The budget of start-up brands is low, how to counterattack?

For this problem, I will tell a case first.

A cosmetics Taobao shop, through the optimization of copywriting and creativity, only increased the conversion rate by 3% compared with its competitors, and finally realized that the advertising conversion sales of 30 million was 6,543,800+million.

Why?

Let's first propose a compound interest model, in which income = capital × (rate of return+1)n power, and n is the number of turnover. It can be concluded from the model that if your capital is limited, if your turnover times are very fast, even if you only have a weak advantage (such as high conversion rate), relying on a strong compound interest effect, there will eventually be a gap of hundreds of times, turning a weak advantage into a great achievement.

Apply the model to restore the above cases, because the capital turnover under Taobao system is very fast. If you spend 65,438+10,000 yuan on advertising today, you can get your money back that day and spend a little more than 65,438+10,000 yuan the next day. Advertising costs snowball every day. Theoretically, the turnover is 365 times a year. According to the compound interest model, the advertising budget is 654.38+10,000 yuan, and finally 20 million advertisements are invested.

However, due to the low conversion rate, opponents will lose a little every time they advertise, and eventually they will invest 30 million advertisements, and the sales volume is almost the same as that of their last home.

From the analysis of the above cases, we should deeply feel that even a small advantage can become a great achievement after compound interest.

So how do we apply this tool?

1, improve the yield.

For giants, the only advantage of start-up brands is to improve the rate of return. For example, reducing the selling price of products through innovation, thereby improving the sales conversion rate; Discover new markets and exchange the same advertising resources for more users; Strengthen user management and enhance user stickiness.

2, improve the turnover times

Increase the exposure of third-party evaluation platforms, such as friend recommendation, online celebrity evaluation, search engines, etc. Now that the brand influence is decreasing, users are more inclined to listen to the opinions of third parties. The third party allows users to feel the product more directly and speed up the turnover.

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