Copyright © Epsilon 2015 Epsilon Data Management, LLC. All rights reserved. Personalization… are we there yet? Carolyn L. Corda, VP Travel and Hospitality October 19, 2015 Copyright © Epsilon 2015 Epsilon Data Management, LLC. All rights reserved.
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Personalization…
are we there yet?
Carolyn L. Corda, VP Travel and Hospitality
October 19, 2015
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Personalization: Top leadership priority
“We’re not going to war
with cars, we’re going to
war with how we attract
people to our brands.”
John Tague, CEO at Hertz,
July 2015
0 10 20 30 40
Social
Big data
Real time/mobile
Personalization
Source: EIU / Lyris, 2013
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50% Almost
Either “Value” or “Consider” personalized offers during travel
search and shopping
Personalization: Top consumer priority
Very frequent travelers desire personalized messages that
meet their travel needs
81%
Source: Amadeus, 2014; Deloitte, 2013;
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4
Top consumer frustration:
companies failing to use the information they have about me
Personalization: unmet desire
63% of consumers feel “numb” by the
personalized campaign experience
Source: Economist Intelligence Unit, 2013; Accenture 2013.
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Success in multi-dimensional personalization relies on three activities
Developing a rich
customer portrait
Extracting
insight
Individualizing
interactions
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Multiple-source data is fuel
for personalization.
Every interaction, communication, and
touch point creates a digital breadcrumb –
a piece of data that can be analyzed and
manipulated
Developing a rich
customer portrait
Extracting
insight
Individualizing
interactions
Source: Forrester, Big Data’s Big Meaning for Marketing 2014
Core
Priority
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Think beyond demographics.
Developing a rich
customer portrait
Extracting
insight
Individualizing
interactions To
p p
red
icto
rs
• Data variety is
critical
• Distinctive by
industry
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Financial Publishing Travel
Demos
Geo-Focused
Spend Behavior
Interests & Lifestyles
Economic Measures
Retail Insurance Telco
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The results.
For a luxury tour company:
Developing a rich
customer portrait
Extracting
insight
Individualizing
interactions
Do you have enough variety beyond core?
Are you experimenting with new elements?
Where could you benefit from integration?
in conversion for prospects 20% lift
New cross-sell models boosted mail response by
Over
25%
The takeaways.
Review your customer data
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Value & lifecycle segmentation identifies customers to focus on & strategy to deploy.
Developing a rich
customer portrait
Extracting
insight
Individualizing
interactions
Value & lifecycle segmentation framework
Future spend
Ac
tive
-Te
nu
red
C
us
tom
ers
His
torical
spend
High Highest priority for retention The best
Medium
Selective
Growth Low
Minimize
Premium
onboarding Active-new
Inactive Reactivation
Prospects Acquisition
Medium High Low
Medium
High
Low
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The results.
• 8 new models to drive segmentation
• Number of segments range from 4 to 1,100 for organizational flexibility
• Identified $2.7B revenue opportunity
The takeaways.
• Savvy analytical talent is worth their weight in gold
• Embrace disciplined testing
• Maintain steady pace
Developing a rich
customer portrait
Extracting
insight
Individualizing
interactions
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4 elements to execution
Developing a rich
customer portrait
Extracting
insight
Individualizing
interactions
Real Time
Predictive
Cross
Channel
Self
Learning
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Compelling and relevant offers increase conversion
Developing a rich
customer portrait
Extracting
insight
Individualizing
interactions
Results: Website targeting for check-in process has 21% lift over control
Results: 13% increase in margin through dynamic 1:1 email eco-system
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Developing a rich
customer portrait
Extracting
insight
Individualizing
interactions
The takeaways.
• Online and email are both easy channels to start in
• Focus on content management
• Begin with one stage of the journey with high revenue
potential and expand
14 14
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Later this week, when you’re back at your office…
Are we there yet?
Getting closer.
Review your customer database and commit to
testing an additional element
Challenge your analytical team to tackle one
segment for improvement
Design a genuine personalized interaction for a
single use-case
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Want to learn more? We’re here.
Madeleine Lightman Senior Director, Sales
Travel & Entertainment
Mike Fitzpatrick Business Development
Travel & Hospitality
Carolyn Corda VP, Industry Strategy
Travel & Hospitality
Alex Cohen Digital Marketing Consultant
Conversant
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Thank you.
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