dario ambrosini - supply chain & inventory gamification: the travel case study

Post on 22-Apr-2015

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Multi-source inventory management has become an increasingly popular way for companies to reduce costs. Switchfly, a B2B2C SaaS platform in the travel and loyalty industry, saves tens of millions of dollars for its clients each year by using gamification in its inventory management system. The company will share its strategy for maximizing savings from 90 inventory suppliers that are responsible for over $1 billion in annual travel bookings.

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Copyright © 2013. All rights reserved.

Supply Chain & Inventory Gamification:

The Travel Case Study

Dario Ambrosinidambrosini@switchfly.com

2

Our Technology in Action

3

The B2B2C Supply Chain

Multi-source access to 100+ supplier

APIs

Configurable business rules for individualized implementations

100% client branded web sites

$1 billion in annual gross

travel bookings

4

Problem with Transaction-Based B2B2C Model

5

Multisource Value Prop is Clear

20 destinations – 3 sets of dates – 3 night hotel stay

OTA 1 W 1 W 2 W3 OTA 2 RW 1 $350

$400

$450

$500

$550

16% Average Savings

Cumulative Average Price

6

Gamification provides a simple way to overcome resistance

But Hesitation Across the Supply Chain Comes in Many Forms

Lack of experience

Desire to see proof points

Over-analyzing data

Fear of change Inability to relinquish control

Stuck inold ways

7

Suppliers –Network Volume Share

98%

2%

Before Share Disclosed

90%

10%

After Share Disclosed

Supplier: 450% increase in volumeNetwork: 5% increase in revenue

8

• Keep it simple

• Use anonymous data

• Aggregate network data works best

Key Takeaways

9

B2B Clients – Network Conversion Rates

1 2 3 4 5 6 7 8 9 10 11 12

RelativeConversion

Rate

Network Average = 100

Client = 100% increase over

6 months

Network average shared

with Client

10

• Relative performance is better than simple rank

• Benchmarks influence behavior even when targets exceed them

• Indexed benchmarks constantly raise the performance bar

Key Takeaways

11

End Users – Sense of Urgency

12

End Users – Exclusive Opportunity

35% of all hotels displayed have a package savings amount…

which result in 95% of total bookings

Even limited savings increases conversion rates

13

• Don’t forget consumer marketing best practices – many rely on gamification

• A/B test gamification techniques just like any other marketing tool

Key Takeaways

Copyright © 2013. All rights reserved.

Thank You

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