CASE STUDY
Hyper Personalized Campaign Increases Hotel Revenue by $13 Million
Global hospitality leader solves the age-old challenge of the elusive one-and-done guest
Our client, a leading hospitality chain, was seeing repeat sales walk out the door – literally. Only 35% of their one-time stayers were coming back for a repeat stay. The client also had a feeling that their rule-based marketing tactics were not very effective at encouraging repeat guests. They needed to:
Target potential repeat customers with a customized campaign
Increase the rate of repeat bookings
Optimize their marketing analytics process with minimal additional resources
Hyper Personalizing Campaigns for Repeat Guests
The NAVIK MarketingAI pilot was used to personalize offers to customers who had stayed only once in last 2 years. The personalization happened from a pool of 16 pre-designed offers.
MarketingAI personalized the offers based on their stay behavior, past offer responses and demographics. Personalization included identifying micro segments, predicting future stay likelihood and offer propensity. These models were combined using artificial intelligence to recommend offers for each customer.
As part of the personalization strategy, 4 email waves were sent over an 8 week period. The results were compared to a control set which received a randomized offer. This approach ensured the only difference between these groups was personalization.
Once the client’s marketing team began leveraging artificial intelligence, stay revenue and bookings increased. In just one pilot, the client saw:
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$8 million incremental revenue from loyalty club members
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$5 million incremental revenue from targeted non-club members
The client was able to continue utilizing NAVIK MarketingAI to increase the impact and efficiency of their other campaigns.
NAVIK MarketingAI is used by marketing leaders, monetization managers and marketing operations to make critical decisions every day, recommending personalized campaigns based on artificial intelligence.
