The “Pinduoduo” style has become popular overseas. Why does he make Facebook copy his homework?

Why can Nextdoor succeed? Reveal the “god” operation behind the secret.

Recently, there is a social app in foreign countries that is particularly popular. It is so popular that Facebook feels threatened -at the expense of “plagiarism” , it launched a function similar to this app “Neighborhoods” to contend with it.

You know, all the hot apps that Facebook “copy”, such as Tik Tok, such as Snapchat…

The "Pinduoduo" style has become popular overseas. Why does he make Facebook copy his homework?

Tik Tok tweeted the official taunt: Hmm…looks familiar

This time, the app that made Facebook so scared was called Nextdoor . 

This “magic” social app now has 60 million users worldwide and covers 27.5k+ communities. In the United States, almost 1 in 3 people use Nextdoor.

This year, Nextdoor was named the 100 most influential companies in 2021 by Time Magazine , with a valuation of 4.3 billion U.S. dollars and will soon be listed in the United States. 

The "Pinduoduo" style has become popular overseas. Why does he make Facebook copy his homework?

Screenshot source: Time official website 

With such good results, it is not difficult to understand why Facebook has a sense of crisis towards him. 

After careful research, I found that this App is more magical than I imagined. It actually relies on “posting postcards” to send users a verification code, and its promotion method is not too much like Pinduoduo … 

01  Nextdoor, what the hell is it?

To put it simply, Nextdoor is a dating software, but the main thing is to socialize with your “neighbors”: With your home address as the core, it expands 5 miles (8 kilometers ) outwards to carry out a series of social activities. 

However, its function is not just as simple as “social”. 

1) Social function: community version of “friend circle”

On Nextdoor, what you see is basically the daily routine of your neighbors. It can be a trivial daily: 

For example, when a giant spider was found at home, he was taken aback and poked. 

The "Pinduoduo" style has become popular overseas. Why does he make Facebook copy his homework?

The neighbor commented below that this spider may be a “black widow” 

An eagle flew up from the balcony and poked it. 

The "Pinduoduo" style has become popular overseas. Why does he make Facebook copy his homework?

In addition to life trivial matters, the aunts of the community are also particularly interested in what is happening around them, because it is closely related to them personally. 

And the American people always “nosy children”, like the speech of public administration , from time to time put forward a vote, called on a group of people to protest the like. So you will find on Nextdoor that users often discuss: 

The traffic light on this street is broken. Who is responsible for fixing this? Should I call 911?

The fire hydrant sprays water all the time, is it for fun or a waste? Does the police care about it? 

USPS postal vehicles occupy parking spaces for a long time. Should I complain? 

The "Pinduoduo" style has become popular overseas. Why does he make Facebook copy his homework?

Not only that, the presidential election events that the American people love to hear will also be discussed on Nextdoor, such as asking where there are voting sites and how to vote. 

2) Local life: Meituan + Xianyu + n

On Nextdoor, the most content you can see is “Finding People”, which can be called a collection of “Human Trafficking Posts” .

Where can I find water pipes, repair electrical circuits, and take care of babies? 

Where can I find dentists, butlers, and lawyers? 

… 

The "Pinduoduo" style has become popular overseas. Why does he make Facebook copy his homework?

Not only can you find people, you can also “find things”.

You can find businesses near the community, find out what discount information and community activities are nearby, and you can also see information such as renting and selling houses. 

You can also buy second-hand goods at Nextdoor, and you can also see how far these goods are from you: 

The "Pinduoduo" style has become popular overseas. Why does he make Facebook copy his homework?

3) Government Affairs Module: “Real-time 911”

Nextdoor will also provide users with “safety information” . For example, where there is a gunshot and who has entered a thief, you can know the first time : 

I heard gunshots near xxx; 

There are thieves on the xxx street, remind everyone to pay attention; 

There was an earthquake or fire nearby; 

It will also report where there are suspicious persons nearby and provide a detailed description of the characteristics; 

… 

The "Pinduoduo" style has become popular overseas. Why does he make Facebook copy his homework?

