Operation strategy decomposition three months after product promotion

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Generally speaking, after most products have been launched for three months, we can regard this product as an old model. What should we do next for a link that has been promoted for three months?
After thinking and sorting out, I give the following adjustment ideas.
 
Profit considerations
Proportion of advertising expenses
Generally speaking, 10% of advertising in the market as an assessment indicator is actually based on the gross profit rate of the actual selling price. Generally, the gross profit rate is between 25% and 30%, and 10% of advertising will be a reasonable value. However, if the gross profit rate can reach 50%, the advertising proportion can reach 30%, However, we need to add a return rate indicator to define the proportion of advertising spending. In general, the profit margin we need to keep should be around 10%~15%, so:
Proportion of advertising expenses ≤ gross profit rate - return rate - (10%~15%)

So when our product promotion time reaches three months, we need to consider the profit of the link, and the loss is generally caused by the high proportion of advertising spending, so at this time we need to consider how to control our daily advertising budget.

When promoting, most people will encounter the difficulty of getting the budget up and down. In fact, the difficulty is mainly that they are psychologically afraid to accept it, and do not know how to accept it. In fact, the logic of budget contraction and budget increase is exactly the same. It is also a goal oriented, centralized contraction. Because the setting of advertising budget is actually calculated on a monthly basis, for example, your daily budget is 30 dollars, which does not mean that you will only spend 30 dollars a day, but this month's budget must be less than or equal to 900 dollars, so if you have five activities that require a total budget of 20 dollars, the effect of reducing the budget by 4 dollars per day for each activity is not obvious, It may also increase the anxiety of operation.

The following is the logic of my advertising budget:
1. First, confirm the purpose of each advertising campaign, such as keyword ranking, extension, low acos order, etc;
2. This batch of activities are arranged in descending order according to ACOS, and then check whether the purpose of this activity is achieved. If ACOS is higher than the reasonable value set by itself, it can consider stopping or receiving a very low budget value;
3. When the budget shrinks, the total budget should not shrink by more than 30%. For example, if our total budget is $200, we should at least keep the advertising budget of more than $140 the next day. Then the reduced advertising budget of $60 here can be fully allocated to the first few poor performance activities, but not keyword ranking activities;
4. The budget contraction is generally based on the week, so according to Item 3, we actually need to charge 60 dollars a week, or about 10 dollars a day;
5. If there is a volatile single volume fluctuation in the process of budget contraction, the budget level of the previous day will be restored immediately, and the next budget contraction will be carried out after the problem is confirmed;
6. Remember that we collect the budget, not the bidding. The adjustment of bidding is another dimension. To control the proportion of advertising spending, the most effective way is to collect the budget of advertising spending.
 
Advertising ACOS
The purpose of advertising ACOS is mainly to measure the level of advertising. It and the proportion of advertising spending are two dimensional indicators.
The adjustment of advertising ACOS is mainly based on the purpose of advertising. However, in the process of promotion, if the proportion of advertising spending is within a reasonable range, there is no need to panic even if the advertising ACOS exceeds 100%, because you have enough space to adjust.

According to the formula, ACOS=CPC/(CVR * PRICE), the idea that can effectively reduce the rate of ACOS is probably in the CPC, that is, the adjustment of bidding. At present, there is a transitional idea for the adjustment of SKAG advertising bidding:

1. The current budget for the advertisement of SKAG with the word A is 50 dollars and CPC 1.5 dollars, hoping to reduce the CPC to 1 dollar;
2. Copy an advertising campaign. The budget of the original campaign is $40, the bidding price is 1.5, the budget of the new campaign is $10, and the bidding price is 1.4. If the budget of the new campaign can be well spent, the budget of the original campaign will be changed to 1 the next day, and the budget of the new campaign will be 50. If the overall performance of the new campaign is not different from the original campaign, the method will continue to go all the way to the bidding price of $1
For advertising activities with clear objectives and effective practices, if the ACOS is high but the proportion of advertising spending is low, there is no need to deliberately control anything. However, if the proportion of advertising spending is high, the budget needs to be appropriately reduced.
 
