Blog Posts Process Management

Case Study: Customer Journey Mining

Blog: Flux Capacitor

This is a guest article by Yeong Shin Lee from PMIG and Yongil Lee from LOEN Entertainment.

If you have a process mining case study that you would like to share as well, please contact us via anne@fluxicon.com.

Summary

Korean Internet companies are holding voluminous log data that records users’ service usage behavior. If they can effectively utilize it, they can gain a competitive edge for maximizing their earnings. Yet, most of them are still at an early stage in which they identify users’ rough characteristics by performing simple statistical analyses.

LOEN Entertainment runs Melon, which is the largest online music streaming service in South Korea. They adopted process mining with Disco to analyze their mobile app’s log data. LOEN analyzed new users’ journeys during the day when they signed up with a KakaoTalk account. KakaoTalk is a free mobile instant messaging application for smartphones with free text and free call features. KakaoTalk is used by 93% of smartphone owners in South Korea.

They categorized new users into five segments based on their behavioral pattern and clearly identified the reason why each segment signed up. Furthermore, building on the analysis results, it is planning to conduct a targeted marketing campaign for increasing each segment’s CVR (Conversion Rate). The company is judging that their process mining analysis using Disco plays a key role in understanding new customers and is likely to contribute to maximizing earnings.

Company & Service

With the spread of smartphones, the Korean digital music market has

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