Group purchase after the rational return of money, localization services is the core

When it comes to group buying, the first word to print is "burn money". In fact, the various forms of advertising, expensive star endorsement, first financing and then expansion, the major group buying sites almost crazy to compare, compete, regardless of the consequences. 2012, the group buying industry into the winter, the market cold, IPO folding, capital Duanliang, layoffs close the station, buy electric dealers from 2 years ago the scenery infinite downhill to the present dying ...

What causes a large number of group buying sites to decline?

1. Low conversion rate of luxury service

The group's purchase price, which can offer "stunning" discounts, is mostly luxury service businesses. For example: SPA, beauty salon, upscale hotel buffet, yoga classes and so on. Because only luxury goods can provide businesses with high enough profit margin to make concessions. However, "stunning" prices attract customers is not the precise target customers, not only low conversion rate, but also to buy full price of loyal customers to reduce satisfaction, or even loss.

2, the price dislocation causes the brand harm

Buy prices and the full price difference is too large, will give customers a great psychological impact, especially the full, long-term purchase of loyal customers, see such a large price difference, will have negative feelings on the brand. Similarly, the merchant also gains the candle, buys lets the new old customer continue rate to be poor at the same time, also has harmed the brand which many years painstakingly establishes.

3, the user experience poor lack of stickiness

Group buying originally relied on low prices to attract customers, but low prices did not improve customer viscosity. On the contrary, in the fierce competition, each group buys the website to sacrifice the price war to rob the customer, but in the user experience did not how much kungfu, results the customer unceasingly seeks the lowest price the purchase order, the user stickiness is poor.

4, the lack of integrity caused the crisis

Group buy quality complaints have been high, many seemingly "gorgeous" preferential purchase, is actually "bait" or "pumping irrigation", customer experience is poor. The result of lack of integrity is the loss of more customers, and even many customers feel is "deceived", thereby releasing negative word-of-mouth spread.

Group Buy website return localization service, or will warmer?

Although 2011 and 2012 let group buying industry experienced a stormy weather, but did not end the Chinese group buying industry, but also can not deny the future of O2O mode. In fact, in the midst of the turbulence, there have been some group buying sites are gradually getting rid of the "crazy burning Money" and vicious competition vortex, return to the normal marketing model, through the precision tillage localization services, build a benign group buying ecosystem. According to the Regiment 800 statistics, as at the end of 2012, in the total turnover of 21.39 billion yuan, local service product sales amounted to 19.24 billion yuan, accounted for 89.9%, and the net purchase group buy sales of 2.16 billion yuan, accounting for about 10% of the total.

Group buying site to seize the opportunity to rebound.

First of all, deep excavation of the advantages and resources of local life services, to provide consumers with more convenient, more chic services, such as group buying and lbs (location-based services) combined to facilitate consumer search and comparison.

Secondly, intensive cultivation, emphasis on commodity quality, value the service quality of cooperative merchants, through cooperation with large companies, large brands, so that consumers enjoy cost-effective rather than low-cost low-priced goods and services.

Third, to enhance their quality of service, thereby increasing customer satisfaction, such as: "Three packs of buy" service.

Finally, increase consumer personalized service, such as: micro-mail voice service, etc., thereby increasing customer viscosity.

Group buying industry is experiencing a rational industry shuffle, only really do for the consumer intimate service, provide boutique group buying site, have the opportunity to survive. Believe that through the industry integration, group buying site can get rid of the cold, back to spring. More hope that group buying industry to return to the rational, normal competition, do a good job localization services, so that consumers really benefit, group buying industry can flourish.