Facts have proved that users are indeed very concerned about such topics. According to official reports Nextdoor when a region appeared theft, crime, the earthquake came, when subscriber growth in the region will be particularly fast.

In addition to the spontaneous content of UGC, Nextdoor also has official public agency officials stationed to release safety warnings, knowledge popularization, and important information in a timely manner. 

California to San Marco Matteo County Public Health health sector, for example, health and safety levels within the scope of jurisdiction of San Mateo County, upgrade to the “most urgent” status (tier 1), this piece of information will automatically appear in the top position App . 

The "Pinduoduo" style has become popular overseas. Why does he make Facebook copy his homework?

Source: Zhitong Finance 

In addition to special reminders for the state of emergency, in your daily life, you will also receive notices from the CDC (U.S. Centers for Disease Control), Fire Department, and Regional Emergency Management Bureau to tell you: 

Latest update: citizens over 12 years old can get vaccinated; 

Fire Department: Sprinkling water on fire hydrants is fun, but don’t open the fire hydrant yourself! 

emegency notice! Friday will usher in a storm… 

The "Pinduoduo" style has become popular overseas. Why does he make Facebook copy his homework?

02 How does Nextdoor achieve “user growth”?

After careful study, I found that Nextdoor’s growth is simply a typical case of the “flywheel effect” : 

The early growth was particularly slow. After reaching a critical point, with the help of good strategies (also related to the sudden epidemic), an exponential growth was achieved.

How does it do it? 

1) Recruiting new customers

Unlike ordinary Internet companies, Nextdoor did not make a big splash when doing cold start; on the contrary, its promotion method is very “traditional” . 

① Seed users: send postcards to invite registration

Generally speaking, in order to expand the growth rate of its users, an app will advertise and advertise overwhelmingly. However, Nextdoor’s cold start is very “chic”-send postcards to the user’s information and invite registration . 

At the same time, in order to lower the registration threshold for users, everyone will basically simplify the registration process; however, Nextdoor not only did not lower the registration threshold, but also increased: 

Not only do you have to fill in a lot of information: real residential address, zip code, and mailbox number; you also need to verify your address through a “mobile phone bill” or “postcard”. 

Unexpectedly, it’s 2021, and some people send verification codes by “posting postcards”… (of course, it also combines mobile phone verification) 

The "Pinduoduo" style has become popular overseas. Why does he make Facebook copy his homework?

Account verification method / Source: App screenshot 

Nextdoor will send a postcard with a verification code to your mailbox. Only by entering the verification code can you post on the App, join the group chat, and use all the functions. 

The "Pinduoduo" style has become popular overseas. Why does he make Facebook copy his homework?

Source: Google 

It may be difficult for everyone to understand, why in the Internet age, send a “postcard” to verify it? 

Because the situation in the United States is not the same as in China. Many important things, such as “credit cards”, “bills”, and “checks” will be conveyed by mail, so many Americans still have the habit of opening their mailboxes. 

By sending postcards, you can not only verify whether the user really lives at the address, but also ensure that most users can see it.

At the same time, users who are willing to register in this “old” way to pull new ones have a great chance of becoming “seed users”, which also prepares for the next outbreak of Nextdoor. 

However, this method also has disadvantages-it is really slow… It may take 10 days to receive a verification code. For example, I originally planned to register an account by myself and experience it myself. 

In order to pass the verification, I went to great lengths to ask my classmates in the United States for mobile phone numbers and addresses, and tried to register for an account. However, after waiting for more than a week, I still didn’t receive the postcard… Finally, I had to use someone else’s account to experience it first. Features. 

Also because the efficiency of sending postcards is too low, in the first year of its establishment, Nextdoor only won 175 American communities (the United States has 16.5w communities). 

With the first seeds after the user, in order to further expand the user base, Nextdoor start Use “cash back” and do “viral growth.”

