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How to break the bottleneck of offline traffic? The way of survival for physical stores in third and fourth tier cities

As the temperature drops, sporadic new cases are starting to appear everywhere. The offline brick-and-mortar businesses that have just been slowed down are once again recalling the fear of being dominated by the epidemic.

In fact, even if there is no epidemic, the past few years of physical stores are not good days. Because of the impact of online, the decline in traffic has been the number one problem of offline stores, although in the past two years, offline and began to appear some of the large flow of business innovations, but few of them are small players can mediate the margins.

"If you go to the line with a burning model to fight traffic, you lose a single for each single, this is self-defeating. But you do not do may not have a single, this time we should do?"

In the recent member activities of the New Wave Brand Club, Li Jianmu, founder of Zebra Home Photography, combined with his own manipulation of the case, from the thinking to the methodology, in-depth sharing of the physical stores to break the bottleneck of offline traffic path.

Li Jianmu has been in the photography industry for 20 years, and has founded more than 10 photography organizations in a row, and has very rich practical experience in attracting and expanding customers to physical stores in second-, third-, and fourth-tier cities. Zebra home photography two and a half years in the fourth-tier city market share from 0 to 75%, and summed up a unique set of stores community practice methodology.

The following part of the intercepted content, with everyone **** enjoy!

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I personally have always been in the physical store, the past two years also encountered the impact of online traffic, so today's topic is called: mobile Internet era, the three or four cities physical stores how to break the traffic bottleneck.

In fact, it is the actual play of our stores and ideas to crack the problem to share with you, I hope to bring some thinking.

First of all, the physical stores are facing the impact of online, which is an objective fact, and it is particularly obvious in the third and fourth tier cities, why?

10 years ago we opened a store, the first thing to solve is the store problem. Unless you are from the developer, property to get a first-hand store, otherwise all need to be very high transfer fees.

In the third and fourth tier cities, a 500 to 800 square feet store, the transfer fee will be 200,000, or even higher. And you have to face this problem with every store you open; the highest we've paid is $800,000 in transfer fees.

But in the last 5 years, when we opened new stores, we found that the transfer fee gradually disappeared. There are more and more empty stores, and you can even get stores that are rent-free for two or three years, and many of the top commercial complexes have a particularly high rate of stores changing hands.

What does this mean? The offline traffic is gone, the store has been rented out.

So five years ago we were thinking, how can the industry continue to do? Is the market really shrinking? In fact, it is not, it is just a traffic problem. In the end how to solve? That's what I'm going to share with you tonight.

I've been in the photography industry for 20 years, the first 15 years as long as you open the store will have performance, do not need much promotion or operation, there will be a lot of customers into the store.

But the consumption habits of customers have changed, especially after 2015, a large number of customers are no longer on the road, but in the phone.

This is something everyone knows, but the channel is too expensive. Because the traffic in the online channel is fixed, we can never compete with the headline companies when we do paid traffic online, and they can jack up the cost of traffic very high, but we can't.

Tell a very real case, like we operate in the third and fourth tier cities of this kind of physical stores, some have capital backstage "aircraft carrier type" company, in order to get accurate customer capital, can be a customer capital cost up to 2,000 yuan.

Just a name, a phone call, and a cost of $2,000 is unthinkable to us.

How do you compete with that? If you use the model of burning money in the channel to go with it to fight traffic, you every single, lose a single, this is self-defeating, the final death must be you.

What should we do at this time? If I really give up this channel, do I have more channels to get customers? There must be.

Because back to the physical business, in fact, the biggest cost is not the marketing cost, but the store rent and labor costs.

So we do not want to compete with these Internet companies, what is the core meaning of the physical store? Is the customer experience and viscosity. Internet, e-commerce operating model is not seen enough to reach, especially for our high customer unit price industry, the store is the best trust backing.

Doing a good job in store service is the root of our survival. This time you will find that the transaction of the customer must have potential customers around, this is we do not go to spell channel traffic can also solve the key to the customer to the store.

