My lover was lying lazily on the sofa last night, eating apples and browsing Taobao.

Suddenly a cry of surprise, so that has been concentrating on finding code BUG I, scared a big jump, busy ask what happened, let our leadership by so big stimulation.

“Hubby, look at this activity. It’s perfect for you. You buy books every day, but you don’t read them. We can’t fit any of our little bookcases. Well, with this Kindle, you don’t have to buy books. Save money to buy me flowers.” She ran from the couch and held out the screen of her phone in front of me.

“Buy this, already bought.” I sniffed and looked at the dusty pile of unopened technical books on the shelf. “You know why you buy paper books? Because steadfast. I don’t need them to collect them.”

Wife pouted mouth, “dead brain, link hair you tweet.”

Ran back to the sofa to continue the online shopping. History has taught me that it’s almost impossible to place an order today without spending money.

I picked up my phone, clicked the link, and scanned the activity.

Well, it’s an exciting marketing campaign.

There’s a big question mark popping up in my head. Migu is losing money doing this. Are they willing to do public service for free and contribute to the national habit of reading? My curiosity was immediately aroused.

With interest, I began to study this activity.

So far, Migu’s official flagship store on Tmall has sold 75,000 pieces at a price of 658 yuan each.

The sales promotion period is from May 18, 2020.to June 28, 2020.As can be seen from the sales data below, the sales volume has increased sharply since May 18.

Migu’s marketing campaign. I think there are four aspects:

1. In order to expand publicity, Mi Gu builds ecology. Take over China Literature group from Tencent, layout “new cultural innovation strategic ecology”. We can see that the cultural and creative field has broad prospects, which may be a new profit growth point for China Mobile. Migu Company is a professional subsidiary of China Mobile for the mobile Internet field, which is responsible for the integration of product provision, operation and service in the field of digital content. Migu is the only operating entity of digital content business of Music, video, reading, games and animation of China Mobile.

2, in order to pull new retention. With these reading habits, users can derive communities, social networks and other forms to activate private domain traffic.

3. Use Migu APP to punch in and increase users’ adhesion to the APP. According to psychological theory, 21 consecutive days can form a natural habit. Then 100 days in a row can reinforce and continue this habit. In this way, users’ dependence on Migu APP is solidified.

4. It is more likely to connect people who persist for 100 days. Migu should have done the calculations. Profit and loss should be under control.

Let’s calculate, according to 658 yuan per unit, at the break-even point, the number of personnel who have not completed the task is required. Let’s take a look at the prices of the Kindle Starter and Kindle X Migu Edition.

Since we don’t know the cost, for the sake of calculation, we assume that the 558 yuan for the Kindle entry version is migu’s cost. Of course, the cost will be lower than that.

Based on the above assumptions, the gross profit of migu is 658-558=100 yuan per unit.

Migu will get a profit of 100 yuan if a user fails to complete the task of clocking in continuously for 100 days.

Suppose one of the users connected successfully. Migu will refund the cost, which is migu’s loss of $558. For convenience of calculation, we assume migu has a loss of 500 yuan.

Set: the number of people who finish the task on time is X, and the number of people who do not finish the continuous punching task is Y.

Migu to break even, then

Y100 (Gross margin) -x500 (cost) >= 0

Solution: > = 5 x Y

The proportion of unfinished tasks should be at least Y/ (X+Y) *100% = 5X/ (X+5X) = 83%

That’s interesting. It basically follows the 80/20 rule. Because there is no detailed data to do the theoretical support of the above calculation. Temporarily use the 80-20 principle (in particular, this scene with this theory is more reluctant). That means maybe 80% of the people will fail. One hundred days is too long for passionate consumers to realize. As time goes by, they lose their freshness and forget about the items they buy.

If a user completes the task, it shows that the user is relatively self-disciplined, and through continuous punching, they have developed the habit of punching in every day. They will continue to use it. There may still be a few people lost, but the rest are core users. Maintaining these core users creates more value. Amazon doesn’t make money on its Kindle, so buying e-books is amazon’s magic bullet. Migu, too.

A lot of people are not convinced: 100 days, simple, certainly can insist on.

I clicked the pay button and started punching in on July 1, 2020.7. I became a member of the group that refused.

  • About the author: Wang Zhili (wechat: Wbliu85), an atypical programmer who starts his running life at four in the morning.

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