From September 27th to 28th, the 2022 Global Digital Value Summit, co-organized by Titanium Media and ITValue, was held at Shenzhen Xinghe Lingchuang World. The summit is themed "Recovery and Sustainable Development" and focuses on the issue of "data". Under the tide of digital economy, it explores the new breakthrough of "data gold mining" from multiple dimensions such as data-driven business transformation, data trading, data marketing, industry-financial combination , and supply chain innovation. At the
meeting, Hu Chenjie, vice president of Alibaba Group and general manager of new retail business of Alibaba Cloud Intelligent Business Group, founder of Xiuyu Group Li Xiaoning , co-founder of Ningji and CMO Tan Li, founder and chairman of Global Frog Group Yuan Bing, Libai Daily Chemical Intelligence Cloud CDO, China Academy of Information and Communications Technology , and technical expert Zheng Yuanhong gave an in-depth discussion on the definition, value trend, pain points and disadvantages of consumer brand digital marketing.
"Digital marketing is to clarify the business positioning, find customers, reach customers, and finally get the results based on the AIPL path. At the same time, as much as possible, the private domain traffic is precipitated and repeated operations are carried out." Hu Chenjie, general manager of the new retail business of Alibaba Cloud Intelligent Business Group, pointed out. Combined with the experience of Alibaba Cloud services, it was found that general corporate leaders talk about digitalization, but this is more like a "vision" in their eyes. In fact, is a particularly heavy project, which is closely related to the company's own development stage, organizational management, industry and surrounding environment. will eventually return to its essence, let digitalization serve as a marketing service, and focus on the benefits it brings to the long-term development of the company.
, founder of Xiuyu Group, shared that there are three "pits" in digital marketing. The first "pit" is aimed at the boss. Many people believe that digital marketing is a technology and a CIO business, but digitalization is actually a reshaping of the entire process and a boss's business. digitalization is not just about buying a tool or finding a consulting company. The second "pit" of is the popular Internet thinking in the past few years - the wool comes from the pig and the dog pays for it. In fact, wool never comes from the pig and the . If the main business does not make money, it will never expect the side business to make money. The third "pit" is known as "traffic is king". relies on subsidies to obtain traffic. You must know that high-quality customers cannot enter and there will never be a high-quality business.
In Li Xiaoning's view, the last two "pits" are the biggest problem for the business. "Every cent we waste in the business requires more than ten times the performance to earn back. Especially under the epidemic, digitalization has greatly reduced losses and increased returns, and it is the most effective efficiency improvement tool."
In fact, there are many digital marketing tools that enterprises can use at present, but the actual results are uneven.
wants to improve customer stickiness and maintain brand loyalty, Yuan Bing, founder and chairman of Global Frog Group, believes that the following "three tricks" must be taken: First, have the consistent operating standards and stability of . A bad service will bring devastating disasters; second, continues to bring surprises to users, which can be both affordable and surprises ; third, continues to innovate . If the brand no longer innovates, consumers will always be aesthetically fatigued, which is also the beginning of leaving.
For example, from the perspective of live broadcast marketing, Yuan Bing believes that on the live broadcast platform of Douyin , it is not only selling goods, but also playing while shopping. The user's attention has always been attracted, and the longer he stays, the higher the conversion rate will be. Therefore, the various marketing forms brought by live broadcast will be willing to pay for them as long as the users do not feel tired and have the urge to consume.
Regarding the current market problems in digital marketing, Libai Daily Chemical Intelligence Cloud CDO, China Academy of Information and Communications Technology, and technical expert Zheng Yuanhong pointed out, "The fundamental reason for digitalization is to consolidate the marketing foundation. , for example, Libai used to be the first in offline channels, but now this competitiveness is slowly losing. For this reason, we need to find it back through digitalization. Society is constantly improving, and everything we do will make consumers more and more savvy. The essence is to constantly consolidate ourselves, show a service attitude, improve brand premium, and gain the trust of users."
As a newly established corporate brand, the co-founder of Ningji and CMO Tan Li, when he started a brand called "Lujiaoxiang", he did not spend a penny on advertising, but spread it based on word-of-mouth communication in the circle of friends.
Judging from Tan Li's service experience in the tea beverage industry, they invest very little in marketing advertising and pay more attention to second-term communication. The "Gen Z" people have a neutral attitude towards advertising and have three characteristics for consumption: one is to establish a personality, the second is to socialize, and the third is to make themselves happy. Master this and then do corresponding communication, such as through good-looking packaging materials, Interesting activities and reverse marketing, allows people from Generation Z to actively advertise for companies, which is very effective.
