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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:

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