Global Travel

Understanding Churn

Challenge

A global package holiday company came to us with a churn problem and asked for a model to predict customers that were not likely to purchase another holiday within two years. The first challenge was to understand whether there is a churn problem or a definition problem – package holidays are expensive so expecting customers to re-book within two years may not be realistic. That meant we needed to re-frame the problem – how can we ensure that we are having relevant conversations with customers when they are ready to make a booking?


Solution

To do this, we developed proactive retention – a suite of models that predicts (monthly and automatically) when customers are likely to book, when they are likely to travel, the destinations they are most likely to go to and the type of holiday they are likely to book. This means that every month there is an automated decision engine that tells the marketing team what action they should take with every customer and prospect in the Nordics. It even gives the best alternate destinations as well as their top pick to enable multiple options being automatically. And when customers are unlikely to book, the client could decide to engage with them to build a relationship rather than always push for a sale.


Business Impact

Over 1 million customers identified and re-engage delivering financial impact of £5m+