Predictive segmentation of your database allows you to calculate the best time for pushing a second travel offer to a client who has already bought one. From the travel perspective, you can also evaluate what travel offers to push at a particular time in order to get the most form your subscribers, whether it’s for their first trip, second or even third.
Pushing offers should be made according to what your data is telling you, by identifying the right marketing pressure to put on the various communication channels that you.
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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
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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…
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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 ?
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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
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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.
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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
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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
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