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UV Customer Segmentation

3AI September 10, 2020

World leader in film, television and music entertainment

Problem Statement

  • Company was interested in identifying and understanding conversions to paid redemptions from free redemptions
  • Company had a large and diverse online user pool and was in need of targeted engagement

Analytics Led Approach

  • Available data was examined, and the following bases were identified to quantify user behavior – Time since Last Engagement, Engagement Frequency, Engagement Duration, Total No of Redemptions , No of paid Redemptions
  • Hierarchical technique to identify the ideal cluster size
  • This is followed by K-Means analysis to break the universe into various clusters
  • Hence obtained Clusters were profiled by Demographics and other variables not used for Clustering

Business Impact

  • Understand the profiles of customers who purchase / redeem / playback more Movie/TV titles from the online cloud locker platform
  • Segmentation of the customers that helped take differentiated and actionable marketing treatments to improve user engagement and conversion

Critical Success Factors

  • The analysis helped the company to identify the top titles that triggered conversions from free redemptions to paid redemptions & quantify user experience on various technology platforms
  • Marketing messages were suggested to all the obtained Segments to increase User conversion and engagement

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