GeePlus, Inc.

Statistical analysis used to segment customers for targeted campaigns to increase customer revenue

Published on 11-Nov-2013

"The solution helps us see exactly what customers want and what convinces them to pay for our games. The insights have been indispensable in growing our user base and our revenue." - GeePlus, Inc.

Customer:
GeePlus, Inc.

Industry:
Media & Entertainment

Deployment country:
Japan

Solution:
BA - Business Analytics, BA - Predictive Analytics, Smarter Planet

Overview

Headquartered in Tokyo, GeePlus, Inc. mainly engages in the planning, development and operation of social games.

Business need:
To make the platform successful, the company needed to understand how customers use the site.

Solution:
By analyzing detailed in-game behavioral data and the personal attributes of customers, the company can predict the lifetime value of each customer, segment customers accordingly and target them with focused marketing campaigns,

Benefits:
Expected to increase average revenue per customer by at least 10 percent every year.

Case Study

Headquartered in Tokyo, GeePlus, Inc. mainly engages in the planning, development and operation of social games. It was established in 2012 through the company split by Polygon Magic, Inc., a video game development company founded in 1996. GeePlus employs approximately 170 people.

The Opportunity
GeePlus, Inc. built a social networking platform for its games—an ideal place to engage and connect its customers. To make the platform successful, the company needed to understand how customers use the site. It built its own analysis tools, but the homegrown solution lacked the sophistication needed to guide targeted marketing campaigns and improve game development.

What Makes It Smarter
Games are fun distractions for users but serious business for the companies that develop them. These companies must convince customers that a game is worth paying for. GeePlus adopted powerful statistical analysis capabilities for its social online game platform to understand how customers play, what they like, what they are willing to buy and how marketing can influence their behavior. By analyzing detailed in-game behavioral data and the personal attributes of customers, the company can predict the lifetime value of each customer, segment customers accordingly and target them with focused marketing campaigns. For example, when advertising new games, the company may focus on early adopters who grow bored with games quickly—a strategy that helps to retain power users while capitalizing on their influence to popularize new games. With continuous feedback on how the segments respond to different campaigns and games, the statistical models become increasingly accurate over time, allowing the company to refine its revenue-generating activities.

Real Business Results
· Expected to increase average revenue per customer by at least 10 percent every year
· Anticipated to increase the percentage of paying customers, resulting in higher revenue
· Increased number of users while reducing customer acquisition costs and operating costs

For More Information
Please contact your IBM representative or IBM Business Partner. Visit us at ibm.com/spss.

To learn more about GeePlus, Inc., visit http://www.geeplus.jp.

Products and services used

IBM products and services that were used in this case study.

Software:
SPSS Modeler Server

Legal Information

© Copyright IBM Corporation 2013 IBM Corporation Software Group Route 100 Somers, NY 10589 Produced in the United States of America October 2013 IBM, the IBM logo, ibm.com and SPSS are trademarks of International Business Machines Corp., registered in many jurisdictions worldwide. Other product and service names might be trademarks of IBM or other companies. A current list of IBM trademarks is available on the Web at “Copyright and trademark information” at www.ibm.com/legal/copytrade.shtml This document is current as of the initial date of publication and may be changed by IBM at any time. Not all offerings are available in every country in which IBM operates. The performance data discussed herein is presented as derived under specific operating conditions. Actual results may vary. THE INFORMATION IN THIS DOCUMENT IS PROVIDED “AS IS” WITHOUT ANY WARRANTY, EXPRESS OR IMPLIED, INCLUDING WITHOUT ANY WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND ANY WARRANTY OR CONDITION OF NON-INFRINGEMENT. IBM products are warranted according to the terms and conditions of the agreements under which they are provided.