Hakuhodo DY ONE and Smash Join Forces in Strategic Business Alliance
〜Enhancing LTV and Strengthening CRM Marketing Support〜

Tokyo, May 27, 2024 – Hakuhodo DY ONE Inc. (headquarters: Tokyo; Chairman and Representative Director: Yuzo Tanaka; President and Representative Director: Hiroto Kosaka) proudly announces its strategic business alliance with Smash Co., Ltd. (headquarters: Tokyo; Representative Director and CEO: Shinya Ishiyama). A subsidiary of Macbee Planet Inc. (headquarters: Tokyo; Representative Director and President: Tomohiro Chiba), Smash specializes in retention bot services. This partnership aims to elevate Hakuhodo DY ONE’s CRM marketing support system by leveraging advanced customer analysis, enabling companies to strengthen customer relationships and maximize Lifetime Value (LTV). (*1)

Shifts in Customer Behavior and the Growing Importance of Retention

With the recent shift in sei-katsu-sha (a term the Hakuhodo DY Group uses to describe people not simply as consumers, but as fully rounded individuals with their own lifestyles, aspirations, and dreams) purchasing behavior to online, recurring-purchase services (*2) and subscription services (*3) are becoming increasingly popular. As a result, companies must implement customer engagement initiatives that boost satisfaction and reduce cancellations through retention strategies that foster strong, long-term customer relationships and increase LTV.

Hakuhodo DY ONE has consistently delivered CRM solutions and personalized communication strategies grounded in customer analysis data to help raise LTV and drive marketing success. Meanwhile, Smash has been enabling companies to strengthen customer relationships through its AI chatbot, Smash, which engages with customers at critical churn points to reduce attrition and provide actionable insights.

Bringing Together Expertise for Enhanced Solutions

Through this alliance, Hakuhodo DY ONE will integrate its digital marketing expertise with Smash’s robust customer and conversation log data to deliver more advanced marketing solutions. By fostering stronger customer relationships over the medium to long term, client companies will maximize customer value, leading to increased profitability and enhanced corporate value.

About Smash

Smash leverages patented technology to measure the emotions of customer responses, such as favorability or aversion, and adjusts conversation content and expressions to suit each individual. This creates communication that more closely mirrors human interaction. Additionally, Smash uses communication and cancellation data collected via its chatbot to inform marketing strategies, effectively reducing churn rates.

Key Services Available Through This Partnership

1. Agency Sales of Smash
   Designed primarily for subscription service providers, we offer implementation support for Smash, a solution aimed at preventing churn and re-engaging inactive customers.
2. CRM Initiatives Based on Customer Analysis of Cancellation Reasons
   By analyzing cancellation reasons and related data, we support and enhance our clients’ CRM initiatives. This includes providing assistance with marketing automation (MA) and content development to drive better results.
3. New Customer Acquisition Support
   Through UI/UX improvements to service pages, we enhance engagement, loyalty, and customer experience. Using the Smash AI chatbot function, we propose and support web-based customer relations initiatives to attract new customers while improving engagement with existing ones.

Future Outlook

Hakuhodo DY ONE and Smash will continue to strengthen their alliance, combining their expertise to deliver advanced marketing solutions. By deepening collaboration, they aim to maximize client companies’ marketing outcomes and drive sustainable business growth.

Smash Co., Ltd.

*1    LTV: An abbreviation for Lifetime Value, this metric measures how much value a company can generate from a customer from when they start using the service to when they terminate it.

*2    Recurring-purchase service: A service where a product is automatically purchased at regular intervals, such as monthly or every other week.

*3    Subscription service: A service or product that can be used for a specific time period for a monthly or yearly fee.

*4   Customer retention: Initiatives to increase the number of repeat customers and fans of a product or service.