Chapter 4: Reject false growth – don’t waste money
I've seen a lot of things like this.
In order to increase the number of users, we spend money to buy many users, but these users are all registered to make that little money. Most of these users will not make subsequent conversions or even use this product again.
In addition, they often refer to the successful operational activities of others and spend their own money to engage in some operational activities, but never consider whether these growing users are their own target users, nor do they consider whether new users can be converted, nor do they consider these Whether users can be converted repeatedly is simply to achieve an increase in the number of users in the data.
In the end, it's all just a waste of money.
Don’t be fooled by all the “good-sounding” terms that populate the internet.
The purpose of all business activities is to make money! make money! make money!
Growth is no exception. Growth is all about making money and making more money!
To sum up, what growth does is to continuously acquire users, generate transactions, and increase profits.
Growth that does not have these three ultimate goals, or growth that fails to achieve these three goals, can be called pseudo-growth. Or called ineffective growth.
So, what kind of growth will be effective and will make more efficient use of every penny invested in growth?
Regarding this issue, I have specially summarized the design principles of growth strategies.
Design Principles for Growth Strategies
1. Driving force
Whether it’s conversion, communication, or anything else, driving force is the key factor behind growth. Without considering the driving forces, no matter how the growth strategy is designed, it is just an empty shell.
The source of driving force is actually an accurate grasp of target users and their needs.
2. Based on target users
Any growth implementation methods and methods must be based on target users.
Growth methods that don't take into account the target users of the product itself are just a waste of money.
This is easy to understand. If you spend a lot of effort and money to find a bunch of non-target users, what’s the use?
3. Based on user dependence
Growth is not a one-and-done deal. Growth strategies that do not consider how to retain users and how to convert them repeatedly are actually a waste of costs.
New users can be retained, and old users can use it frequently. This is good growth.
Increased users must be retained.
Growth without retaining users is just a waste of operating costs.
4. Simple
The simpler, the more effective.
Growth rules must be kept simple. Only by being extremely simple can we minimize the user's cognitive cost, make it easy for people to understand at a glance, and minimize communication barriers.
Cumbersome rules will only confuse users and reduce the frequency of communication. They will also confuse the target users and reduce the conversion rate.
The lowest user cognitive cost is important for both communication and conversion.
When it comes to conversion paths, tediousness is bound to fail. Even if the communication effect is good, not many will be converted in the end.
The lowest user behavior cost is extremely important for conversion.
5. Transmission
A good growth strategy must take dissemination as a key consideration, because this can achieve the greatest user growth at a very low cost.
6. High conversion
On the one hand, this depends on whether the users acquired are accurate enough.
On the other hand, it is whether the design of the conversion path is reasonable.
7. Sustainable
Again, growth is not a one-and-done deal. A good growth strategy is sustainable. Continuously acquire new users and maintain high conversion rates.