User operation is a cliché, but not many are really done well. Many people work hard, but they always feel that they get twice the result in half the effort. In fact, the key is that it does not grasp the essence of user operation. So, what is the essence of user operations? The answer lies in two core questions.
01 The essence of user operation
1. Monitoring and evaluation of user value
In user operation, the first core issue is how to monitor and evaluate user value. This is a crucial issue because we can't make the right management decisions if we can't effectively monitor and evaluate user value.
Whether it's running a small store, managing a large platform with tens of millions of users, or even analyzing the traffic structure of a website, if we can't effectively monitor and evaluate it, we can't judge whether it's good or bad, let alone take steps to improve it.
Therefore, establishing a reliable set of monitoring and evaluation methods is the first step in user operations.
2. The driving force and influence of user value
The second core issue is how to drive and influence the improvement of user value. Once we are able to monitor and evaluate user value, the next step is to find the right angle and direction to enhance that value.
For example, if we want to improve the revenue growth of an e-commerce store, we may consider the following aspects:
- Increase traffic to your store
- Increase store-wide conversions
- Increase the number of products
- Adjust the average item pricing
These are all key factors that can influence and drive the growth of store revenue. We need to figure out the most appropriate entry point and then act accordingly. As for how to do this, it is necessary to formulate detailed strategies and methods according to the actual situation.
In the same way, in user operations, we also need to find the key factors and methods that can effectively enhance user value. This may involve the optimization of product functions, the improvement of user experience, the adjustment of marketing strategies, and other aspects.
These two core issues form the essence of user operations. Only through the monitoring, evaluation and driving influence of user value can we truly achieve efficient user value management, which is the ultimate goal of user operation.
02 Monitoring and evaluation of user value
After understanding the essence of user operation, we need to deeply discuss how to monitor and evaluate user value. This is a complex issue, because different types of products have different ways of reflecting user value.
1. Four quadrants of product type
(1) Frequency of use and payment dimensions
To better understand how different products are valued at users, we can use four quadrants to classify products. This four-quadrant consists of two dimensions:
Through these two dimensions, we can divide products into four categories:
- The frequency of use is low, and no direct payment is made
- Low frequency of use, direct payment
- It is used frequently and does not pay directly
- High frequency of use, direct payment
This four-quadrant model is very important in the field of user operations, and we will use it many times in subsequent analyses. Therefore, understanding this model is essential for doing a good job of user operations.
(2) User value evaluation methods for four types of products
For these four types of products, the way to evaluate the user value is also different:
- Products that are used infrequently and do not pay directly: These products often lack commercial value and are not recommended for development. With low user usage and no revenue generation, it is difficult for such a product to continue to operate.
- Products that are used infrequently but paid for directly: Typical examples include dating products, housekeeping products, and some lifestyle services such as car washes. The user value of this type of product is mainly reflected in the revenue, so when monitoring and evaluating the user value, the revenue should be the core indicator.
- Products that are frequently used but not paid for directly: The user value of such products is mainly reflected in the time of use, frequency of visits, etc. Social media platforms, for example, fall into this category.
- High-usage, direct-to-use products: These products have the most complex user value, which can be reflected in multiple aspects such as visit frequency, dwell time, revenue, and ARPU (average revenue per user). Products such as games, video memberships, etc., fall into this category.
2. User value evaluation index system
(1) First-level indicators
These evaluation dimensions mentioned above, such as usage time, visit frequency, revenue, ARPU, etc., can be considered as first-level indicators. These metrics are the main dimensions for assessing user value, but their importance will vary depending on the type of product.
(2) Secondary indicators
On the basis of the first-level indicators, we also need to design more detailed second-level indicators according to the characteristics of specific products. These secondary indicators can more accurately reflect the user's behavior and value in the product.
Taking Zhihu as an example, when evaluating its user value, in addition to focusing on the first-level indicators such as usage time and access frequency, we can also design the following second-level indicators:
These second-level indicators are all developed around the first-level indicators, which can reflect the user's behavior and value in the product in more detail.
It is important to note that different products may require different secondary indicators. We need to combine the specific functions and characteristics of the product to design an index system that can best reflect the value of users.
Through such an indicator system, we can make a comprehensive and accurate assessment of the user value of any product. Whether it is to evaluate the value distribution of the overall user group, or to judge the value of a single user, there can be clear standards and basis.
The essence of user operation is the management of user value, and the key is to monitor, evaluate and drive impact.
