Hand-picked data stimulates repeat bookings
Business Issue:
General lack of understanding and knowledge of their broader customer base, making strategic marketing decisions relating to data and customer strategies difficult.
Brief:
As part of the wider strategic review, TIH were asked to produce a thorough understanding and profiling of the current customer base, split across the main business sectors:
- Room revenue (retail and corporate)
- Functions
- Spa and leisure services
- Food and beverages
The analysis needed to be both at the individual site level and for the total group.
Our thinking:
The exploratory analysis formed a broad structured investigation into how customers behave and interact with Hand-picked Hotels. There are a number of key objectives to this investigation:
- Understand where and how the value lies within the customer base
- Unearth actionable insights, allowing Hand-picked Hotels to score a number of quick wins by making immediate changes to contact or communication plans.
- Provide a good key basic understanding of the customer journey from initial purchase to current value and potential.
The analysis explored all aspects of the customer interaction, including:
- Are there common purchase cycles for Hand-picked Hotels customers? Do some customers always visit at the same time of the year?
- How does value get generated from the customer base? Are there many repeat visit customers? What can we learn about a customer’s first purchase that may help us to predict their future value to the business?
- How much of the total value is provided by the top customers?
- Do any customers come back after not visiting for a long time? What is the likelihood for reactivation?
- What knowledge can we gain from previous communication activity?
Our approach:
- Consolidated data from across the business to differentiate leisure and business customer behaviours and potentials
- Created mini clusters based on the customer’s affinity to the brand and particular hotel
- Developed a bespoke likelihood model to predict potential for repeat bookings
Our output:
- Identified cohorts of customers with specific growth strategies using our unique proprietary tool, Value Spindles
Business Impact:
