Customer lifecycle management for fun and profit at OLX, Berlin marketplace conference, Nov 2018

Customer Lifecycle
Management for Fun and Profit
Dobo Radichkov, OLX Ventures
28 Nov 2018

2
About Naspers and OLX Group
A $100B global internet
& entertainment group
and one of the largest
technology investors
in the world
World’s largest
classifieds network
enabling 300 million people
in over 40 countries to buy
and sell almost anything

3
The OLX Group family
HORIZONTALS
REAL ESTATE MOTORS OTHER VERTICALS

4
OLX Group global footprint
35
offices
43
countries
350M+
MAU
5,000+
employees

Unleash next
generation
marketplace
models

7
What is Customer Lifecycle Management?
CLM? CRM?
CLV? So many
acronyms!

8
Activity level (buying and selling)
Time
First-time
user
Returning
user
… … Fan!Visitor
Increase the customer
lifetime value…
… through the ‘right’
product, marketing,
customer care
treatments
CLM is all about treating your customers the best way
possible in the lifecycle stage they are in

9
@%
$#
Customer
segmentation
4
Insights &
analytics
3
Execution
6
Customer
treatments
5
Single
customer
view
2
Platforms
and raw data
sources
1
The OLX CLM machine is enabled by automated, data-driven,
targeted and personalised customer treatments

10
Stepping back: What problem are we trying to solve?

11
Our view of the customer lifecycle, from ‘cradle to grave’
Started
using
product but
not yet
engaged
with content
Curious
1
Browsed
product
categories,
searched,
and / or
viewed item
pages
Exploring
2
Posted /
replied for
the first time
Trial
3
Recently
posted /
replied for
the first time
Novice
4
Returning
customer
posting and
/ or replying
across
categories
Repeat
5
Stopped
posting and
replying, but
still engaged
with product
Passive
6
Stopped
using
product for a
period of
time
Dormant
7
Increase engagement Reduce churn
“Permanently”
stopped using
product
Lost
8

12
The CLM framework helps you find ‘leaks’ in your business
Trial Repeat Dormant
12%
88%
Lost
90%
10%
Novice
Spammer /
blocked
4%
96%
5%
95%
60%
40%

13
Let’s look at a real-world example
3x growth!

14
Digging deeper reveals the ‘leak’

15
So maybe your business starts to look a bit like this…

16
…and you might realise you are throwing your hard earned
marketing money down the drain

17
Once you find the leak, leverage the CLM framework to create
an actionable customer segmentation
Curious
Customerlifetimevalue
1
Exploring
2
Trial
3
Novice
4
Repeat
5
Passive
6
Dormant
7
Lost
8
Bronze Seller
Platinum
Seller
Buyer
Silver Seller
Gold Seller
Business
user
Bronze Seller
Platinum
Seller
Buyer
Silver Seller
Gold Seller
Business
user
Bronze Seller
Platinum
Seller
Buyer
Silver Seller
Gold Seller
Business
user
Bronze Seller
Platinum
Seller
Buyer
Silver Seller
Gold Seller
Business
user
Bronze Seller
Platinum
Seller
Buyer
Silver Seller
Gold Seller
Business
user
Desktop
Web
Mobile
App
Mobile
Web
Potential
Buyer
Window
shopper
Potential
Seller
Potential
Buyer
Window
shopper
Potential
Seller
Browser

18
We target each customer with most appropriate treatment for
their segment, to achieve the ‘next best action’
Buyer Buyer
Treatment
Curious Exploring Trial Novice Repeat Passive Dormant Lost
Bronze Seller
Platinum
Seller
Buyer
Silver
Seller
Gold
Seller
B2C
Platinum
Seller
Silver
Seller
Gold
Seller
B2C
Bronze Seller
Platinum
Seller
Silver
Seller
Gold
Seller
B2C
Bronze Seller
Platinum
Seller
Buyer
Silver
Seller
Gold
Seller
B2C
Bronze Seller
Platinum
Seller
Buyer
Silver
Seller
Gold
Seller
B2C
Desktop
Web
Mobile
App
Mobile
Web
Window
shopper
Potential
Seller
Potential
Buyer
Window
shopper
Potential
Seller
Browser
“CLM is all about treating
your customers the best
way possible in the
lifecycle stage they are in”
MAKE A
POST
Treatment
Potential
Buyer
BROWSE
ITEMS
Treatment
Bronze SellerMAKE A
REPLY
TreatmentPOST
AGAIN
Treatment
RE-
ACTIVATE
Customerlifetimevalue
1 2 3 4 5 6 7 8

19
So what is a CLM ‘treatment’?
Event or trigger to
execute treatment
(specific user action
or recurring)
A value-adding user interaction at the right time and place, with the right message
Place
WHERE
Timing
WHEN
Targeting
WHO
UX
HOW
Content
WHAT
Goal
WHY
Comms channel to use
to send treatment
(marketing, product,
CS, etc.)
Which lifecycle stage
and which segment to
target with treatment
Treatment copy
including relevant
personalisations
Treatment design,
layout and interactivity;
landing screen
experience
User-specific next best
action and business
KPI to optimise for
1 2 3
4 5 6

20
Push example
Reply now
Timing
2 days after last
user app
interaction
Content
Personalised
non-liquid listing
recommended
based on past
buyer behaviour
Targeting
Repeat buyers
Goal
Increase buyer
engagement
KPI = average #
replies / buyer
UX
Rich media interactive notification
with dedicated landing page
Place
Push notification
1 2 3
4
5
6

