⚙️ Engagement & Retention project | keyence corporation

⚙️

Engagement & Retention project | keyence corporation

Index -

The Product
- Industry and Context
- The Products and Sub product Segments
- Understanding the Product
- - Core Value
  - Current user experience
  - Natural Frequency
  - Engagement framework
The Active User
- Define
- - ICPs ( Capex / Opex - EU / OEM )
  - Actions ( Core E&R metrics )
  - Natural Frequency
  - User Segmentation (Active)
  - - Power/Core/Casual
    - Persona based
    - Natural frequency based
    - Revenue Generated / products used
    - ~~RFM Analysis~~
Engagement
- Product Hook (Optional)
- Engagement Campaigns ( Atleast 5 )
- - Type of user (Focus)
  - Goal of Campaign
  - Pitch/content
  - Channels
  - Offer
  - Frequency
Retention
- Overview ( Data and Guestimations )
- Churn
- - Reasons
  - Voluntary & Involuntary
  - Negative actions to be tracked
Resurrection Campaigns ( Atleast 5 )
- Type of user (Focus)
- Goal of Campaign
- Pitch/content
- Offer
- Frequency
- Success metrics

The Product

Industry and Context

Keyence is a Japanese company that manufactures and sells factory automation products. They are a leading player in the industry with over 3,00,000 customers in 110 countries including most of the fortune 500 companies.

The Products and Sub product Segments

For this project, the "product" we're focusing on isn't a single physical device, but rather the entire Keyence customer experience – from initial website interaction to technical sales person's customer engagement and at site technical supports included.

This encompasses the:

- - Website: Keyence.com as a platform for information, product exploration, and potential purchase.
  - Content: Technical specifications, application guides, success stories, and other resources.
  - Sales Support: Interaction with sales representatives for product demo , technology selection, negotiations, purchase and consulting.
  - Technical Support: Post-purchase assistance with installation, troubleshooting, and maintenance.
  - Subproducts and Categories:

What is the core value proposition of Keyence?

- - Core Value Proposition
  - - Keyence goes beyond simply selling products. They offer a value proposition that focuses on improving their customers' bottom line through increased efficiency, quality, and productivity.

To understand the core value proposition of Keyence, here's a short dive into core problems in manufacturing industry and their adverse effects.

1) Inefficient production processes and bottlenecks

- Slowdowns the factory's overall production and directly impacts the revenue of the company

2) Defected products and Quality issues

- Defects products cause waste of resources, costly rework and in case of defected product delivery, it can hamper the relations with end-customer.

- Eventually putting future business in risk.

3) Maintenance and Unplanned Down time -

- It is a very common problem in industry and no company wants to spend their money in firefighting the recurring problems .

- It wastes the company resources and decreases the production ( w.r.t. project timelines )

4) Manual work and errors

- Semi-automatic or manual processes are subject to operator's mistakes and it creates a scope for human errors.

- As the operators are mostly non-engineers, they are not aware of about the technology that they are interacting with. In such cases, cost and delay in production is a big problem for manufacturers.

Now that we understand the core problems of the customer, Lets Understand what keyence offers -
- Increase Productivity: By streamlining processes and reducing downtime.
- - Keyence automation solutions help manufacturers achieve higher production output, minimize waste, and optimize overall factory operations. This translates to increased profitability for their customers.
- Enhance Quality Control: Through precise measurement and automated inspection.
- - Keyence's high-precision sensors, machine vision systems, and other products ensure consistent product quality and minimize production errors. This translates to a more reliable manufacturing process and a stronger brand reputation for Keyence's customers.
- Drive Efficiency: Optimizing production lines and minimizing waste.
- - With automation, the probability of human error decreases significantly. It enables manufacturer to execute repeated tasks with more reliability and decrease the unplanned down time of the machines.

In a Nutshell -

Lets take an example of Mahindra as one of the customers for Keyence.

Some interesting User Insights

1) A study by McKinsey shows that 42% of manufacturers prioritize increased productivity as their top objective.

2) Data from Keyence's support tickets indicates that 38% involve troubleshooting issues related to waste reduction and defect minimization.

3) Analysis of online customer reviews shows that 20% mention product quality as a key factor in their satisfaction with Keyence solutions.

