Read the book, "Business Insight", by Liu Run

Reading time: 8:40-9:00

Read Chapter 5 of Formula Thinking

Why should we learn formula thinking?

Vs scattered thinking is like defusing a bomb, asking to try cutting the red thread to see if it works, it will kill people.

So scattered thinking relies on sudden flashes of inspiration, and you can give advice to friends in life, but it is unreliable to dismantle complex business problems

What are the formulas?

Sales funnel formula: sales = traffic? conversion rate? customer unit price? repurchase rate.

Thoughts?: What should be the growth formula of Excipient Yi and the growth formula of the excipient industry? Make transformations based on general formulas.

How to use? Analyze the business logic of the restaurant

Traffic is the total number of people who come to the restaurant

The conversion rate is the proportion of customers who actually come to eat

The unit price is The average amount spent by customers who ate there

The repurchase rate is the proportion of customers who have eaten at this restaurant and will come back again.

Why do celebrities close down hot pot restaurants?

Although the influence of celebrities can bring huge traffic to restaurants in a short period of time, each restaurant's fixed physical location can only do business within a fixed range. In the long run, we still need to rely on repeat customers.

Conclusion. The short-term business of a restaurant depends on traffic, and the long-term business depends on repurchase rate.

Thinking about it, what about opening a store on Pinduoduo?

Give suggestions

First, increase traffic and use influence to bring traffic to the restaurant

Second, find managers with rich experience to help increase conversions Rate and customer unit price

Third, continue to monitor the quality of dishes to ensure repurchase rates.

Formula thinking, the whole world is no longer elements, but the links between them. Like a map stolen from God.

Compound interest formula: (principal? compound interest) * time

Fixed rate formula: price = cost? fixed rate

User loyalty formula: I provide The value - the value he provides? Transfer cost

Thinking, house price formula?

The next time you share a topic, after the one-page canvas thinking, it can be formula thinking.