QuickU
user Segmentation
Viva Nuralifiya Ghofananda
Table of Contents
Overview
The expert acknowledge that the current marketing used by QuickU is the same across different segments. The treatment is the same across all users. However, the experts believe that they're missing an opportunity to maximize their customers. The expert would like to conduct different approaches in different segments using customer segmentation analysis. The expert would like to know the characteristic of each segment and utilize their behaviour to improve performance.
The lack of marketing strategy generate the decline of GMV in 2022 by around 4%.
Determine the most effective and efficient marketing strategy with 8% increase in the number of complete orders during Q2 in 2023 from total number of complete orders of the previous year based on result of customer segmentation analysis.
Project Overview
Background
Problem Statements
Objectives
Root Cause Analysis
Decrease in GMV around 4%
Internal Factor
External Factor
Management Issues
User Behaviour
Lack of Marketing Campaign
Limited Warehouse
Poor Inventory Management
Conversion Rate decrease around 12%
Shifting in User Preference
Socio-Economic Situation
Inflation Rate
Covid-19 Post-Pandemic
Seasonal Factor (Long Holiday)
Generate business objective and form root cause analysis from given problem statements.
Define Business Objective
1
Collect, clean and transform the dataset in Python (Google Colab). As previously known that data already clean then, the main focus would be handling missing values and transform data including blend between dataset.
Data Preparation
2
Perform user segmentation analysis by RFM indicator and visual the result using Tableau to better understanding on data pattern.
Data Analysis and Visualization
3
Generate insight and actionable recommendation based on performed analysis.
Drawing Conclusion
4
Methodologies
General Characteristic
Out of 6,036 total users who made complete transactions during 2022, it can be seen on the bar chart that the top purchased product category is Kebutuhan Pokok where it can be concluded that 57.3% of users who made transactions bought Kebutuhan Pokok category. Then, top selling is followed by Makanan Beku and Susu, Roti dan Olahannya as the product category most chosen by users.
Age Range
Source
Payment Method Preference
Location
User Segmentation
| Recent | At Risk | Hibernating | Lost |
Total # user transaction | 2,889 users | 1,402 users | 3,046 users | 1,357 users |
Total # complete order in 2022 | 4,175 orders | 3,156 orders | 3,390 orders | - |
Average Last Purchase | 95 days ago | 234 days ago | 336 days ago | 740 days ago |
Average Purchase Frequency | 2 | 7 | 3 | 3 |
Average Money Spent | Rp 176,540 | Rp 1,285,540 | Rp 304,261 | Rp 318,830 |
Average Order Value | Rp 40,601 | Rp 49,199 | Rp 38,914 | Rp 38,050 |
Segment Characteristic
What “Recent” User Segment Looks Like?
Had total GMV earned of around Rp 302.57 mil in 2022 and generally better performance than 2021,�the pattern of GMV earned by Recent user segment significantly different. Compared to primarily dashboard, Recent segment has around 18% better performance than average decline in April and�131% more gain than average increase in July 2022.
Furthermore, align with primarily dashboard, Kebutuhan Pokok is still top earned product by 38% in Recent segment.
What “Recent” User Segment Looks Like?
Out of 2,889 users who made complete transactions during 2022, it shown that 39.0% has age between 20-29 years old and 42.5% located in East area.
Additionally, below table shown that user in Recent segment 61.5% prefer QRIS as their payment method. However, the traffic source users come from Facebook by 39.1% and it’s different source than general user in primarily dashboard.
What “At Risk” User Segment Looks Like?
Reach the highest GMV earned by Rp 612.40 mil and highest average money spend in 2022, At Risk user segment can be specified as Big Spender if it’s not the concerning average days of last purchase.
As it shown in the line chart above, from the first month the GMV steadily decrease until sharp freefall happened on April by 75.8% and fail to recover until the end of the 2022. Generally, the GMV performance also decrease by 16.1% than last year.
Furthermore, Kebutuhan Pokok is still top earned product as well by 28.5% in At R segment.
What “At Risk” User Segment Looks Like?
Unlike Recent user segment, the user age of At Risk user segment between�30-39 years old around 27.4% from total 1,272 users who made complete transactions during 2022. Meanwhile, 49.5% of users are located in South area.
Furthermore, user in At Risk segment 66.7% choose Kartu Kredit as their primary payment method and 59.7% users come to QuickU platform by Direct.
What “Hibernating” User Segment Looks Like?
After experiencing a sharp decline of 74.3% in April, GMV performance deteriorated further until finally on August onwards there were no transactions and conclude total GMV earned by Rp 310.29 mil which 14.4% lower�than total GMV last year.
Indifference with other user segment, Kebutuhan Pokok is still top earned product by 23.0% in�Hibernating segment.
What “Hibernating” User Segment Looks Like?
The Hibernating user segment is driven by 30-39 years old, followed by 20-29 years old with a slight difference. Both have a percentage of about 25% for each. As for the area, 29.5% of users in this segment are located in the Central area.
For the main payment method preference in the Hibernating user segment, 56.2% choose Virtual Account and 37.3% of them visit the platform through Google.
What “Lost” User Segment Looks Like?
From the line chart, it shown the Lost user segment has no transaction during 2022 and the last GMV earned up to June 2021. The GMV earned in 2021 was Rp 116.52 mil and total user transaction was 741 users.
Simple Impact Analysis
Recent User Segment
Indicator | 2022 Actual | 2023 Expected | Growth |
# Order | 4,175 | 4,509 | +8.0% |
# User | 928 | 1,226 | +32.1% |
# Visit | 1,186 | 1,523 | +28.4% |
GMV | Rp 87 mil | Rp 127 mil | +45.6% |
Note:
Table above is the plausible result after the goal of increase 8% in total complete order fulfilled during Q2 2023 under ceteris paribus situation compare to 2022.
At Risk User Segment
Indicator | 2022 Actual | 2023 Expected | Growth |
# Order | 1,402 | 1,515 | +8.0% |
# User | 1,195 | 1,419 | +18.7% |
# Visit | 2,436 | 2,689 | +10.4% |
GMV | Rp 465 mil | Rp 507 mil | +8.9% |
Note:
Table above is the plausible result after the goal of increase 8% in total complete order fulfilled during Q2 2023 under ceteris paribus situation compare to 2022.
Hibernating User Segment
Indicator | 2022 Actual | 2023 Expected | Growth |
# Order | 4,175 | 4,509 | +8.0% |
# User | 1,861 | 2,059 | +18.6% |
# Visit | 3,311 | 3,582 | +8.2% |
GMV | Rp 302 mil | 332 mil | +9.9% |
Note:
Table above is the plausible result after the goal of increase 8% in total complete order fulfilled during Q2 2023 under ceteris paribus situation compare to 2022.
Conclusion
Based on the analysis performed, it can be concluded that QuickU users are divided into 4 user segmentations which consists of Recent, At Risk, Hibernating and Lost.
Notable characteristics of each segment are visible where the Recent user segment has the smallest average last purchase day to less than 100 days so the purchase frequency is still relatively small. In contrast, At Risk has the highest purchase frequency and the average money spent is up to 303% higher than the second position. However, Hibernating has the highest total user transactions of up to around 3,000 users and a Lost user segment where no more transactions have occurred during 2022.
Then, judging from the results of simple impact analysis, it is highly recommended to focus first on the Recent user segment because the plausible results are more promising than other user segments. Marketing campaigns that can be implemented such as first time user exclusive promos, bundling deals and/or loyalty programs.
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