Before our sales team in the encounter after the customer, the first reaction is how to close the deal, which is a constant deal thinking.

The most realistic problem with brick-and-mortar stores is that they only look at the transaction, results and performance, which is not the same as many industries, such as the Internet industry may need data, downloads, registrations, and membership numbers.

But for brick-and-mortar stores, the traditional operating model is to close the deal, and it's best to close the deal the first time you meet a customer.

I think this is not good, since the customer is the same group of people, and now there are so many strong social relationship tools, so why do not I find potential customers first? As for whether this customer can be closed first put aside, we first solve the spread and fission, in fact, the problem of potential customers.

Because the first up to deal, the customer will produce resistance, and the market is competitive, we can not do 100% turnover rate. If this customer loss, I not only lost this single, behind him the potential of the entire customer base are also lost.

This jumped out of the original transaction thinking, resulting in a new concept called flow thinking.

We met a customer, first do not consider whether to deal, but let him become a dissemination and fission channel mouth, the potential customers around him with the gift packages pop-up way to do a group fission.

After this action occurs, you will find a qualitative change. If the turnover rate remains the same, your growth comes out when the traffic goes from the original 100 customers a month to 700 to 800 customers.

Similarly, the second shift in thinking is to go from product thinking to customer thinking.

In reaching out to customers, make sure you don't talk about how great our product is. Because for the mother, children's photography is only a very low-frequency scene, she also has a variety of health education, entertainment, leisure, parent-child relationship needs.

So we will integrate the industrial chain of many friends of the things to dock to the mother, in this mode, you will find that the viscosity between the customer and your instantly produced.

This is actually linked to the third point I'm going to make: from a quality mindset to a value mindset. From how good our products are and how well we take pictures, to what kind of value we can provide to moms and potential customers.

Because taking pictures itself is not a necessity for moms. So our logic is to generate more value with the customer when she pulls the potential customers around her as well.

Because people are divided into groups, it is inevitable that there must be baby moms around the baby moms. Once your child enters a circle, starting in kindergarten, you'll know a lot of people in your age group, and that circle is important.

When we open the circle, you will find that this relationship, this group, established by this mom with you, will pull more moms and families with children around her together. Why?

When she contacts us, she will find that this children's photography is not only able to take pictures, but also provide a lot of early education, play things. And we didn't go to this part to make cash, it's completely based on value output, built by picking up friends, so the treasure mom's sense of value will be very strong.

At this time you will find that in fact you do not lack of customers, there are too many baby moms will help us to do the dissemination and fission.

In fact, with the user interaction this issue, many traditional stores will like to do offline salon.

But now consumers are very lazy, can be resolved online will not go offline. So we must not do too much offline stuff, it can solve part of the problem? Yes, but at the same time there is no way to make a big traffic.

So all of our interactions are solved online, and to be more specific, the community. Why not use enterprise WeChat, small program?

Why don't we use WeChat and small programs? Because consumers are very resistant to this kind of tool with marketing attributes, and they still want to deal with a flesh-and-blood, emotional, and real person.

The existence of this person is very important, and the output of value is also through this point.

In this process, all of our communities are fissured by a customer to his surrounding network out, basically within forty or fifty people, will not exceed this ceiling, why?

First, the number of people in the group is large, and the precision of your screening is down.

Second, the more people in the group, the more spam.

Third, once something goes wrong with a WeChat group, the spread is small and the negative damage to the brand is minimized.

In the past few years, we have been researching and rooting in personal micro-signals and WeChat groups, and there are too many details here, and the team has taken many detours, so I will spend more time talking about the practical aspects of the community.

In the early days, we hoped to pull a 500-person group every time, and then found a problem, the people involved in the interaction will always be only a few, and even 90% of the people do not even grab the red envelope, why?

Because it's too noisy. On the surface, it's a 500-person group, and 450 people are set up to be undisturbed. For this group, these 450 people are dead fans, because he can not see.

