Frequent travelers often subscribe to multiple loyalty programs. The challenge for hotel chains is to make their loyalty programs the most preferred ones among frequent travelers.
The client aimed to increase its loyalty member base and encourage repeat stays.
The WNS Solution
Marketing campaigns and promotional offers, aimed at increasing the loyalty member base, are effective only when the target audience is chosen well.
With this objective, WNS leveraged customer segmentation techniques to classify the client's guests based on their transactional behavior.
WNS then used two proprietary analytics models – 'Lift' and 'Success' – in order to identify the most profitable guest segments:
The Lift model estimated the increase in loyalty points. This value denoted incremental revenue generated through the loyalty program
The Success model predicted the success rate of promotional campaigns across member segments. This value denoted the cost of offering incentives to members
WNS computed the ROI for each member segment using the revenue and cost figures / values derived from the Lift and Success models, thereby identifying the most profitable guest segments.
Thereafter, WNS deployed a logistic regression model, which helped predict the success of marketing campaigns including incentives and promotional offers, across all guest segments.
WNS' solution enabled the client to optimize it’s marketing efforts by targeting the right member segments with the right incentives and promotional offers, which increased:
Contact us to learn how WNS can help your hotel chain optimize marketing and client relationship efforts with travel and leisure analytics.