From a trend point of view, the retail industry has already or is building its own private domain traffic, but what form can private domain traffic evolve into? In Hu Chenjie's view, the platform economy has developed very fast in the past decade, but due to the rules of platform economy , many brands and retailers have begun to build their own private domain traffic, but after the development reaches a stage, brands will hope to do marketing operations through the platform to improve html l1ROI, so this is a "pendulum" process.
Hu Chenjie believes that the platform is constantly evolving, and the private domains of various merchants are also constantly evolving. In addition to building private domains, many brands are also trying other means to operate. At present, if merchants have reached a certain stage on the platform, they must make efforts in private domain assets. Only the part that consolidates their own foundation can they talk about digital marketing. The following is the transcript of the topic discussion, compiled by Titanium Media:
1. From your perspective, how to define digital marketing in ?
Hu Chenjie: From the perspective of the Internet, marketing includes planting grass, attracting new products, promoting activity, and repurchasing, which is the AIPL model. Digital marketing is to clarify the business positioning, find customers, reach customers, and finally get results based on the AIPL path, and at the same time, precipitate private domain traffic as much as possible and carry out repeated operations.
Li Xiao Ning: digital marketing is about finding the right people, doing the right things, and using the right methods. In the past, business also said the same thing, but because of the lack of digital and accurate analysis capabilities, they all "smack the head" to see the feeling, so the error is very large. Now with digital tools, finding the right people, doing the right things, and using the right methods will be increasingly optimized.
Tan Li: digital marketing aims at the word "marketing". First, it is the business problem, and solves the business problem through digital means, and the second is to solve the sales problem. If you want to solve the actual problem, you cannot disassemble these two problems. You can't let go of the following problems.
Yuanbing: operation is to go to work and get off work, pick up children and send them away; marketing is to send roses, which bring surprises to customers. For example, how to give benefits to old customers and how to connect and relationship with us are indispensable, both are indispensable, and operation and marketing are very important.
Zheng Yuanhong: marketing is just done with digital means, and it has not changed in essence. Just the operator of the company will see the essence of current business and even the ecology more clearly, thus giving the most accurate Judgment and make corresponding marketing strategies.
2. What are the misunderstandings of digital marketing ? or in your opinion is not doing the right thing but is still sticking to ?
Hu Chenjie: From the companies we have come into contact with in the past, we found that general corporate leaders talk about digitalization, but this In their eyes, it is more like a "vision". But in fact, this is a particularly heavy project, which is closely related to the company's own development stage, organizational management, industry and surrounding environment. In the end, we must return to the essence, let digitalization be a marketing service, pay attention to ROI, and pay attention to the benefits to the long-term development of the company.
Li Xiaoning: digital marketing has three "pits", the first "pit" is aimed at the boss. Many people think that digital marketing is a technology and a CIO matter, but digitalization is actually a reshaping of the entire process, and the boss's matter.Many founders or bosses will think that digitalization is just about buying a tool or finding a consulting company, which is hard to deal with. The second "pit" is the popular Internet thinking in the past few years - the wool comes from the pig and the dog pays for it. In fact, the wool never comes from the pig, and the main business cannot make money without making money, and the side business can never expect to make money. The third "pit" is known as "traffic is king". It relies on subsidies to obtain traffic. You must know that high-quality customers cannot enter and there will never be a high-quality business. The last two "pits" are the biggest problem for the business. Every penny we waste in the business requires more than ten times the performance to earn back. Especially under the epidemic, digitalization has greatly reduced losses and increased returns, and it is the most effective tool to improve efficiency.
Tan Li: now has a lot of digital marketing, but none of them solve the real problem. The key is that it does not have enough understanding of the business, which will cause deviations; at the same time, after getting a lot of data, it will be defined by slap it in the head, which actually requires repeated verification and analysis.
Yuanbing: Before each digital marketing action, a target must be determined, and all data dimensions and data calibration before any business action must be preset. These business actions can be reflected in a digital way. Action deviations or any bad results that occur in the entire link require data support and evidence. Only in this way can we know whether a successful digital marketing is done.
Zheng Yuanhong: There are many misunderstandings in . Why is digitalization so difficult? Many times, it is because things are done wrong and they have to make mistakes to the end. For example, there are many failures in community marketing . The purpose of traditional industry in community marketing is to scale and make money. Unlike this, we are to provide stores with a service tool and touchpoint to make money.
3. such a rich digital tool, is it a kind of inverter ? Will there be a bigger crisis?
