It’s hard to imagine life without GO-JEK right now. We feel like the online motorcycle ride-hailing service has been around since forever, thanks to its wide range of services that includes transportation, logistics, mobile payment, food delivery, and even massage. How convenient is that?
In order to use GO-JEK service, all you have to do is just open the app, pick one service you’d like to use, and voila! Of course, you need to download the GO-JEK app first. But we bet you already have one because as of 2016, CNN noted that the GO-JEK app has been downloaded 25 million times! That’s nearly 10% of our total population, which reaches 261.1 million in 2016.
Actually, it’s not that surprising because the GO-JEK app is very easy to use, even for non-tech-savvy people. For instance, if you want to order a Go-Ride service, most of the time you don’t need to write your pick-up location because it’s already there, especially if you often order a Go-Ride service from the same location. And when you click on the destination tab, the history will show you the last three places you went to. So if you’re planning to go to one of those three places, you won’t need to write it down again.
But how does GO-JEK do that?
It’s because GO-JEK has this big data that provides information about its customers, such as what kind of foods they usually buy, travel routes, shopping lists, and even car washing schedules. They analyze all this data and turn them into a valuable insight so that they can give better services to the customers.
Business Intelligence Division: The mastermind behind GO-JEK’s big data analysis
According to Tech in Asia, GO-JEK has about 10 million weekly active users. Imagine how many data they receive on daily basis! Looking at the wealth of data that the services produce each day, it is natural to be curious about how the company is utilizing this resource.
GO-JEK actually has a special department called Business Intelligence (BI) to take care of all the data. The BI team takes data from the back-end of every service that GO-JEK offers, from ride-hailing service Go-Ride to the ticket-booking platform Go-Tix. They clean and humanize the data from the back-end and turn it into information such as booking conversion rate.
Ideally, BI would determine different metrics like how many customers book Go-Ride service in a certain area, how many drivers pass through this area, and whether the demand is being met with good supply. By analyzing the data, GO-JEK is able to identify the key areas that are under-performing or things like areas where there is a lot of Go-Food demand but not enough merchants to fulfill the type of food people are looking for.
The BI team is not only for developers and BI analysts but also for the entire company. For instance, one time BI helped GO-JEK to determine the most difficult areas in the city to travel through based on the past trend of common routes over the past two years This knowledge enabled GO-JEK to maximize its Go-Ride marketing in those particular areas.
Stay Focus on North Star Metric
With millions of data available, it can be overwhelming to pick which data that needs to be utilized. Interviewed by e27.co, GO-JEK SVP of Business Intelligence, Crystal Widjaja, said that the opportunities to grow were abundant. She and her team try not to be so overly focused to track and analyze every single data point.
This is where the North Star metric plays an important role.
North Star metric is not revenue. It’s not a user base. It’s not a growth rate. It’s a measure of the total value customers get from your product. North Star Metric will give your business a clear, singular focus to define.
There are no exact methods on how to determine the North Star Metric. But, for GO-JEK, their North Star Metric is to complete the transaction. There’s no denying that sometimes all those data make it hard for GO-JEK’s BI team to come up with decisions since each service comes with different matrixes. But, with North Star Metric, it’s easier for them to stay focus and pick which matrixes that could help them complete customer’s transaction.
What’s in it for GO-JEK’s customers and drivers?
Big data analysis allows GO-JEK to “guess” their customer’s preference. It’s like what we said earlier: when you order a Go-Ride service, you won’t have to write the pick-up location yourself because GO-JEK has provided it for you.
The more GO-JEK comes up with right “guesses”, the less likely you are to click on the app. The lesser you click, the more likely you are to be satisfied because you don’t have to put many efforts to use the app.
But GO-JEK doesn’t only use its big data to get to know its customers better, but also to learn about their drivers. When interviewed by Tirto.id, Nadiem Makarim, founder of GO-JEK, said that his team realizes how most of their drivers are quite picky about taking customer’s order. There are some drivers who tend to avoid orders in certain restaurants. There are also some who would cancel the order if it’s for certain areas.
By using big data, GO-JEK is able to make arrangement in which the drivers won’t receive the order they will cancel. For instance, let’s say driver A never takes Go-Food orders in restaurant X at 6-9PM. In the future, GO-JEK won’t give such orders to that driver. Not only does it minimize customer’s dissatisfaction, it’ll also help GO-JEK to cut their expense. Because, to motivate their drivers to pick orders from customers, GO-JEK used to continuously subsidize them.
To sum it up, big data has given a huge opportunity to GO-JEK to increase their services, not only for customers but also for their drivers. It’s no wonder that GO-JEK has experienced rapid expansion in just a few years.
Today, GO-JEK operates in 50 cities across Indonesia with 18 services. All because they’re willing to get to know its customers better through big data,