importantly, only by fully understanding the logic behind each type of business model and studying its strategies can the O2O really play an effective role. (This article has been published in 3721.html ">2014 May" magazine, the Author: Chen Yongdong, China's top ten it bloggers, Shanghai Drama Academy New Media Research scholars, associate professors, business operators, e-mail: cyd888@sina.com)