Engagement overview

Understanding your customer is at the heart of generating effective marketing offerings and campaigns that lead to increased sales. A leading South African hospitality group wanted to optimise their marketing activities by using the insights in their customer behaviour data, but to unlock this potential they needed to overcome several barriers.

The hospitality group had data pertaining to the stay, spending and booking behaviours of their customers, as well as loyalty and rewards programme data that was not being utilised to its full potential. The group needed to consolidate all this data into a single view in order to create a holistic picture of their customers’ behaviour.

The client had the vision of using this single view to identify opportunities for optimising their marketing activities, refining their service offerings and increasing online bookings. By using these data-led insights, the hospitality group planned to identify market segments which held opportunities for expansion, refine their market offerings, optimise their marketing spend and increase financial return and the effectiveness of their marketing campaigns.

The hospitality group partnered with BSG, because BSG has a proven track record unlocking the potential inherent in data to help clients solve their most important problems. BSG applied a data-led approach underpinned by strategy to enable the hotel group to achieve their vision.

For this project, BSG enriched, enhanced and consolidated the disparate customer data sets into a single view. BSG collected over 1,5 million records for approximately 500,000 individual customers. Combined with the loyalty and rewards data, a single view of a customer with approximately 340 attributes was generated. BSG was then able to develop analytics models to segment customers based on their values, behaviours and affinities.

Insights were drawn to understand the most effective target marketing opportunities. BSG built a self-service analytics model in a BI tool that enabled the client to test key business hypotheses and get answers to questions interactively.

In collaboration with the hospitality group’s business domain experts, seven customer segments were selected for initial targeted marketing. For each segment an insights value matrix was delivered in which the strength of the relevant customer attributes was depicted across behaviour, geo-demographics, recency, frequency, monetary (RFM) classification and seasonality. Additional to these segments, 11 more were selected and insights were delivered.

A significant amount of time was spent on feature engineering to enrich the data by creating behavioural variables that were not obtained directly in the stay, loyalty and rewards transactional data. A data dictionary, consisting of all variables, feature engineered variables, and calculations used to enrich the data set was created to serve both the technical and business users and ensure reproducibility of the project and the ability to compose and answer future business questions.

Making a difference

Making a difference in communities

BSG supported the client to get their data into a format that business can use. The most significant difference made by BSG was empowering the main business users with customer intelligence obtained from their own data and information. The engagement yielded deep understanding of their customers’ behaviour which provided the ability to run effective marketing campaigns to the identified customer segments.

The collaborative approach by BSG not only led to valuable and actionable insights, but also extensive knowledge transfer through working closely with the client stakeholders, coaching and collaborating. BSG empowered the hospitality group to continue generating new customer insights after the conclusion of the engagement. The reproducible data analytics models were designed in the hotel group’s technology of choice, making them editable and open to future enhancements.

Chief Executive Officer

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