Traditional companies start with four “online”

Sometimes we are a little dizzy by the Internet model reported by various parties, and traditional companies may even fall into anxiety. In fact, I believe that some directions have already been “smashed” by the Internet. It is necessary to clarify the source of the business and talk about what the commercial nature of the past five years to the next five years will definitely not change.

The nature of business does not change

Traditional enterprises have to come back to life. I think it is important to recognize the advantages of traditional enterprises and tap the common essence of business so that they will not be run by the so-called new model of “Internet companies.”

Logistics and customer acquisition are two rigid costs.

First of all, logistics and customer acquisition are rigid costs that will not change. In fact, we look back at some very expensive Internet companies, most of which are burned to these two parts.

Take the customer as an example. We used to do physical marketing, and generally controlled the proportion of marketing expenses in a certain proportion. The most unreasonable proportion appeared in the part of women’s cosmetics. Advertising can account for 50% of the revenue. It can be said that half of the women’s cosmetics are rubbed. Half of the water is rubbed.

But the most outrageous proportion of this real economy is not far off the mark compared to product marketing on the Internet. Because the Internet field has been 100%, that is to say, 100 pieces of goods can be sold with 100 pieces. Here, Internet thinking is the first to not make money, but to get customers, and then earn back from the transactions in the hands of the customers.

In fact, Internet thinking is playing the mind of repurchasing. But I think we need to know the frequency of the transaction. If it is a low-frequency transaction, if you don’t make money in the first transaction, it will be difficult to make money in repeat customers.

So relatively high frequency, the network customer cost needs to measure the important factor of time. I don’t think it can be done if it can’t be recycled within six months. It is not important to repurchase a few times. If you buy it once or ten times, you only need to recover the cost within six months.

On the other hand, the ratio of logistics costs to transactions must also be rigid. The box lunch of 15 yuan, honestly, I also eat 15 pieces in my shop, but the logistics accounted for 8 pieces. It can be said that logistics costs are the most burned part of Internet capital.

Scale is not the same as efficiency.

Another cognition that is easily brought to the ditch by the Internet is the relationship between scale and efficiency. In fact, scale is not the same as benefit, which means that not all companies are bigger and better. There is a three-level scale benefit theory.

One is the theory of three square kilometers. Take the takeaway as an example. If I want to eat a meal at Pudong Hotel in Yangpu, is it possible? In other words, more than three kilometers, how many excellent stores on your platform have nothing to do with me. In many Internet software, there are more transactions on the platform. As long as it is not within my service, I don’t really have much to do with it.

Therefore, if the buyer and seller are concerned about what happens within three square kilometers, this is the benefit of three square kilometers. Of course, similar to renting a house, looking for a job, moving, cleaning, it is possible to break three square kilometers and achieve the same scale benefits. However, there is no way to have a national benefit in purchasing or apportioning costs, so it is at most the same city scale benefit.

The national/global scale benefit is actually a false proposition, because not all companies need to fill the red flag with the land of the motherland. So think about which ring your business model falls into, and the scale is not equal to the benefit.

User experience can only choose one or two.

In this user experience, 2B and 2C care about four words: more, faster, better, and more. But these four words are contradictory, and few companies can satisfy them at the same time. Someone asked the Internet, and we can’t get better and better, and we don’t have to. Even if the starter has certain advantages, the competitor will definitely start from where you are weak. My suggestion is for my own areas of expertise and target consumers. As long as you do a word, you will not lose. Do two words and win. Do three words, dying; want to do four words, that is dead.

The brand will never disappear.

I think that to do 2B to do 2C must have a brand. What is a brand? The name is the brand. The brand will not disappear, unless the planned economy returns, or you live in prison, all names are replaced by numerical serial numbers, otherwise the brand will last forever. The three pillars that measure the success of a brand are the constant commercial nature.

First, the old customers turn back. Under normal circumstances, old customers have a good return rate and are good brands. The second is the ability to acquire customers. Brand-owned companies, their new products generally have strong customer abilities, because people have an impression of it and are willing to try. The third is product premium service. Why do good brands have a premium? In fact, the brand premium is the brand policy. You can charge a little more because the customer thinks that I bought your goods is equivalent to buying an insurance. Brands must be able to achieve a premium, that is, you are really responsible for what happened, you really lose, then others will believe in your brand, your brand has a premium.

