0 1. Private domain traffic operation capability has gradually become a demand. Private domain traffic will become the mainstream topic in the next three to five years, and the demand for private domain traffic product operators will also increase. There are two arguments as support: 1. The era of traffic dividend has passed, traffic giants in various market sectors have been born, and it is unlikely that new platforms will suddenly appear. In the case that the traffic does not increase, everyone is thinking about how to make the traffic rise instead of falling, and the transformation is higher. 2. The bargaining power of the traffic platform is getting stronger and stronger, and the traffic cost in the public domain is getting higher and higher. For enterprises, the roi of private sector operation transformation is higher than that of public sector acquisition transformation. Many enterprises also use practical actions to illustrate this problem, such as a large number of Taobao merchants and customers' WeChat, the perfect diary of planting grass in private domain, and the establishment of CRM system by financial giants, all of which mean that enterprises are exploring the transformation to private domain gameplay. Since enterprises are developing into private domain operations, there will be a great demand for product operators with private domain capabilities. If the last era was an era when classical product managers built platforms, organized structures and made experiences, then the next era will be an era of private domain product operation that knows how to grow, operate and realize. 02. What is the capacity of private domain traffic operation? To understand the private domain traffic, we have to start with its essence "traffic". Explaining the essence clearly explains more than half. The simplest indicator to measure traffic is DAU. Two days ago, I saw that the WeChat video number DAU broke 200 million. Let's talk about it. What does it mean for WeChat video number DAU to break 200 million? Unfortunately, there are few conclusions that can be attributed. First, 200 million yuan is only DAU on the opening day. How much can be retained on the second day and how much can be retained on the seventh day is still unknown. It can only be said that the video number of that day was of interest to 200 million users. Let's click in and have a look. Second, how long will this 200 million DAU last? Wechat did not disclose it. Judging from the circle of friends DAU, it is 750 million, with a per capita duration of 30 minutes. If you can see that 80% of the users of the video number are within 1 minute, it is meaningless. Third, the DAU of Tik Tok (excluding Tiktok) was 400 million in February this year, and now it should be between 400 million and 500 million. However, relying on the WeChat platform with more than 654.38 billion DAU can only be said to be a milestone, and the road ahead is still very long. Based on these three points, we can only say that the micro-signal has successfully attracted everyone's attention, the tickets have been sent out, and the audience has entered the arena, but the key is how to sing. You can make money if you sing well; If you don't sing well, you will be scolded. The number of DAU depends on the promotion and drainage, duration and frequency of use, indicating whether the user approves the product and whether the product sings well. To put it bluntly, traffic only means interest, and the length of use means attention and stickiness, and finally paying cash is the real value. Although there is a funnel relationship between traffic and value, it is operated by thousands of growth product managers and private sectors. Internet products are nothing more than talking about traffic, advertising and transformation. But today, it is different from the previous era of traffic dividend, and traffic has become more like a basic concept and prosperity indicator. When judging the value of products, people often look at the duration of use and MAU/DAU. The essential reason behind this is that the ROI of pursuing DAU is getting lower and lower (there is no traffic bonus mentioned above). So how to get rid of the vanity index DAU and achieve high ROI? You have to start with the critical path from traffic to conversion. Here, let's review it with the help of a classic methodology, namely AARRR model. AARRR is the abbreviation of acquisition, activation, retention, income and reference, which correspond to five important links in the user life cycle respectively. The first step: user acquisition, generally speaking, is the process of extracting users from the public domain traffic pool. There are many means, such as advertising, content drainage, activities and so on. It belongs to the first step of growth (growth is not only touch drainage, but also startup and activation). The second step: users are active, mainly depending on data such as usage times, DAU, and usage duration. Therefore, the above-mentioned WeChat 200 million DAU, combined with the duration and frequency, can be counted as having passed the active period. The third step: user retention, which is also a step without verification, needs to be retained the next day and retained