Now whether it is a large company or a small shop, most of them are doing their own membership points system, but it is estimated that only a very small part of people really understand the meaning of the membership system. Today, let’s share the meaning of doing a membership point system and how to do it Make a membership card.
Your understanding of the membership system may be wrong
Let’s take a look at the boss’s conventional understanding of the membership system: the
first understanding is the most common. The bosses treat the membership system as a way to bind customers, or let consumers fill up the money like a deposit. Anyway, he can’t run, it doesn’t matter if he runs, because the money is given. If he doesn’t come to spend, he can still enjoy the salvage income of the membership card.
The second understanding is that making membership cards is a way of interacting with consumers. How to interact? It is estimated that 90% of bosses can only think of sending text messages and WeChat during promotional activities, which is very low-level.
The third understanding is that the company has no money now, and the cash flow is about to be cut off. Hurry up and get a membership card. First collect the money before talking. There was even a barber shop owner who complained to me before: “It’s really unhappy. All the guests who came today are members. They are all free services. A cent of cash is confiscated. It’s disgusting. Membership cards are really killing people!” I said, “Brother, you are not the money that you have received from the members before. Is it?” He said, “Yes, I have already used up the membership recharge money.” I was quite speechless.
From these three conventional understandings, everyone can feel the strong utilitarianism. To put it ugly, they are all the thinking logic of cutting leeks, and the mouthful “customer is God”, but the actual thinking angle is all merchants and consumers Be a fool.
So how can the membership points system be more advanced and scientific? Let me talk about some cases.
A useful membership card system
In fact, membership card can achieve a very good purpose, which is to quietly obtain consumer contact information and consumption frequency information, whether it is to establish a consumer community, conduct in-depth connections, or hierarchical publicity, the membership card system It is very useful.
What is it like to interact with consumers through membership cards?
A catering company in Beijing has done a “1 yuan roast duck” membership marketing campaign. Members can eat a set of roast duck at the original price of about 170 yuan when they come to the store for only 1 yuan, without any additional conditions. The cost of roast duck is around 40 yuan. How can one sell roast duck for 1 yuan without losing money?
This company has more than 1 million members, but not all members have received an invitation to “eat roast duck for 1 yuan.” Before sending messages to members, the company first screened them according to three conditions.
Condition 1: Members who have visited the store three times a year, these members are very valuable and loyal customers. Inviting them is a real “grateful feedback”, not like many other merchants, who are grateful for feedback at every turn and did not buy Passers-by who have passed his house are also grateful, and there is no sense of scarcity at all.
Condition 2: The members who have not visited the store for half a year are customers who are about to lose or have already lost. They are invited to re-establish the connection with the brand.
Condition 3: Members who spend more than RMB 300 at the table every time they come to the store, the translation means that at least 4 people come together to eat every time they come to eat. Inviting them to come will definitely not take advantage of just ordering a roast duck.
According to these conditions, this roast duck restaurant eventually screened out 40,000 people. After the message of “Eating Roast Duck for 1 Yuan” was sent to these 40,000 people, 10,000 people eventually came to the store for consumption, and they were basically those who were inviting guests to dinner.
Although only a few percent of the gross profit, not only did not lose money, but also awakened more than 10,000 customers who hadn’t visited the store for more than half a year. In the next 3 months, these people went to the store to spend an average of 2～ 3 times, it is undoubtedly a successful marketing campaign. It can be seen that membership marketing is more targeted than ordinary marketing, and the success rate is higher. It is a very effective way to increase the repurchase rate of customers.
Some companies regard membership cards as the core competitiveness of the project, and use the membership system as the only core differentiation of the enterprise.
For example, Costco mentioned many times in Lei Jun’s speech, it no longer relies on the difference between the purchase and sale of goods, but directly sells goods at par, mainly earning consumers’ annual membership fees, so that the company’s goal is very clear. , Only do one thing-find ways to increase the number of members.
Not only China, but foreign traditional retailers have also been hit particularly hard by e-commerce. For example, Sears, the third largest retailer in the United States, has shrunk 96% in market value in 10 years, JCPenney’s stock price has fallen 86%, and Messi’s stock price has fallen 55%.
In this case, the market value of Costco, which mainly earns annual membership fees, has not fallen, but has increased by 1.7 times in 10 years. Although it does not seem to be a lot in terms of data, it is already very powerful compared to its peers. The reason is that it takes “members” as its core competitiveness.
According to Costco’s financial data for the last 10 years, it has two parts of revenue, one is sales revenue, and the other is membership fee income, of which membership fee income accounts for about 75% of net profit.
The biggest difference between Costco and general supermarkets in terms of form is that customers need to pay membership fees before they can go in and buy things. Therefore, members or family members or friends accompanied by members are shopping in this supermarket. The prices of the products are very cheap and cost-effective. Very high.
Compared with its competitors such as Wal-Mart, Costco focuses on the middle class, cuts down a large number of useless SKUs, selects explosive products, reduces time selection costs, and actively sells products at the prices and services that customers care most about. The net profit was compressed to almost zero, and only operating costs were maintained. This switch brought the steady growth of members. The membership renewal rate reached 90%, with an annual growth rate of 7%. In the Internet age, it can still make progress while maintaining stability. Great.
Costco itself is a heavy asset. The investment is too large and the management is too difficult. It is not suitable for most small and medium-sized entrepreneurs to learn from, but some people are very smart and are good at drawing analogy.
A friend of mine took the Costco model for reference and made a simple version of Costco on the Internet. It was developed through the APP+community approach. It only charges a membership fee, 99 yuan per year, and sells things on the APP.
He contacted major Taobao sellers and manufacturers, specifically to find the kind of unsold sources of inventory, and would control the quality of the items, but the prices are very cheap. Even many major Taobao sellers and manufacturers are willing to lose money in order to recover funds as soon as possible. He cooperated, so he collected more than 200,000 yuan in membership fees in the first month of this model, and reached more than 6 million yuan in the third month.
So sometimes when we look at other people’s cases, it doesn’t count if we understand it on the surface. We must draw inferences from one another to truly count our own things.
