Is the user’s pain point the user value? How can products eventually become the products that users like? How should a sustainable business model be refined? Through the pioneering one-stop employee care service platform in China, we have seen the enterprise deeply understand and correctly identify the multiplicity of user values, and constantly revise business in the feedback of users and the dynamic market environment. The mode, its evolutionary path is expressed around the user value, through the continuous innovation, trial and error and iteration of the product content and value delivery methods, effectively satisfying the multi-level user value and realizing the sustainable development of the enterprise. How to identify and satisfy user value is a problem that needs to be solved in enterprise development.
In the Internet age, the content, presentation and satisfaction of user values have undergone great changes. The deepening and correct understanding of user value has determined the way companies create and satisfy user values, thus forging business. mode. In this regard, Cooper (2013) particularly emphasizes that entrepreneurs should “explore, interrogate and supervise customers, find the feelings and reasons, and urge customers to express their true views” (2013); Narver et al. (2004) Identifying the market’s dominant demand and potential demand, the market orientation is divided into two dimensions, namely, first-acting and reactive.
The former refers to the mining and identification of the invisible needs of market users, while the latter is to find and satisfy market users. Known requirements. It can be seen that to achieve success, entrepreneurs must pay attention to user needs in real time, constantly identify the real needs of users behind the phenomenon, and gradually form a sustainable business model in meeting user values, which is the key to promoting the efficient implementation of the innovation process ( Day, 1999).
This process is very prominent in the pioneering business of the one-stop employee care service platform in China. Interpret and pass on user value Mr. Cai Hu, founder and CEO of Dianguan Care Network, holds a bachelor’s and master’s degree in engineering from Tsinghua University. His entrepreneurial team members have years of experience in marketing and IT development in multinational companies. In the work, Cai Hu observed that many companies encountered the following problems in employee welfare procurement: corporate welfare is not attractive to suppliers due to small purchases, suppliers often arbitrarily offer and after-sales service is poor; employees are difficult to adjust, difficult to meet Corporate culture is even more difficult to reflect.
In response to this market pain point, Cai Hu and his entrepreneurial team set up a bit of care network in June 2015. At the beginning of the establishment, the care system adopted the form of membership, with the slogan “Workers unite and strive for better welfare!”, highlighting the initial intention of the Care Network, which provides more and better welfare services for member companies and their employees.
Incorporate a large number of decentralized welfare purchases into its website, and open a staff welfare shopping special for the company at a lower price than other e-commerce platforms, saving worry and saving money. However, the enterprise human resources management department (hereinafter referred to as HR) and employees do not buy it: it is considered to be a website for selling things.
Although it helps to select welfare products, it cannot allow employees to shop online every day. This means that the differentiation of Dianguan.com and Tmall, Jingdong and other comprehensive shopping platforms is not large, and enterprises and employees can completely eliminate them. As a result, the profit model of the website to earn the difference or rebate by selling goods is also difficult to sustain. However, the data of the website operation also shows that the repurchase rate of some employees is very high, and the unit price of the customers is about 100 yuan and praised. This shows that the demand is also objective.
What can I do to survive without making a difference? Why do corporate customers need us? The startup team analyzed the internal data of the trial operation for half a year, and found that the data does not support the medium-sized enterprises with the original target customer base of 300-500 people, while the large companies with more than 2,000 people, small companies and startups with around 100 people are more willing to Use the Drip Care website.
The reason is that large companies pay more attention to employee care and employee satisfaction, and often want to introduce a more professional human resource management system to improve work efficiency and welfare management performance, thus requiring a personalized one-stop welfare solution. Small businesses, especially start-up companies, have less welfare budgets and no corresponding management departments. Drip Care Network can “help users choose” and “help users save money”, which can help small business managers to manage welfare; For medium-sized companies with 500 employees, their welfare products usually form a fixed purchase channel, and they do not need to use third parties to help them manage online. Naturally, they will not pay attention to the care network. In the welfare management of enterprises, the relevant budget, procurement and approval procedures are relatively cumbersome, and the employee welfare needs are diverse and difficult to meet.
Therefore, welfare managers often struggle to please. The use of third-party platforms is convenient but also the most easily questioned. The staff will ask: Is it really for us? Is it autonomous choice rather than “forced sales”? The boss will be confused: compliance? Is there a stupid? The HR department will also wonder: Is it more convenient or more troublesome? Is welfare performance really visible and tangible? Suppliers will also ask: Do you want to do the diversity and quantity imbalance of different corporate welfare needs one by one, can you do it? Through continuous questioning and in-depth analysis, the entrepreneurial team has clarified the basic logic of the company’s business, namely: employees are enterprises, and employee services are part of the HR work of the enterprise. The company should serve the management of the enterprise HR first, and then serve For corporate employees.