4) Year-over-year analysis of sales inquiries reveals a 15% increase in interest regarding Keyence's predictive maintenance solutions.

How Users Experience the core value proposition ?

With other Suppliers -

With Keyence -

70% of Keyence products being first-to-market innovations translates to users experiencing cutting-edge solutions designed to address specific pain points in their manufacturing processes. These innovative features can lead to significant improvements in efficiency, quality control, and overall productivity. For instance, a user facing production line bottlenecks might experience the value proposition through Keyence's latest high-speed robots that streamline product flow.

Direct Sales Fostering Close Engagement:

Keyence's direct sales approach creates a shorter feedback loop between users and product development. Sales representatives directly interact with users, understand their challenges in detail, and can provide targeted solutions. This allows Keyence to continuously refine their offerings based on user feedback, ensuring their products continue to deliver on their value proposition. For example, a user experiencing difficulties integrating a Keyence sensor into their existing machinery might receive personalized support and configuration assistance from a dedicated sales representative.

Expertise and Proven Applications:

Keyence's large portfolio of industrial applications, including successful implementations with giants like Mercedes, Skoda, Cipla, Apple, and Tesla, showcases their ability to solve complex problems across diverse industries. This instills confidence in users that Keyence possesses the expertise and proven track record to deliver on their value proposition. A user in the pharmaceutical industry, for instance, might be more likely to trust Keyence's quality control solutions after learning about their successful implementation at Cipla, a leading pharmaceutical manufacturer.

Why do customers keep coming back to Keyence?

As a CSE myself, there is a very interesting phenomenon that we observe while interacting with the Keyence Customers, we call it "The Keyence Fan-base".

Because of strong R&D and technically superior products, Keyence does have a reputation of delivering quality results and being the most reliable solution,

But the reason for our customers to keep coming back to Keyence is surprisingly not related to technical features.

It is the way we (CSE - Consulting Sales Engineers) engage with customers.

For most cases, customers user the CSEs as Doctors for their manufacturing problems.

They value the access to technical and practical expertise that CSEs have and whenever there is a problem,

First thing that pops in their mind is : Lets call Keyence as see what they say.

In short, the CSE works as a Face for the core value proposition of KEYENCE.

The Active User

Define

In this case, an active user can be defined as someone who takes a high-value action on the website or with the products/ sales person. Considering the price of the sub-products rages from 2000 INR to 5000000 INR,

If we consider only purchase as the High value action, the following diagram shows the natural frequency of the Keyence as a product divided into the subproduct categories.

Natural Frequency -

Other than the purchase, many prospects are frequent website interactors or daily news letter readers before they actually buy a product from Keyence.

This could include:

Downloading industry-specific content (white papers, application guides).
Registering for webinars showcasing Keyence solutions.
Requesting a trial or demo of a product.
Completing a purchase or reordering supplies.
Engaging with Keyence's support team for maintenance or troubleshooting.

Engagement framework -

work	Key Tracking Metrices	New product/category	Priority	Reason
Breadth or New category of product	No. of Purchase Orders for new product or category AOV for new product/category	Commodity sensors ( Low AOV ) Controls and Vision Products ( Mid AOV ) Marking and Measurement Products (High AOV)	2	Once the customer uses a product from keyence they are exposed to the core value of keyence. It is natural for them to trust keyence in other applications and costlier solutions.
Depth	Interaction with website pre and post purchase Interaction with sales and support staff pre and post purchase Introducing new applications and giving references to other team members Proactively pitching product to machine makers and other vendors	1	The depth of engagement shows how likely the customer is going to give a repeat PO. This is the most important lever to make customer a "Keyence Fan". The word of mouth effect starts when a core user starts acting as a keyence fan.
Frequency	Number of POs in definite time period. ( varies as per the sub-product category)	3	Calculating repeat order frequency is key, as it shows the bevaiour of customer and how much they trust keyence, For example a customer that buys 5000 INR sensor every month can buy a vision system once a half (atleast) and if thats not the case then customer is either not aware or dont trust the product yet.

