the right customer for the right revenues at the right time
TRANSCRIPT
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Private & ConfidentialPrivate & Confidential
The right customer for the right
revenues at the right time
IQPC Customer Loyalty, 24 August 2011
PHANG Shueh @Chyan
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2
In a world of limited
resources…
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3
…some customers are more
equal than others
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4
Challenge: Find and focus on
the ‘more equals’
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5
Identified key behavioral variables in
trips/bookings
Purchase Lead Time Number of Passengers
1. Impulsive (<15 days)
2. Planned ( 15-30 days)
3. Well planned (30-60 days)
4. Very well planned (>60 days)
1. Single (1)
2. Couple(2)
3. Group (3-4)
4. Large group (>4)
Length of Stay Weekend Stay
1. Short (1-3 days)
2. Medium ( 4-5 days)
3. Week-long (6-10 days)
4. Very long (>10 days)
1. Weekdays (0)
2. Weekend (1)
GOALCreate meaningful behavioral types for analysis
Analysis StrategyData
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6
Assembled the data into trip/booking types
that characterize customer behavior
Analysis StrategyData
Purchase Lead Time
1. Impulsive (<15 days)
2. Planned ( 15-30 days)
3. Well planned (30-60 days)
4. Very well planned (>60 days)
Number of Passengers
• Single (1)
• Couple(2)
• Group (3-4)
• Large group (>4)
Length of Stay
• Short (1-3 days)
• Medium ( 4-5 days)
• Week-long (6-10 days)
4. Very long (>10 days)
Weekend Stay
• Weekdays (0)
• Weekend (1)
Trip Type
e.g. impulsive, single
pax, medium stay,
weekend
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7
Associated trip/booking types with revenues
to understand relative profitability
Analysis StrategyData
Trip Type
Rank1 Lead Time No. of Pax
Length of
Stay
Weekend
Stay
Revenue Per
Booking
Trip Type 1 Impulsive 2 4 days Yes
Trip Type 2 Planned
Trip Type 3 Impulsive
Trip Type 4 Impulsive
Trip Type 5 Impulsive
1 Based on contribution to bookings
‘Last minute’ content
is important
Focus acquisition/
merchandizing
efforts on these
trip types
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8
Arranged trip/booking types into meaningful
segments
Analysis StrategyData
Pax
Lead
Time
Denotes volume
of bookings
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9
Arranged trip/booking types into meaningful
segments
Analysis StrategyData
Pax
Lead
Time
Denotes volume
of bookingsPax
Lead
Time
Denotes volume
of bookings
Group
Impulsive
Single
Impulsive
Single
Planned
Group
Planned
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10
Established the go-to-segments to pursue
Analysis StrategyData
Pax
Lead
Time
Denotes volume
of bookingsPax
Lead
Time
Denotes volume
of bookings
Group
Impulsive
Single
Impulsive
Single
Planned
Group
Planned
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11
Made the go-to-segments addressable by
marketing
Analysis StrategyData
Pax
Lead
Time
Denotes volume
of bookingsPax
Lead
Time
Denotes volume
of bookings
London
Sydney
Rome
Los Angeles
etc.
Group
Planned
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12
Peeked into destination demand seasonality
Analysis StrategyData
Jan Dec
TARGET SET
Seasonality – Travel Dates
Bo
ok
ing
Dis
trib
uti
on
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13
Addressed destination demand patterns via
booking lead-times
Analysis StrategyData
Booking Lead Time for Dec Travel
120
Days
Dec
Seasonality – Travel Dates
Jan Dec
TARGET SET
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14
Aligned marketing mix and spend with
demand sweet spot
Analysis StrategyData
Seasonality – Travel Dates
Jan Dec
Marketing Intensity
120
Days
Dec
Peak spend
broadly across
channels
Soft ramp with
targeted
channels
TARGET SET
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15
Aligned merchandizing exposure and offers
with demand
Analysis StrategyData
Seasonality – Travel Dates
Jan Dec
Merchandizing Exposure
120
Days
Dec
‘Last Minute’
Deals
‘Early Bird’
Offers
TARGET SET
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The right offer at the right time to the right
customer drives ROI
Analysis StrategyData
Market Analysis
• Destinations to
promote
• Booking lead time
• No. of travelers
• Seasonality
1.2x
1.5x in RPM
1.7x