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Saving Hours and Driving Sales: +20% CTR & +50% Sales

Travel Agency

(1-2 minute read)

Situation:
Travel agencies have a large variety of products they offer, and there are not necessarily that many similarities between them. For example, the only thing a hiking trip to the Alps and a beach vacation in Thailand have in common is that they are very popular vacation destinations.

The customer was using traditional rule-based segmentation to alter the communication from person to person with the goal of becoming more relevant and converting more customers, providing them with unforgettable experiences.

Complication:
Using rule-based segmentation can be great if your customers always have the same purchase pattern, as you can easily build your rules just by looking at statistics. However, in more turbulent purchase patterns like with a travel agency that has 150+ products in different categories, it’s only effective on some of the customers. Why turbulent, well because –

The reason is the different dimensions of each product. In general, you have different price points, seasonality, location, type, form of transportation, as well as duration.

And then… there is that last dimension: The individual association. A trip to Thailand means something different depending on who you are communicating with. Some associate Thailand with white beaches, and wild parties, while others are the direct opposite.

Every individual is unique and with the above introduction, I think we can agree, that rule-based segmentation would be too complex as a solution, to cater to each individual.

So how do you communicate with high relevance and avoid being put in the SPAM pile?

Opportunity:

Since segmentation is already running, we know that there are a lot of data points being collected. The Travel agency needed a fast and easy way to analyze their customer data, as well as their products. The answer was simple, get an Allyy to help out.

Allyy.io was the perfect fit for their needs. With the use of AI and machine learning algorithms, Allyy predicts what content/product is the best fit for each individual customer. Based on Semantics, price point, seasonality, location, type, the form of transportation and duration, Allyy automatically creates a cognitive profile of each individual customer.

This insight can automatically populate customer communication through Websites and Email.

Resolution:

Allyy enables the Travel Agency to optimize workflows in several ways while individualizing their communication.

1. They no longer need to build, maintain and develop the rule-based segmentation. We do not know the exact number of hours saved, so it’s up to you to estimate, based on it being built based on price point, seasonality, location, type, the form of transportation, duration, and what channel they interact with, as well as the response data.

2. Their email communication is much more relevant to the individual which drives loyalty and sales. Compared to a rule-based segmentation control group, the new individualized newsletter gets +20% in click-through rate and +50% added sales, in the preliminary results.

Relevance has also been proven, as more than 50% of the sales come from the predicted top 10% “most likely to buy” customers.

If you have the data

–  you might as well get the most out of it, and in most cases, that is with Allyy.io

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