Jim Sprigg, Director - Database Marketing & Analytics, IHG explores how to effectively target loyal customers in your marketing campaigns
Automatically Generated Transcript (may not be 100% accurate)
I'm James brick information see I'm the director for database marketing. In my team basically men ages of that argue that current term there is sent a their customers interact with. On the owned media chain so if it's a board member who is. Ala Al website lager website checking role will divide checking their email looking at their. In year versus five point eight team may energy's. In some cases were actually. Leading how we cheese were content to share of the customer. In allocations were just implementing this a role decisions enemy been made by others. Oliver shales you're basically rancher team. What I'm going to talk about pricey for a cynically why I'm here I'm here because a few weeks ago several weeks guy for a travel so mean email. Which I think in the subject lines that our tribute to miles Iran. So I'm like well before going to talk about that I think away. I'm interested in them getting in on that irritation so. Away coming Farc about what we're doing at eight G which has the often it. The attribution mile and how we measure performance and we up might well we do what we've really been focused on for the past few years is experiment Asian trying to take experimentation. On to the next level in this complex digital world that we that the such Columbia park about. Poor away as time the relative sorry. So a worse time. And give him was jurors about three years ago I came terse more travel analytics in like your work. And they're I was talking about a new type of hiking campaign in no way of running promotions. I'm because we just for a pilot. I'm Ed IGE. In it was a way of running promotions or more engaging in influential with customers. Are better more efficient in. Inner matrix marketing organisation like we have an HG. Air got so they'll allow for a richer performance insights. Back to the orientation and extent. Now only will work with the behaviourist there are we influence throughout different marketing offer is. By the Oslo. Your deliver customers the most and least responsive. And so again painless served it was a promotion that we can't crack the case. Raymond when he 1020 or lower than it was kind of along promotion. M just. To describe the way that we approach that you're eight G has very matrix organisation we have a lot loyalty marketing and digital marketing teams in each of four regions. As well as global counterparts. And some of their global functions have. More to a working teams announce we have a lot of people they're trying to. Our merchandise so different Koreans. Are like try to pressure behaviourist down in training many for are hotels and Oslo. S fame money through things like go covering credit Oregon in other products like bear Puebla marking objectives with with the customers. End so we have a lot of people are trying to reach our customers have caught in what we. So what we did with cracked the case we use it instead of roaming situation over eight different Kim Keynes with different offers that same time. Three different shales. And expecting customers to try to own the stay and what it is. There were offering them as a company that's combined dollars and 41 promotion so we we came up with this notion of a bundled off booking and paying well above the offer is into one. I guess who compiles the offer for the customer. End we also were able to individually tailor each offer for the customer and that's really credible. Aren't sold any simple of the types of offered word. If we wanna that customer to experience. More of the brains now put forward will weaken they historically only stayed at maybe two brain we might best in his state three brain before or even five planes over the course of the promotion. Customers who proudly state made scale that time we just three largest holiday yen. Am the right customers didn't realise how great hiding in wireless you know compared to work whether used to and so we might estimate state multiple properties. Some customers we FTS and stayed at fifteen point 25 different. Holiday Inn properties over the course of that period. Pinned in you'll if you look at the reviews on the fly atop like personally really realise what we're doing we wanted them understand that this Brent hit changed it was a different value proposition lighter than our then. In you know we had other offers like stay on the weekend. Actively covering credit card and whatnot. What we're would do. Oh well so what we were able to do was build them really robust experimental design very complex on the back in the this thing. So that we can actually bring. Much more robust information back to the marketing organisation. Bargaining table next wide. But why go they're so we win the promotion we present three years ago I for travel. In we're basically done us and case studies after this promotion three years ago I estimate our actually going to speak in a minute. I'm for a boost N we get up I checked using Skype case as a as a case study we actually published the paper last year. On their case study internal consumer marketing. Are we also use this as a case study work with some of both through Emory University. We just published a paper this marked. Arm on inner workings science. End that was looking at the long term effects of promotions on customer relationship with your company. So what's it son mrs. Schroeder kind of a fun journey that we've been on what. So earnings able are. That what were we when I was here before they actually showed this slide in it as earnings they're all of the type of information that we could provide back to the marketing organisation so this shows. Five of the offer that we had in the in the campaign in the correct kits promotion. And wherever they would actually estimate the incremental left in each one of these types of behaviour which. Seoul. When that if we bet if somebody stay at X brilliant offer we were able to estimate that over the course of the promotion. We estimate roughly little over three out with 3000. Incidences of somebody staying what are they barrier at whatever Brown's. Who would neither stayed at their Brent had not been for the promotion. At the same time would you estimate the