User Segmentation (Active)

As mentioned earlier, the cost of product can range from 2000 to 5000000, hence the buying patterns of customer's change. For a poka-yoke applications the expense can be done through the Op-ex (maintenance budget) but in case of large project deals, it happens through cap-ex budgets, hence the frequency is annual.
to simplify User segmentation, we will segemtize them in following manner -

Personas based
Frequency and revenue based
Power - core - casual based

Persona Based

ICP	Demographics	Time Spent	Money Spent	Behavioral Traits	Product Interaction	Value Proposition	JTBD (Jobs To Be Done)	Industry
Enterprise EU (Auto)	Large manufacturing plants (500+ employees)	High (regular product research)	Very High (frequent purchases)	Data-driven, efficiency-focused, brand loyal	Actively researches products, downloads technical specs, compares with competitors	Increased production output, improved quality control	Reduce production costs, minimize defects, ensure regulatory compliance	Automotive
OEM (Machine makers)	40- 200 employees and medium size compan	Medium (focused research)	High (bulk purchases)	Innovative, fast-paced, tech-savvy, Price sensitive, brand loyal	Downloads white papers on new technologies, attends industry webinars	Cutting-edge automation solutions to make their machines ( product) stand out	Integrate automation systems seamlessly, stay ahead of technological advancements	Pharma
Small-Scale Supplier (Pharma)	Small to medium businesses (20-50 employees)	Low to Medium (limited research)	Medium (project-based purchases)	Price-conscious, risk-averse, value quality, not very brand loyal	Focuses on product demos, ROI calculators, seeks direct sales support	Cost-effective solutions, ease of use, reliable after-sales service	Implement automation within budget constraints, ensure product quality	FMCG

ICP

Demographics

Time Spent

Money Spent

Behavioral Traits

Product Interaction

Value Proposition

JTBD (Jobs To Be Done)

Industry

Enterprise EU (Auto)

Large manufacturing plants (500+ employees)

High (regular product research)

Very High (frequent purchases)

Data-driven, efficiency-focused, brand loyal

Actively researches products, downloads technical specs, compares with competitors

Increased production output, improved quality control

Reduce production costs, minimize defects, ensure regulatory compliance

Automotive

OEM (Machine makers)

40- 200 employees and medium size compan

Medium (focused research)

High (bulk purchases)

Innovative, fast-paced, tech-savvy, Price sensitive, brand loyal

Downloads white papers on new technologies, attends industry webinars

Cutting-edge automation solutions to make their machines ( product) stand out

Integrate automation systems seamlessly, stay ahead of technological advancements

Pharma

Small-Scale Supplier (Pharma)

Small to medium businesses (20-50 employees)

Low to Medium (limited research)

Medium (project-based purchases)

Price-conscious, risk-averse, value quality, not very brand loyal

Focuses on product demos, ROI calculators, seeks direct sales support

Cost-effective solutions, ease of use, reliable after-sales service

Implement automation within budget constraints, ensure product quality

FMCG

Segment	Natural Frequency	Revenue Generated	Products Used
High-Value Champions	Low (Yearly Purchases)	High	Diverse product suite
Loyal Re-Orders	Medium (Project-Based)	Medium	Specific product focus
Engaged Explorers	High (Frequent Research)	Low	Varied product exploration

When we see the segmentation based on frequency, the purchase frequency does not cot necessarily contribute to the higher revenues as the order value and the project size decides the revenue.
Power - Core - Casual User

	Description	Power User	Core User	Casual User	Insights
Tech-Savvy Engineer	Deep understanding of automation technologies. Seeks out advanced features and customizations.	High engagement with technical content, actively participates in user communities.	Regularly uses Keyence products, seeks troubleshooting advice from support.	Downloads basic product manuals, occasionally contacts support for basic inquiries.	Attends advanced webinars, participates in beta testing programs.
Production Manager	Focuses on operational efficiency and meeting production targets. Values reliable performance and ease of use.	Regularly monitors production data using Keyence solutions, prioritizes uptime.	Uses core functionalities of Keyence products, relies on pre-configured settings.	Primarily uses Keyence products for basic tasks, might require more training resources.	Seeks out case studies demonstrating efficiency improvements.
Procurement Specialist	Responsible for budgeting and purchasing decisions. Prioritizes cost-effectiveness and vendor relationships.	Compares quotes from different vendors, negotiates pricing with Keyence sales representatives.	Makes repeat purchases based on established vendor relationships, might be open to upsells.	Downloads product brochures and pricing guides, rarely interacts with support.	Responds well to special offers and volume discounts.