Hu Chenjie: After all, it is a question of people's attitude towards technology. Many people will feel that the emergence of a new technology will threaten a group of people or bring about a new social phenomenon. In fact, there is no need to worry about this kind of worry. Human beings’ yearning for a better life is endless. We are always facing an unknown world. As long as we keep our original intention and run hard, we use technology to create the future as much as possible. In this process, it is also necessary to constantly correct deviations through mechanisms.
Li Xiaoning: Intra-volume is a new word, but it is not a new phenomenon. Intra-volume can be understood as competition, and digitalization is an energy technology. For example, coal, as an energy technology, is the basis for promoting the steam engine era. Similarly, new electricity energy has become the foundation of the automobile revolution, and then digital technology emerged. In fact, this has reduced human consumption. When enterprises have digital capabilities, their efficiency will naturally be higher than that of the same industry. Therefore, intra-volume is not a pessimistic word. In any era, what is competing with the same industry is efficiency. Human waste is the biggest waste of the organization.
Tan Li: wars have always existed. In the past, they used to fight with cold weapons, but now they have become machine gun fire. Technology is always superimposed, and there are more and more forms of interaction, but the focus is not only on interaction but also on heart-to-heart talk. People’s reactions to products remain unchanged. Even if there are ten thousand ways, the final underlying logic remains unchanged.
Yuanbing: I think this is a problem for consumers and merchants. Consumers are calculating unknowingly. The motivation and original intention of merchants also want to give customers the best. There is a balance between the two. One is the user of data - merchants, and the other is the buyer of data - customers. This process is constantly evolving and developing in a good direction.
Zheng Yuanhong: Isn’t inverter also a manifestation of core competitiveness? It only depends on how to roll it and whether it is good or not, and you need to find the root cause through means. When we talk about digitalization internally, we will understand the fundamentals of digitalization more and more, which is to consolidate the marketing foundation. For example, Libai used to be the first to be competitive in offline channels, but now this competitiveness is slowly losing. For this reason, we need to find it back through digitalization.
4. Consumers’ needs are cultivated and are becoming increasingly difficult to meet. Will this consume merchants’ profits like a black hole?
Hu Chenjie: merchants always have various marketing methods, and consumers will still get more benefits because the essence is brought about by technological progress. For example, in the past, consumers had to buy products offline, but now they can get price comparisons and user reviews from different merchants by moving their fingers. Choosing a good product is a good thing for consumers. For merchants, there will always be inversion or competition in the process of business development. Only by using advanced technology to increase productivity can merchants make profits.
Li Xiaoning: The essence of any industry is changed by innovation. Innovation in corporate business models and product innovation must be sustained, and business competition is inevitable. In this context, consumers are exposed to more and more information, so they will naturally have the ability to judge, which has nothing to do with digitalization. The biggest savings in digitalization are saving processes and improving efficiency, which ultimately makes both customers and merchants profitable.
Tan Li: marketing is first and foremost a business venture. The business of brand mind is the best marketing, not a simple promotion and discount. Only by building a good brand mind can you continue to bring profits. We not only have to walk down, but also look up at the sky.
Yuanbing: Why do foreign brands have relatively high added value and high premium? How to do Chinese brands? Now is not an era of lack, but a era of goodness. This means that only by meeting consumers' needs for a better life, the higher the added value is.
Zheng Yuanhong: Society is constantly improving, and everything we do will make consumers smarter. The essence is to constantly consolidate yourself, show a service attitude, increase brand premium, and gain user trust.
5. User loyalty is not enough. How to maintain brand loyalty?
Hu Chenjie: Now, consumers' needs have become "dusty", and various purchasing behaviors have become sensory and irrational. How to maintain user loyalty is essentially a consumer-centric one. Nowadays, all companies are talking about consumer-centricity, but ultimately they must be reflected in actual actions rather than verbal skills.
Li Xiaoning: It is a fact that consumers' brand loyalty has become lower, but this is not a bad thing. It is a good thing for merchants, because it means that all channels and brand monopoly no longer exists in this era. It is even more an opportunity for entrepreneurs, and this era has become a prosperous time. Secondly, low prices can only stimulate customers' attempts, and only satisfaction can stimulate customers' purchases. Every satisfaction of customers today will lead to the next repurchase. Once dissatisfied, they will give up repurchase. Therefore, it is necessary to require business and marketing to treat every time the customer's every first time. But it is precisely because of digital technology that we can quickly see the problems of user churn and brand loyalty in real time, rather than waiting until it is irreversible.