② Outbreak: “Pinduoduo” style pulls new rebates

According to Nextdoor’s latest pull rules, for every 10 neighbors you invite, you can get a $25 Amazon gift card: 

The "Pinduoduo" style has become popular overseas. Why does he make Facebook copy his homework?

Invite friends / Source: App screenshot 

Do you feel familiar with this set of operations? Yes, this is very much like to fight a lot of time ago “to invite three friends get cash” burst of fire activity, but Nextdoor some of the functions will be easier. 

For example, you can choose to send an invitation with an “invitation letter”, and then Nextdoor will send an “invitation registration” postcard to your neighbor in your name; it will also automatically use your mailbox to send an email to the other party without having to talk to the neighbor in person . 

In addition to neighbors, you can also recommend to your familiar friends or family members and let them join the local community. If your friends and family can get 10 neighbors within 21 days and then verify, both of you can get a $25 Amazon card.

The "Pinduoduo" style has become popular overseas. Why does he make Facebook copy his homework?

Source: MAXIMIZING MONEY 

This “simple and rude” strategy allowed Nextdoor to start its violent growth-in just 5 years, it covered more than 50% of communities in the United States.

This method is not only effective, but also a high cost performance for a single customer acquisition. Compare Nextdoor with the same type of social app Dingdong in China: 

For every 10 new users Nextdoor adds, it only costs $ 25, with an average cost of $2.5 . 

In 2014, Dingdong Community advertised on a large scale in subway stations in core areas of Shanghai and Beijing. The advertising fee for the Shanghai Metro in January is as high as 15 million yuan, and that for the Beijing Metro is 12 million yuan. 

According to @ Sohu Technology Report, burn Thanks to this promotion model, although ding-dong district also received 70 million users, but its single-acquisition costs are very high, it is 2 to 3 times Nextdoor of ; in the case of App not profitable Next, this is undoubtedly buried a huge “cash flow” pit for myself. 

2) Promote alive retention

After attracting users to the App, Nextdoor did not rush to monetize, but first used community content/services to promote and retain users. 

In order to create a community atmosphere, Nextdoor focuses on “government”, “local service”, and “community content”.

① Keep: Invite “government agencies” to settle in

“Security” has always been Nextdoor’s main external selling point. In order to create a safe atmosphere in the community, Nextdoor’s core action is to invite “official government agencies” to settle in. 

These government agencies can be surrounding police stations, fire stations, emergency management centers (can be understood as emergency), CDC, Red Cross, etc. They will regularly publish anti-theft, crime, epidemic prevention, etc. in the community. Official information. 

Why does a community social app use “security” as its selling point? Maybe we living in China can’t realize it. 

In the United States, where multi-ethnic communities coexist, the economic conditions, living habits, and beliefs of different races are relatively large, and the quality of personnel is also uneven, and conflicts are more likely to erupt. This information is indeed “rigorous.” 

Even worse, in the United States, it is legal to hold guns… Many criminals have weapons such as firearms, which are very dangerous. 

Therefore, having a “sense of security” is particularly important for Americans living in a “community” environment.

The addition of these government agencies undoubtedly makes the local people feel that they have added a guarantee of safety. If you have any questions, you can post to ask, and even if you find a suspicious person, you can also contact the police from this platform… 

At the same time, in order to prevent users from arbitrarily reporting and personal attacks on others, Nextdoor has also set up a “anti-racism” function. When encountering some sensitive words such as “White Lives Matter” (White Lives Matter), etc., it will also be automatically blocked. Maintain a community atmosphere. 

② Promotion: local life services frequently used

On Nextdoor, the most frequently used function of users is “find service” . Take a closer look at these “life services” and you will find some “déjà vu”. 

For example, many users will trade second-hand goods on it, much like the “xianyu” we use. 

Another example can be buying and selling homes in the above, similar to our last live-off , the chain of home on the same house hunting. 

Or, you can see how there are excellent near -letter interest rates, discount shops, we could see the neighbors evaluation of coffee shops, restaurants, much like the US group / public comments. 