This understanding has provided direction for its operational transformation. Drip Care Network began to conduct employee demand research in member companies, and 52.9% of employees believe that professional welfare management, commercialization and diversification of welfare forms, and free use of welfare points are very attractive and willing to try. That is to say, most employees support enterprises to convert benefits into various products embedded in the enterprise intranet. Employees can selectively use their own welfare points through the intranet, which provides a basis for the development of service-oriented welfare projects and points tools. . Based on a full understanding of the needs, the startup team decided to develop a lighter and more standard enterprise employee benefits and life service platform based on the SaaS (Software as a Service) system, and help employees achieve employee benefit management through appropriate Internet technology applications.
Digitization, visualization and clarity; with SaaS system, Drip Care Network will deploy application software on its own server. Member companies can access from PC or mobile according to their actual needs, ordering through network platform. Services, and manage corporate benefits on the platform through dedicated software: By sharing data on the cloud platform, companies can perform offline operations, local data storage and data analysis, etc., and turn relevant information into clearly visible numbers and charts. To help companies achieve clear management of employee services. Respond to user value and reshape profit model In reality, people’s consumption behavior is often the result of the interaction between shopping psychology and shopping environment.
The combination of the two constitutes the consumption behavior of people. On the basis of fully understanding the welfare management of member companies and their employees’ welfare appeals, the Care Network has constructed 69 online scenarios (see Figure 1), providing people with a near-real background in virtual space to assist consumer decision-making. At present, the multi-scenario and one-stop welfare solution has become the basis of the operation of the care network. The online scenes reflect the actual needs of the offline, which makes the employees feel pleasant and interesting in the interaction, which promotes the communication. In addition, it has enhanced the sense of belonging and happiness of the company. The O2O model of online and offline closed-loop has promoted the sales of goods and services, and truly achieved multi-win. Through re-layout, Dianguan Care Network has realized the upgrading of technology platform, product content and target customers, and initially formed three product modules, namely, In-House Buying, Love Points and Love Care, reshaping the profit model. Among them, “Love Inside” meets the employees’ shopping needs, “Love Points” meets the company’s welfare management, and “Love Care” meets employee learning and motivation.
The original shopping platform has evolved into a one-stop service platform for life and work of “commodity + tools + services + activities”; the business content has changed from “domestic commodity sales leading” to “integrated service leading”, and platform functions have also been realized. From the “one-way transaction” to the “resource sharing, multi-directional transaction” strategic transformation, in 2017 achieved sales of 250 million yuan, 2018 yuan reached 600 million yuan. Welfare points are the system design that runs through the platform, fully embodying the essence of “elastic welfare” and welfare management. In the point system, various welfare subsidies of employees are distributed in the form of points. For example, “all-category points, heatstroke reduction points, labor insurance points, and meal compensation points” constitute the employee’s welfare points system, and employees can use various types of points. In exchange for goods or services, if the points are not enough, they can be paid in currency, and various payment methods will be displayed in the consumption details.
Through targeted recharge points, companies can also reward employees with real-time rewards, and link the benefits points to the company’s current reward programs, such as star employee rewards, training points, and full-time praise. This can effectively guide employee behavior, assist in the achievement of corporate management goals, and make welfare management more valuable. There are three benefits to doing this: saving money, employee satisfaction, and clear performance of welfare expenses. For example, if the enterprise spends 1,000 yuan, the company will deduct 200 yuan from the wages. The actual payment is 1200 yuan. If you purchase welfare points on the platform, the actual expenditure of the enterprise is 1,000 yuan, and because the purchasing power of discounts is actually more than 1,000 yuan, and there are more than 500,000 kinds of goods and services on the platform for employees to choose independently, the invoices and consumption provided by the platform. The detailed and legal compliance is also convenient for the financial management of the enterprise, so that the individualized welfare expenditure of the employees can be seen at a glance, which is convenient for the enterprise to control the welfare budget and optimize the welfare management. At present, the revenue structure of Didi Care Network has undergone major changes.
The proportion of service projects in total profit has exceeded 90%, and service products have created more profit margins. Such as renting, ticketing information, communication coupons for various commercial coupons, exchange and sharing of idle items among colleagues, books, household items, etc., excellent training courses, study notes, office tools, etc., corporate tea room Snack racks, health services, group building services, knowledge services, courier services, and other services that require in-depth operations… More and more service projects attract more and more employees to become active users on the platform. Not only buy goods, but also use more and provide content for the platform. Enhance user value and empower companies Dimensional Care Network’s welfare management further enhances user value by empowering corporate HR.
The specific performance is as follows: SaaS system helps enterprises improve the efficiency of welfare management; integrates suppliers to help enterprises reduce welfare costs; and enterprise HR provides employees with better service and product guarantee; platform integrates more partners with service integration, thus Providing better benefits for employees; the comprehensive application of platform big data enables the staff service field to be clear, data, and intelligent. In the B round of financing in early 2017, Dianguan.com received a cash investment of 100 million yuan. In December of the same year, he won the “Startner of the Entrepreneur Dark Horse Finals” and was the only selected player in the domestic service field. At present, Dianguan Care Network has built an open platform for suppliers, member companies, employees and strategic partners. Through resource sharing, multiple stakeholders are forming a good ecosystem of symbiosis, coexistence and win-win. The points system is becoming a platform.