So we do not pursue the number of people in the group, but the effectiveness of the group, active fans is the core. What do you mean by active fans? It's very simple, you send a red packet to try, if the group more than 300 people, you send 100 red packets into the, within 5-6 minutes to grab not finished, that is basically a dead group.

All of our groups require no more than 50 people, which is about 10% of the effective potential customers, it has been overvalued. That is to say, as long as there are 5 people inside 50 people who are interested in us, we have accomplished 1:5 dissemination and fission, which is the most core part.

On the flip side, why do we do community in physical stores? The core is to create a private domain traffic. As I told the team to say, if the traffic is public domain, anyone can reach out and grab it, you use the net to go under the time, other people may use electricity in the fight, and even the spread of drugs, and then finally a pumping machine, how do you play?

What is the logic of private domain traffic? I'll fix a fishpond myself and do the marketing at our pace and market. Just like we are in the photography industry, even if the service is good and the brand power is strong, he can not come every month to take pictures.

So you have to raise customers, to output value, not that today I'm going to get the guests, only to do promotions and marketing. If you usually have no interaction and link with the guest, his impression of your brand is that you only do activities and only want to take money out of my pocket.

Particularly in photography, education, birth health, these big categories, are not just need, no one must go to consumption.

Photography, education, and health are all big categories. Nothing but value output, and must be in the absence of marketing, do value and brand output, otherwise the first reaction of the user is that you are doing packaging.

So we made thousands of groups to build a private domain:

First, objectively speaking, I don't know when the customer wants to take pictures, because it's not just a need, can't go to do precision;

Second, to be a company with brand power, you can't go to frequent promotions of the customer;

Third, to the customer, in this group, he is surely safe. No one is being frequently noisy, there is no spam and no advertisements.

Because the people in the group are almost all customers sharing and fission out, he can share the fission must be his side of the acquaintances.

So the private domain traffic of the store, what is the solution? Do stores have a primitive logic is the customer radius, children's photography radius 5-10 kilometers, wedding photography may be 20-30 kilometers.

How to cover all the customers within this radius? This is very important. Our method is to let the customer to do it for me. The benefit of it is that there is no cost, the group does not cost, and the customer to do fission does not cost.

I used a very low operating cost to repair thousands of fishponds, the fish in each pond are not many, but the relationship between these fish are very good, this is a very important point.

What's at the heart of this? It's actually WeChat.

The biggest difference between WeChat and all other social tools is the strong relationship attribute, which must be someone you've been associated with before. What problem does the strong relationship attribute solve? The problem of trust, the most important thing we can deal with customers is the sense of trust.

The previously mentioned pop-up grouping is for the relationship with these potential customers to occur the transaction, this transaction may only be 19.9 or 99, but this is not important, the important thing is that he happened to pay.

What problem does this payment solve?

First, screening customers. He must be local, because we are doing physical stores, he must be within the scope of my customer base, otherwise you again preferential, brand power, things are good, he will not pay, because he can not come.

Second, confirm the relationship of trust. He can pay you, even a small amount of payment, at least shows that he is trusting you. By diverting him to the store through a small amount of transaction, there is an opportunity to establish a greater sense of trust behind.

So the value of the online transaction is not the result, it is the spread and fission.

We children's photography this plate, three or four cities in the store unit price average price is 1500 yuan, this price if you go online to do unfamiliar customer transactions, to our team in these years down the accumulated experience, the turnover rate is 3% -8%, means that more than 90% of my customer capital will be wasted.

What's the reason he doesn't close the deal, is there no demand? Obviously not, there is no demand he must not find you.

So then we adjusted the model of the online transaction, the online price per unit from 1500 to 99 after the adjustment, the turnover rate rose to 58%.

Do customers really only want 99? Customers in the purchase decision, the sense of security is the first, this sense of security can not be solved by the words or products. 99 is a very tempting price, even if there is a problem with this product, I end up losing only 99.

After this action is done, we quickly let him go to do brand fission. When she has this need, will the people around her have the same, only the proportion problem.

