Social applications have become the super entrance to the mobile Internet. With the existence of Internet social networking, social e-commerce will not die. Wherever people gather, there will be business behaviors.
Will Internet socialization perish? Obviously not.
In addition, from the perspective of the country's economic development plan, why do micro-business and social e-commerce have development prospects? What are the key points that companies and individuals need to understand and pay attention to as soon as possible?
The "Proposal of the Central Committee of the Communist Party of China on Formulating the 13th Five-Year Plan for National Economic and Social Development" points out that it is necessary to expand new development space and refine it, there are five key points:
(1) Expand regional development space;
(2) Expand the space for industrial development;
(3) Expand the space for infrastructure construction;
(4) Expand the space for the online economy;
(5) Expand the blue economic space.
The plan points out that in terms of developing the Internet economy, we must implement the "Internet +" action plan, carry out Internet of Things technology and applications, carry out sharing economy, and plan ahead of schedule the next generation of Internet. Promote innovation in industrial organizations, business forms, supply chains, and logistics chains, and support various innovations based on the Internet.
The Ministry of Commerce, the Central Cyberspace Affairs Office, and the Development and Reform Commission jointly issued the "13th Five-Year Plan for E-Commerce", which clearly proposed to encourage social e-commerce. It mentioned that social network e-commerce models are actively encouraged. Social networks are encouraged to give full play to the advantages of content, creativity and user relationships, establish an operating model for linking e-commerce, support a healthy and standardized micro-business development model, provide consumers with personalized e-commerce services, and stimulate the continuous growth of online consumption. Encourage and regulate social network marketing innovation. E-commerce companies are encouraged to rely on emerging video, streaming media, live broadcast and other diverse marketing methods to carry out fan interactions, truthfully convey product information, and establish a healthy and harmonious social network marketing method.
At the State Council Executive Meeting on June 21, 2017, Premier Li Keqiang said: "Practice has proved that WeChat has indeed greatly facilitated the production and life of the people, created many new business forms, and at the same time, it has also driven a large number of employment. Although it is not perfect, overall, the benefits far outweigh the disadvantages. Now, when dealing with the booming "sharing economy" and various new business forms, we must also adhere to the attitude of "tolerance and prudence". All localities and departments should follow the trend and not still use the "old methods" to regulate the "new business forms"!"
Starting from January 2017, the Communication Law Research Center of China University of Political Science and Law, the China Electronics Chamber of Commerce Micro-Business Professional Committee Research Association, the China Corporate Legal Research Institute and other organizations jointly drafted the "WeChat Industry Standards" (draft for soliciting opinions). After the release of the "WeChat Industry Standards", the industry association will establish a micro-business self-discipline organization and expert committee under the leadership and guidance of relevant national departments, and will establish a credit system, blacklist, whitelist, self-regulation, illegal identification and compliance review mechanism.
Therefore, the future mainstream of business will inevitably be inseparable from micro-business and social e-commerce.
For enterprises or individuals that use micro-business and social e-commerce to develop, they do not need to spend too much effort to study the architecture and ecology of micro-business and social e-commerce, but think about how to use these tools to serve you.
In 2018, whether you want to enter a traditional enterprise that grasps the trend of micro-business and social e-commerce, or a veteran who has upgraded and transformed from micro-business, or an ordinary public who wants to "counterattack" through micro-business, social e-commerce, and new retail, you need to pay attention to the following eight trends.
1. The new e-commerce period is coming in full swing
During the traditional e-commerce period, traffic was king, and the main representative was Taobao e-commerce. Following Taobao rules, you will get corresponding traffic, or you can sell products by purchasing traffic.
In the new e-commerce era, the main representative is social e-commerce. It is user-centered, emphasizing the establishment of stronger connections with users, and developing customer lifetime value with a high profile. For example, we are more concerned about customers' actual needs, pay more attention to interaction with users, pay more attention to user experience, pay more attention to customer evaluation, etc.
In the era of traffic e-commerce, we are always busy looking for traffic, and we will fall into a vicious cycle of price comparison. There is no lowest price, only lower price. This price war has even impacted the price system of the real economy.
In the era of social e-commerce, more attention is paid to benign interaction with customers, and the customer circle is more obvious, because birds of feathers of feathers flock together, and whether it is to acquire customers, educate customer service or serve customers, the efficiency is relatively high. Because of the distinction between circles and the strengthening of trust, the customer's lifetime value can be developed to a well-known level.
Customer lifetime value: refers to the sum of the benefits that each customer may bring to the company in the future. Elements directly related to customer lifelong value include customer unit price, profit margin, and repurchase rate. In addition, it should also include the value brought by customer recognition of the company, such as word-of-mouth communication and constructive opinions, etc.
Why emphasize the lifetime value of customers? According to statistics, the cost of developing a new customer is more than 5 times the cost of maintaining an old customer. Social e-commerce needs to bring its own traffic, and the cost of acquiring new customers is getting higher and higher, and it must pay attention to the lifetime value of customers.
Wechat business is a rough development of social value and does not focus on maintenance. Even so, it reflects strong energy. If we change our methods, pay more attention to customer lifetime value, and pay more attention to brand and reputation, we will surely achieve greater development in the new e-commerce era.
[Give advice] Where does the profit come from?
Profits come from three aspects: the number of customers, the amount of customer purchases per time, and the number of times customers purchases.
(1) Number of customers: The number of friends determines the number of transactions of your customers, and the number of customers determines your monthly stable sales. The number of sales you sell determines your profit income.
(2) The amount from the customer's single purchase: If it is a retailer, your profit is only from the difference amount of the individual profit.
