LAUSR

This was the title of our second Lecture of 2018, delivered by Leigh Morris (Bonamy Finch), Paul Jackson (Bonamy Finch), and Kate Sargent (TUI). Essentially a case study, the presenters described how segmentations can be created by fusing internal data drawn from CRM systems, including geodemographic codes and transactions, with survey data—replacing the traditional attitudinalbased segmentation with what they call a hybrid segmentation. As Morris pointed out, traditional segmentations may only serve one application within the business and are often difficult to operationalize as there are no links between the clusters and the data used in customer interactions, as had been the case within TUI. Key to success is the initial phase to gain an in-depth understanding of the data available within the business and using this knowledge to design a survey that will enable the segments to be linked to existing customer data, and to identify key gaps in internal data and solutions to address these deficiencies. The TUI data map contained over 3,000 fields, and the data files contained 10 m trips and 5 m customer summaries. As important, was to create a segmentation of the market, not of TUI’s customer base, recognizing that TUI’s customers use competitors, and to ensure TUI can use the data to develop marketing strategy. So, the survey was built from a sample of 4,000 representative consumers drawn from a panel, plus 7,500 TUI customers. The segmentation was built on a matrix framework, covering trip types by traveler segment, to create cells that contained detailed information such as price and TUI market share. Machine learning algorithms were built from four models to attribute the segmentation to the customer database, with a very high level of success. As Morris underlined, crucial to the success of a hybrid segmentation is thorough familiarization with the customer database, aligning the survey content with database variables, structured analysis process, and attribution to the database. These are long-term projects, the TUI project to date having covered over 18 months, emphasizing the commitment needed within market-led dynamic businesses. Sargent summarized the applications with TUI: enhancing CRM-based communications with targeted traveler-led content, measuring and improving segment performance, concept and product development, identifying new opportunities, and internal communication to aid strategic planning. It was refreshing to hear such a detailed methodology-led case study, demonstrating the attention to detail necessary for success, especially in analyzing and assessing the quality of internal customer data and ensuring