Inventory: How Should Traditional Industries Fall In Love With O2O?

It can no doubt be called "the first year of O2O" in 2014.

Not only BAT,

And other big tycoons such as Shun Feng are claiming to "enter O2O and create a closed loop". All kinds of dazzling innovation projects, as long as they get on top of the Internet, will be called O2O.

So, what exactly is O2O? Is it subverting or saving traditional industries? How should companies love O2O?

The direct literal meaning of O2O refers to the combination of online and offline.

So, are businesses and businesses opening a "micro mall" or APP, which allows consumers to pay by mobile phone orders, even O2O? Is it true that if some propaganda says, "WeChat marketing" will have countless users flocking to you? What is the real nature of O2O? Let the author tell you: O2O is a new business mode generated in the mobile Internet era.

The essence of O2O is to help brands / businesses establish four levels of seamless links with users.

As a bone ash IT, in the process of helping traditional industries "embrace the Internet", the author deeply realized that the essence of O2O business mode is to help the brand / business to establish four levels of seamless links with users.

The four levels are commodity, service, emotion and career.

Commodity links: weak links.

When a consumer establishes a link by buying a commodity with a merchant / brand, he or she is only a "customer".

At the end of the purchase, the customer may not come back to you for a minute.

After all, this is an era of goods richness and customer satisfaction.

Service links: strong links.

Service can enhance customer satisfaction and effectively enhance his / her imprint on service providers.

Service itself is a very important "experience".

When the two sides establish links through services, consumers will become "users" of businesses or brands.

Emotional links: strong links.

After integrating into the emotion, the "user" is upgraded to "fans".

How powerful is the "fans"? Look at those idols and big V.

The most successful use of "fans economy" is millet.

As a senior rice noodle, I will not only buy all kinds of millet products (from cell phones, routers, accessories, T-Shirts, rice rabbit dolls), but also enthusiastically recommend millet products to friends, and even spend a lot of time buying them for friends.

Fans will not only establish strong emotional ties with brands, but also have strong sense of identity among fans.

All kinds of fan groups, support clubs and city associations are created by enthusiastic fans and even become part of some fans' lives.

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Career links: deep links.

Based on the deep identification of brands, some fans will join the brand sales or service system and become part of their ecosystem.

For example, "millet house" service stations all over the place are almost created by local senior rice noodles joining millet.

There are quite a large group in the millet MIUI system development of various themes, and then on the "millet mall" sales, get divided.

They are no longer simply "consumers" but are "brand partners" of the brand.

The brand has deeply imprinted their lives.

The essence of O2O is to help brands / businesses keep in touch with users at any time and anywhere, and let more consumers turn from "customers" to "users", become "fans", and even develop into "business partners".

And mobile phones, tablets, and more and more smart devices make it possible to connect anywhere and anytime.

So why is it so important to achieve seamless connection with users and even become a new business model?

Let's take a look back at the form of retail business in the past. In essence, we are doing "traffic" business.

At the earliest time, businesses scrambled to open shops on crowded streets.

In order to get the exuberant "passenger flow" with expensive rental cost.

Later, large shopping centers, Shopping Mall and urban complex began to rise, becoming the first choice for brands to open stores.

Its essence is to exchange passengers for high rent.

Then brand businesses will continue to put a lot of advertisements to attract customers.

Ten years ago, the rise of PC Internet and e-commerce broke the barriers of distribution between production and retail, and made information pparent and channel flat. Finally, BAT became the three "traffic giant".

The three giants of Baidu, Alibaba and Tencent provide free services.

And their huge income comes from "click traffic" in essence.

Another example is the 360 guard who started with free antivirus software. Sina, which provides free information services, first attracts users by attracting users free of charge, and then achieves the realization of "traffic value realisation" through three major channels, such as advertising, games and electricity providers.

Traditional business is "channel is king" because channel terminal controls passenger flow.

PC Internet era is more prominent, "traffic is king".