for seven days as evidence. The fourth step: transformation. In this link, what we see is ROI, that is, the user's LTV (life cycle value) should be able to cover server and operating costs such as CAC (user acquisition cost). In order to measure LTV, we can decompose the formula as follows: average LTV per user = ARPU per month * average life cycle of users per month. Furthermore, if users are stratified (paying users and non-paying users), we can continue to disassemble the formula: ARPU (average income per paying user) =ARPU/ payment rate. Therefore, how to improve LTV and reduce CAC is our core goal in the case of hierarchical operation of users and optimization of channel traffic. Step 5: Disseminate suggestions, which can be divided into two indicators. If it is broadcast, it depends on the k value, and it is recommended to look at the NPS value. K= (the number of friends sent by each user) * (the conversion rate of the received people into new users); Net recommended value (NPS)= (recommended number/total number of samples) * 100%- (degraded number/total number of samples) * 100%, and the range of net recommended value is-100%- 100%. AARRR model focuses on the whole process of users from public domain to access, retention and transformation. In this era, public domain traffic is very expensive. Take the click charge in clean out treasure to train as an example. If we don't pay attention to optimizing the delivery and transforming a through train, the cost may reach tens or even hundreds, which is a big loss-making business. Therefore, in the case that the cost of public domain acquisition is so high, it is necessary to improve the LTV of these users and reduce the CAC at the same time. Private domain traffic operation is just a plan to kill two birds with one stone. A large number of commons have contacted users, and there is a demand or possibility for repurchase, which can improve LTC. At the same time, referrals and recommendations brought by private domain traffic can also greatly reduce CAC. For enterprises, not building a private domain traffic pool is tantamount to wasting this part of traffic and value. There are many ways to build a citizen flow pool, and there are also many ways to play. Traditional enterprises have the ways of playing traditional enterprises, and Taobao players have the ideas of Taobao players, so I won't go into details here. But in essence, it can be summarized by a mainstream idea, that is CRM. I define CRM as customer data precipitation and customer relationship operation. The concept of CRM originates from sales. A TOC sales, such as an insurance agent, may serve hundreds of customers, with hundreds of birthday wishes and tens of thousands of customer preference labels behind them. Without the support of methodology and tools, it will lead to the increase of operating costs and it is difficult to break through its own capacity bottleneck. CRM tool is such a product that can reduce the marginal cost of customer service. With the support of tools and methodology, sales can operate 1000 customers with tools, just like operating 1 customer. The tools of CRM are easy to do, and methodology is the most difficult thing to precipitate. Sales itself is the act of dealing with people. I can understand the sales methodology and don't need to be a product manager. I can just sell or sell methodology directly. But beyond the core methodology, there are many points that products can be empowered, which requires product managers to have analytical ability and experience. Take my official WeChat account as an example. It is also a pool of followers, where everyone has it. There is diehard powder, accounting for about 700; Willing to pay, almost 100 people; Almost 300 people came to see the wonderful works of fellow authors; 9 see joke: Almost 50 people are waiting to be scolded. This is only a de-grouping from the motivation dimension, and with the conditions of city, gender and age, there will be more differentiated groups. This example is given to show that users who are equally concerned may have hundreds of minds. To do a good job in the operation of these private domain traffic, we can't cut across the board. Every time I write a dry article, I have to weigh the depth of writing. Can I make my 700 die-hard fans understand it, and at the same time attract 300 people from my peers to communicate and become die-hard fans? If you only consider your own writing style, it is easy for readers to turn to passers-by, resulting in a worse traffic structure. The traffic structure is getting worse and worse, and it is difficult to see the reading volume. The same reading volume is 1000. The effect and value of traffic are completely different because of the mentality of "getting value" and because of the novel title. The essence of private domain traffic operation is to sort out these mixed traffic data, so as to optimize each part and improve the overall conversion rate. 03. What is the essence of private domain traffic operation? The essence of private domain traffic operation is further discussed along the methodology. Before talking about the similarity of essence, it is necessary for us to understand the differences of different commodities in private domain operation, which will help us to understand the essence more deeply. Take standard goods, such as a piece of toilet paper, the user's mind is often "where to buy cheap." The reason is this product: 1. What you see is what you get, which is very standardized and has no variables. 