1) The document proposes a new marketing strategy for Continental Airlines to bundle flight and concert ticket packages to increase customer base and revenue.
2) The approach involves using social network analysis and customer data to predict which target groups would be most likely to purchase flight and concert bundles for various concerts.
3) If successful, the new bundled marketing strategy could then be expanded to additional event types like conferences, product launches, movies, sports, and political rallies to further improve customer acquisition and retention.
2. Introduction
Business Process: Marketing and Sales Process – customer acquisition process.
Approach: proposing a new bundling strategy that targets customers by proposing
bundled offers to the passengers who are already travelling to popular concerts on
demand.
Main purpose/outcome:
• Increase customer base and improve retention
• monopolize the partnership in the hopes of creating a preferred airline for this type
to events
• Increased revenue
3. Proposed Change
Before
Currently Continental Airlines
doesn’t have any partnership with
the entertainment industry
After
Attract new customers and
occasional flyers with interest in
individual concerts to travel with a
bundled package..
4. Modeling Technique & Analysis
• Perform Social Network Analysis to predict who is likely to respond to a concert
• Clustering Audience to determine who is most likely to attend and not attend the
concert
• Analyze the historical data on how well the concert went in the past (sold out
status, total ticket sales, regions from which most people came from... etc.)
• Clustering the target groups and ranking the concerts to predict which target
groups would have a higher probability of flying to the concert
• This could be automated by partnering with ticketing websites and performing
data analysis to come up with agreed upon offers before concert dates..
• Flights can be assigned to the “hot” areas where people will fly out from, to aid in
leveling of the demand for transportation to the event.
5. Data
•Airline data: Customer Purchasing patterns: Customer past behaviour in purchasing
flight ,Customer Demographics, Personal information, Availability of flights, Preferred
membership (loyalty programs)
•Ticketing websites: Ticket sales, Concert rating, Customer profile ranking, Customer
Purchasing patterns, Customer Demographics, Personal information.
•Social media: Twitter, Facebook, Reddit: preferences, trends, locations, reviews,
demographics, artist reviews, poll results, ..etc.)
•Additional Public data: Third party websites (i.e. TripAdvisor), Blogs
6. • Granularity: Individual Customer for particular Concert location
• Number of records: the entire customer database for Continental Airlines and its
partners
• Availability of data:
- Purchasing behavior data for concerts can be obtained by partnering with the
ticketing websites.
- Data on Customer preferences and concert reviews can be obtained from the social
media and public data.
• Target Variable: The likelihood of the customer to respond to the bundled offer
Data
7. Metrics Financial
• Number of
tickets sold per
bundle per unit
time - Profit
Business Process
• Regional bundled
tickets sales
percentage
compared to
regional sales
without bundling
to measure
increased sales
response per
region
• Change in flight
traffic: comparing
the flight traffic
per destination
(concert location)
with historical
traffic having no
bundled offers (
no concerts)
Customer
• Customer
satisfaction
• Increase of
demand of the
offered bundle in
weeks prior to
the concert event
date
Learning & Growth
• Increase in ability
to visualize
airline need for
allocation of
resources
• Knowledge
gained to exploit
new
opportunities
in designing new
marketing
campaigns based
on analytical
results
• Effectiveness of
the analytics
tools’ outcomes -
IS capability
The enhanced process will help
continental airlines gain and
sustain competitive advantage by
improving customer acquisition
and retention processes, creating
a more positive company image
and a significant increase in
revenue.
9. Experiment
Experiment we want to determine the most likely responders to a country-
western concert’s ticket purchasing, and selling the bundled package to Texas, or
the Southwest region in general. (likelihood of response would be the target)
Tree Induction : analysis to identify customers most likely to respond
Tree Analysis: for further targeting (instead of our focus on a blanket distribution
method) could be utilized for further types of media (pop-up ads, 3rd party
website ads, partner ads, coupons in the mail when you receive your tickets,
advertising mailers, etc).
Test Group: demographics that’s are most effective to be targeted for customized
offerings instead of blanket
Control Group: General population with the prior blanket advertising offering
10. Taking our business model to the next level
• Business conferences
• Car/Apple/google product launches
• Movie/ Music releases
• Political rallies
• Sports events
Questions ?