Delivering increases in these tough economic times?  This trial states loud and clear – personalized communications works and can increase top and bottom line growth!

The Case Study!

Chief Marketing Officers are confronting a new set of challenges that require innovation. Today, the market demands more ROI for every dollar spent.  The current worldwide economy as well as cautious customers are preparing for tightening purse strings and shrinking budgets. But, it’s not all doom and gloom, The Routes to Revenue research initiative released by the Chief Marketing Officer (CMO) Council highlights opportunities for companies looking to drive growth and customer engagements. In fact, Best Western International, the World’s Largest Hotel Chain®, experienced significant improvements in only eight weeks by delivering a personalized campaign aimed at increasing revenues through incremental bookings and raising awareness for their own-branded credit card. With an astounding ROI of 278%, and 30% plus increases in reservations, stays and revenue; the re-invention of the monthly statement has earned a second look.

The Challenge

 

Best Western, interested in innovation and fresh ideas, was open to test new types of marketing tactics which could grow and enhance customer loyalty. In support of the trial, the goal was to increase revenue through incremental bookings and grow awareness for co branded credit card.  All stakeholders from marketing, outside design firms, IT, partner programs, print provider, and InfoPrint had to quickly come to terms on the data requirements and timelines to meet the aggressive four week timeline of campaign creation to print.   One key hurdle was data analytics; we needed to manipulate the existing database and add business rule logic to insert the correct personal message, imagery, and promotion to the right person.

  The tipping point – the trial

With a deadline of only four weeks from creative to mail, InfoPrint Solutions Company, the joint venture between IBM and Ricoh, deployed its industry leading TransPromo Consulting Practice which consists of skills in marketing strategy and campaign management, marketing and data analytics as well as creative design and composition. InfoPrint’s Best of Breed practitioners gathered for a quick launch meeting with the Best Western marketing team to garner a greater understanding of the Gold Crown Club International Rewards ® Program and its program goals for their Fall Promotion.  

The primary marketing campaign goal was determined to increase customer registrations by highlighting Best Westerns fall promotion of ‘More Rewards, Faster’. By implementing InfoPrint’s TransPromo methodology, Best Western should also experience an increase in the number of customer stays as well as an increase in customer spend. The secondary campaign goal was to promote the Best Western branded MasterCard. In order to achieve the desired outcome, the team had to review Best Western’s current customer behaviors from their most active to their inactive reward members. Additionally, the team analyzed which customers have the Best Western MasterCard, and who has yet to apply. Next was the creation of the business rules in GMC PrintNet to reflect our analytics and provide the right fall promotion, personalized messaging, specific credit card offer and imagery on the right statement.

The Best Western and InfoPrint worked together to identify 100,000 customers that were similar in their Best Western relationship. Once identified, these 100,000 rewards customers were randomly assigned, 50,000 to the test (transPromo) segment and assigned the remaining 50,000 rewards customers to the control (legacy statement) segment.

 

The Results

Initial analysis of the trial showed that our target group had a 15-39% increase in response rates to different offers that were promoted over the control group. The results of the trial indicated that even in difficult times, the statement when using Transpromo best of breed methodologies – can provide a new route to revenue. 

· 15% life over the control segment in program registrations within the first 30 days of the campaign

· 39% lift over the control group for number of stays,

· 34% lift over the control segment for number of nights stayed

· 30% lift over control for revenue generated

· 500% lift over the control group applying for the Best Western Rewards MasterCard.

· ROI for the test group 278% vs. the 178% of the control group

TransPromo also enables the integration of the statement or invoice into other various campaigns, to promote and enhance a consistent customer message and experience across multiple channels. In the trial, linking the loyalty statement to multi-channel via personalized URLs enabled the possibility of customized emails, personalized direct mailers and even a personalized hotel room key card jacket to tie together key messaging and create a powerful route to revenue.

Even in tough times, when we leverage what the customer wants to read, we can have uplifts.  The current recession provides an opportunity to review your current customers, and existing data to deliver a powerful marketing campaign which can provide profit with increased loyalty. 

 

 

 

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November 2008

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