As time went on in 2014, the business mode of "gaining traffic" was finally ushered in a completely changing era.

There are two leading factors behind this change.

The first is the end of the era of demographic dividend.

One of the key supporting forces behind the high-speed economic development over the past thirty years is "demographic dividend".

In this period, manufacturers consider more about how to scale and occupy the market and how to speed up expansion.

A large number of cheap resources (including human resources) can be used, there are lots of blank areas to be developed, and no need to consider intensive cultivation.

Finally, China ushered in the "turning point of population" in 2013.

Data show that the total number of marriageable age groups will decline for the first time in 2015.

The same is true on the Internet. The era of rapid growth of traffic has passed.

In terms of business, the cost of rent and wages continues to rise rapidly, and the cost of obtaining traffic is higher and higher, while the conversion rate is getting lower and lower.

Take the data disclosed by Huang Huang Yao, a well-known supplier, for example, the traffic cost of a user ten years ago is about 5 yuan, and now the average cost is 100 yuan or more.

At the same time, the conversion rate of traffic has dropped to less than 1%, and the annual customer turnover rate is more than 1/3.

A large number of data show that in the past, the development mode (including online and offline) has already reached the limit.

Brands and businesses must change their thinking and pform from the extensive mode of "high drainage, low conversion and low viscosity" to the fine mode of "improving customer satisfaction".

Take the customer experience as the center and rely on the guest residence tablet to form a virtuous circle.

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Next is the arrival of mobile Internet era.

In the past era, due to the limitations of information technology, it is very difficult for manufacturers to communicate with a large number of dispersed users.

And mobile Internet has changed everything.

Mobile phones make everyone almost always "online" and use all kinds of fragmented time to communicate and entertain.

Everyone is the recipient of information everywhere and at the same time, it is also the creator and disseminator of information.

"De centralization" is certainly one of the most striking features of the mobile Internet era.

In this era, every businessman and every individual can become an important node of information link and interaction. The space of "self media" has never been so wide.

You may become one of the centers of traffic.

"Precision" is far more valuable than "massive".

Take millet as an example.

Xiaomi's business started with the development of MIUI system.

They first found about 100 enthusiasts from various technical forums and persuaded them to use the MIUI system.

Through in-depth interaction with these 100 "dream sponsors", the MIUI system can be rapidly improved and propagated through the forum.

A year later, when the first generation of millet phone was launched, the MIUI system had accumulated more than 500 thousand users.

This is the first and most popular fan group of millet.

By 2013, the annual sales volume of millet was over 26 billion, and the number of users of MIUI system was over 50 million.

This is hard for the entrepreneurs of traditional industries to imagine.

It is this "sense of participation" mode that is deeply interacting with users and growing together, which is the solid foundation for laying the super high speed development of millet in the past four years.

With this mode, it is against the traditional mobile phone manufacturers.

In my view, the essence of O2O business model is to enhance customer experience satisfaction and loyalty with the core of "managing fans", and carry out "word of mouth marketing" through fans to form a virtuous circle of enterprise operation.

Seamless link is the core way to achieve this goal.

Any O2O who does not aim to precipitate users or run fans is a hooligan.

From this point of view, the specific application of O2O in various industries, no matter what entry is, and how to integrate with entity business, the core and most valuable part must be "big data for members".

If you can not get a large number of member data through O2O, and can not activate all kinds of member data that has been quiet inside the enterprise, then this O2O will eventually be empty.

The O2O mode itself is the new mode of "deep integration of traditional industries and mobile Internet".

From this perspective, it is the Savior of traditional industries.

In 2015,

The model will be widely applied in various traditional industries, and many successful cases have emerged.

Companies that embrace O2O will gain the fruits of mode pformation.

And more companies still lingering on the sidelines, and even those who are still invisible to the mobile Internet will face more severe shocks.

In this sense, O2O will be the subversive of these enterprises.

So, for a large number of entrepreneurs in traditional industries, how can we do "O2O"?

Is there any path and specific method that can be followed?