The Right Customer for the Right Revenues at the Right Time

Private & ConfidentialPrivate & Confidential

The right customer for the right

revenues at the right time

IQPC Customer Loyalty, 24 August 2011

PHANG Shueh @Chyan

2

In a world of limited

resources…

3

…some customers are more

equal than others

4

Challenge: Find and focus on

the ‘more equals’

5

Identified key behavioral variables in

trips/bookings

Purchase Lead Time Number of Passengers

1. Impulsive (<15 days)

2. Planned ( 15-30 days)

3. Well planned (30-60 days)

4. Very well planned (>60 days)

1. Single (1)

2. Couple(2)

3. Group (3-4)

4. Large group (>4)

Length of Stay Weekend Stay

1. Short (1-3 days)

2. Medium ( 4-5 days)

3. Week-long (6-10 days)

4. Very long (>10 days)

1. Weekdays (0)

2. Weekend (1)

GOALCreate meaningful behavioral types for analysis

Analysis StrategyData

6

Assembled the data into trip/booking types

that characterize customer behavior

Analysis StrategyData

Purchase Lead Time

1. Impulsive (<15 days)

2. Planned ( 15-30 days)

3. Well planned (30-60 days)

4. Very well planned (>60 days)

Number of Passengers

• Single (1)

• Couple(2)

• Group (3-4)

• Large group (>4)

Length of Stay

• Short (1-3 days)

• Medium ( 4-5 days)

• Week-long (6-10 days)

4. Very long (>10 days)

Weekend Stay

• Weekdays (0)

• Weekend (1)

Trip Type

e.g. impulsive, single

pax, medium stay,

weekend

7

Associated trip/booking types with revenues

to understand relative profitability

Analysis StrategyData

Trip Type

Rank1 Lead Time No. of Pax

Length of

Stay

Weekend

Stay

Revenue Per

Booking

Trip Type 1 Impulsive 2 4 days Yes

Trip Type 2 Planned

Trip Type 3 Impulsive

Trip Type 4 Impulsive

Trip Type 5 Impulsive

1 Based on contribution to bookings

‘Last minute’ content

is important

Focus acquisition/

merchandizing

efforts on these

trip types

8

Arranged trip/booking types into meaningful

segments

Analysis StrategyData

Pax

Lead

Time

Denotes volume

of bookings

9

Arranged trip/booking types into meaningful

segments

Analysis StrategyData

Pax

Lead

Time

Denotes volume

of bookingsPax

Lead

Time

Denotes volume

of bookings

Group

Impulsive

Single

Impulsive

Single

Planned

Group

Planned

10

Established the go-to-segments to pursue

Analysis StrategyData

Pax

Lead

Time

Denotes volume

of bookingsPax

Lead

Time

Denotes volume

of bookings

Group

Impulsive

Single

Impulsive

Single

Planned

Group

Planned

11

Made the go-to-segments addressable by

marketing

Analysis StrategyData

Pax

Lead

Time

Denotes volume

of bookingsPax

Lead

Time

Denotes volume

of bookings

London

Sydney

Rome

Los Angeles

etc.

Group

Planned

12

Peeked into destination demand seasonality

Analysis StrategyData

Jan Dec

TARGET SET

Seasonality – Travel Dates

Bo

ok

ing

Dis

trib

uti

on

13

Addressed destination demand patterns via

booking lead-times

Analysis StrategyData

Booking Lead Time for Dec Travel

120

Days

Dec

Seasonality – Travel Dates

Jan Dec

TARGET SET

14

Aligned marketing mix and spend with

demand sweet spot

Analysis StrategyData

Seasonality – Travel Dates

Jan Dec

Marketing Intensity

120

Days

Dec

Peak spend

broadly across

channels

Soft ramp with

targeted

channels

TARGET SET

15

Aligned merchandizing exposure and offers

with demand

Analysis StrategyData

Seasonality – Travel Dates

Jan Dec

Merchandizing Exposure

120

Days

Dec

‘Last Minute’

Deals

‘Early Bird’

Offers

TARGET SET

16

The right offer at the right time to the right

customer drives ROI

Analysis StrategyData

Market Analysis

• Destinations to

promote

• Booking lead time

• No. of travelers

• Seasonality

1.2x

1.5x in RPM

1.7x

Private & Confidential 17

Thank You!

PHANG Shueh @Chyan

Director, Marketing

shuehchyan.phang@zuji.com