number of in done. The distinctive properties that somebody visit that they would have otherwise. Number of our weekend stay and so forth. In because of the way that we designed the experiment. And somebody was gonna take issue them a way for the next slide into their. I'm. Sell so this so these numbers were really robust because of the complex experiment with more control group were running at same time. The what's but would really interesting is we didn't really freed of buying types of customers were set up this experiment we read that every birdie. In the way we said about we were able to actually. For each a figure out who we're the most responsive customers. So for the first off Barack corolla parabolic customers who. We targeted in hereditary read gonna find a smaller segment of roughly 15000 individuals. Aunt who had three times but left. Of the rest of the arguments end the analysis where actually spit out what are the characteristics of this you know high value got happy either you group. So you know this was done beta customers they rarely or never claim promotions for those of the ones that. If you want to post this offer more in the future and have been more effective. Focus on these questions. Are we could do that for each offer certainly you can star. Figure two point win if you take this information in embedded in response poorer. Input in the personal profile in you can systematically get better it oil trading the break our intent of the great customers. Here and you know index lesson content that's less effective with those types of customers. Does have what restorative. The story that we've been telling at eight G on a move to become more in a locally driven. Our marketing function. We kept evolving Sorin when he thirteen armed. We were able to large European plane that was are the big wariness that this was the key campaign that we Korean island to coincide with the re launch of our rewards club program. I'll where we basically took this cracked the case approach but we Brenner says a large public global PM paying. In Oliveira region. Instant what was really credible hear words it allowed us to figure out how to we have to organise an iron what are ways of working class C organisation or something like this faster database marketing as a big figure role. But we also have to let the region's. Hopper so the stem your work offers need to go in the mean you worry Europe what are your business objectives what are you trying to would. To drive. In so you can approach this in a way it's very flexible depending on how Europe operation. How your organisation operates and where the decision rates are. So that was really kiwi heads the have a framework for a running usually personalised individual promotions away that was very flexible to the organisation. In of course decision rates flow and change you know as we go but our crisis closing change change it's worth it. And now we have the current campaign is accelerate its Austin about her production databases in thirteen minute is this and processors which power our regional carrier apart so that we can run these campaigns. I'm back to back where steer buys web temp was so this is just how to become a fixture I audiences. What about were always. The driving engagement with the with the best customer. N these rich resource that we pulled off of one of my more recent promotions. I'm in. What we. Promotions that can we move the needle with a hysterectomy probate of the hotels. End you know led the years ago if you were investing with so with an average left that you would expect offer for a promotion rates above 5% is pretty good 10% would be. Nice but what we find is we generate. Up well over 10% left on most of our office in the are right which I'm showing here. Attacked these are Bruce. Howard and they've been in the pair so this integrated approach for the customer. Actually. EU get us energy and having gauge in the marketing that it really drives them. Alot more engagement with everything that. Anything take the statistics and translate those into insight so. Something that we fairness you when we when we tried them merchandise these are average that we track in turn provides customers. We're typically trying to give them the change their B paper what we Farris there assuring customers that you carefully. Post them pretty horror. To shift business you're away or to take actions that they would normally take. And so customers seeking a end. In what we find is the customers click here if you try to push into horror they actually get. This part finished up staying with you got your competitors and and so we've shown that your in the statistics in any analysis as well as a talking to a customary I think for a feedback in so. We've really adjusted the way. That we design these promotions as a result of this survey it became the relevant for best customers and still very influential with therapy are letting each customer. Of course when you Kevin Sites like daily economic inflate their back into the commercial implications of I spend on average a certain amount on one type of offer one type of customer what's the return. In this is the type of analysis that we do in systematic way to and the stent which offered dissent which customers. Into this information to instigate embedded in the score that they goes back on the profile and network letters actually saw offers customers. You know operational financial. But so. So we're really throw bin through just a few years we've been involving. These large campaigns they've become you know very influential on park brewer was. Well with our customers. By your work the perhaps well now it's to experience for our young campaigns Oliveira and media where we worried does implement their orientation price of current term. I just promotional offers any current fed that we put for a customer. In any of these channels in needs wachs we want to be driven by this what available intelligence that comes out of the experiment Asian. End you know so where if you think of the key campaign it's relatively. Weak we only do a few of those the year that we have a fixed staff remain. In Europe's most complex as like that are either fail so what we're working through the issue is how you do that with an. And we send those out every mile opening introducing new content into their menu every