Interesting factoids...

Old Oct 6, 03, 9:16 am
  #1  
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Interesting factoids...

In my efforts to discover the contents of our stolen mail this weekend, I came across this (from BA's fulfilment contractor's website). Not that I want to stir up the old NAEC enhancements debate again or anything :

While there are several hundred thousand active members in the British Airways Executive Club in North America, less than 18% of members contribute more than 83% of revenue. How could British Airways optimize their marketing expenditures to invest more into relationships with their most valuable customers?

Solution

Using historical customer data, CMG developed and implemented a predictive model to separate new enrollees into the program into various groupings based on their predicted value. This would allow different marketing efforts to enhance the valuable member's experience and strengthen the member's relationship with British Airways.

Analysis demonstrated that valuable members could be identified as early as one week after enrollment. These members received enhanced fulfillment kits and communication streams, focusing on encouraging them to fly in premium cabins. Less valuable members received less expensive communications focused on economy travel and partner usage. In addition, the contact center was reorganized so that calls from valuable members could be routed to the most experienced customer contact agents.
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Old Oct 6, 03, 9:45 am
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I hate to be pedantic but ...

A factoid is something that looks like a fact, smells like a fact, and gives all the appearamce of being a fact, but in actuality is not a fact.
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Old Oct 6, 03, 10:34 am
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So what are these, then? Should we call them factettes?
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Old Oct 6, 03, 11:00 am
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<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by Globaliser:
So what are these, then? Should we call them factettes? </font>
Let's call them "enhanceoids"
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Old Oct 6, 03, 11:05 am
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What interests me is: what "historical customer data" would BAEC have access to at the point of enrollment to feed into this predictive model?

They'd have basic name-and-address data, and perhaps the customer's most recent flight routing... but what else? They could burrow into their own flight records and try to map the enrollee's history with BA (though there'd be a high degree of inaccuracy there I daresay -- duplicate names, etc.). But that alone wouldn't predict future behavior. For the model to really work you'd need a full portrait of the individual's flying history, across all carriers, plus maybe some credit card spending data...

... I think the idea of targeting more potentially lucrative customers is fine (though without scr#wing standard-issue customers, which of course is what happened this year)... I just don't see what data they use for traction at the very outset of an enrollment.

[This message has been edited by BearX220 (edited 10-06-2003).]
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Old Oct 6, 03, 1:08 pm
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<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by BigLar:
I hate to be pedantic but ...

A factoid is something that looks like a fact, smells like a fact, and gives all the appearamce of being a fact, but in actuality is not a fact.
</font>
What was it in my post that caused you to think anything in it was in fact a fact? Or in factoid a factoid, if you will...
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Old Oct 6, 03, 4:25 pm
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<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by ScottC:
Let's call them "enhanceoids"</font>
LOL!

some more 'enhancoids'
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Old Oct 8, 03, 10:24 am
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I believe what they mean is that they use historical data to analyse all customer behaviour, they then apply that analysis to new customers.
So they probably rank customers in value and then look at what behaviours the most valuable had in the week, 2 weeks, month, 3 months etc after joining. They probably started with a big long list of data items, and through statistical analysis identified which items were the strongest predictors of future value, then they simply look for these behaviours in new joiners. Not an exact science but helps direct limited value add resources to be more effective.
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Old Oct 8, 03, 3:38 pm
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<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by BearX220:
They'd have basic name-and-address data, and perhaps the customer's most recent flight routing... but what else? </font>
Has anyone enrolled recently? Maybe they ask a few more questions now than they used to?
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