There are more services, such as finding an electrician and a repairman, very much like 58.com… 

In addition, Nextdoor saw that users often asked questions such as “where can I get a vaccine” during the epidemic, and cooperated with ACME (an American company) to timely release a new feature called Vaccine Map (vaccine map). 

Users can quickly get nearby vaccination locations by checking the map, and they can also make appointments on it, thus solving the problems of “where to call” and “when can they be called” for most users. 

The "Pinduoduo" style has become popular overseas. Why does he make Facebook copy his homework?

Vaccine map 

In order to meet the high-frequency needs of users, during the epidemic, Nextdoor also launched an interactive map-Help Map. Users can directly publish the services you can provide on the map, such as “help everyone go to the store to pick up goods”, see People at can directly send messages to contact him. 

The "Pinduoduo" style has become popular overseas. Why does he make Facebook copy his homework?

Help Map; Source: Nextdoor official website 

Seeing this, do you have a feeling, isn’t this just a collection of all functions and functions in one App? Then why don’t I use other software with more detailed information classification to go to Nextdoor? 

That is because, Nextdoor all the business services are focused on a community, easier to use . 

Also, because these services / evaluation is recommended to neighbors around you, with the familiar people do endorsements , credibility will be greatly improved. 

03  How does Nextdoor make money?

In the first four years of its establishment, Nextdoor did not make any profits, mainly relying on investors’ money. Later, Nextdoor also began to try to make money by “selling advertisements .” 

I observed for a period of time and found that Nextdoor’s advertisements mainly have the following three forms: 

The first type is information flow advertising.

When users scan content, advertising information will naturally appear in your information stream, but the post will indicate a “sponsored” logo. This advertising space is only available to large businesses in the local community and national brands. 

If you want to do information flow advertising, the brand will spend at least US$25,000 a month. 

The "Pinduoduo" style has become popular overseas. Why does he make Facebook copy his homework?

The second type is local discounts.

Local businesses or companies can pay a fixed fee to Nextdoor, and can share coupons and discount information in the community. 

As soon as this function is launched, it feels that life services are more like Dianping…… 

The third type is neighbor advertising.

This type of advertisement is mainly aimed at community individuals or small service-oriented businesses, such as real estate agents, housekeepers, maintenance workers, etc. You can create your own homepage on it and introduce what kind of services you can provide for everyone. Users can contact you in a separate module. 

For this kind of demand, users can pay a fixed monthly fee to Nextdoor, and you can start your own “small business” on it. 

The "Pinduoduo" style has become popular overseas. Why does he make Facebook copy his homework?

Source: Nextdoor official website 

Through “sell advertising”, Nextdoor has achieved revenue of $123 million in 2020 , a year-on-year increase of 49%.

According to official data, Nextdoor’s ARPU (average user income) is currently only $10, but in comparison, the ARPU of social software such as Twitter is about $59. 

If Nextdoor’s advertising business continues to open up and active users grow, it is entirely possible to increase ARPU to US$30~50, and there will be huge room for profit in the future. 

Therefore, even if the company is still at a loss and continues to burn investors’ money, the market prospects are still optimistic about the outside world.

The "Pinduoduo" style has become popular overseas. Why does he make Facebook copy his homework?

Source: Nextdoor Roadshow PPT 

04  Conclusion

In fact, there are now several apps in China that have similar models to Nextdoor, trying to do “community socializing” in China, but they have not succeeded. 

The most important reason, of course, is that China’s national conditions are very different from those of the United States.

For example, the security features that Nextdoor is most proud of are actually not applicable in a relatively safe environment like China. 

Functions such as community group chats may be replaced by owners’ committees and WeChat group chats; when it comes to intra-city services, users may immediately think of O2O platforms such as Meituan and 58.com. 

No matter what product it is, finding the core needs that suits your target population is the key. 

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/the-pinduoduo-style-has-become-popular-overseas-why-does-he-make-facebook-copy-his-homework/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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