03 Three ideas to drive the improvement of user value
Now that you know how to evaluate user value, the next step is to consider how to increase user value. There are three main lines of thought here:
1. Low-value users are converted into high-value users
The first idea is to convert low- or medium-value users into high-value users.
At the heart of this approach is to identify those users with high potential but low current value, and then increase their engagement and contribution through a series of operational means, such as personalized recommendations and activity incentives.
For example, for an e-commerce platform, we can identify users who browse frequently but rarely place orders, and then stimulate their desire to buy through targeted promotions or personalized product recommendations, so as to convert them into high-value users.
The advantage of this method is that it can quickly increase the overall user value, because low-value users usually account for a large proportion, and if a part of them can be successfully converted, it will have a significant effect on the overall user value.
2. Tap into the potential of high-value users
The second way to think is to further tap the potential of existing high-value users.
These users have already demonstrated a high level of value, but there may be more potential to be tapped. We can further enhance their value by providing better service, a richer selection of products, or special membership benefits.
For example, for premium users of a video site, we can provide more exclusive content or let them watch popular episodes in advance to increase their watch time and willingness to pay.
Although this method is aimed at a small group of users, even a small increase can bring significant results because these users are inherently valuable.
3. Enhance the value of all users globally
The third idea is to enhance the value of all users at the same time through some global measures or mechanisms.
This approach typically involves optimizing product features or introducing new features that generally improve user experience and engagement.
A simple but potentially controversial example is that an e-commerce platform might moderately increase the price of all products without compromising the user experience. While this may affect some price-sensitive users, it may also increase the overall ARPU value if done correctly.
Of course, this is only an extreme example, and more careful and comprehensive consideration is required in practice.
A more common approach may be to launch a new feature or service, such as adding a live streaming feature to a social platform, or an e-commerce platform to launch a membership program. All of these initiatives have the potential to enhance user value across the board.
These three approaches are not mutually exclusive, and we usually use a combination of these approaches on a case-by-case basis in actual user operations.
The choice of method, or how to combine them, depends on the characteristics of the product, the characteristics of the user group, and the strategic goals of the company.
04 Two methods of user operation
When it comes to implementing user value enhancement strategies, there are two main approaches: small-scale centralized operations and large-scale strategic operations. These two methods have their own characteristics and are suitable for different scenarios.
1. Small-scale centralized operations
(1) Applicable scenarios
Small-scale centralized operations are mainly suitable for the following two situations:
- Target key user groups, such as high-value users or potential users
- The testing and validation phase of the new strategy
This approach is typically geared towards small groups of users ranging from a few dozen to a few hundred people, with a maximum of 1,000 people.
(2) Operational characteristics
Key features of small-scale centralized operations include:
- Users are usually grouped in a specific environment, such as a WeChat group, forum, or offline event
- The operation mode is biased towards manual and requires the direct participation and interaction of operation personnel
- There are various means of operation, which can include organizing discussions, holding events, distributing benefits, etc
- Deeper human relationships can be built to influence user behavior through emotional connections
For example, an e-commerce platform may pull hundreds of high-value users into a VIP group, and regularly organize discussions within the group to share high-quality product information, so as to stimulate these users' desire to buy. This approach allows operators to establish a more direct and in-depth connection with users, so that they can better understand user needs and provide personalized services.
2. Large-scale strategic operations
(1) Applicable scenarios
Large-scale strategic operations are ideal for:
- Target a large number of users, often hundreds of thousands or even millions
- There is a need for efficient, automated operations
(2) Operational characteristics
Features of large-scale strategic operations include:
- It relies primarily on rules, mechanisms, and systems to achieve this, rather than human intervention
- Operational strategies are based on data analysis and user characteristics
- A high degree of automation and personalization is possible
- It is highly efficient and can affect a large number of users at the same time
For example, an e-commerce platform may automatically push personalized coupons or product recommendations to users based on their browsing and purchase history to increase conversion rates. Although this method lacks humanized interaction, it can efficiently reach a large number of users and achieve large-scale user operations.
3. The relationship and difference between the two methods
While these two approaches may seem distinct, there is a close relationship between them:
- Complementarity: Small-scale operations can be used to test and validate new strategies, which can be translated into methods for large-scale operations if successful. For example, we might start by trying a new incentive in a small group, and if it works, we can roll it out to the entire user base.
- Efficiency differences: Large-scale operations are often more efficient and able to reach more users. However, small-scale operations may be more effective in some scenarios, such as high-value user management.