There is a profit motive here, you let her spend 99 to get a 599 content, of course she is willing to help you to do the dissemination and grouping. But our logic is not distribution, there is no commission for customers.

I often emphasize that we have to do fission through value shaping, must not be made into a micro-business distribution model. Most customers actually do not want their friends to know that she is taking their friends to make money.

And we are physical stores, more concerned about the brand, there is no way to go to do so large base.

Once made into a distribution model, it is a dead end, you will find that you can't do it when you do it, because your customer coverage is limited, no matter how much fission, it is impossible to do a model like micro-business.

So brick and mortar stores should never treat customers as microbusiness to do distribution.

When the customer fission is completed, the second group transaction is also completed, the last thing to do is to take these online paying customers, and then invited into the store, to do the depth of the customer unit price increase, is it good to do? The first thing you need to do is to get your hands dirty.

So what is the core of the whole process? The spread and fission. In the end, the transaction has become the weakest point of the whole thing, which is what we say is the result of the transaction, not the purpose.

Next to tell you about team performance and implementation level things.

Perhaps the managers of traditional brick-and-mortar stores, more concerned about the quantification of data, of course, is also important, but what is the core of the executive level? It's traffic thinking. The purpose of you doing this is to catch the flow, it has nothing to do with performance, performance is the final result, it is not your goal.

If in the community fission, you take the performance as a result, this thing will go astray. Because when you're performance-oriented, a lot of what you do at the executive level gets distorted.

We have also stepped on many pits, in the whole process of promoting, constantly adjusting the community board landing KPIs and performance. Today in doing our zebra family team new brand, and did some refinement:

First, what is the quantitative indicator? It's the efficiency of fission. This is our handful of projects, that is, the store manager is responsible for the system, the amount of fission of the community, the amount of effective active community, the amount of new powder imported through the completion of the active group, etc., are the core indicators of the store manager.

Second, the special person special responsibility system. We have a specialized online customer service specialists responsible for docking, these groups must be specialists, can not let the sales or sales after part-time to do this thing, part-time must not land.

Third, the implementation of the standardization of the level, including the words, copy, product promotion. This is efficient, we are now zebra home team of more than 4400 groups, basically two numbers in the maintenance, because everything is standardized.

A lot of friends asked me, said you are not often group hair? I said no, our group 80% of the time is very quiet, the interaction within the group is not frequent, just 1-2 times a week. The content of these interactions is standardized, and must be high value output that customers are interested in.

What do we mean by high value output? It's very simple, we will find a lot of friends to interact, through them to do something lower threshold to the fans. Because these friends of the physical stores also lack of traffic, we have so many customer groups, high value output is to treat myself as a platform.

But I also do not charge friends of the money, so that especially high repurchase rate, lack of traffic merchants are willing to cooperate with us. Now the frequency is about 2-3 times a month, basically the parent-child industry chain business and high-frequency service organizations, such as automotive, beauty industry.

What is the purpose of doing these things? The purpose of doing this is to keep in touch with the customers. When these things are made standardized, you will find that it is very easy to manage a thing, we maintain these communities of two numbers, in fact, one person is doing.

A lot of friends also communicate with me, said this thing in the end how to do? It is very simple and not complicated, today we have a single brand of more than 4,000 groups, are made from a group of two groups.

So you want to do this system, is to start from each guest to do, you want to do this thing well, only when we are the boss of the front line to take root, you have to know what the customer's real idea, the team's real idea is what.

If you only listen to the staff report, this thing must be deformed, we just started 200 groups, each group has me. Of course it's pretty standardized now and it's easy for new people to come in and get going.

Another is the data review, our stores to daily review, weekly review, and finally the store manager has to take the data to do a monthly review with the company. All of our words, copywriting, product promotion, including pull groups, fission strategy, are so little by little refined out.

Finally, there is a point-to-point return system for all community customers.