Proportion of advertising orders
The most intuitive reflection of the proportion of advertising orders is the stable status of the current link, which is sorted out according to my previous experience
When advertising accounts for 100%, it means that our links have no natural ranking of keywords
When the proportion of advertising is around 80%, it means that our links have started to have a natural ranking of keywords, but the position is relatively low
When the proportion of advertisements is around 50%, it means that our links have entered a relatively stable state, and keywords with large traffic naturally rank at the end of the home page or the head of the second or third page
When the proportion of advertisements is less than 20%, it means that our links have entered a highly stable state, and keywords with large traffic naturally rank in the middle head of the home page
The tip here is that when the proportion of advertising is less than 50%, we can start to consider the advertising budget slowly, or the centralized advertising budget. It is not necessary to wait three months later. We need to judge the current stage of the link and the assistance needed for the current link according to the real-time data status of the link.
If the proportion of advertising orders is still high after 3 months of promotion, then we can only find a way to control the ACOS value without reducing the order quantity.
 
Market increment
The stage of market growth The stage of market growth, in fact, reflects the cyclical law of the product market. Although many products can be called perennial models, these products will still have corresponding peaks and valleys. Knowing these contents, you can go to the card time points in the process of promoting products and follow the trend, Increase the possibility of successful promotion of new products.
The promotion words of the same product may be different in different periods of time. For example, for my own product, there are two periods of low ebb. In this period, it is not very friendly to launch new products. But after the low ebb, it should be the rising stage immediately, so it is still promotion at the lowest ebb, It is an act of following the trend.

This product will have a relatively obvious market contraction in June, followed by August. Since there is a membership day in the middle of July, it seems that July will not be very bad as a whole. Generally, this type of product is best launched in October or January. Considering the storage fees in the current peak season, it would be a good choice to start promotion in January.

Then in April, there will be an obvious increase in the search related to keyword A, which is the point to be grasped, because after June, the performance of this word will start to become worse and worse.

The other is a summer product. Although it is a summer product, the promotion words of March and April to June are completely different. If the market growth law is not clear enough, these points will be ignored, and the product promotion period will be missed.

After knowing the growth stage of the market, we should make plans according to the current actual order situation and various sales data. If the next period itself is in a downturn, the market at this time is basically controlled by the head, and it is difficult to shake, so we can first consider stability and profits, but if the next is the market growth stage, Then it is necessary to make a stock plan immediately to prepare to seize market share.
 
Inventory required for expected growth
In fact, there will be great differences in the way of thinking in this part. As far as my own experience is concerned, my conclusion is: do not wait for the order quantity to rise before shipping large goods, but ship large goods first and then offset the order quantity.
After re checking many out of stock links, I found that the main reason for link out of stock in many cases was the lack of confidence in the operation, that is, the operation did not know what link sales could rise, and generally speaking, the time for the operation to stock up when the link suddenly exploded would not be sufficient - except for products that can be delivered.

So after re checking multiple links, my handling logic for the link to prepare bulk goods for sprint is as follows:
1. The link is currently stable at 30 orders per day. It is expected that the market capacity will increase in the next two months. The expected goal is to achieve 50 single days;
2. The star rating of the link is relatively stable, greater than or equal to 4.4 points, or there is a suitable seed link that can be used at any time;
3. The natural ranking of keywords is stable, but in the middle and rear, under the condition of increasing the budget, there is an opportunity to push forward the ranking of keywords

Based on the above situation, I will first replenish the inventory of FBA in stock to 1500~1800 pieces, and then the subsequent 2700~3000 sets of inventory can be shipped twice a week to ensure that the total inventory in stock+in transit is greater than or equal to 90 days. Then, after 1500 sets of inventory in stock, we will directly start to add the budget offset quantity. If there is an activity, we will report the activity, and if there is no activity, we will make a member discount.