Tan Li: All customers are "scumbags", never expect him to be loyal to you. Only by constantly being excellent can you repurchase. It is difficult to make money from young people, and the requirements are high and fickle. This requires us to improve customer acquisition efficiency, reduce customer acquisition costs, strengthen customer acquisition stickiness, and continue to embrace change through continuous marketing. The tea beverage industry has its own market cycle, and it is necessary to manage the life cycle of consumers well. This is a process. Good consumer management can extend new customers and push the brand to a new height. Only by staying alive can you keep up with consumers and make yourself live a better life.
Yuanbing: First, we must have consistent operating standards and stability. A bad service will bring devastating disasters; second, we must continue to bring surprises to users, which can be both affordable and surprises; third, we must continue to innovate. If the brand no longer innovates, consumers will always feel aesthetic fatigue, which is also the beginning of leaving. Only when consumers are locked by these "three tricks" from time to time will they follow you for longer.
Zheng Yuanhong: The tone and loyalty of each brand are different, this is a consistent phenomenon.As for the moment, it is difficult for big brands to meet the needs of a small number of people, which has led to a market for niche brands. To this end, marketing strategies will continue to change, and the purpose is to allow consumers to get exposure to new products, new ways of playing, and new exposure channels to improve user stickiness.
6. Live broadcast, or live broadcast to sell goods? Will this become a phased phenomenon?
Hu Chenjie: From our perspective, live streaming is indeed a way of digital marketing, and it is also a form that was spawned by the maturity of technology. Companies and individuals that have grown up based on live broadcast platforms in the past few years will find it difficult to continue their past glory after reaching a certain stage. There are many reasons, such as excessive path dependence and floating in the live broadcast trend, which cannot be separated from competition.
Li Xiaoning: live broadcast is a way of expressing media, no different from TV, no different from articles or movies I have watched before, so live broadcast is just a way to instantly obtain audio and video information in this era. We also do live broadcasts, but we never sell goods in the live broadcast room, we only draw lottery, and each live broadcast has accumulated more than 100,000 people. Whether it is short videos or live broadcasts, it should not be understood as a sales yard, but it is also a way to get close to consumers. Consumers will also move from only recognizing prices to recognizing brands and services.
Tan Li: live broadcast has entered the second half. While we embrace live streaming, we must also have our own needs at this stage. Live streaming is not only a venue for selling goods, but also a venue for building content brands. It can promote new products from the company and increase brand advertising efforts. We should pay attention to the marketing value brought by live streaming, rather than confuse live streaming with discounts, because it has an impact on the entire industry.
Yuanbing: From the perspective of live broadcast marketing, why is it better to live broadcast on Taobao and Tmall than to Douyin? Because TikTok is not only selling goods, but also playing while shopping, users' attention has always been attracted, and the longer they stay, the higher the conversion rate will be. Therefore, as long as the various marketing forms brought by live streaming are not tired and have the urge to consume, they will be willing to pay for them.
Zheng Yuanhong: live broadcast is a bonus brought by various technological innovations, including the mature technologies 4G and 5G that have been experienced in the past, as well as AR and VR technologies that still need to be matured, which have enhanced consumers' senses and cognition. It’s just that the current economic situation restricts the development speed of technology, because technology is often burned by money, and there may not be more mature AR/VR technology in the next 5 to 10 years.
7, Xiuyu and Libai are big advertising marketing , , traditional channels to launch new media digital marketing, what is the approximate proportion?
Li Xiaoning: used to mainly sponsor celebrities in the film and television industry, but now it is replaced by Chinese women's basketball team . In the past, when there was no Douyin, advertising only accounted for 5% of our revenue. If we invested, it would be a loss. Now it accounts for 10% to 15%, because as long as the store operated normally does not suffer losses, and its profits have increased significantly. Douyin's advertising efficiency has improved, which is a benign result of digital marketing. However, this proportion is not absolutely referenceable, because the repurchase rate of the service industry is extremely high. Our company has a lot of customers for more than ten years and has many high-consumption projects, so the front-end dares to make particularly high investments.
Zheng Yuanhong: is now based on the launch of Douyin short videos. How much does it account for your marketing budget? will be determined based on different situations, such as the launch channels and current economic situation, and will also determine the budget ratio of the next quarter based on the market performance of the previous quarter. It is possible that the proportion of the next quarter is very high, and it is also possible that there will be no penny in the first and second quarters of the year.
Li Xiaoning: We are a huge beneficiary of the digital marketing field in Douyin, and 95% of the advertising costs are invested on the Douyin platform.We can analyze from our own particularity: First, we are targeted at customers, which are relatively long-lived groups, with a core customer base of 40,000 to 50,000 yuan, which can bring more than one billion in operating income every year. We are more important to find a high-quality customer than to gain more customers; second, Douyin is marketing based on interest e-commerce, and the customer profile is very accurate, and the account can be calculated clearly about what kind of accurate customers it can bring.
