Case study of ASUS's digitizing customer care solution.

1. Optimization in Data Mining Solutions:
Digitizing Customer Care
2016/05/17

2. Objective: Customer Loyal Program
1
2
3
Introduction
Project I: Customer Acquisition
Project II: Customer Retention
4 Conclusions

3. Every business needs to put efforts in both customer acquisition
and retention to maximize revenues and lifetime customer value.
It requires information and just the right touch to generate a 360-degree view of your best
customers and their buy-in for you to communicate with them in a meaningful way.
Consumers want to do business with you if they can relate to you and trust you, and they want
you to align with their interests and values.
Creating this type of relationship requires responsive and relevant communications—all
developed with the right data. By pulling in data from a variety of different sources, enterprises
would have the power to create the foundation for true brand loyalty for your customers.
Introduction

4. Project I:
Customer Acquisition

5. “Customer service is the new marketing.”
- Derek Sivers, CD Baby

6. Build up customer ID system as a loyal customer profile
via following data source:
Demographic Data
Basic attributes, such as age, gender,
household income, profession, or
geolocation
Behavioral data
Collecting behavior attributes such
as interests, preferences and
behavior via on-site, email, social,
and even off-site everyday.
Identify what increases
engagement by looking at time
spent on pages, number of clicks
and views, last touch points for exit
pages, and referral sources.
Transactional Data
Using purchase history can help
identify best and worst customers.
Bucket customers into groups such
as 0x buyers, 1x, 2x, or 3x+ for high
and low probability purchasers.
Source and Social Data
Know whether your customers
come from organic, social, or
affiliate channels. Look at how
social influence can help engage
your customers on-site and off-site.

7. 1. Event-Based Marketing:
• Coupons will be sent when the user meets specific criteria
such as spending amount and purchase frequency or on his
birthday, holidays, etc.
• Coupon, Reward your high-valued customers by offering
better incentives to keep them returning.
2. Precise Marketing:
• Promoting Information or Marketing Campaign Info will be
sent according to age, preference and price sensitivities.
• Find the items and categories that are most frequently
purchased and engage other customers who may have similar
interests.
Wallet Share (皮夾深度)
Purchase Frequency (購買頻率)
Lifetime Value (存續價值)
Price Sensitivity (價格敏感度)
Product Preference (產品偏好)
Build up Customer Profiles
According to the following factors

8. Project II:
Customer Retention

9. “Customer service shouldn’t just be A department,
it should be the entire company.”
- Tony Hsieh, CEO of Zappos

10. Importance of Customer Retention:
Higher Probability and Lower Costs
Source: Marketing Metrics, White House Office of Consumer Affairs
Loyal customers account for about
20% of all customers. But that 20%
drives 80% of the total revenue and
72% of total visits to the business.
Over lifetime, loyal customers spend
10x more.
5-20%
6.0-7.0X
60-70%
Success Rate of selling to an existing customer
Success Rate of selling to a new prospect
It is 6-7 times more expensive to acquire
a new customer than to keep a current one.

11. The core value of Customer Retention is to distinguish “Desired and Dissatisfied” Customers
from the whole customer groups and create new interaction systems to change their behaviors.
The system functions should include:
• Analyze voice of customers to understand their emotions
• Collect information from social media or other sources to understand the market, including customer reviews
and preference for the integration of Customer Profiles with our models.
• Analyze Customer Retention Campaign Effectiveness to evaluate whether to reach the expected benefits
• Forecast Customer Attrition Likelihood
• Forecast the possibility of Certain Product
• Adjust the Client & Market relationship strategies
• Measure the consuming behaviors and customer dissatisfaction to calculate and classify high risk of leaving and
low risk of leaving customer segments. Then give differential compensations to different customer segments
such as promoting information.
The Core Value of Customer Retention:
To tell, to change

12. 1. Based on Chainsea’s Text Records,
detect and find those dissatisfied
customers, who intend to switch to
other competitors .
2. Conduct the Event-Based Customer
Retention Service to retain customers.
High
Low
Low High
Customer
Satisfaction
Customer Behaviors
Low Loyalty
with High
Satisfaction
Low Loyalty
with Low Satisfaction
High Loyalty
with High Satisfaction
High Loyalty
with Dissatisfaction
Customer Segmentation
Trigger Warning
- CRM analytics
- Text/search analytics
- Marketing automation
COMPENSATION is
The Core Value of Customer Service

13. Customer Satisfaction Enhancement Process
With different ranking set for customers,
Coupon rate or related compensation can also be ranked
Membership Period
Spending
Frequency
Log in/ Event
Participation Frequency
Service/ Complaint
Frequency
Modeling ,
Ranking and
Classification
Warning
Systems
Level_1
Level_2
Level_3
Email
Data Input and Modeling Process Compensation Process

14. Low-Cost High-Performance Model
85% of churners can be accurately identified by using
30% of ranked customer data
100%
80%
60%
40%
20%
0%
0% 20% 40% 60% 80% 100%
% of ranked churners
%ofobservedchurners
10% 30% 50% 70% 90%
─ Validation Dataset
─ Baseline

15. Conclusions:
Further Steps

16. Building Precise Marketing Group
Precision marketing is highly concerned about accuracy and focus.
Marketing
(Acquisition) Purchase
After-Sales
(Retention)
Brand
Loyalty
Failed Marketing
Dissatisfaction Customers
/Churner
Time Horizon
CustomerLifecycle
Customer pattern recognition and
prediction model as a 360 degree
customer service system could evolve
from existing data to reach a higher level.

17. Strategy Execution Flow Stage
Our solution delivery team implements technology-based data solutions
that give you 360-degree insight into your business.
Problem Statement
Granular Customer Insights
Insight Interpretation
Model Implementation
Execution Plan
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