What counts as an Active user for Keyence?

Engagement Campaigns ( Atleast 5 )

( Relation ship analogy : Keeping the spark alive )

Campaign 1: Optimizing Efficiency for Maximum Uptime

Type of User: (Production Manager) ( Eu - High value - core user)
Goal of Campaign: Increase product knowledge and usage of advanced functionalities to optimize production processes and minimize downtime.
Content: A bunch of short, informative video tutorials showcasing real-world applications of Keyence products and best practices for maximizing efficiency.
Along with reference of the real time applications and client testimonials.
Channels:
Targeted email campaigns, social media platforms (LinkedIn).
Offer:
Get Free access to Keyence's exclusive online portal with value added content for your smooth production.
( downloadable resources like troubleshooting guides and maintenance checklists. )
Frequency: Monthly video releases with corresponding email blasts.

Campaign 2: Proactive Maintenance for Peak Performance

Type of User: Core User ( Maintenance Manager, Engineer)
Goal of Campaign: Promote the value of Keyence's proactive maintenance services to ensure optimal product performance and prevent unexpected downtime.
Pitch/Content: A webinar featuring a Keyence service engineer discussing the benefits of proactive maintenance programs, The sub product features, technical support team’s structure and how a user can avail support at minimum cost and fastest lead time.
Channels: Email invitations to relevant user segments, website banner ads, industry publications (e.g., manufacturing magazines).
Offer: Worry no more about the down time! Join our webinar to learn how to strategically reduce machine down time with Keyence proactive maintenance.
Frequency: Quarterly webinars with targeted email promotions.

Campaign 3: Cost saving made easy with Keyence ( Purchase )

Type of User: Core User (Technical Purchase Manager, Engineer) ****( OEM / EU - core - Engaged Explorers )
Goal of Campaign: Highlight how Keyence product may seem costly at one time purchase but reduces the overall company expense on automation products on a longer run by reducing the replacement frequency. ( Quality products = less replacement = cost saving )
Content: An interactive case study showcasing a Keyence customer who successfully utilized Keyence's products to reduce their annual expense and achieve significant revenue gains.
Channels: Email campaigns, dedicated landing page on the Keyence website, industry conferences.
Offer: Free trial access to Keyence's expense calculator, Copy - Is your sensor draining your money?
Frequency: Quarterly case study releases with corresponding email promotions, participation in relevant industry events every 6 months.

Campaign 4: Knowledge Sharing and Peer-to-Peer Learning

Type of User: Core User (Engineer)
Goal of Campaign: Foster a community of Keyence users by encouraging knowledge sharing and peer-to-peer learning through an online forum.
Pitch/Content: Launch a dedicated online forum on the Keyence website where users can ask questions, share best practices, and troubleshoot technical challenges with other Keyence product users.
Channels: Targeted email invitations, announcement on Keyence website and social media platforms.
Offer: Recognition program for active forum participants who consistently provide valuable insights and contribute to the community.
Frequency: Ongoing forum with dedicated Keyence moderators to ensure quality discussions and address user concerns.

Campaign 5: Exclusive Access to Industry Trends and Insights

Type of User: Core User (MD and COOs of Plants, Engineer)
Goal of Campaign: Position Keyence as a thought leader in the industry and provide valuable insights to help core users stay ahead of the curve.
This will show the technical superiority of keyence and increase the chances of user retention.
Pitch/Content: A bi-monthly email newsletter featuring industry trends reports, white papers on emerging technologies, and exclusive interviews with leaders in the industry around technicalities of automation.
Offer: Be the leader of your your industry, automation made easy
Frequency: Bi-monthly email newsletters with an option for users to adjust their subscription preferences.

Retention

- Overview ( Data and Guestimations )
  Tackling arguments : the relationship analogy.
- - Retention rates in this sector can range from 60% to 80%
  - As the products are technical and complex, most of the users retain unless there is a very convincing reason for them to churn.