Do a good job of “four get up”

In the past, we said that BAT is three big mountains. In fact, the mountains are not terrible. The terrible thing is that they are actually the three largest landlords of the Internet in China. Now you can’t find an Internet user who doesn’t need Baidu to use WeChat without WeChat, and the terrible thing for the landlord is to give the landlord a long-term job. To get a user, you must pay them.

So what about new retail? I summed up the “four ups” and the order cannot be wrong.

First, the live user experience is pulled up. We have done a survey, when a woman buys clothes and tries four times to buy one piece of clothing, the return rate of this offline store is 1%? 2%, and the line is 30%. Explain that the experience of clothing is important. This must mention the design of the fitting room, how to put the mirror in the fitting room, how to hang the clothes off, how to match the light and dark, after reading it, look inside and still show it to the girlfriends. Because the fitting room is a major experience in the apparel industry.

This is to pull the user experience on the spot, which is the first place in the new retail.

Second, the electronic membership system was built. Although there are loyalty cards in the past, a series of phone numbers for a plastic card is not called an electronic membership system. The criteria for defining an e-member are simple: whether the customer leaves your store can interact with you. Those who can interact are electronic members, and those who cannot interact are dead members.

Followed by the issue of membership experience. When we were doing it for the whole family, we boldly established a paid membership system. After switching to a paid membership, more than 2,000 stores in the family sold 2.28 million 99 annual fee cards in 13 months. In this case, we sell 20 cards to each employee, giving the store staff sufficient motivation to push this card, but I can’t reward him for free. The free company is unable to assess the cost of the company. This company can’t bear it.

Why are consumers willing to pay 99? Here, we must mention the composition of the member department, which includes the member development department, member operation department, and member rights department. The member rights department is the department that allows members to pay for the 99. The first consideration of the member rights department is to open the card, so that consumers can feel that I can earn it back on the spot. For example, the coffee package, you open a 99 card, I give you 10 cups of coffee worth 12 cups for free, which is equivalent to sending you 120 pieces. At the same time, it is stipulated that you can take up to two cups at a time, which means you have to come back five times. My repurchase has also been done, so this is the design of a card-opening interest. The second step is to design the rights and interests of continuing operations within one year, and strive to get his 99 yuan to get another three or four hundred dollars a year. He will continue in the second year.

Third, the virtual big store is set up. Our original retail was limited by the venue and could not sell all the products, so the virtual store is equivalent to my full category. And this virtual store is not for customers, but for your own employees. In theory, each of your employees has a micro store where he can sell other products that our company allows him to sell. shop.

Through the electronic membership system, you can count the monthly users, and then identify and manage the core users. Although these users are unlikely to come back offline, he can come to the online virtual store to shop.

Fourth, the supply chain e-commerce is integrated. Take Jiangnan Cloth as an example. You don’t know how much inventory is missing in the clothing industry. You don’t know the loss caused by this. So we use a strategy, the full color full code sold to the last piece of clothing to lock it as a sample. If you want to buy it, I will send it to your home after buying the store. This incident will restore Jiangnan Cloth to a year-on-year increase of more than 10% of the same store. This is because very few people are wearing the same day, and I promise to send you to the house the next day.

Then take another step on this basis, how about the zero inventory store? All stores are full-color full-size, with oversized fitting room service, I can let you try every piece of clothing, but you are all in my store to send my order to your home. Then this is called the supply chain e-commerce, and completely solve the backlog of goods that you did not know about the first line.

Start with four “online”

Finally, traditional businesses embrace the Internet and start with four “online”. The core of these four online, the order can not be wrong, its order is employee online – product online – customer online – management online. The reason most companies can’t do it is that employees don’t do it online. The easiest thing to do is to have the product online, but it doesn’t make sense to put the product on the line.

Employees are online. Let’s take a beauty salon as an example. In my mind, such an app should look like this: If you open a store manager or a shop assistant’s app, you can see all of his clients, and the sorting is good. The second one of your products should also be in this app. In addition to the customer library, product library, and third, there must be a knowledge base, and his customers’ knowledge and experience should be expanded. This is also the first point in management online, that is, empowerment online.

At the same time, the store manager’s basic management of the clerk should also be online, not only attendance. The core of these management is that he treats employees, which is somewhat similar to the future fighters of the United States. He can see the overall situation of the future fighters, can mobilize aircraft missiles, and give him real empowerment. Then it is not enough to have these three libraries, but also to move, that is, to build a model. The whole family can do the job, that is, as an employee, when you open the app every day, you will see the company pushes you, for example, which member you should push for today.

So the new retail is also good for traditional enterprises. If we really want to embrace the Internet, we have to start from these four online.