Case Study: Travel & Hospitality
Delivering ~70% loyalty program renewals increase, 38% conversion rate for a luxury hotel chain
Asian hotel major turns to HGS for pay-for-performance-based sales for their loyalty membership program
>38%increase in conversion rate for loyalty membership renewals
>20%of renewals are made with an upgrade in membership
~400%increase in revenue contribution from new salesClient background
The client operates a globally recognized luxury hotel chain in Asia.
Business challenge
The client chose HGS for pay-for-performance-based sales service for their loyalty membership program. Their objective for HGS was renewal increase of existing memberships and acquisition of new customers for the loyalty program — in all major languages used in India.
The solution
End-to-end lifecycle management enabling process enhancement
We ensure engagement with the client’s customers throughout the year. For example, we call:
- To extend special offers
- To inquire why customers have not used their membership at three-, six-, and nine-month intervals and offer booking assistance, if required
- For celebratory life events, such as family birthdays or anniversaries
The calls strengthen and enrich the connection while personalizing the experience. As expected, our approach to engagement has had a positive impact on the client-customer relationship and customer satisfaction. Customers actually express appreciation for the calls and show more interest in loyalty membership renewals. The positive customer sentiment led to a significant increase in revenues.
Predictive data analytics strategy to drive data-driven, result-oriented decisions
Data is the backbone of all decisions made on this account. HGS has a dedicated data-reading team to identify gaps, ensure accurate reporting, and generate predictive analytics.
We rate customer leads based on predictive analytics. Our lead scoring is based on the demographic data derived from a statistical model studying the variables (e.g., history of sales made and not made). The formula provides details on which customer is most likely to answer our call.
We classify, based on demographics and behavioural histories, renewal-eligible customers using predictive analytics. The segments with customers who are most likely to buy are contacted with a plan targeting renewals.
We use predictive analytics for new customer acquisition. We use historical data about customers who answered our calls, but have not yet made a membership purchase. We study customer interaction data patterns.
Offline advertising, expansion to digital channels and prospect database sourcing
HGS suggested offline advertising to the client. The offline campaign included a “missed call” option whereby customers could register their number by calling and disconnecting as soon as it started ringing. HGS then contacted these customers to enroll them in the client’s loyalty membership program.
The client was not involved much in marketing and advertising before partnering with HGS. To meet the client’s customer acquisitions expectations, we turned to digital channels such as Facebook and Zomato. Once prospects click on a Facebook ad and provide their details, we call them.
To acquire more new customers, we source a list of those who frequently visit the client’s hotel restaurants. We conduct a recency frequency monetary (RFM) analysis on this data and study aspects such as the last visit, the amount of money they spent, and the frequency of their visits. The results help create more personalized interactions.
New CRM system
Before HGS was engaged, the client was not using a CRM. Historical customer interaction data was present on the dialer, but was silo’d and not captured logically. There was no one-stop-shop for all the customer data.
HGS built a CRM built to eliminate these problems and to end the practice of blind, traditional cold calling. Once the CRM was added, we used analytics to make informed decisions based on customer preferences and propensity to buy. We call them at the best time and track their “do not call” status in the CRM, for example.
Emphasis on quality
To ensure quality, we conduct audits, provide feedback to agents, run calibrations (on what went well and what could have been better), review call recordings with agents, ensure agent behavioural governance on calls (red alerts are sent to supervisors on negative behaviours), and provide Training Need Interventions (TNI).
We also conduct real-time sale audits for 100% of calls, which helps protect and preserve the client’s brand. When an agent gives a customer the wrong information, we follow up and make correction calls to rectify the error.
Our process and procedural emphasis on quality ensures we achieve 100% in six out of eight key customer critical accuracy parameters, with a 44% increase in quality scores.
Structured training, skills-based work allocation
HGS provides initial and ongoing training, and this includes mock calls. HGS training processes incorporate valuable inputs from the quality team. We continually assess agents’ skills and allocate them to contact different customer segments based on their talents. For example, agents who are good at handling refusals engage with that customer base. Those agents who are good at cold calling are put in touch with new customers who have not yet been contacted. Skill-based mapping and resource allocation are yielding significant returns on investment.
Results
HGS’s innovative, data-driven approach to loyalty renewals has led to stellar results. Our consultative approach has not only resulted in sales, but also resulted in a strong business partnership that has led to a redesign of their loyalty membership product with new offerings.
>38%increase in conversion rate for loyalty membership renewals
67%increase in renewals against the first-year industry standard
+20%of renewals made with an upgrade in membership
<2%renewals made with downgrade in membership
~400%increase in revenue contribution from new sales
50%increase in revenue from renewals
2Xincrease in total yearly sales
>13%reduction in cost of revenue for the client through analytics
96%increase in rate of new customer acquisitions
40%improvement in membership renewal rates
100%in six out of eight key customer critical accuracy parameters
44%increase in quality scores
70%improvement in quality parameters post TNI intervention
3%reduction in attrition of new hires due to training enhancements
