This is the 23rd day of my participation in the August Challenge. Check the details of the activity: What aspects can be considered in the August Challenge regarding the maximization of GMV in each project? GMV stands for Gross Merchandise volume

Steps to analyze problems related to GMV maximization

  1. Disassemble the problem – find the problem. There are two parts to this: the background of the business and how to price it
  2. Related business background – problem segmentation – internal and external aspects
    • The essential factor that affects the price of a commodity – the value behind the commodity – the driver: the relationship between supply and demand of the commodity

    Therefore, the business background can be divided into internal and external factors

    • Internal factors – balance of supply and demand – select quantifiable indicators of supply and demand
      • Supply index: quantity [unit output, inventory, import volume, quantity invested]
      • Demand indicator: quantity [total demand, consumption]
    • External factors – money [sufficiency of social funds] + policies [macro-policy control] + environment [epidemic]
  3. How to price it? – Pricing strategy

    – GMV formula itself – GMV = UV * conversion rate * unit price = user demand * unit price

    – Based on historical data – obtain the relationship between customer unit price and user demand – bring it back to GMV calculation formula – obtain the optimal GMV solution
    • Strategic perspective – price targeted + cover as wide a range of people as possible [price discrimination]
      • Guidance – win-win for business customers
        1. Enjoy low price – pay labor – designated APP, single, publicity and promotion
        2. Regular low prices – retain price-sensitive users
        3. Prices vary in order. – Early bird ticket
        4. User level prices vary – student ticket/member price
        5. Rich product level – regular member/Diamond member/first-class seat/second-class seat category more dense and rich – to meet a wider range of consumer needs

So here’s a summary. That is to say, the problem of GMV maximization can generally be considered in two parts. Part is specific business scenarios, part is pricing related issues. Business scenarios can be divided into external factors and internal factors. External factors generally consider social funds, policies and environment. Internal factors generally consider the quantity of supply indicators. Pricing correlation can be considered from GMV itself, and the optimal solution can be solved through historical data. On the other hand, it can be considered from strategy. Consider the five aspects (output, output time, output label and be satisfied) to improve GMV.