A major hotel brand was struggling to drive loyalty and differentiate their frequent stayer program from the competition while still utilizing existing program structure.
Solution
Targetbase first mined the existing database to determine appropriate segments of loyalty opportunity. Using our customer value framework, Targetbase Business Intelligence identified opportunity segments and determined revenue and profit to be generated by increasing loyalty among these segments, creating ROI scenarios before design and launch.
The Creative team, now with a clear picture of the audience, designed and implemented a campaign that leveraged the existing loyalty program, yet heightened the sense of reward and recognition. Considerable profile information was gathered through promotional offers and, in turn, was utilized to adjust timing, message, creative, and offers. Also, communications messages differed according to decision motivations such as business productivity, location, or program benefits. Frequency, channel, and type of communication were triggered by behavior.
Targetbase developed key metrics for program measurement, including incremental stays, response rates to profile information, as well as offers and brand preference. To enable the full program, the Data Integration team created a separate data mart of these target customers. The data mart included profile information, stay behavior, and promotional response. It also provided campaign management functionality essential to the success of the program.
Results
- Stay behavior, as measured in reservations, increased 40% among program participants.
- Brand preference among program participants increased 10%.
