Kfan Expanded Active Customer Base by 200% through Personalization

About Kfan

Founded in 2015, Kfan aims to bridge the gap between local businesses and the broader market, meticulously selecting exquisite dishes and delivering the heartwarming stories behind them. Originating from the Nanjichang Market as the kitchen serving the president, Kfan continually innovates its delicious dishes, bringing Taiwan's rich local ingredients and culinary culture to every family's dining table, showcasing the craftsmanship of local artisans.

Every dish from Kfan stands a unique proposition, from being crafted by a master with 30 years of experience at Nanjichang Market, to playing a role in reviving a lost or closed-down well-known store, ensuring that the legacy of delicacy can be brought on in various forms.

Seasonal Conditions of Best-selling Products Poses Challenges in Ensuring Continuous Repeat Purchases and Sustained Marketing Effectiveness

Difficulty in Understanding Different Customer Segment Preferences

Kfan aims to preserve and convey local flavors through consistent exploration of classic dishes from various renowned local eateries, showcasing diversity through its dishes. Additionally, Kfan regularly launches weekly promotional discounts on selected items, featuring dishes from Hakka, Jiangzhe, Yuntai, and Taiwanese cuisines, chosen based on sales performance.

Before implementing the OmniSegment CDP, Kfan reaches out to all its customers through mass messaging via newsletters in the delivery of promotional messages. Although this approach allowed them to understand overall product popularity through total sales figures, Kfan was not able to personalize their delivery of push notifications based on the spending habits and product preferences of different customer segments. As a result, Kfan was unable to efficiently allocate its marketing resources.

Increasing Purchase Frequency and Repeat Purchase Rate

The sales of some Kfan product lines such as the New Year's dishes, are limited by seasonal conditions. Additionally, Kfan was only able to derive most of its customer base through advertisements and KOL (Key Opinion Leader) broadcasting. Kfan also found that many customers would place an order immediately after viewing an advertisement, but do not come back on repeat purchases.

The primary reasons for Kfan's integration of OmniSegment CDP are to increase the frequency of customer purchases, boost repeat purchase rates, enhance customer lifetime value, and precisely understand customer preferences for strategic product development. By leveraging OmniSegment CDP, Kfan aims to foster more frequent and consistent customer engagement, ultimately driving long-term growth and loyalty.

Increasing Customer Lifetime Value with OmniSegment CDP

In 2021, Kfan officially became a client of beBit TECH, implementing the OmniSegment CDP system. Through this integration, Kfan aims to deepen its customer management strategies, strengthen marketing communication efforts, and ultimately increase customer retention rates. The goal is to leverage OmniSegment CDP to enhance customer lifetime value by providing more targeted, personalized marketing communication and improving overall customer engagement.

Implementing the NASLD Model to Understand Customer Behavior and Preferences at Different Stages

Kfan utilized OmniSegment CDP's NASLD segmentation model to label and categorize customers based on their spending behaviors (as shown in the diagram). Also incorporating the built-in customer journey canvas in OmniSegment CDP, Kfan was able to automatically deliver promotional information to customers and analyze the preferences of each customer segment. This approach enabled Kfan in understanding customer behavior at different stages, enabling more precise and effective marketing strategies.

Through the NASLD segmentation model in OmniSegment CDP, Kfan discovered that the ‘Home-Cooked Dish' series has the highest appeal among N (New) and A (Active) customers. These customers frequently needed home-cooked dishes, in which Kfan offered a wide range of such dishes across various cuisines. With the data provided, KFan was able to discover that home-cooked dishes are a fitting choice to encourage repeat others among these highly engaged new and active customers. For S (Sleep) and L (Lost) customers, KFan found that items with long-lasting popularity such as shrimp crackers resonated better with them. These products have distinctive features and are easy to purchase in groups, which drives as a motivation for the less interactive customer groups to make repeat purchases.

As for D (Deep) customers who haven't purchased in over six months, Kfan have also decided to broadcast items with long-lasting popularity through push notifications to these customers, leveraging emphasis on time-sensitive discounts to motivate these customers who are rather price-sensitive for repeat purchases. For example, by designing email subject lines like "Final Shrimp Crackers Discounts Before Price Increase", Kfan successfully re-engaged many dormant customers, achieving excellent results.

Based on the segment preferences identified through the NASLD model, Kfan was able to continuously push specific categories of dishes to different customer segments. This strategy includes continuously promoting various home-cooked dishes to "New" and "Active" customers to drive conversions, using popular single items to attract "Sleep" and "Lost" customers for repeat purchases, emphasizing discounts to encourage "Deep" customers on return visits, and promoting low-cost series items to convert potential customers into first-time buyers.

With the robust foundation of the NASLD model analysis, coupled with enriching stories about each dish, Kfan successfully rekindled each customer's memories associated with various local cuisines.

Market Expansion through Grasping Preferences of Each Customer Segment

Through the insights and results achieved from market segmentation, Kfan continued to leverage these preference insights into building strong foundation in expanding the range of their culinary dishes. This new marketing strategy did not only boost Kfan's sales of newly introduced dish categories, but also allowed customers at different stages to enjoy dishes that meet their specific needs. This approach assured that every customer finds delightful, personalized options to their dishes, enhancing overall customer experience and satisfaction.

The Results

With effective market segmentation using the NASLD model, the proportion of Kfan's high lifetime value active customers increased by 100%, marking a 2x increase from the previous proportion. This did not only effectively improve customer Kfan's customer engagement strategy, but also created a healthy and positive customer cycle, successfully enhancing overall customer value.