Tencent launched its Wechat membership card version X1 on September 24, 2013. It aimed at achieving 1 billion yuan (USD 162.9 million) monthly transaction.
Wechat Membership Card
Tencent launched its Wechat membership card in September 2012, which is a Tencent m-commerce O2O product to connect consumers with businesses. The new version X1 added new features based on the previous version, such as mobile CRM, customized menu, mobile customer service, Wechat payment and mobile QQ coupon store. This provides enterprises an entire consumer information management system.
Tencent offered enterprises a mobile and social network user accounts management system, which would be a huge convenience for those who don’t have IT support to be able to perform precise social marketing and customer service. They could fully dig up potential consuming in existed users without lowering profit.
Up to now, more than 1000 brands have signed up with Wechat membership card in over 30 cities. It has issued more than 50 million cards with about 30 million users. It is estimated to achieve 80 million users in 40 cities by the end of 2013. Actually, the short-term goal of Wechat membership card is to realize 1 billion yuan (USD 162.9 million) monthly transaction.
Consumer Information Management
For enterprises, the common way of promotion is to display ads and coupons on internet and attract consumers to your shop. But they didn’t record consumers information, thus the IT department couldn’t analyze which group of consumers got the coupons.
However, Wechat membership card can record the consumption information of users, even how often they consume in the shop and the amount of money they spend. This allows enterprises to know consumers’ habit more precisely and they could send out the coupons efficiently.
Wechat membership card is competing with group buying and review websites. One enterprise which signed up with Wechat membership card admitted that they actually cut the promotion expenses on group buying websites. “Although advertising on group buying websites could bring short-term growth, but after the discount season, most consumers would not come back. Besides, the huge discount would also affect profit.”
The booming of group buying websites cultivate O2O market, Wechat membership card comes to harvest. Catering is only the first stop for Wechat membership card, next, it will include KTV and shopping malls.