22
Email example
Miss you 1/3 Miss you 5Weekly tips
P Personalised content
Thank you,
power Repeat Seller
Did you sell your item? Got a reply, keep selling
Miss you 6
Thank you, now sellThank you,
try these selling ideas
New items alert,
keep replying
P P P PP
P P P

24
In-app example
Screenshot
WHO
Targeting
Exploring users
WHERE
Place
Below ‘SELL AN
ITEM NOW’ button
WHEN
Timing
User opens
home page
WHAT
Content
Personalised listing
recommendations
HOW
UX
Card list
WHY
Goal
Make a reply
3
1
2
4
5
6

25
Landing
page
Over time, we build and optimise long list of CLM treatments
(push example)
Thanks, now sell Start selling Buyer
You too can sell!
! Thank you for buying on OLX! Did you know you can also sell your unused
"furniture, laptops, TVs" on OLX? Make extra #, it’s free! Start selling now!$
Posting
page
Thanks, more for you
Do more in
same week
Buyer
% New deals for dogs
& 968 fresh new deals in "dogs" in Chennai. Don’t miss out, take a quick look now!
Category
listing page
Thanks, special
pick for you
Do more in
same week
Buyer
New deal for you
Specially picked for you: 'Mahindra Bolero'. Grab it now! Ad page
Hot deals, start buying Start buying Seller B
Hot deals for you - Thirupathi
Hi Thirupathi. 1,117 new &hot deals& in Hyderabad on OLX this week. Don't miss
out! Check them out now (!
Home
page
Thanks again,
can we help?
Get a reply Seller C
Need help Pradeep?
) Hi Pradeep. Having trouble selling your 'Videocon 21 inch CRT tv'? * We’re
here to help you *! Feel free to contact us for tips and tricks, tap here!
Contact us
page
Thanks, power
Trial seller
Reward Seller D
HUGE thanks ! Dhiraj
Thank you Dhiraj! You are a rock star + seller! Here is a hug for you , - !
Home
page
Hot deals, start buying Start buying Seller D
Hot deals for you - Rishabh
Hi Rishabh. 802 new &hot deals& in Jagdalpur on OLX this week. Don't miss out!
Check them out now (!
Home
page
Congrats, cross-sell
Do more in
same week
Seller B/D
Anjali - Sell more! Make #
. Congrats Anjali on getting 2 replies for your ad 'Symphony cooler'. There is
much more you can sell like "kitchen appliances, tables and beds". Take a minute to
do it now!
Posting
page
We want to help,
contact us
Get a reply Seller A
Need help Kishan?
/ Thank you Kishan for posting your ad 'Puppy pure black'. We are trying hard 0
to help you sell it. If you need any assistance, tap here to contact us 1!
Contact us
page
… … … … …
Seg-
ment
Treatment
Next best
action
Sample message

26
Optimisation is both micro-level (individual treatments) as well
as macro-level (unified omni-channel comms across lifecycle)
Curious Exploring Trial Novice Repeat Passive Dormant Lost
1 2 3 4 5 6 7 8
PUSH
SMS
EMAIL
IN-APP
RE-TARGET

27
Ultimately CLM can drive double-digit uplift in relevant KPI
Browse more Make a post Make a reply Delete ad Edit ad
Reward &
offer help
Goal:
KPI: Unique browsing
conversion
Unique NNL
conversion
Unique reply
conversion
Ad deletion
conversion
Add image
conversion
Unique browsing
conversion

28
CLM is multi-disciplinary capability requiring cross-functional org
CLM
capability
BI
Data science
Technology
ProductStrategy
Marketing

29
Example cross-functional CLM org structure
CLM org
Chief Product / Analytics / Marketing Officer
(data-driven executive)
Analytics org
Head of Analytics
Data engineers
Data scientists
Analysts
Product / Tech org
Product Owner
Backend devs
Frontend devs
Mobile devs
Marketing org
Treatment architect
Treatment
managers
Copywriter

30
CLM for your company: Grow the capability as you scale your
talent and resources

31
Basic marketing
automation
Personalised &
targeted marketing
Full CLM
Segmentation ✓ None / limited ✓ Basic ✓ Advanced
Personalisations ✓ None / limited ✓ Basic ✓ Advanced
Treatment engine ✓ 3rd party ✓ In-house platform ✓ In-house platform
Channels ✓ Push, email, SMS ✓ Push, email, SMS ✓ Push, email, SMS,
re-targeting, in-app
Tools 3rd party marketing tools
+ in-house tracking
tools, data warehouse
+ deep product
integration
Skills / team Marketing
+ Data engineers,
analysts, data science
+ Product / devs

32
Basic marketing
automation
Personalised &
targeted marketing
Full CLM
+ in-house tracking
+ deep product
integration
+ Data engineers,
analysts, data science
+ Product / devs

33
Basic marketing
automation
Personalised &
targeted marketing
Full CLM
+ in-house tracking
+ deep product
integration
+ Data engineers,
analysts, data scientists
+ Product owner,
developers

34
Thank you! Questions?
Dobo Radichkov
dobo@olx.com

Customer lifecycle management for fun and profit at OLX, Berlin marketplace conference, Nov 2018

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