Some mistaken ideas of e-business

In the field of E-commerce practitioners and entrepreneurship in these years, and constantly in practice and exploration of learning, from their own mistakes and error correction and observation of other electrical business success and failure of the process, there are some insights and experience. With a lot of electricity business start-up or are ready to start the business of friends to communicate, found that there are still many misunderstandings in entrepreneurship. Through this article will my opinion share, can help everybody to take some detours less, is my blessing.

Error: As long as there is traffic, there will be sales

Many people mistakenly believe that traffic will bring sales. Yes, the electric business has a famous saying flow is king (traffic is the king), the traffic is the basis of the electric quotient, but do not neglect the importance of the flow quality. Sales = flow x conversion rate x customer unit price, flow is only one of the factors. Conversion rate is defined as the proportion of customers to the Web site to the last purchase, the customer unit price is the average consumer from the site shopping. Low-quality flow conversion rate is low, and even if the customer orders are only to receive gifts or buy only deep discounts of goods, the profit and value of the contribution of 0 or even negative, this flow should be decisively filtered out, do not let it occupy the server, logistics and customer service resources. We have worked with some games and video sites, but the results are not ideal because the users of these sites are very purposeful, that is, playing games and watching video, not interested in doing other things.

In order to obtain the quality of the flow of this point, our approach is to the various channels of traffic refinement management, the development of different flow strategy and conversion rate target value, detailed analysis of the flow characteristics of various channels and different marketing methods to deal with. For example: portals, games, video sites are mostly used to do brand publicity; rebate of the Web site Alliance to the flow of promotional information to facilitate the purchase, and the amount of the league to be certain control to reduce its dependence; traffic from search engines or navigation sites uses accurate search content, associated recommendations, The rich Category Center content urges its transformation; social networking sites we use Word-of-mouth marketing to spread the hot topics and associated goods.

Misunderstanding two: The good offline retailer line also can certainly do well

Many people believe that the line is retail, but the channel is different, as long as the goods good, where all good to sell. The great difference between the two is despised here. Offline and online retail each have their advantages and disadvantages, if not to avoid weaknesses may accomplish nothing. Offline retail with physical goods experience, merchandise immediately available, through the scene to stimulate the temporary impulse purchase, close service staff and other features. Online retail with no shop virtual shopping, with a large number of customer information precision Marketing, Word-of-mouth marketing the speed and breadth of communication, not by the region, time and shelf space constraints and other characteristics.

Here is a marketing example. Offline retail most rely on posters and print ads to promote, the use of shop environment and sound, light, taste and other effects to stimulate the purchase, but also through the sales staff and customers face-to-face exchanges to promote the merchandise. And the electric business through SEO, EDM, Network Alliance, portal advertising, SNS cooperation to obtain traffic, at the same time has a large number of customer search, collection, purchase, related to the product data and information, can carry out precision marketing. With landing page, links, user comments, scoring system to provide customers with knowledge, experience, authoritative recommendations. We have tried to borrow offline retail through the distribution of catalogs and posters to promote, found that the effect of the odd difference. First of all, because of the need to allow customers to surf the internet, one link leads to customer churn and low conversion rate, and most of the customers only through the phone to buy posters and catalogues displayed on the hundreds of items, do not surf the Internet to browse our online tens of thousands of products, resulting in low value contribution. The inventory and price of goods on posters and catalogues cannot be adjusted in real time, resulting in slow updating and inability to adapt to the dynamic operation of the electric business.

Misunderstanding three: As long as a good grasp of a key point of customer experience is better

A lot of electric business entrepreneurs ask me what do I do to make the customer experience good? Generally believe that the customer has direct contact with the distribution and after-sale customer service to do a good job of the customer experience, which is a big misunderstanding. Customer experience is a comprehensive consideration, involving the richness of the goods, sales price, timely delivery, after-sales service, the advantages and disadvantages of the system and user interface simple and easy to use, and so on. The improvement of customer experience is a long process from a little bit by bit, and there is no magic and overnight approach.

Shop number 1th starts from the first week of the line. Every day, a daily newspaper is issued by the customer Service Manager. The content is the customer through each channel (telephone, Mail, forum, on-line research and so on) gives us the feedback, this newspaper will these feedback systematic induction classification, assigns the responsibility person and the resolution time. We have to clear out the list of problems every week. It's not difficult to do this tedious thing for days and weeks, but it's not easy to stick to it every day for 365 days a year.

Second, we associate KPIs in each department with the customer experience, for example, our product department and the customer experience related KPI has the commodity richness, the shortage rate, the turnover rate and so on, the distribution department has the delivery time rate, the distribution success rate, the wrong goods less goods breakage ratio and so on; Customer service department has a problem solving rate, 24-hour problem solving rate, Customer satisfaction and so on. With these KPIs, we make every position employee clear about how their work affects the customer experience. Finally, we link the Customer Satisfaction index of third party organizations through questionnaires to the bonus, salary and promotion of all our employees, making the improvement of customer experience a must for each employee. Each week we use Pareto analysis to identify and form projects that affect the customer experience. Through this series of actions, we will continue to improve the customer experience.

Misunderstanding four: As long as the scale of the cost of the natural drop down

Electric Dealer is a scale game. Due to the early needs of the electrical business in talent, it technology and hardware and logistics facilities have considerable investment, the need for a certain scale to be diluted these costs. It is easy to make a mistake, think that with the scale, the cost will naturally drop down. Yes, there is a bargaining weight on the scale, and increased volume can help reduce the cost of purchasing, logistics and marketing. But it is easy to overlook the importance of the expansion of business model (scalability). When a business model is not expanded, the larger the cost, or the lower the cost, the less expected. For example, a netizen proposed in the community through the property and security to build pick-up points, tube pick-up point of part-time staff can also do community promotion and delivery in the region. This model is completely not expanded, it adds a middle tier and its corresponding time and cost, how to recruit and manage so many community part-time staff will be a nightmare.

There are a number of other misunderstandings, such as vertical electric business is easier to succeed, the cost of electricity dealers must be lower than the traditional retail, and so on, but because of the limited space, this does not repeat.