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Cédric Hervet Operational Research analyst 
Predictive marketing in tourism: a key feature for your marketing ROI !
AGENDA 
Who are we ? 
Describing the travel market 
Data analysis and marketing recommendations 
Data-mining travel data 
Conclusions 
2
WHO ARE WE ? 
 is an affiliate of group 
NP6 is a leading group in the multi-channel CRM and predictive marketing industry 
SOCIO is the « data science » entity of NP6 
Since joining NP6, we have created a marketing DMP software : GeckoData® , in which we integrate scoring modules produced by our EMA interface : MailPerformance 
This predictive marketing software, which was designed as an SaaS tool, is evolving gradually: 
•First, appetence scores (propensity, reactivity) 
•Then, risk scores (churn, complaints…) 
•New predictive modules are coming… 
3
Describing the travel market 
4
A “mature” online market 
The travel market is amongst the most dematerialized of all; not only is it q highly competitive market, but the customer is also truly mature: they often wait for “good deals” and last minute reservations 
It is a market driven by data; it has the greatest number of online comparators on travels, prices, flights, hostels… 
Analyzing data produces a very precise knowledge of a client, which is conducive to increased sells and profits 
Both SOCIO and NP6 have several years worth of experience in this industry, working for both for big and small business 
Knowing your clients and prospects is a key 
Having a ‘go-to’ market strategy is a key 
IN WHAT WAYS DOES DATA SCIENCE GIVE RELEVANT INSIGHTS INTO THE TRAVEL MARKET ? 
5
Data analysis and marketing recommendations 
6
Activity management 
Visualizing indicators will allow you to understand the difficulties you may meet; indicator by indicator as well as in a convergent way 
7 
Average basket evolution 
Trip number per client evolution 
Trip duration evolution 
Reservation delay evolution 
Average basket 
Average by year 
Trip number per client 
Average by year 
Reservation delay 
Average by year 
Trip duration 
Average by year 
Average basket 
Trip duration 
Reservation delay 
Trip number per client
Visualizing recruitment performance 
This graph highlights the best destinations in terms of recruitment (% new clients) and global evolution. 
8 
Evolution of number of clients VS % new clients 
This destination recruits few new clients but it keeps them: good loyalty performance 
This destination recruits a lot of new clients, but globally, it looses clients: its high appeal does not compensate for its lack of loyalty
Data Mining travel data 
9
Scoring clients in order to target potential repeat purchases 
10 
 In order to decrease the rate of ‘one-timers’, you need to be able to target your 
potential multi-purchase clients by calculating your base 
 Decision trees can provide logical rules to identify potential repeaters : 
Length 
of stay 
Booking 
channel 
dicount 
Number 
of 
people 
Turnov 
er per 
day 
SCORE OF REPEAT 
PURCHASE FOR EACH 
CLIENT 
 The target variable is : “ One-timer” versus “repeated purchase 
client” 
 The explanatory variables are built on first purchase characteristics, 
for example : booking channel (first trip), turnover per day (first trip), 
discount (first trip), number of people (first trip), length of stay (first 
trip) and socio demographical information about the client 
Targeted selection of best 
scored clients to improve the 
2nd purchase transformation
CONCLUSIONS 
The travel market faces many challenges: lots of ‘one-timers’, customer maturity, competitive environment, … 
An efficient management of data knowledge can help you make the difference: 
–Knowing who your clients are 
–Knowing when, where and how you should communicate 
Data-mining techniques enable you to predict your clients behavior so you can react before it is too late 
Helping our clients to understand and use their data is the core of our expertise 
NP6 and Socio are currently in the process of designing SaaS tools for the following analyses: 
–Automation of both analysis and recommendation 
–Accessibility for everyone 
–Construction of predicting scores for designing your campaigns 
11
12 
Email marketing 
SMS Marketing 
Deliverability 
Email intelligence 
Dashboarding 
Consultancy 
Datamining Machine Learning Predictive Analytics
13 
Founded in 1999 
More than 100 employees 
Offices in LONDON, PARIS, BORDEAUX 
Turnover of €15 million 
ISO 9001 certification since 2001
14 
THEY TRUST US 
14
London, Paris, Bordeaux 
www.np6.com 
contact@np6.com 
15

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Predictive marketing in tourism: a key feature for your marketing ROI

  • 1. Cédric Hervet Operational Research analyst Predictive marketing in tourism: a key feature for your marketing ROI !