- Churn

Voluntary Churn

Dissatisfaction with product performance or support.
Finding a better solution from a competitor offering lower prices or more advanced features.
Decision maker in the company has changed and he/she does not prefer Keyence.

Involuntary Churn
Company going out of business.
Merger or acquisition where a different automation solution provider is chosen.
Financial hardship preventing them from renewing service contracts or purchasing new equipment.

Negative Actions of Core Users / Anti-engagement

Decreased product usage
Increased support inquiries
Negative customer reviews and complaints
Poor response to Sales person's calls

Resurrection Campaigns ( Atleast 5 )

Campaign 1: Rekindling the Partnership (Focus: The Frustrated Engineer)

Type of User: Core User ( Maintenance Manager, Engineer)
Goal of Campaign: Regain trust and address user frustration by providing exceptional support and proactive solutions.
Content: A dedicated customer success manager proactively reaches out to the customer, acknowledges their past challenges, and offers personalized troubleshooting assistance.
Offer: Priority access to technical support, on-site visit from a Keyence service engineer for in-depth product assessment, and access to exclusive knowledge base articles or training resources.
Frequency: Initial outreach followed by ongoing communication based on the user's specific needs.
Success Metrics: Resolution of technical issues, improved customer satisfaction ratings after support interactions, and renewed engagement with Keyence resources.

Campaign 2: Value Reassessment Offer (Focus: The Price Seeker)

Type of User: Core User (Purchase Manager)
Goal of Campaign: Demonstrate the long-term value proposition of Keyence products and potentially offer competitive pricing solutions.
Pitch/Content: A customized cost-benefit analysis showcasing the total cost of ownership (TCO) of Keyence products compared to the competitor's solution. This analysis should highlight factors like lower maintenance costs, higher product reliability, and potential productivity gains.
Combined project prices for Product buckets.
Offer: Limited-time discount on product upgrades or flexible automation solutions to ease the financial burden.
Frequency: Targeted outreach campaign based on identified at-risk users considering competitor quotes.
Success Metrics: Retention of the customer by addressing their pricing concerns and demonstrating the long-term value of Keyence solutions.

Campaign 3: Innovation Showcase & Re-Engagement (Focus: The Innovation Laggard)

Type of User: Core User (Project and ME, Engineer)
Goal of Campaign: Re-engage the user and highlight Keyence's commitment to innovation by showcasing their latest advancements and upcoming product launches.
Content: An exclusive invitation to a webinar or live product demonstration featuring Keyence's newest technologies that address current industry trends and advancements.
Offer: personalized consultations with Keyence product experts, and complimentary subscriptions to industry publications focusing on automation innovations.
Frequency: Targeted outreach campaign based on user interests and industry trends, with periodic updates on Keyence's innovation pipeline.
Success Metrics: Increased user engagement with content showcasing innovation, participation in beta testing programs, and renewed interest in Keyence solutions.

Campaign 4: The Voice of the Customer Survey

Type of User: All Core Users (Production Managers & Engineers)
Goal of Campaign: Gather direct feedback from at-risk users to understand their concerns and identify areas for improvement. Making then feel heard.
Pitch/Content: A personalized email invitation to participate in a short, confidential survey that gathers feedback on user satisfaction, product performance, and potential reasons for considering alternative solutions.
Offer: A token of appreciation for participation (e.g., gift card) and the opportunity to directly influence Keyence's future product development efforts.
Frequency: Periodic surveys conducted every 6 months to track user sentiment and identify potential churn risks.
Success Metrics: High survey completion rate, valuable customer insights to address concerns and improve user experience, and improved customer retention rates.

Campaign 5: The Win-Back Offer (Last Resort)

Type of User: Core User (at high risk of churn)
Goal of Campaign: Offer a compelling incentive to entice the user to stay with Keyence as a last resort before potential churn.
Pitch/Content: A personalized call from a senior Keyence representative acknowledging the user's situation and offering a highly customized package that addresses their specific needs and concerns. This could include significant discounts or bundled service packages.
Offer: Keyence as a valuable ally for your business.
Frequency: Used sparingly as a last resort for high-value customers at imminent risk of churn.
Success Metrics: Retention of the at-risk customer through a highly targeted offer that demonstrates Keyence's commitment to maintaining the partnership.