FINALIST

Best use of FastStats 2013 Award

Using FastStats for segmentation to understand members and improve experience and engagement

Background

The Caravan Club is the largest membership organisation in the UK and the facilitators of the UK’s biggest Caravanning Community. Their expertise has been built up over 100 years. The Club provides support for every aspect of caravanning from journey planning, social events, technical advice and insurance services. Membership costs £43 annually which gives members access to a range of caravan sites, benefits and special offers. And because it is a membership organisation, the membership fee goes directly into improving the services offered to its 361,000 members.

The Club operates the largest private network of over 200 sites and around 2,500 locations which have been certified by the Club, in the UK and Ireland. Half of the Club Sites are open to non-members, whilst certified locations are exclusively for the use of members.

The Caravan Club has developed a family proposition as a result of the segmentation project, which is aligned to drive growth in customers and customer value.

Objectives

The Caravan Club strive to create an outstanding member experience for each of the 361k active Members, they live by the following motto;

“Whether face-to-face, online or by telephone, we will provide members with an unforgettable service.

They will be made to feel like special parts of a friendly, welcoming, efficient club – not a commercial organisation – that caters for their individual needs.

We should give them value; make them feel valued, during every stage of their holiday experience, leaving them with the desire to return to us again and again.”

This project aimed to enable an outstanding member experience by identifying customer groups with similar wants and needs. By understanding these customer segments it allows for each group to be treated in the best way possible. This includes designing relevant online and offline marketing communications, well designed products and services dependant on the wants and needs of the group as well as great customer service.

Involving key stakeholders

Colleagues from across The Caravan Club, including site wardens, call centre staff and the marketing team were consulted to see who they thought the natural segments were. FastStats was utilised very early on in order to see if these groups could be identified within the data as it was important that the segments reflected the customer base.

One of the restrictions to the project was the availability of lifestage type information. Retired and empty nesting couples were identified as prospective segments. However, the data held about Members doesn’t contain this detail. If a Member doesn’t identify themselves as a retiree it isn’t enough to identify couples who holiday during the week. A number of retired couples are still holidaying at the weekend either due to habit or because they are looking after grandchildren during the week.

Two approaches were taken in order to segment the customers. The approaches can be used in conjunction or in isolation. The first is a transaction/ lifestage segmentation and the second is engagement score segmentation.

  • Lifestage Segmentation – the lifestage segmentation has been created using transactional information and it has been created in a way that takes into consideration that members will move across segments, for example, from being a couple through to a family and back to a couple again. The segmentation has been built in a way so that this movement is understood and it is tracked.
  • Engagement Segmentation - The cubelookup function was used in order to create a comparable average across the different engagement factors.  A number of aggregate variables were created in order for these to be weighted and to create an overall score. Some aspects of behaviour such as UK and Overseas Bookings deemed by The Club to be a larger indication of engagement.

Getting to know the segments

Example visual segment summary:

Visual Segment

Benefits

The benefits of creating the segmentation in FastStats are:

  • The segments have been created dynamically within FastStats and will last for as long as needed as opposed to being created as an ad-hoc process  
  • New members will automatically fall into the correct segment
  • Members can change their segment based on their lifestage or their change in engagement
  • Engagements and lifestage can be tracked over a number of years to spot patterns in behaviour
  • Disengagement can be identified in order to understand and rectify this
  • The segmentation allows for customer value to be identified and reported on

Segmentation success

The Caravan Club has developed a family proposition as a result of the segmentation project, which is aligned to drive growth in customers and customer value. Overall, The Caravan Club is an exceptional example of how to maximise the value of customer data. They are at the forefront of excellent customer experience and are paving the way for more tailored, relevant communications. Their ability to derive actionable insight from their database and to create engaging experiences with customers through dynamic, personalised communications is an outstanding example.

Their continued effort to gain deeper understanding on their members and to provide a better experience for each individual is driving not just their marketing strategy but their overall business objectives; the groups created from the segmentation model are now aligned to business KPIs.

The long term impact of this solution is to lead strategies that aim to manage each segments journey and constantly evolve communications and offers so that they match individual preferences, whilst the Product Development Team will use the understanding to create products suited to member groupings.

This new data-focused, member centric strategy has led to significant increased revenue, cost efficiencies and improved member retention.

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