Key Points

Challenge

  • A leading hotel chain wanted a more effective marketing strategy to reach out to loyalty program members who were more likely to purchase various timeshare and vacation packages

Solution

  • WNS’ team of analysts and travel domain experts deployed customer segmentation through a two-stage analytics model to identify potential customers

Benefits

  • The client identified that 40 percent of the total customer base comprised 70 percent of timeshare purchasers
  • The WNs solution enabled the client to create a targeted marketing and communication program, thereby saving 30% on marketing cost

Abstract

The hotel chain wanted to market its timeshare properties more effectively. For this, identifying loyalty program members having a high propensity to purchase timeshare properties after purchasing mini vacation packages, was key. WNS developed a two-stage analytics model which enabled the client to segment its customers, improve targeting and optimize communication programs. This facilitated the client to save 30 percent of its marketing outlay.

The Client

One of the leading global hotel chains with a host of hotels operating under separate brands. A majority of the company's hotels operate under franchise agreements.

The Challenge

The hotel chain wanted to market its timeshare properties more effectively. Back then, it was running a marketing campaign for selling 'mini vacation' packages to its loyalty program members. The hotel wanted to identify its loyalty program members who would have a high propensity to buy timeshare properties after purchasing the mini vacation package.

The WNS Solution

As a long-term Business Process Management (BPM) partner, WNS had a sound understanding of the client's business. WNS’ team of analysts and travel domain experts developed a two-stage analytics model, and used more than 700 key variables to identify the potential timeshare purchasers. The stages were:

  • Identifying members with high propensity to purchase a mini vacation
  • Identifying members with high propensity to purchase a timeshare property after having purchased a mini vacation

The model yielded valuable data and insights related to:

  • Regional demographics with higher propensity to purchase both mini vacations and timeshares
  • Time-series and instance-based analysis of potential timeshare purchases
  • Profitability index to indicate propensity of members to purchase timeshares

Benefits Delivered

  • Identified potential purchasers of timeshare properties
    The hotel chain was able to identify 70 percent of timeshare purchasers in the top 4 deciles. The client could thus capture 70 percent of timeshare buyers by targeting only 40 percent of their customers. This significantly reduced the cost of targeting members by driving focus to the top 3 to 4 member deciles.
  • Implemented customer segmentation to run different marketing campaigns
    The hotel chain was able to segment its customers based on several key factors, including number of transactions, most valued customers, growable customers, marginal customers, and least profitable customers. This aided the client in developing new and impactful marketing campaigns.
  • Optimized marketing communication programs
    The hotel chain was able to optimize its communication programs and target only those members who most likely would be influenced by the marketing communication.

The hotel chain was able to optimize targeting at minimal campaign costs while increasing revenues. The client was thus able to save 30 percent of its marketing outlay.

WNS and the Travel Industry

WNS is the world's largest travel Business Process Management company, with a legacy of having started out as a captive for British Airways. Today, WNS is a BPM partner for some of the leading global airlines. WNS provides the airline industry with the latest, top-notch solutions to create opportunities from challenges. Whatever the business trend, WNS has a solution for your business. Our solution suite that can help you ride the new waves in business include:

Social media management and social customer service The WNS Sales Center of Excellence (CoE) that integrates the online and offline channels and adopts a 'sales through service' model to cross-sell and upsell relevant services based on customer data

An end-to-end Analytics Solutions suite (including our award-winning analytics framework WADESM ) that leverages a huge team of domain experts and expertise in social media analytics, contact center and speech analytics and revenue model analytics that help you take informed decisions

Proprietary and industry-leading platforms such as Verifare PlusSM , Jade and SmartProSM that help enhance revenue generation for airlines

Process re-engineering techniques and a team of domain specialists that help airlines comply with industry regulations and standardization directives

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