As a newly established brand, what marketing experience do you have worth sharing? How is the delivery logic of each channel determined?
Tan Li: We have very little marketing advertising and pay more attention to second-degree communication. When we started a brand called "Lujiaoxiang", we did not spend a penny on advertising. Many people learned about this brand on WeChat Moments and Douyin. Through research, we found that people with a neutral attitude towards advertising have three characteristics of consumption: one is to establish a personality, the second is to socialize, and the third is to make themselves happy. It is very effective to master this and then communicate accordingly. For example, through good-looking packaging materials, interesting activities, and reverse marketing, people from Generation Z take the initiative to advertise for you.
8. Retail industry are all talking about private domain traffic. How much do you think private domain traffic will evolve? Will it continue to follow the private domain traffic?
Yuanbing: physical stores, especially those with branded stores, will have a higher probability of success in private domains. Because physical retail sells all categories of goods, when the membership and points system is opened up, the supply chain can be optimized to form a unique traffic pool and stickiness, which is very suitable for building a private domain system.
Hu Chenjie: In my opinion, the "pendulum" of private domain traffic needs to continue to go up. Over the past decade, the platform economy has developed very fast, but due to the rules of the platform economy, many brands and retailers have begun to build their own private domain traffic. However, after a period of development, brands will hope to do marketing operations through the platform to improve ROI, so this is a "pendulum" process. Of course, the platform is constantly evolving, and the private domains of various merchants are also constantly evolving. In addition to building private domains, many brands are also trying other means to operate, such as Class II e-commerce, using intelligent outbound call and AI virtual people to make phone outbound call, and using 5G SMS to reconstruct new enterprise traffic portals. At the current stage, if merchants have reached a certain stage on the platform, they must make efforts in private domain assets. Only by consolidating their own foundation can they talk about digital marketing.
9, Dear Party A, how to choose the right digital marketing partner in ? Doing it all by yourself is also an answer.
Li Xiaoning: We have stepped on many pitfalls with upstream digital suppliers. At the beginning, we dreamed of starting a company that could sort out all the processes and reduce communication barriers. It turns out that this is impossible, because if this is done, it will inevitably make the supplier understand all the business logic of your industry, and such suppliers do not exist. So, we took the second path, sorted the needs and looked for the suppliers we are best at in this section, and set up a data center to find data rules from the services provided by different suppliers. The current idea is relatively reliable. Of course, self-built teams are the biggest pitfall. Self-built teams will definitely not cause problems for themselves. They will find ten thousand reasons to tell you that this matter is not good, and leave it to the external teams, and they can constantly raise demands.
Tan Li: I feel the same way. Several of the CTOs we changed before were from various major factories. Finally, I found that the CTOs all hope that a team of 100 people would solve all the problems. After stepping on many pitfalls, our principle is not to build wheels by ourselves, but to use ready-made mature products. In addition, we also expect digital partners to have their own ecosystems, because it is difficult to connect to each large platform, and we can have enough understanding of our business processes.
Yuanbing: will not choose to build it by itself first. This method often hinders innovation and development. Building with ecological partners is nothing more than choosing a service provider that is suitable for you at this stage, and it is still very efficient in solving problems.Unless you really need to build your own IT at a certain stage, just solving your own problems will not only be a big challenge but also a good investment in the industry. If you want to empower the industry, there will be many cases that have collapsed before.
Zheng Yuanhong: We are very experienced in this regard. With the development over the past four years, and even the suppliers in China may not know Libai because we have selected many service providers in the industry. First, we value whether it is familiar with the business of this industry, whether there is an advisory team that can resonate with us and build a solution that meets the pain points of the current business needs; secondly, whether it has mature IT tools that can solve the most fundamental problems. What we now have a luxury is whether we can help to operate generation and do ABtest together. We are also looking for suitable suppliers to build POCs in this market.
As Party B, , you are prepared to meet the challenges in the future?
Hu Chenjie: Nowadays, enterprises recognize that digitalization has become the core competitiveness of enterprises. We also advocate that we cannot just support a group of IT people, but more importantly, we do business IT and do IT with business thinking. Only in this way can we do it well.
I also recommend that partners like Ali are more suitable for merchant growth. Although Alibaba's knowledge-how may be lower for some vertical industries, we are very willing to cooperate with professional companies in the specific track. Moreover, since Alibaba's own R&D capabilities are also iterating rapidly, many requirements may have reached R&D results before they are proposed, which is also our advantage.
