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Data Analytics

Less Churn, More Loyalty for UMKM

Telkom Indonesia

Data Analytics

About UMKM

UMKM is a dynamic marketplace, an initiative of Telkom Indonesia. This innovative digital platform is dedicated to connecting SMEs with state-owned enterprises (BUMNs), facilitating an efficiency and accelerated transactions to optimize shopping process for BUMNs and SMEs.

The Objective

The goal for UMKM was to transform casual browsers into loyal customers. To achieve this, the team needs to do customer retention analytics to understand customer behaviors deeply and create strategies that not only engage but also retain customers.

The Result

Based on the problem statement and the expected outcome, M. Rofik Abdillah, Farid Risqullah F., Marchell Yonathan, and Wahyu Pristiawan conducted a deep dive analysis of customer behavior, focusing on retention, CLV (Customer Lifetime Value), and ARPU (Average Revenue Per User).

The methodology they used started with Understanding the Business Problem, followed by Data Cleaning & Preparation, Exploratory Data Analysis (EDA), Data Analysis, and finally, Gaining Insights & Giving Recommendations.

These are the data analyses conducted to identify potential root causes of the Retention Rate Drop in the 4th Quarter of 2021

From the data analysis, customers were segmented into Gold, Silver, and Bronze categories, based on recency and monetary value.

For each segment, UMKM implemented tailored strategies. These included loyalty perks for the most engaged, special discounts to encourage more frequent purchases, and feedback features to continually improve the business based on customer input.

For more details on this project, you can view the detailed presentation here. This presentation includes comprehensive data analysis, along with the insights gained and recommendations for UMKM.

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