single mark. So we've guts to actually be your we hear a lot more complexity and be much more dynamic you know we do this implement this new statement. Where we hope we mean Deborah fifty targets clerks on the website there are. You don't actually have a scapegoat for introducing client and it just comes in whenever people decide inventories meantime there. Insult you know we're trying to figure out with similar resources. Your hope would be much more dynamic but but applied these experience across solver me. And so over had been talking to folks in various organisations. That I'm bed. I outlined our demise their marketing and digital world over the past year to try to. Bristol bar stress tests are approached there's a loss on the state of the people going end we know what I'm sensing is on. The sunset in some sense either marking world is waking up to experiment Asian imports in the value. I think Europe is at least an a La the power stations that I pared. Over the past few years we've become multi channel we hadn't types of Dade that we don't really know what the deal with then there's been a lot of emphasis on what you do with big data. Now we're becoming going moving are meeting on working with commercial with that means that we offer Barney president marketing with more or which. You know it the way that we interact with the customers' changing just think is becoming much more fluid. End with. Amid start that complexity. Why you'd what I have Encino Libor. Is the size C used to have 1015 years ago the science of experimentation. When working with much typically out in much simpler. Arm it's your it's hard to. This is a bit old women experiencing a cross op client turn on the out of the time in January interests has worried I know some folks in the for a moral going there. But if you look at the price of the different kind of you know marketing functions and across industries. I think there's gonna. You know the complexity. Is cost just back. Back away from the signed term but I you know I think it's coming back in. Yellowish distractions along the way in this world are we in this kind of this digital wireless complexion as it is. Because like somebody said early kid just keep hiring you know let's talk look at things you have more and more. They experiments running if if you have an unstructured marketing are UKIP just throw people edit in Macon researchers. Around where is the impact at all of these treatments are having on each individual. Console. So we find ways text to actually create capacity with bail later we have a great relationship with RIL. Eight provided that US and we treat them like in a like a team of employees. We have progressed with their information they stay error account so. Their way to the Fisher and actually spent of these forces their cost effective but that's our solution. For experimentation including route will actually insights in this complex marketing work. It's it's it's something that need but it's not the solution. I'm. Trading insight repository even if you can measure even if you can measure and analyse all of the different. Were content in treatment accurately. There's not really great way. To make that available to a Norwich Asian market to a technical. I'm so that they can basically take insights from something that you've done in the pair Cynthia -- will apply in the promotion at about the right. End even if you heard. The conditions of the promotion that you really Euro or two ago. Have changed since then so. You're coming up a better way to storage terminal. You know them inside. And in earnings in then reuse their if you don't have a systematic framework for the then that information often is well. Machine learning something that I'm I'm a big fear now than what where things that we did with Booz Allen was try to get a sense of where we won't be in the future. In how we can we below average and new ways of the more they're posting analytical methods. In the future so we therefore won't be a bit prepared to go that way but most of the digital agencies that I speak to and machine learning. Is very effective. In a certain subset of the trails but actually not a big pop and not just digital their voice to voice they're. Person the person we are actually a CRM we're actually developing away likes murder hotels. To have targeted actions at the hotel at for an investor customers will know that there arriving. In so you know targeting customers. Is in in this work in this order framework is them. Is typically Breyer then work machine learning an extra stay is truly capable of our help women. So. So on so truly. On the other so there's great things you can try to do to optimise remarking that we really think that. It's a need for the return of experimentation but better adopted at this complex work. And lastly what are things in our company in Detroit critical recur is there whenever you can go. Database marketing might be playing a leading role in making some released already targeting decisions it's really critical that we report information backed by the slide I showed you through a marketing thing so that they gonna stay here and what's going on in why the bite marks worked wide the methods that were applying a Indy can actually talk about the success of the Russians. I in meaningful way to their stakeholders within your organisation. So this is where we are now under this three elements that we're trying them implement across Oliveira. Armed media whiners. In the enable it we had never content or timing we hear it. Look at the effect of each individual piece of client because there's tens of thousands of different types of content that we're actually merchandising. We need categorise them out so that we can look at the impact of each type of content on any customer. Enemy Yasser have to know the types of customers so we we we have segments like everybody else. And then we implement an experiment. There allows Hearst owner stent. What type of client care. It is most influential with which type of customer which type of content is least influential. In what we know that that helps us balance. On these touch points with the question Michelle we're we're a more consistent in the content that was showing with each individual. In Oslo bad current turn is the most relevant in influential. Twelve. That's what we're gonna. Keep.