On the survival way of small and medium group buying websites

A few days ago, just broke out group buying website American Group NET completes B round 50 million dollar financing, and has launched the C round of financing, has not stopped the topic of group buying again detonated, as early as the beginning of the year, there are industry experts analysis: "2011 as the most critical year of group buying site, will eventually be through the capital chain, market competition, Win users and so on a variety of competitions, won less than 1% of the site to survive and occupy the market; "And today--in the third quarter of 2011, the group buying market is undoubtedly to the white-hot" Battle of the King Mountain. "

Because Groupon's success, let numerous domestic internet enterprises scramble to introduce this group buying mode, intensified, thousands contend, uneven, but can obtain financing, can burn the advertisement is a few, then other group buy how to survive? Is dying worm or fighting hard to kill the trail? What are their core competencies for winning? And rely on what kind of efforts to get through this bumpy?

With this series of questions I visited the Save money group Coo Emperor Xiao (hereinafter referred to as the Emperor)--save money is a small and medium-sized group for the national purchase site.

Q: Master Huang, Hello! Large group buying sites have to raise funds, especially the United States and the group began to launch the C round financing, but now is the key to the decisive period of group buying site; In such a competitive environment, what do you think the ultimate trend of group buying site?

Emperor: The first Army in the ratio of financing than IPO speed; there will certainly be 1-3 group buying networks taking the lead in IPOs, and some big group-buying sites that fall behind in IPOs will start to shrink after massive expansion and advertising, which in fact began tightening months ago; Because investors will not continue to invest, if possible, the group will move to a horizontal merger, or transform the business of physical goods, cut off ground troops and reduce costs. And some of the small group buying sites will shrink because of capital problems, may be concentrated in some cities continue to work.

Of course there will be a big part of the small group buying site directly closed down. Group buying industry is really very cruel!

Q: So for these small and medium sized group-buying sites that lack strong financial support, how can they maintain their competitiveness during this critical period to survive?

Huang: First of all, buy the core value of the net is to provide customers with cost-effective products and services; This is the core of the user will not because of GE ads to choose a group purchase network, they will choose to buy the navigation site to find their own current needs of goods and services, buy goods cost-effective satisfaction, the next purchase. Then repeat the same process again, to a large extent, even consumers can not remember who they are in the group buying net. Therefore, most group buying consumers are starting from their own current needs, with cost-effective goods and services ahead, rather than advertising-driven, especially in the era of universal Internet is the case; Of course, large group buying network will also have a certain advantage in the business resources, while doing a good job of both users of the point-to-point marketing, Will gradually expand the number of repeat customers, reduce the cost of a single piece of marketing, and gradually achieve break-even, or even profit, thus forming a benign development.

But did not get the wind to invest in the small and medium-sized group purchase site to survive, you can from the following several aspects of effort; first, the operational level 4 points:

First, adjust the urban structure

The data analyzes the ROI of the city, looking at the net amount between the single product and the marketing cost, looking for a city that can make ends meet or even profit, focus on attacking, and quickly shrink other cities, reduce the cost;

Because the staff salary is the biggest cost of group buying net.

Ii. restructuring of goods and services

High-performance price of the purchase of goods and services are Group purchase network to provide users with the most core user experience, this is the most important group purchase network work. At the same time, pay attention to the structure of high and low profits, popular products such as collocation, can increase the national type of physical goods purchase.

Third, optimize the platform to maximize the conversion rate

Here first does not talk about the purchase of goods and services on the site to buy conversion rate of the huge impact on the site itself information architecture, interactive design, such as the impact of the increase in conversion rate.

Save the group in May after the introduction of the new edition, the rate of conversion was one-sided and the biggest increase reached 70%, because we studied the user's eye trajectory, studied user interaction behavior, the new edition specifically reduced noise, highlighting the most important commodity service information; then we optimized the payment page of the website and increased the payment conversion rate by 6%. At the same time, our website user Experience Center in the text and pictures of the special optimization, to improve the conversion rate also played a great help.

We have to do sensitivity analysis, conversion rate of 1% per cent increase in the month turnover will increase by 40%.

Conversion rate is the core KPI, it goes without saying.

Marketing activities emphasize ROI

We have launched a lot of online activities, and we are also very focused on the ROI of individual marketing activities, and interested friends can pay attention to the activities of our website.

Talking about strategic transition in strategic level

It is a bit late to talk about strategic transformation, and the risk is quite large. Have to change the words, we have to analyze the existing user groups and their own unique physical resources are matched, strategic positioning accurate, cut off the ground city forces, reduce operating costs, focus on doing some kind of physical goods of the consumer, is also a path.

Finally, on the capital level, to seek the merger of the site, mergers and acquisitions or financing, but also must go for, rich have a bigger platform good work.

Basically talk about these points, in fact, there are several core keywords: data analysis ROI core experience cost-effective goods or services conversion rate

Group buying industry is too intense, every day tense heartstrings, high tension, where tomorrow? In my heart.