I often say a logic, the unit price of 1500 and the unit price of 99, these two types of customers, which one of the customer experience is easier to build some? Obviously 99 customers, these customers are actually very important, because he is the bottom of the customer base.

Our operations team is going to pursue maximizing market share, and it's got to be about the base, which is about the flow. So why we have to do a pop-up or low price to attract traffic strategy is to better go to build the customer experience.

The sense of experience beyond the customer's expectations is for you to shape out, he spent 99, you let him get 1000 dollars of service standards and service experience, the power of this word of mouth spread is not the same.

In fact, the same as the competition with the Internet e-commerce, why do people buy Jingdong's single? Because the customer experience is good, our entire group every year in the Jingdong to millions of procurement volume, may Taobao, Pinduoduo cheaper, but this thing to buy back, in case there is a problem you find who to solve?

In today's mobile Internet era, social e-commerce, community marketing, when too many Internet marketing modules appear, physical stores as long as you grasp the core of the problem, as much as to solve the problem, and the threshold is very low, and not complicated.

When you solve all the problems, you will find that in fact, the entity stores are not particularly difficult.

Q: What was the logic of the rise from 99 to 1500? What changes needed to be made to the team and supply chain?

Li Jianmu: The price progression from 99 to 1500 is acceptable to 99% of people.

So why is it that direct 1500 customers do not buy, is there no demand? Obviously not, the customer is in demand, just not so strong demand. A not strong demand, you give him a very high price, he will feel that it is not just need or do not believe you.

The logic of $99 is that I let you experience it first, because we are doing something professional that allows customers to see immediate changes.

Without accepting the service process, you are showing him a previous product, there is no substitute for a picture of someone else's child, and he feels like you are packaging and selling.

If the price 99 let him first to shoot, when he saw his own children to take pictures, this objective feeling is very real, this time you then let him for a greater value to pay the bill, is not much easier?

Of course the supply chain, the product line is certainly not the same, 99 and 1500 products can not be exactly the same. For example, 99 might give him 5, but 1500 gives him 100.

When that photo is someone else's, there's no difference between 5 and 100 for the customer. But when your own child is taking the photo, there is a big difference between 5 and 100 pictures, and this is the psychology of the customer.

Q: What's at the heart of building a sense of trust in your community and circle of friends? How do you balance that?

Li Jianmu: It's actually very simple, you must treat customers as friends. I often emphasize to the team, if you treat customers as sales, this thing can never be balanced, because the customer will always be a mentality, you want to market me.

So we do value output in all the community, do not come with any benefit output, because as long as you bring, the customer will definitely know, we can even put the contract signed with the friends in the customer group to go public.

This is your private fishpond, spread more material, less marketing, because there is no one in it except you, who will do the marketing. Once a client has a need, they will definitely jump on the group and say how your family's photos are taken, if there's any recent activity, etc.

Q: low-frequency products if the form of low-priced group, how to increase the rate of customer repurchase, and ultimately achieve profitability?

Li Jianmu: It's simple, shape customer expectations.

The photography industry is indeed very low-frequency, wedding photography is even more low-frequency, but the wedding photography industry I will not use low prices to attract traffic, because there is no way, it is a one-time consumption. But we will certainly design a lot of product lines, so that he has an expected value of the product.

When he spends 99 to get a 500 yuan thing, he must think if he spends 1,000 dollars, will get a 5,000 or even greater value of things, this is the logic of human nature to think about the problem.

What model is used for that maternity and children's photography segment? That is, you said, low-priced group in the customer how to increase repurchase? Recharge, is the traditional pre-sale do membership.

This model is particularly important for our low-frequency products, for example, children's photography, we now have a unit price of 1,500, but 30% of the guests will be recharged to 5,000, 8,000 or even 10,000.

Why? It's because of the whole turnover model we talked about at great length earlier, and the products that shape the expected value.

High-frequency things everyone spends on must have a budget, but low-frequency is not. For example, renovation, everyone renovation will be over budget, is because of the expected value of the shaping, when he has more expectations for the future, hoping to get better results, it will be a result.

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