Exploring Diverse Channels of Interaction with Users

Channels encompass all forms of interaction with users. Whether it’s customers entering a physical store, selling products over the phone, or users browsing an online shop, these represent various channels of engagement.

The fundamental logic behind channels lies in the channel funnel formula (Channel = Traffic * Conversion Rate * Average Order Value * Repeat Purchase Rate). This formula illustrates a funnel where optimizing traffic through conversion rate, average order value, and repeat purchase rate ultimately cultivates a habit of repeat purchases among customers.

Traffic represents the pool of users entering the funnel. However, not all customers who interact will make a purchase. This underscores the importance of conversion rates. With an average internet conversion rate of around 3%, enhancing conversion rates effectively reduces customer acquisition costs and increases profits.

Once converted, the average order value becomes pivotal. What is the amount a customer spends in a single transaction? Increasing the average order value involves meeting potential customer needs and actively offering related products.

Additionally, whether a customer will make repeat purchases, i.e., the repeat purchase rate, is crucial. Nurturing existing customers is more cost-effective than acquiring new ones. Therefore, continuously serving users, improving conversion rates, average order value, and repeat purchase rate, ultimately shapes customers’ habits of repeat purchases, constituting the fundamental logic of channels. We spent a week studying in detail strategies to enhance traffic, conversion rates, average order value, and repeat purchase rate.

Strategies to increase traffic include site selection, products that attract traffic, rewarding users, and alliances with other industries.
Tactics for improving conversion rates involve acquiring effective traffic, attention-grabbing display designs, factors that expedite decision-making, and discount promotions.
Techniques to increase average order value involve exploring related user needs and increasing purchase amounts through methods like product bundling.
Enhancing repeat purchase rates requires actively managing the customer lifecycle, encouraging repeat purchases, and uncovering the lifetime value of customers. Community effects also enhance user loyalty to the brand.
Furthermore, we learned essential and unique strategies like static sales force, content e-commerce, group-buying customers, and seizing opportunities to increase traffic, conversion rates, average order value, and repeat purchase rate.

In conclusion, channels encompass all forms of user interaction. Understanding the channel funnel formula, all retail strategies, whether online or offline, aim to continuously optimize traffic, conversion rates, average order value, and repeat purchase rates.