© 2016 IHG

Fight the User-Engagement Crisis with Robust Omni-Channel Marketing

Jim SpriggDirector, Database Marketing & AnalyticsIHG

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What is engagement?

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Engagement is linked to customer lifetime value

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Retention

Frequency

Business

Profitability

Upscale

Frequency

Some factors are stronger indicators of retention,

others of profitability, and some of both

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Customer value is linked to commercial goals

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$$$

Membership Engagement Relationship

Identify and win high-potentialfrequent travelers

Understandour best

customers

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So how do we drive engagement?

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So how do we drive engagement?

VisitBrandABookwithBreakfast

VisitDestinations

VisitBrandsB,C,D,orE

BookWeb

VisitResorts

VisitMultipleBrands

PurchaseF&B

StayWeekends

VisitBrandF

DownloadAPP

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Driving engagement can be messy…

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Driving engagement can be messy…

Wehaveatonofoffers&messages

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Driving engagement can be messy…

Wehaveatonofoffers&messages

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Andmanyplacestopresentthem

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Driving engagement can be messy…

Wehaveatonofoffers&messages

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Andmanyplacestopresentthem

Butweneedtoensureeachcustomerseesaconsistentsetofinfluentialmessages

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At IHG, we started simple… with campaigns

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2010Piloted Bundled Offers

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Randomized experiments revealed our impact on engagement… and who is responding

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Impacts onEngagement

CustomerResponse

Not actualfigures

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Randomized experiments revealed our impact on engagement… and who is responding

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Impacts onEngagement

CustomerResponse

Not actualfigures

IHG©

At IHG, we started simple… with campaigns

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2013Public Bundled Offers

2010Piloted Bundled Offers

IHG©

At IHG, we started simple… with campaigns

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2013Public Bundled Offers

2010Piloted Bundled Offers

TodayConstant Bundled Offers

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But can we generalizeacross channels & messages?

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But can we generalizeacross channels & messages?

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Some steps…

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1. Standardize content– Reusable offer menus– Content categories

References– Lewis, R. A., Rao, J. M. (2013). On the Near Impossibility of Measuring the

Returns to Advertising, Unpublished manuscript.

– Lewis, R. A., Rao, J. M., Reiley, D. H. (2011) Here, there, and everywhere: Correlated online behaviors can lead to overestimates of the effects of advertising. Proc. 20th International Conf. World Wide Web (ACM, New York), 157–166.

IHG©

Some steps…

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1. Standardize content– Reusable offer menus– Content categories

References– Lewis, R. A., Rao, J. M. (2013). On the Near Impossibility of Measuring the

Returns to Advertising, Unpublished manuscript.

– Lewis, R. A., Rao, J. M., Reiley, D. H. (2011) Here, there, and everywhere: Correlated online behaviors can lead to overestimates of the effects of advertising. Proc. 20th International Conf. World Wide Web (ACM, New York), 157–166.

2. Use universal control groups– “Universal” meaning “across channels”– i.e. some customer are suppressed from

certain content everywhere

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Then you can measure the effects of different content on different customers

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Category1

Category2

Category3

Category4

Category5

GlobeTrotter

Loyalist

RoadWarrior

HomeAway

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Other managerial implications…

• Must be less campaign centric– Targeting is more centralized– Role of campaign manager changes

• Must be less channel centric– Targeting within channel being managed by a cross-channel experiment

– Content selected by customer scores

• Content is bigger than creative– New content is defined by the dimensions of experimental design

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IHG©

Other managerial implications…

• Must be less campaign centric– Targeting is more centralized– Role of campaign manager changes

• Must be less channel centric– Targeting within channel being managed by a cross-channel experiment

– Content selected by customer scores

• Content is bigger than creative– New content is defined by the dimensions of experimental design

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Thank You