2. Less fakes and low risk. Most merchants can provide standardized quality and service, so the decision-making mechanism of this commodity is very simple, that is, price orientation, and other attributes such as brand, logistics and service are no longer distinguished. If you want to realize the private operation of this kind of products, the core is to talk about low prices through group buying mode, which directly satisfies the user's psychology of "where to buy cheap". And what about more complicated goods? Take the critical illness insurance with annual premium of 65438+100000, its decision-making mechanism is very complicated, and users' minds are also very complicated. Take the purchase cases I have seen, there are at least three mainstream ones: 1. "I will help" users buy insurance not because of the agent's professionalism, but because of human feelings and relatives and friends to help him complete his performance. There are still many such orders. 2. Users of "I believe in big brands" take brand and company endorsement as the first consideration when purchasing insurance. This mentality is essentially because insurance is not what you see is what you get. Even after the purchase, many people don't have a piece of paper, and they can't describe what insurance they bought, because the terms are extremely complicated and there are still cases where they don't pay. So many users will pin these uncertainties on the brand. For this kind of users, the brand promotion of KOC and KOL is very effective. 3. Users like "I only buy the right ones" have a deep understanding of insurance, know how much to buy and know what their needs are. For this kind of users, agents need to convince customers with absolute professionalism, which includes the ability of demand analysis, insurance plan planning, service and so on. The above three kinds of customers are actually three kinds of hierarchical private domain traffic of agents. If agents want to maximize sales efficiency, they need to distinguish these customers and do targeted operations. For the personal list, use emotional intelligence; For the brand list, operating KOC well; For professional singles, strive to improve their hard power. Through the two examples of tissue and insurance, it can be found that the standard situation of goods, income type, price, repurchase situation and customer's mind will greatly affect the method of private domain traffic operation. For product managers, there are thousands of cases and thousands of methods, which are basically incomprehensible and precipitated. But back to our initial question, what we are looking for is the essence of private domain traffic operation. With the essence of private domain traffic operation, we can abstract the similarities between these cases and methods and carry out deeper product design. And this essence I can tell my answer at this stage, that is: trust. 04. All the trusters who want to win the trust of users through private domain operation. Why can't such a powerful business model of e-commerce be crushed in some fields? The reason is trust. Alipay has solved more than 90% credit problems through guarantee and credit score. But the remaining 10% is the most difficult to solve. The reason is that behind the credit score are systems and rules, and not all behaviors can be strictly defined. Digitization of these behaviors requires years of precipitation and attempt. For example, an insurance agent sells you 1 0,000 yuan of insurance, and his sesame credit score is 900, so you buy it gladly. But after you ask him about insurance, he always takes two days to reply, and the tone of the reply is very bad, which makes you feel that the experience is very bad, but there is nothing you can do. You can't apply for lowering his credit score to 500 because of this behavior. In the process of getting along with people, there are too many variables and situations that are difficult to define, so there are laws and constitutions that are constantly revised to make a rough bottom line guarantee, but the main battlefield for building trust between people is still between getting along. The bottom line depends on the law, the upper limit depends on people's hearts, and getting along with it is not as good as digital endorsement. Therefore, the Polaris index of insurance industry sales is the number of interviews. If you just say amoment, then the number of customer meetings is the Polaris indicator, and the two are strongly related. The reason behind this, as the saying goes: seeing is believing. Meeting brings the relationship closer and generates trust, which is one dimension higher than online communication. What you see is what you get, and the sense of gain and realism that you can touch is incomparable to other link forms. Furthermore, trust comes from more understanding and control. How to build trust is a big topic, but there are five basic types of trust.