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Group Buying: Excessive Discount Is A Dose Of Poison.

2014/6/4 15:42:00 40

strong > 1: what makes group buying rise?

P group buying business is a new business model created by Groupon, but in essence, its operation mode is not new even in 2008.

The name "Groupon" contains the meaning of "coupon". In essence, it is a part of the profit that the business gives away, and it spreads through the Internet to attract customers into the shop.

As early as 2007, the public comment on the electronic coupons service in the country has been online, and the group buying mode behind is only one step away.

the difference between coupons and group buying is the last step of the paction payment.

Electronic coupons, though businesses also offer discounts to attract consumers through the Internet, but because of the lack of trading links, it is difficult for service providers to account for the final effect with the business -- how many people have used coupons in stores.

Group buying mode solves this problem very well. Users pay online to pay for group buying website first, then enter the store to consume.

Merchants need to settle accounts and share them with group buying websites according to the actual group buying customers.

this mode of "superiority" has led to the rapid outbreak of group buying in China and triggered the crazy follow up of capital and < a href= "//www.sjfzxm.com/news/index_c.asp" > entrepreneur /a >.

Two: four lessons from group buying to Internet Co

it seems that it is hard for people to expect the next Internet giant to be born in the group buying market. Later facts have proved that this field of blind, crazy and fierce fighting is far more profound than the achievement.

From P to more than five years, group buying has gone through a cycle.

No matter to group purchase website or business, in this "reincarnation" process, brought a lot of surprises to the whole market, also brought a lot of reflection.

Now O2O has become a hot topic. What lessons should we learn and learn from the way of group buying?

> /strong > 1., the practice of sacrificing merchants is doomed to be unable to last long .

with the launch of Groupon in 2011, some operation data of group buying mode are exposed.

Because of the low user retention rate, "two times to shop" is hard to guarantee, and Groupon has been mercilessly called the Ponzi scheme.

for businessmen, the purpose of group buying is to draw new consumers from the Internet.

The original 100 yuan meal, now 40 yuan can be bought, which allows the profit can attract a large number of guests in a short time.

But it is not known whether these guests are old customers or new guests.

A common situation is that when customers arrive at stores, they use mobile phones to find group buying. This has become a habit of consumers.

It is hard to say whether these customers are directly imported from the line to the offline, or do they have the intention of dining in the restaurant.

merchants could have made positive sales, and now they have reduced profits directly, and they have taken a lot of marketing expenses, but the new customers are not as good as expected.

The behavior of over sacrificing suppliers is doomed to be unable to last.

from the development process of group buying, the discount of 3-4 times at the early stage has not been common. The low discount group buying method has become the norm in the industry.

2. blind expansion, sacrificing quality for speed,

ensuring the quality of service provided by businesses is one of the important tasks of group buying platform.

In the short term, after the rapid expansion of the scale, group buying income can indeed rise in a straight line, but ultimately, when facing customers, the platform still depends on the services provided.

"P" group buying website "1000 regiment war" period, everybody frantically burns money, sends a large number of lines to advertise, even pays attention to the "affordable low price" group purchase advertisement to hit the airport.

At the same time, the number of competing service cities has been rapidly recruiting people everywhere, trying to win by scale.

at that time, many group buying websites used agent mode in order to develop speed, and directly assigned to regional agents in some parts of the business.

Although this mode is fast, the group buying platform can not guarantee the quality of goods and services.

Judging from the final result, this kind of play for speed and sacrificing quality has caused serious reputation failure to the group buying website.

3. without differentiation, there will be no moat, .

The P group purchase website needs to start looking for businesses from the beginning to complete the paction, and to buy user traffic, it will take a huge amount of market cost (Online + offline).

Especially in the early stage of group buying, the marketing expenses of major group buying websites are amazing. The marketing expenses of Groupon once accounted for more than half of the total revenue.

comparing, the original public comment on catering content service has made a lot of logical comments.

Since a large number of users have been created to find consumer places and consumer demand, it is easier to import these users into the paction at this time.

This not only saves extra marketing expenses, but also generates a large number of users' UGC content (such as eating evaluation) after consumption, and then forms user interaction relationship, which further improves platform viscosity.

4. the natural advantages of mobile terminals have to catch .

because most consumer scenarios of group buying happen online, this consumption environment is naturally compatible with mobile terminals.

With the popularity of smart phones and mobile Internet, using mobile phones to find group buying has become a very common user behavior.

the US group is currently in the first place in the group buying market, and its current dominant position is inseparable from the layout of the mobile terminal.

In the domestic group buying market, the US group started the layout of mobile terminals as early as possible, and for different consumption needs, it launched different subdivision APP, such as the US group, the cat eye movie, the American Group Hotel and so on.

Recently, the US group CEO Wang Xing has revealed that the platform currently has 90 million active mobile users, and mobile applications contribute about 70% of the paction volume to the platform.

Three: group buying is the three lesson for merchants under the line

1., price drop service also dropped, short-sighted destroyed a group of < a href= "//www.sjfzxm.com/news/index_c.asp" > brand < /a > /p >

In the past 5 years since the rise of group buying (P), although a large number of merchants have tried this online marketing method, they have received very little positive gains.

some businessmen treat a href= "//www.sjfzxm.com/news/index_c.asp" > group buying "/a" customers because of shortsightedness, the price is reduced, and the quality of service and dishes also decreases.

The result of this short-sighted behavior is that a lot of marketing costs have gone out, and a large number of customers have come, but they often get "bad reviews".

any businessman will use price reduction to promote this primitive promotion method, but only a few can do well in brand and word of mouth.

Some of the less famous offline businesses have been overusing group buying. The result is that the rate of customer turnover is getting higher and higher.

no matter what way to attract customers, the quality of service provided by businesses is still the core.

This is the most direct lesson from group buying to businesses.

2. can not keep customers, and more promotion is useless.

for businesses, the purpose of group buying advertisements is to attract new customers and retain them.

As for how to retain group buying users, the supporting actions of many businesses are missing.

Because of the lack of user management system, the customers who come in group buying, the new customers or the old customers are not known, and the follow-up user management and operation can not be mentioned.

the smarter way to do this is to have a customer enter the shop several times, and his consumption habits can be used for data analysis, followed by differential marketing.

Group buying is just the first step for businesses to get users. Managing user resources is the core of deep marketing.

3., technology can not keep up with injury.

the weak level of software and hardware has also hindered the pfer of some businesses to the Internet.

At present, most businesses feel the real benefits of the Internet through group buying, but on the basis of the technical conditions and hardware environment, the small and medium-sized businesses can not keep up with the development of the industry.

This has also become the difficulty of group buying websites and various O2O platforms.

conclusion: what does group buying teach us?

today we will talk about group buying. It is more important to see some inspiration from the development of group buying to the whole catering O2O field.

we have collected some valuable experience and lessons from group buying separately from the perspective of group buying platform and merchants.

Whether it is an independent entrepreneurial team or a veteran player who has accumulated many years in the industry chain, it can not be divorced from the core of O2O, that is, the quality of service under the line.

Only by guaranteeing the quality of service and constantly optimizing the operation efficiency and letting businesses and consumers get what they want, can the online to offline process circulate healthily.