  • 2. AGENDA Who are we ? Describing the travel market Data analysis and marketing recommendations Data-mining travel data Conclusions 2
  • 3. WHO ARE WE ?  is an affiliate of group NP6 is a leading group in the multi-channel CRM and predictive marketing industry SOCIO is the « data science » entity of NP6 Since joining NP6, we have created a marketing DMP software : GeckoData® , in which we integrate scoring modules produced by our EMA interface : MailPerformance This predictive marketing software, which was designed as an SaaS tool, is evolving gradually: •First, appetence scores (propensity, reactivity) •Then, risk scores (churn, complaints…) •New predictive modules are coming… 3
  • 5. A “mature” online market The travel market is amongst the most dematerialized of all; not only is it q highly competitive market, but the customer is also truly mature: they often wait for “good deals” and last minute reservations It is a market driven by data; it has the greatest number of online comparators on travels, prices, flights, hostels… Analyzing data produces a very precise knowledge of a client, which is conducive to increased sells and profits Both SOCIO and NP6 have several years worth of experience in this industry, working for both for big and small business Knowing your clients and prospects is a key Having a ‘go-to’ market strategy is a key IN WHAT WAYS DOES DATA SCIENCE GIVE RELEVANT INSIGHTS INTO THE TRAVEL MARKET ? 5
  • 6. Data analysis and marketing recommendations 6
  • 7. Activity management Visualizing indicators will allow you to understand the difficulties you may meet; indicator by indicator as well as in a convergent way 7 Average basket evolution Trip number per client evolution Trip duration evolution Reservation delay evolution Average basket Average by year Trip number per client Average by year Reservation delay Average by year Trip duration Average by year Average basket Trip duration Reservation delay Trip number per client
  • 8. Visualizing recruitment performance This graph highlights the best destinations in terms of recruitment (% new clients) and global evolution. 8 Evolution of number of clients VS % new clients This destination recruits few new clients but it keeps them: good loyalty performance This destination recruits a lot of new clients, but globally, it looses clients: its high appeal does not compensate for its lack of loyalty
  • 10. Scoring clients in order to target potential repeat purchases 10  In order to decrease the rate of ‘one-timers’, you need to be able to target your potential multi-purchase clients by calculating your base  Decision trees can provide logical rules to identify potential repeaters : Length of stay Booking channel dicount Number of people Turnov er per day SCORE OF REPEAT PURCHASE FOR EACH CLIENT  The target variable is : “ One-timer” versus “repeated purchase client”  The explanatory variables are built on first purchase characteristics, for example : booking channel (first trip), turnover per day (first trip), discount (first trip), number of people (first trip), length of stay (first trip) and socio demographical information about the client Targeted selection of best scored clients to improve the 2nd purchase transformation
  • 11. CONCLUSIONS The travel market faces many challenges: lots of ‘one-timers’, customer maturity, competitive environment, … An efficient management of data knowledge can help you make the difference: –Knowing who your clients are –Knowing when, where and how you should communicate Data-mining techniques enable you to predict your clients behavior so you can react before it is too late Helping our clients to understand and use their data is the core of our expertise NP6 and Socio are currently in the process of designing SaaS tools for the following analyses: –Automation of both analysis and recommendation –Accessibility for everyone –Construction of predicting scores for designing your campaigns 11
  • 12. 12 Email marketing SMS Marketing Deliverability Email intelligence Dashboarding Consultancy Datamining Machine Learning Predictive Analytics
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  • 15. London, Paris, Bordeaux www.np6.com contact@np6.com 15