Important credit basis: the platform accumulates employee credit through points, guides the company and employee behavior through credit, and the welfare points are rising to the platform’s credit currency. In the circulation within the platform, the increase in product and service revenue is also promoted. The credit accumulated by users in the long-term consumption behavior realizes monetization and generates and creates value, forming positive incentives.
Credit, an important factor in the sustainability of this market transaction, is highlighting its value creation function on the platform of the Care Network. summary Choosing to buy welfare goods (services) belongs to enterprise procurement, and has a market of 100 billion yuan. The difficulty is how to make enterprise executives and employees feel satisfied. Its user value is more difficult to control than the personal consumer goods market, and the business model of the enterprise is impossible. Once you do it, you can’t follow the pre-set, but it’s an ever-changing process. How to recognize and convey user value is an important path for business model iteration and evolution. The inconsistency between the user’s “pain point” and user value is also one of the many uncertainties that entrepreneurs need to face. The user’s pain points observed in reality are not necessarily real user values. Entrepreneurs need to carefully analyze user feedback and explore the real user value hidden behind the “pain point” in information interaction. This is the starting point for constructing an effective business model. .
Many entrepreneurs’ understanding of user value is often limited to solving a certain “pain point”, and less of the “pain point” in the changing environment to think about the uncertainty of the “pain point” itself. Reflects the multiplicity of user value. Some of these multi-user values have already been revealed, others need to be dig deeper, and more need to understand the composition of the user value chain. The essence of entrepreneurial activities is to correctly identify the true user value behind the “pain point” representation and give it an effective satisfaction. Different from personal consumption, the value of users of Dictual Care Network is manifested at two levels: employees (personal consumption) and enterprises (welfare management). The two demands are different but related and mutually premise. Only when they are mutually connected and different from each other.
It is possible to obtain lifetime value for users with multiple user values. The problem of solving the purchase and distribution of corporate welfare is the apparent user value, the development of corporate welfare performance, the development of corporate culture, the development and sharing of employee life service products, and the achievement of value creation among member companies. It is a more realistic user value that has not yet been revealed, and is closely related to the company’s improvement of welfare management performance, corporate culture and management efficiency. The value conversion process of the care products from the entrepreneur’s will to the user is also a process of gradually building the business model. Online and offline integration is an important way to convey user value. To meet the multi-level, multi-level and differentiation of user value appeals at different levels, it will undoubtedly increase the difficulty of business management and increase the entry barrier of competitors.
In reality, the company’s products and business models are difficult to comply with the pre-design for solving the “pain point”, but need to take action as soon as possible in response to the user’s needs, constantly trial and error and rapid iteration in the user feedback, will start a business The product in the will of the person is successfully transformed into a product that the user is satisfied with and delivered to the user in an appropriate manner.
The evolutionary path of the business model of new ventures is represented by an organic combination of product content and value transfer methods to form a sustainable business model. Through the O2O closed-loop mode formed by 69 scene design and various offline activities, Drip Care Network provides convenience for experience and information interaction, and is more conducive to the transfer of user value, forming a characteristic profit channel; welfare The point system and its monetization constitute an effective profit barrier; modular self-help benefits, office butlers, corporate post offices, pantry, supplier-oriented POP plans, welfare big data services and other value-added services have become profit points.
From “domestic sales leading” to “value-added services leading” and “unilateral trading” to “multi-party creating value”, Dianguan.com relies on traffic and relies on multilateral interactive service content and continuous innovation of value transfer methods. Driven by the business operations, the three parties’ interests have been achieved, that is, the interests of Dianguan.com, member companies and their employees are consistent.
In fact, the way of focusing on multi-stakes and value creation is more in line with the business logic of the Internet era, and is also more conducive to the formation of a sustainable and healthy membership-based e-commerce model. Knight (2010) believes that uncertainty is a necessary condition for the existence of profit. The understanding of uncertainty depends not only on prior knowledge, but also on the individual’s unique deep cognitive ability or situational knowledge. Therefore, in the formation of the business model, the entrepreneurial team is very important to the value of the user, the ability to understand the characteristics of the market, and the initiative to adapt to change.
The knowledge background and market experience of Cai Hu, the founder of Guanxin.com, and its team have played an important role in the selection of technology platforms, product development and marketing. The successful business model is embodied in the organic combination of different product content and its presentation methods. The value transmission is reflected in the bilateral or multilateral mechanism design and information dissemination mode on the platform; the two integrate the key resources and value propositions owned by the enterprise. A profitable, sustainable business model is formed in the process of meeting multiple user values. Based on user-oriented value mining, rapid development and iteration of products driven by value creation, continuous optimization of business processes that serve the transfer of user value is a common feature of many successful start-ups in the Internet era.