O2O Mode Analysis

The concept of O2O was proposed by Alex Rampell in 2010. The English version is Online to Offline. It is also called the offline business model. It refers to the online purchase of online marketing to drive offline and offline consumption. It also combines the opportunities of offline business with the Internet, making the Internet a frontline for offline transactions. In this way, offline services can be used to monitor customers online. Consumers can use online services to screen, and transactions can be settled online and reach scale quickly. The most important feature of this model is that the promotion effect can be checked and each transaction can be tracked.

Through discounts, information provision, service booking, etc., O2O pushes offline store news to Internet users and converts them to their own offline customers. This is particularly suitable for goods and services that must be consumed in stores, such as catering, Fitness, watching movies and shows, beauty salons, etc. Domestic classic network companies: such as: 58 city, handle group buy. Both are pioneers of the O2O model.

The O2O e-commerce model needs to have four major elements: an independent online store, a national-level authoritative industry credible site certification, an online online advertising marketing promotion, and comprehensive social media interaction with customers online.

The key to O2O mode:

The key to the O2O business model is to find consumers on the Internet and bring them to real shops. It is a combination of payment patterns and customer traffic creation (for consumers, it is also a "discovery" mechanism) that enables offline purchases. It is quantifiable in nature because every transaction (or appointment) occurs online. This model should be said to be more biased towards the offline, more conducive to consumers, so that consumers feel more practical consumer.

More representative is the O2O online shopping mall of Panshi Net League advertising members. It is the world's first large-scale independent online shopping mall for small and medium-sized enterprises. It allows SMEs to no longer simply parasitize in large-scale monopoly B2B, B2C single mall, quickly create their own The large-brand online shopping mall features system features including merchandise management, membership management, order management, online payment, and hundreds of online shopping mall online functions. The model of online membership and physical store membership system can meet the different needs of consumers.

O2O Mode - Core

The core of the O2O marketing model is online prepayment.

Even in the United States, where e-commerce is most developed, the proportion of offline consumption is still as high as 92%. "Ordinary online shoppers spend about $1,000 a year. If an average American earns $40,000 a year, then where is the remaining $39,000? The answer is that most of them are consumed locally and people spend money on it. Coffee shops, bars, gyms, restaurants, petrol stations, plumbers, dry cleaners and hair salons.” Alex Rampell, founder and CEO of TrialPay, for example, described the sheer volume of offline consumption.

This is not only because the services under the line cannot be packed and delivered. What's more important is that the express delivery itself cannot convey the happiness brought about by the social experience. However, if the O2O model can be used to display off-line goods and services, and provide online payment "reservation of consumption," this will not only broaden the scope of choice for consumers, but also make it possible to select the most people through online comparison. Expected services and more suitable services provided by merchants according to consumers' regional enjoyment. However, if there is no online display, it may be difficult for consumers to know the business information, not to mention the consumption word. In addition, businesses that are currently using O2O to grope for business also often use online payment methods that are more favorable than offline payments to attract customers to online payments. This also saves consumers a lot of money.

For local businesses, the effectiveness of the original online advertising can be directly translated into actual purchase behavior. Since each completed order has a “tracking code” on the confirmation page, businesses can more easily learn about the investment return of online marketing. At the same time, we can continue to carry out "customer maintenance" in depth. Secondly, O2O is an incremental market. Due to the large number of companies in the service industry and their extremely strong territoriality, it is difficult to advertise on Internet platforms, just as Baidu rarely displays keywords for bars, KTVs, and restaurants, but O2O The emergence of the model will allow these service industry businesses to leapfrog into online promotion.

On the surface, the key to O2O seems to be the release of information on the Internet, because only the Internet can spread business information faster, farther, and wider, and can instantly gather powerful spending power. In fact, O2O's core lies in online payment. Once there is no online payment function, O2O's online service is just for others. Take group buy, if you do not have the ability to provide online payment, and rely solely on online statistics after the results of their own to go to the business and ask for money, the results of the two sides can not reach the exact unity of the actual purchase of a dispute.

Online payment is not only the completion of the payment itself, but also the only sign that a certain consumption can be finally formed. It is also the only reliable assessment standard for consumption data. In particular, for Internet professional companies that provide online services, only users who complete the payment online will be able to obtain benefits from themselves, thus passing accurate consumer demand information to offline business partners. Regardless of whether B2C or C2C, it is only after realizing consumers can pay online that a complete business form is formed. In O2O, which provides service-oriented consumption and does not use advertising revenue as a profit model, online payment is even more important.

O2O Mode - Relationship with B2C, C2C

Although the O2O model is the same as B2C and C2C, online payment is different. However, the goods purchased through B2C and C2C are packaged and delivered to consumers, while O2O is the online purchase of goods and services by consumers. Need to go offline to enjoy the service. This is a combination of payment patterns and the creation of customer traffic for shop owners. It is also a new "discovery" mechanism for consumers.