Ways to Measure the Opportunity
Posted: Sun Dec 22, 2024 7:14 am
platforms are totally different—there’s nothing like WeChat in RoW.
Also, China is large enough to merit being considered as a separate market. In terms of global GDP, China makes up about ⅕, while the RoW makes up ⅘. And all the futurists out there predict that China’s portion of the global GDP will most likely continue to grow.
Yes, there are some different platforms in other countries, but not so many different platforms that any of those countries really counts as an ecosystem of its own. In fact, if you know of one that I’m missing, I would love to hear about it so I can adjust some of these statements.
The above are a few reasons why I believe that if you want germany phone number list to be a truly global company, you need a strong presence in both China and the RoW.
So, how can you measure the potential opportunity in China to determine whether the ROI is worth the risk? There are several ways you could go about this:
Use a traditional market research approach.
Just jump on in.
Look at your current customers and see if they already include people from mainland China.
This third one is the most common reason people end up contacting us. They already have some Chinese customers and think, “How can I get more?”
One of my favorite ways to test the market is via Baidu. A live Baidu campaign can help you gather real-world data, which is preferable to market research. I mean, surveys and focus groups are one thing, but I find it much more interesting to get feedback from real potential customers. There are two reasons why:
Survey respondents tell you they’ll buy something…but maybe they won’t.
People in real buying situations will give you honest and accurate objections. While a focus group member might tell you the couch you’re selling is beautiful, the real-world buyer might tell you straight-up, “My wife would never let me put a yellow couch in the house.”
Before launching on Baidu, we can use their tools to find estimated monthly clicks and cost-per-click (CPC) for a range of keywords. Then you can compare that data to the estimated lifetime value of your customers.
(Side note: Other Chinese platforms can help provide this data too. If you’re in B2C e-commerce, you can learn this stuff from Tmall.)
So here is a quick back-of-the-envelope method you can use to see whether this market is worthwhile.
Comparing Lifetime Customer Value to Baidu Advertising Costs
Calculate customer lifetime value like this:
Also, China is large enough to merit being considered as a separate market. In terms of global GDP, China makes up about ⅕, while the RoW makes up ⅘. And all the futurists out there predict that China’s portion of the global GDP will most likely continue to grow.
Yes, there are some different platforms in other countries, but not so many different platforms that any of those countries really counts as an ecosystem of its own. In fact, if you know of one that I’m missing, I would love to hear about it so I can adjust some of these statements.
The above are a few reasons why I believe that if you want germany phone number list to be a truly global company, you need a strong presence in both China and the RoW.
So, how can you measure the potential opportunity in China to determine whether the ROI is worth the risk? There are several ways you could go about this:
Use a traditional market research approach.
Just jump on in.
Look at your current customers and see if they already include people from mainland China.
This third one is the most common reason people end up contacting us. They already have some Chinese customers and think, “How can I get more?”
One of my favorite ways to test the market is via Baidu. A live Baidu campaign can help you gather real-world data, which is preferable to market research. I mean, surveys and focus groups are one thing, but I find it much more interesting to get feedback from real potential customers. There are two reasons why:
Survey respondents tell you they’ll buy something…but maybe they won’t.
People in real buying situations will give you honest and accurate objections. While a focus group member might tell you the couch you’re selling is beautiful, the real-world buyer might tell you straight-up, “My wife would never let me put a yellow couch in the house.”
Before launching on Baidu, we can use their tools to find estimated monthly clicks and cost-per-click (CPC) for a range of keywords. Then you can compare that data to the estimated lifetime value of your customers.
(Side note: Other Chinese platforms can help provide this data too. If you’re in B2C e-commerce, you can learn this stuff from Tmall.)
So here is a quick back-of-the-envelope method you can use to see whether this market is worthwhile.
Comparing Lifetime Customer Value to Baidu Advertising Costs
Calculate customer lifetime value like this: