Multi-dimensional perspective analysis of the service cost of the Shanghai private domain operation company

I. Components of the cost of services

(i) Basic service charges

1. Platform build and configuration costs
   • The agency first needs to build the basic platform for private traffic operation for the enterprise, which includes the registration, certification, page design and development of WeChat public number, small program, enterprise WeChat and so on. For WeChat public number, the design of personalized menus, attention reply language and page templates, to ensure the consistency of the brand image and the friendliness of the user experience. The development of mini-programs, on the other hand, involves functional design, interface layout, and interfacing with back-end systems to meet the needs of enterprises for product display, sales, and member management. Configuration of enterprise WeChat includes organizational structure building, member information importing, permission setting, etc. This part of the cost usually depends on the complexity of the platform and functional requirements, usually ranging from 3000 - 8000 yuan per month. For example, the development and initial configuration of a small program with basic product display and online purchase functions may cost around 5,000 RMB, while the cost will increase accordingly if more complex and personalized functions need to be customized.
2. User attraction and sedimentation strategy development costs
   • Developing an effective user attraction strategy is one of the key aspects of private domain operation. The agency needs to analyze the company's target customer groups, determine the appropriate channels and methods of attracting traffic, and develop a corresponding promotion plan. This may involve online advertising placement planning (e.g. social media ads, search engine ads, etc.), content marketing program development (including writing quality articles, producing engaging videos, etc.), and offline activity planning (e.g. store promotions, exhibition participation, etc.). At the same time, it is also necessary to design the user sedimentation mechanism, such as the development of the membership registration process, the rules of the points system, etc.. The cost of this part of strategy development is about $2,000 - $5,000 per month. For example, for a catering company to develop a combination of online and offline user attraction program, including advertising on the food review platform to attract users to follow the public number, and at the same time in the stores to launch the scan code registration member coupon activities, the cost of this whole set of strategy development may be about 3,000 yuan.
3. Day-to-day operational overheads
   • This includes the management of daily maintenance, content update, user interaction and other aspects of the private domain platform. The agency needs to ensure the stable operation of the platform and deal with technical problems and failures in a timely manner. Regularly publish valuable content, such as industry information, product introduction, user cases, etc., to maintain the attention and activity of users. Respond to users' inquiries, comments and private messages to establish a good user relationship. This part of the cost is relatively stable, about 2,000 - 4,000 yuan per month. For example, if a WeChat public number publishes 3 - 4 original articles per week and arranges someone to reply to users' comments and private messages every day, its daily operation and management costs may be around RMB 3,000 per month.

(ii) User operating costs

1. User labeling and profile creation costs
   • In-depth understanding of users is the basis for precise marketing and personalized services. The agency needs to establish detailed labels and portraits for each user by collecting and analyzing user behavioral data, consumption records, interests and preferences, and other information. This involves the use of data collection tools, the establishment of data analysis models and the investment of professional data analysts. The cost usually depends on the number of users and the complexity of the data, and is generally around 1,000 - 3,000 RMB / 1,000 users per month. For example, for an enterprise with 50,000 users, the cost of establishing user labels and profiles by a proxy company may be around 15,000 RMB per month (calculated at 3 RMB / 1,000 users).
2. Content curation and creation costs
   • In order to engage users and keep them glued, high-quality content curation and creation is crucial. The agency needs to develop a personalized content strategy based on user profiles and interest preferences, and create a rich variety of content formats, such as graphics, videos, and live streams. Copywriters need to have excellent writing skills and in-depth knowledge of the industry to create attractive and infectious articles. The video production team is responsible for filming, editing and post-production to ensure the quality and visual effect of the video. The cost of content planning and creation varies depending on the quantity and quality of content required, ranging from approximately $3,000 - $10,000 per month. For example, to produce 10 high-quality short videos (including script writing, filming, editing, etc.) in a month, the production cost of each video may be around $1,000, and together with the cost of graphic content planning and writing, the total may be around $8,000 per month.
3. User interaction and community operation costs
   • Actively interacting with users and building an active community is one of the core tasks of private domain operation. The agency needs to organize online and offline community activities, such as quizzes, lucky draws, themed discussions, offline parties, etc., to promote communication and interaction between users and enhance their sense of identity and belonging to the brand. At the same time, it is necessary to arrange special people to manage the community, respond to users' messages in a timely manner, and maintain the order of the community. This part of the cost includes activity planning and execution costs, community management labor costs, etc., about 3000 - 8000 yuan per month. For example, the cost of organizing an online lucky draw, including event planning, prize setting, platform development and event promotion, etc., may be around 5,000 RMB, plus the labor cost of daily community management, the monthly community operation cost may be around 6,000 RMB.

(iii) Marketing campaign planning and execution costs

1. Event Planning and Creative Design Fees
   • The agency plans all kinds of online and offline marketing activities, such as promotions, new product launches, holiday theme activities, etc., according to the marketing objectives of the enterprise and market demand. This requires professional marketing planners to conduct market research, target user analysis, and develop attractive and innovative activity programs. At the same time, it is also necessary to design the promotional posters, pages, videos and other materials for the event to ensure the visual effect and brand communication of the event. The cost of event planning and creative design depends on the scale and complexity of the event, which is about $5,000 - $20,000 per event. For example, for a large-scale e-commerce promotion, including the planning of the event program, the design of a variety of promotional materials, and the event pre-promotion, the planning and creative design costs may be around $15,000.
2. Activity implementation and management costs
   • In the process of activity execution, the agency needs to be responsible for the specific organization and implementation of the activity, including the preliminary preparation of the activity (such as material procurement, personnel training, venue layout, etc.), the on-site management during the activity (such as activity flow control, user interaction guidance, technical support, etc.) and the follow-up at the later stage of the activity (such as data statistical analysis, user feedback collection, prize issuance, etc.). This involves the coordination and management of multiple links and requires a certain amount of human and material resources. The cost of event execution and management depends on the scale and duration of the event, usually around 20% - 30% of the event budget. For example, for a one-week online marketing campaign with a budget of $50,000, the cost of campaign execution and management may range from $10,000 - $15,000.
3. Cost of marketing tools and technology applications
   • In order to improve the effectiveness and efficiency of marketing activities, the agency usually uses a variety of marketing tools and technological means, such as marketing plug-ins for WeChat applets (e.g., Group Together, Seconds, Coupon Issuance, etc.), H5 Interactive Page Creation Tools, User Behavior Analysis Tools, and Automated Marketing Software. The use of these tools and technologies may require the payment of a certain fee, depending on the type of tool and the frequency of use. For example, the monthly cost of using a professional automated marketing software may range from 1,000 - 3,000 RMB, while some advanced H5 interactive page creation tools, which are charged on a per-project basis, may be around 3,000 - 8,000 RMB per project.

(iv) Customer service and after-sales support costs

1. Customer consultation and response costs
   • Establish a professional customer service team to ensure that it can promptly and accurately answer users' inquiries and solve their problems. This requires recruiting and training customer service personnel, building a customer service system (e.g., online customer service platform, telephone customer service system, etc.), and developing sound customer service processes and standards. Customer service personnel need to have good communication skills and familiarity with products and business, and be able to provide users with a satisfactory service experience. The cost of customer consultation and response includes the labor cost of customer service personnel, the use of customer service systems, etc., which is about $3,000 - $6,000 per month. For example, a 5-person customer service team, each person's monthly salary of 5,000 yuan, plus customer service system rental costs of 1,000 yuan per month, a total of monthly customer consultation and response costs may be about 26,000 yuan.
2. After-sales service management costs
   • A perfect after-sales service system is crucial for maintaining user satisfaction and loyalty. The agency needs to assist enterprises in formulating after-sales service policies and processes, including return and exchange processing, product maintenance, quality assurance and so on. At the same time, it needs to track the implementation of after-sales service, collect user feedback in a timely manner, and optimize and improve the after-sales service. This part of the cost includes the labor cost of after-sales service personnel, after-sales service system construction and maintenance costs, etc., which is about $2,000 - $4,000 per month. For example, if an after-sales service management system is set up for recording and processing users' after-sales requests, the construction and maintenance cost of the system may be around RMB 2,000 per month, and together with the labor cost of after-sales service personnel, the monthly after-sales service management cost may be around RMB 3,500 per month.
3. User Satisfaction Survey and Enhancement Costs
   • Regular user satisfaction surveys are conducted to understand users' evaluations of and needs for products and services, so that problems can be identified in a timely manner and improvement measures can be taken. This requires work such as designing questionnaires, selecting survey samples, and conducting data collection and analysis. At the same time, a user satisfaction enhancement plan is formulated based on the survey results, and relevant improvement measures are organized and implemented. The cost of user satisfaction survey and enhancement includes the cost of using survey tools, the labor cost of data analysts, and the cost of implementing improvement measures, etc., which is about $1,000 - $3,000 per month. For example, the monthly cost of using a professional online questionnaire tool is 1,000 RMB, the monthly labor cost of hiring a data analyst to analyze the survey results is 2,000 RMB, and the cost of implementing the improvement measures, the monthly cost of user satisfaction survey and improvement may be around 4,000 RMB.

(v) Data security and compliance management costs

1. Data security assurance costs
   • With the increasing awareness of data security, safeguarding the security of private domain data has become one of the important responsibilities of the agency. This requires a series of data security measures, such as the application of data encryption technology, the construction of data backup and recovery systems, the acquisition of network security protection equipment, and the establishment and implementation of security management systems. The cost of data security protection depends on the data size and security needs of an organization, usually in the range of $2,000 - $5,000 per month. For example, the purchase of a set of data encryption software will cost $20,000 per year, or about $1,700 per month on average. Together with the acquisition and maintenance costs of data backup equipment and the labor costs of security management personnel, the monthly cost of data security protection may be around $3,500.
2. Compliance Operations Management Fee
   • Private domain operation activities must comply with relevant laws, regulations and policy requirements, and the agency needs to pay attention to and comply with these regulations to ensure that the enterprise's private domain operations are legally compliant. This includes the study and interpretation of laws and regulations, the conduct of internal compliance training, and the implementation of compliance audits. The cost of compliance operations management is approximately $1,000 - $3,000 per month. For example, the cost of hiring a professional lawyer to conduct a compliance review of a proxy operation's activities is $20,000 per year, or an average of about $1,700 per month, and when combined with the cost of internal compliance training and the preparation of related materials, the monthly compliance operations management costs may be around $2,500.

II. Factors affecting the cost of services

(i) Enterprise size and industry characteristics

1. Enterprise size
   • The size of an organization directly affects the workload and complexity of private domain operations. Large enterprises usually have more users, product lines and business departments, and need more comprehensive and in-depth private domain operation strategies and management systems. OEMs need to invest more resources to build and maintain private domain platforms, analyze and operate user data, and plan and execute large-scale marketing campaigns. Therefore, the service cost is relatively high. For example, a large enterprise with millions of users may pay more than $50,000 - $100,000 per month for private domain operation services, while a small enterprise may only pay about $10,000 - $30,000 per month.
2. Industry Characteristics
   • Different industries have different private domain operation modes and focuses, which will also affect the service fees. Some industries with fierce competition and diversified user needs, such as e-commerce, beauty and FMCG, require more frequent marketing activities, personalized content creation and refined user operations to attract and retain users. On behalf of the company in these industries need to have more experience and expertise, invest more human and material resources, so the service cost is relatively high. As for some traditional industries or industries with strong specialization, such as manufacturing and industrial equipment, although the number of users is relatively small, the maintenance of user relations and the dissemination of professional knowledge are required to be higher, and the service fee will vary according to the specific situation. For example, the cost of private domain operation services for the e-commerce industry may be about 20% - 50% higher than that of the manufacturing industry.

(ii) Content and depth of services

1. Services
   • The services provided by Private Domain COO are rich and varied, and enterprises can choose different service packages or combinations according to their needs. Basic services may include platform construction, content publishing and user interaction, while more comprehensive services may cover marketing campaign planning, customer service management, data analysis and optimization and other aspects. The richer the service content, the more resources and energy the agency needs to invest, and the higher the service cost. For example, for companies that choose only basic services, the monthly service cost may be in the range of $10,000 - $20,000, while for companies that choose a full set of services, the monthly cost may be in the range of $30,000 - $80,000 or even higher.
2. Depth of Service
   • In addition to the breadth of service content, the depth of service will also have an impact on the cost. For example, in terms of user operation, a simple user label creation and basic interaction management is comparable to in-depth user profile analysis, personalized marketing recommendation and user lifecycle management, which requires more data analysis and professional operation skills, and the cost of the service will increase accordingly. Similarly, in terms of marketing activity planning, the service depth and complexity of a simple promotional activity planning and a comprehensive brand promotion activity planning are different, and the cost will also have a big difference. The deeper the depth of service, the higher the value created by the agency for the enterprise may be, but the corresponding service cost will also increase.

(iii) Service cycles and modes of cooperation

1. service interval
   • The length of the service period is also one of the factors affecting the service cost. Generally speaking, the agency will provide certain preferential policies for long-term cooperation. For short-term cooperation (e.g. a few months), the service fee may be relatively high, because the agency needs to invest a lot of resources in a short period of time to quickly set up and launch the private domain operation program and achieve certain results. For long-term cooperation (e.g., more than one year), the agency can better plan the resources and establish a deeper relationship with the enterprise, and the service fee will be relatively more reasonable. For example, the monthly service fee for short-term cooperation may be about 10% - 20% higher than long-term cooperation.
2. Mode of cooperation
   • There are various modes of cooperation between private companies, such as project-based cooperation and annual framework cooperation. Project-based cooperation is usually for a specific project or activity of the enterprise, such as a large-scale marketing and promotion activities or platform development projects, on behalf of the operating company according to the specific needs and objectives of the project offer, the cost is relatively clear and fixed. Annual framework cooperation is a year or longer cooperation agreement signed between the enterprise and the agency operating company, the agency operating company for the enterprise to provide a full year of private operation services, the cost may be adjusted according to the content of the service and performance indicators and settlement. Generally speaking, the calculation of fees for annual framework cooperation is more complicated, but for enterprises, they can obtain more continuous and stable service support, and it also facilitates the surrogate operation company to better plan and execute long-term operation strategies. The composition of service fees and payment methods will vary under different cooperation models.

(iv) Strength and reputation of the operating company

1. Company Strength
   • The strength of the COO company includes the size and quality of its professional team, technical strength, industry experience, resource integration ability and other aspects. Stronger COO companies usually have richer experience and successful cases, and are able to provide enterprises with better and more efficient private domain COO services. They may be equipped with professional marketing planners, data analysis experts, content creation teams, technical developers and customer service personnel, etc., and are able to meet the needs of enterprises in a comprehensive manner. These companies tend to invest more in technology development, tool application and service quality, and thus their service fees are relatively high. For example, a company with many years of experience in private domain agency operation and having served many well-known brands may charge about 30% - 50% more than a newly established agency operation company.
2. Industry Reputation
   • OEMs with a good reputation in the market tend to attract more clients and their service fees may be correspondingly higher. A good reputation means that they are recognized and trusted by their clients for their excellent performance in terms of service quality, guaranteed results and customer satisfaction. Enterprises choosing such a surrogate operating company are also more likely to get the desired private domain operating results and ROI, even though they may have to pay a higher fee. The reputation of a surrogate company can be demonstrated through customer reviews, industry awards, and case presentations. Some reputable surrogate companies may have a premium on service fees due to their brand value and market competitiveness.

III. Payment for services

(i) Monthly fixed costs

1. Characteristics and application
   • Monthly fixed fee is a more common payment method, whereby the enterprise pays the service fee to the agency every month according to an agreed amount. This method is characterized by a relatively stable fee, which facilitates budget planning and cost control by the enterprise. It is applicable to the situation where the service content is relatively fixed, the service cycle is long and the enterprise has a certain degree of trust in the operating company. For example, the enterprise signed a one-year cooperation agreement with the on behalf of the operating company, agreed to pay a fixed monthly fee of 30,000 yuan, on behalf of the operating company in accordance with the contractual service content and standards for the enterprise to provide continuous private domain operation services.