- Deep differences: Small-scale operations build deeper user relationships, but are difficult to replicate at scale. Large-scale operations, while broad in coverage, often lack depth.
- Skill requirements: Small-scale operations rely more on individual communication and organizational skills, while large-scale operations require more data analysis and system design skills.
In practice, these two methods are often used in combination. A mature user operation system should be able to flexibly apply these two methods and choose the most suitable operation strategy according to different goals and scenarios.
For example, for a social product, we may adopt large-scale strategic operations for most ordinary users, using algorithmic recommendations, automated tasks, etc. to increase their activity. At the same time, for some key opinion leaders or high-value users, we may adopt small-scale centralized operations to maintain and enhance their value through more personalized services.
In general, small-scale centralized operation and large-scale strategic operation have their own advantages, and the two complement each other to form a complete user operation system. Mastering these two methods and being able to use them flexibly is the key to becoming a good user operator.
05 Levels of large-scale user operations
In large-scale user operations, we can divide the operation level into two states: beginner and high-level. Understanding the difference between these two levels is critical to improving user operational capabilities.
1. Elementary state
(1) Pay attention to the single-point problem of the surface
In the initial state, user operators mainly focus on some superficial and single-point problems. These issues are often directly related to user behavior or a specific metric, such as:
These issues, while important, are often only a small part of the overall user operation system. Beginner operators may focus too much on these specific data metrics and ignore the deeper user needs and product value.
(2) Retention, promotion, and recall cases
Here are some typical beginner user operation cases:
- Retention: Design a 7-day task for new users to guide users to familiarize themselves with product features and develop usage habits. For example, a social app might design tasks such as "add 5 friends" and "post 3 stories" to increase the stickiness of new users.
- Live: Send personalized push notifications to users who haven't logged in for a long time to entice them to reuse the product. For example, a news app might push people hot news that might be of interest to them based on their past reading habits.
- Recalls: Send coupons or new feature introductions to lapsed users to encourage them to try the product again. For example, an online education platform might send coupons for new courses to users who have purchased a course in the past but haven't studied it recently.
While these approaches can improve some indicators in the short term, they are often not systematic and sustainable. They may bring a temporary effect boost, but it is difficult to form a long-term user value growth.
2. Higher-order state
(1) Sort out the user operation model
In the high-level state, user operators will pay more attention to the overall user operation model. This includes:
- Clarify the product's core value and user value proposition
- Sort out the stages of the user lifecycle
- Identify key metrics and goals for each phase
- Design targeted operational strategies
For example, for an online education platform, its user operation model may include: new user guidance, course learning promotion, learning effect improvement, community interaction, payment conversion and other links. Each link has its own specific goals and strategies, which together constitute a complete user value enhancement system.
Senior operations personnel will deeply understand the essence of the product and the core needs of users, rather than just focusing on superficial data metrics. They will think about how to truly solve users' problems and provide value through products and operations, so as to achieve the common growth of users and products.
(2) Construction of user operation system
On the basis of the user operation model, high-level user operation also needs to build a complete operation system, including:
- Data collection and analysis system: Comprehensively collect user behavior data and conduct in-depth analysis
- User stratification and tagging system: Fine-grained classification based on user characteristics and behaviors
- Automated operations tools: Personalize operations at scale
- Multi-channel reach: Stay in touch with users across a variety of channels
- Performance evaluation and optimization process: Continuously monitor and optimize operational performance
Such a system enables more accurate, efficient and sustainable user operations. For example, a music streaming platform might automatically generate personalized playlists based on users' listening habits, increase user engagement through social features, and offer different levels of membership benefits based on users' activity and willingness to pay.
It is important to note that different products may require different user operating models and systems. For example, a recruitment product may be less focused on user retention because users naturally leave the platform when they find a job. Therefore, the key to high-level user operation is to design the most suitable operation model and system according to product characteristics.
Through the transformation from the first to the highest, user operations can shift from solving a single point of problem to building systematic solutions to better achieve user value management and product growth. This requires operations staff to constantly learn and think, to have a deep understanding of products and users, and to have the ability to build complex systems.
In the final analysis, user operation is the three keys: monitoring and evaluation, driving impact, and system building. Whether it's a community operation or a large-scale strategic operation, whether it's focusing on retention or promoting activity, whether it's a small Internet company or a large platform, you should keep this in mind.
This article was originally published by @小黑哥 on Everyone is a Product Manager and is not allowed to be reproduced without permission
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