The problem
The travel division needed guidance to emerge from the mass disruption to consumer travel caused by the COVID-19 pandemic while competing with smaller, more agile, technology-driven travel startups. Leadership and key stakeholders realized that approximately $10 million in annual advertising spend was becoming increasingly ineffective. They needed to reverse declining profitability, improve a slumping advertising redemption rate of 1% to 1.5%, and better target prospective customers.
The solution
SDG was selected to scope, develop, and implement a more quantitatively rigorous approach to customer targeting. The team developed generalized linear models that were integrated into the client’s CRM, marketing, and operations technology suite to more accurately identify members most likely to redeem travel offers. The organization saw 15% growth in travel bookings and a significant decline in customer acquisition costs, allowing it to grow its travel business through a more targeted approach to customer acquisition.