(3) From the number of times a customer purchases: a good product will go from user to sharer, to referrals, one-time consumption, re-consumption, to multiple consumptions. Therefore, when choosing a product, you must choose a product with a strong repurchase rate, so that it is easy to transfer customers through sharing and information transmission.
2. Customers chase industry expert trends
Today's customer purchasing behavior is no longer simply about their own needs or products. They pay more attention to the subject of selling products, whether the seller is professional and attractive; they are gradually gathering around industry experts and market leaders.
From focusing on products to customer-centricity, it is one of the key points that micro-businesses and social e-commerce must grasp.
First of all, the social attributes of micro-business and social e-commerce determine that the method of roughly selling products is no longer feasible. We must grasp customer needs, become an industry expert, and build an industry brand.
Secondly, creating positive influence can save huge advertising costs for the product. For individual practitioners of micro-business and social e-commerce, it is dangerous to rely entirely on the brand’s products. Once there are problems or negative news in the product, it will soon be unable to continue, and those with teams will collapse immediately.
Again, the starting point of marketing is to understand customers. This era is the buyer's market. There is no such thing as having goods, so customers must be valued.
3. Sales are the starting point, service is the key
Wechat and social e-commerce were popular in the era of mobile Internet. They borrowed Internet social tools to open up a new channel for enterprises to acquire customers and sell products, and to open a new channel for purchases for consumers. It is a medium and bridge connecting enterprises and consumers.
This medium takes advantage of social dividends based on social relationships. Not only that, social relationships can provide after-sales service more conveniently, but also requires post-purchase services and benign interactions. The value of micro-business and social e-commerce, on the one hand, takes advantage of social dividends, and on the other hand, creates new value from services.
We see two ways of social e-commerce, one is to focus on personalization and services, and the other is to conduct wholesale transactions. There are two representatives: Tencent’s WeChat and QQ, which has a limited number of friends and is relatively closed; the other is Weibo, which is relatively open.
But no matter which method is used, you need to pay attention to customer participation and interaction.
4. Popular trends for professional talents and professional training
As micro-business and social e-commerce gradually emerge, many traditional business owners can no longer sit still, and their product skills and supply chain advantages are becoming increasingly prominent, and central enterprises are eager to try it out. However, many small and medium-sized enterprises have good products and dive into them all. They explore pricing, training, system construction, and team building from scratch, and progress is slow, just like walking on thin ice.
If these companies can quickly realize and attach importance to the cultivation and introduction of professional talents in the social e-commerce industry, they will promote the development process of the company. If an enterprise wants to do a good job in micro-business and social e-commerce, it must have a complete training system, a rigorous management system, a reasonable product layout, a nanny-style support system, and a stable and reliable supply chain.
If these elements are not available, it is difficult to do a good job in the agency model. I recommend developing a direct sales model, which is more controllable than the agency model and has huge development potential. But the key point is still the same. We still need to build a complete operating system from customer acquisition to building trust, transactions, and fission.
Because of this trend, many capable training institutions will achieve greater development.
5. The trend of practical faction replacing the big names faction
After any industry is popular, many pseudo-experts and pseudo-masters will appear, with too many titles. The story of "Diaosi's counterattack against the tall, rich, handsome, white, and beautiful" fills the entire social e-commerce circle. In fact, many of them have changed from the training industry. Especially in the past, titles such as founder, dean, mentor, etc. could be seen everywhere in micro-business, but in fact, many people do not understand social e-commerce or marketing.
As companies attach importance to social e-commerce, professional marketers have gradually entered this field. After their thinking system and tool methods have been tested by the market, they will create a group of practical players and appear one after another.
6. Trends of sales self-media and personalization
In the stage where micro-business development is in full swing, the third-level distribution mall ended in failure. Even more platform-based micro-malls will have many obstacles if they want to develop and distribute.
Because the platform-based micro-mall model is difficult to create the "personalized" characteristics of distributors, and it is difficult to make profits through personal brands or services, so it is naturally difficult to achieve good development.
Individuals engaged in micro-business and social e-commerce must gradually transition from rough sellers to opinion leaders, to industry experts, start to build personal charm, and start to pay attention to service to customers.
This is even more true for micro-businesses, as the representative of social e-commerce. When the barbarism gradually fades and is accepted by more media and consumers, practitioners will have more dignity. Such a seemingly small change is the only way for the industry to get on the right track.
7. Trends of specialization and systematization of operations
To do a good job in the sustainable and stable development of social e-commerce, professional operations and systematic marketing are inseparable.
At present, many micro-businesses are still in stock and lack stable support. They rely solely on individual practitioners and teams to develop very slowly and work hard. Wechat business training has always been a shortcoming in the industry. On the one hand, although there are many books on WeChat business, they are all talked about in general. Many people who write books do not have practical experience or lack the ability to refine and summarize; on the other hand, many training courses are mixed with too much water, too much chicken blood, and lack of practical information, which makes students spend a lot of time and have not achieved any good results.
If an enterprise wants to do a good job in micro-business and social e-commerce, it needs corresponding departments or teams to build a complete micro-business and social e-commerce system and put it into practice in time.
The next few years will be a good time for the development of social e-commerce. Whether it is a company or an individual, you must follow the trend. Many business failures are often not defeated by peers or cross-border opponents, but abandoned by trends.
8. More updates to gameplay
As more and more people play, many methods have been played to death and have no effect. However, with the emergence of new functions, new tools and new platforms, more new ways of playing social e-commerce will appear one after another, such as the recently popular "Tik Tok".
In addition to learning to adapt to changes, it is more important to master a set of systematic thinking and methods. Without this premise, no matter how many channels or how to play, it will be ruined. The micro-business industry now has this problem. If there is a problem at the top level, if the online toss is useless, you will go offline toss and offline tossing will be damaged.
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