In this case, even if the link is not pushed, the loss will be less than that caused by insufficient stock, and when the link has a basic order quantity, it is difficult for the link not to increase the order quantity when the promotion efforts are increased. In fact, it is just the profit that will be more ugly at this time, but the current goal is 50 orders per day. After achieving this goal and stabilizing, It is time to consider profits.
 
Abnormal condition of head link
In fact, there are many exceptions to the head link. The most common ones are star decline, out of stock, or the link becomes a dog.
Star rating decline: in this case, the market share of the head link is gradually diluted by the market, and it is hard to say which seller can win many orders at once. So at this time, it is necessary to pay attention to which keywords of the head link rank loosely, and then focus on finding one or two to increase the budget;

Out of stock and link changed into dog : In these two cases, the market actually has a large market share, and some sellers need to digest this flow. In this case, the most direct and effective way is to increase the investment in advertising budget. Generally speaking, the larger the market capacity is, the larger the budget will increase. In fact, here we can roughly calculate the growth rate of the budget.
For example, 200 head links are sold every day, but now the links are not available for sale. The share we want to grab is about 50. The CPC of the original activity is 2 dollars, and the advertising CVR is 20%. Then the advertising budget is 50/0.2 * 2=500 dollars.
When the product enters the old product stage, the attention to market dynamics will become more frequent, because there may be new products iterating over the old product, there may be an accident in the head link, and there may be strange certification problems in the whole market (the Xinjiang incident last year, because of the homework done in advance, the link has not been changed)
 
Link maintenance
Follow up and update of after-sales email
In the process of new product promotion, we will set up an after-sales email as soon as the product goes on sale. The after-sales email here is basically an anti poor comment email edited after collecting the poor comment concentration points of the same product in the market. Generally, this kind of email is about how to use the product to avoid bad comments or problems that the product may have in transportation, Please contact the seller in time to resend the goods.
But after the sales of our products have accumulated to a certain amount, many times the buyer problems we encounter will change. At this time, we need to edit a new email based on the actual customer comments and the voice of the buyer in the background. After receiving a carefully edited tutorial for our product, I directly send the tutorial to other buyers as an email, It was also noted that this method was from XXX buyer, and since then this product has rarely received after-sales emails, because the customer's problems have been basically solved.
 
Review star tracking and maintenance
This should be the basic skill of operation. Generally speaking, after receiving the bad comments, you can try to find the background order for communication inside the station, or find the service provider to check the real mailbox for communication outside the station. To deal with the bad comments, you must first read the customer's comments, grasp the customer's emotions and demands, and generally have a better solution.
 
Summary and summary of poor comments, feedback and return reasons
This is mainly used to upgrade products or avoid defective products. However, don't sell 1000 products. One customer said that the product was small, so he would directly communicate with the company to make the product larger. Pay attention to the absolute value and proportional value.
 
Grasping the natural flow
Monitoring the natural ranking of core words
Here, we mainly use * * Find Words to open the link every day to check the ranking of keywords. ASIN checks the fluctuation of the number of words, records the number of keywords and registers them, so as to facilitate the later review and promotion.

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This product is an example of choosing to make profits first when the sales volume of the product is not rising. The original goal is 100 orders a day, but it will not be offset after 60 orders actually arrive. Therefore, in this case, budget collection will be the key direction of optimization. This product is my post https://www.wearesellers.com/question/74017 The last part mentioned a product. At present, if the product quantity of this low customer order is less than 100+orders, the yield is really too low
The average CPC of 9.99 dollars is 1.65 dollars. At present, the advertising proportion is within 10%, and the goal is to be OK within 15%
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Brother A is really a good person. His peers are focusing on promoting autumn, while Brother A is teaching us to maintain the profits of old products. Chengdu Man Tong has applied to add you as a friend!

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