Analytics of QF LOYALTY

[CaptJCool]

Well, here's some from the horses mouth insights

http://www.actuaries.asn.au/Library/Events/FSF/2012/AnalyticsOfLoyalty3BChandlerTubman.pdf

http://www.qantasnewsroom.com.au/me...ics-capability-through-taylor-fry-acquisition

http://www.smh.com.au/business/tran...bledigit-earnings-growth-20150301-13qy8q.html

http://www.itnews.com.au/CXOChallenge/401046,empty-terminals-and-mountains-of-data.aspx

 

[samh004]

This was good to read.

Interestingly, considering his outsourcing push in other areas, Hennekens is steadfast on keeping most of Qantas’ analytics work in-house, as a way to “start educating ourselves and our staff on what is possible”.

“You can rely on external agencies but then you don’t learn as an organisation. So we have taken the approach to push our internal staff to forums and to training, basically to say we want to get this out of a proof of concept - go ahead and do it.”

 

[Mattg]

Thanks, a very interesting read. In the first link, it explains how they focus attention on high value customers likely to defect. Does this explain how it is decided who will get a targeted bonus SC offer?

 

[JohnM]

This was good to read.

Agree - and I think that your pick-out was particularly interesting. I think it shows when you are so big, in-house is the way to go - and you can go ou and consult to others because of huge credibility. Neat stuff.

 

[JohnM]

Thanks, a very interesting read. In the first link, it explains how they focus attention on high value customers likely to defect. Does this explain how it is decided who will get a targeted bonus SC offer?

Now, how are they going to tell that you are on the verge of leaping the Berlin wall to test them Mattg .

 

[Stoopidsteve]

Thanks for the links Capn.

I note the ppt from the Actuaries Institute/ Financial Services Forum was 2012.

Some things caught mye ye;
would slide 5 statement of "Record membership satisfaction" still hold true?

Do we as FFs, or does QFF believe the balance is right; "There is a balance between... long term customer value and shorter term revenue"?

Do we as FFs, believe QF and QFF have a "Customer centric organisational focus Supported by customer centricmanagement and culture"?

 

[beardoc]

So they're moving to big data, and that's a good thing.

 

[RooFlyer]

Interesting reads there, thanks. Just reinforces my view that QFF members are the product, not the object.

Something to be analysed, grouped, categorised and sold as market targets to third party organisations.

You may not be offered your favourite drink on board, but Woollies will know more about you than you ever realised.

 

[medhead]

Yet for all that Woolies fails to offer me enticing discounts. Money well spent? Perhaps not

 

[chelzmalee]

Yet for all that Woolies fails to offer me enticing discounts. Money well spent? Perhaps not

Agreed.

Very interesting read, though. Much like the "Target knew you were pregnant before your family did" thing.

 

[CaptJCool]

Woolies know I'm with child because I buy beer with my disposable nappies. Time poor - my kid loved the beer-bath.... LMAO

 

[ozbeachbabe]

Thanks, a very interesting read. In the first link, it explains how they focus attention on high value customers likely to defect. Does this explain how it is decided who will get a targeted bonus SC offer?

What then happens if the high value customers do indeed defect? Would there be any follow up asking the member why they left? There have been several 'high value' ff ppl here who have been P1 or WP who left for greener pastures hence the following year they had credited virtually zero travel to QF FF yet received no 'please explain'.

 

[medhead]

Agreed.

Very interesting read, though. Much like the "Target knew you were pregnant before your family did" thing.

It's interesting. We used to buy nappies and baby stuff as gifts for the younger family members.

 

[trippin_the_rift]

What then happens if the high value customers do indeed defect? Would there be any follow up asking the member why they left? There have been several 'high value' ff ppl here who have been P1 or WP who left for greener pastures hence the following year they had credited virtually zero travel to QF FF yet received no 'please explain'.

Prepaid mobile subscriber churn rate is near 120% in some countries (subscribers move multiple times per year) and the way telecom companies have invested in BI is very interesting. For example in my last business which I sold a couple years ago we developed s system for Optus (our product so I can disclose this info) to identify customers at highest risk of churning to a competing mobile carrier. Part of the intelligence gathered was once an influencer (someone with a lot of friends or influence over spend) switched carriers they would also drag across 6 friends with in 3 months.

This is similar with frequent flyer programs and it's obvious from AFF that the non-QFF group is only growing. One of the challenges qf faces from running a coalition program is that a partner can be the reason for a customer switch in loyalty.

For example you can now earn British airways avois thru Citibank at 1:1. Anyone that does premium international travel to Europe now have a way to earn avois from Australian card spend at a much higher value than QFF points.

While not directly qantass fault - the low earn on qf points per $ spent thru credit cards (presumably because of the price points cost the banks) is so high that it drives bank customers away from qff earning into more lucrative ff programs. This then drives customer loyalty away from qantas all because of the relationship the customer has with their bank.

Of course - it's impossible for qantas BI to figure this out because they don't have insight into a customers full share of wallet that they have access to....and the only way to possibly know if when the points earning rapidly drops. Contacting the customer at that point is extremely dangerous unless you are 100% sure what caused the disconnect.

Disclosure: I'm involved in businesses in this space that solve this problem for coalition programs

 

[Mark3000]

Wow that is fascinating stuff. I'm interested in what you mean by contacting the customer is dangerous unless you are 100% sure.

 

[eastwest101]

Wow that is fascinating stuff. I'm interested in what you mean by contacting the customer is dangerous unless you are 100% sure.

Appearing in random places across the world or the country and taking a flight to somewhere else and then mysteriously being able to return to your residential address to take another flight are pretty good clues, like Medhead's example a few months ago of flying multiple times from SYD-ADL but not the reverse every week.

Another indication (although not as good) is the drop in credit card points earn coming in, after all, people can change jobs, lose jobs or have changes in their lifestyle that they prfer to keep private. Long lengthy hand wringing threads about 'enhancements' to points earn, and difficulty redeeming points would be picked up by social media team as a macro trend although identifying particular customers whom are on the way to defecting is more difficult.

 

[lovetravellingoz]

While not directly qantass fault - the low earn on qf points per $ spent thru credit cards (presumably because of the price points cost the banks) is so high that it drives bank customers away from qff earning into more lucrative ff programs. This then drives customer loyalty away from qantas all because of the relationship the customer has with their bank.

Don't follow you here at all. It is not the banks, it is QFF.

IMO it is because QFF is so big in Australia that they choose to be uncompetive in this respect. They get vast numbers of Australian's who direct their credit card points to QFF because they know no better. Look at they average "newbie" that comes onto this forum. They normally ask how to earn more QFF points, before later learning after doing their homework that this is often the last airline that you would choose to direct your points to for many of us.

Several years back QFF tried to force many card arrangements where you has to select QFF or other airlines in adavance, or have a QFF only card.

I have many different earning cards including QFF ones. If I have a choice of an equal number of cc earnt points to say direct to QFF vs other airlines like SQ, then there is no way that I would direct the points to QFF.

My QFF cards only get a work-out when there are additional bonii at play that make it attractive to do so.

The reality of the FF Points world in Australia is that QFF do not need to offer a competitve FF program. If they were based in the USA, then with a FF program such as theirs, their program would be "dead meat".

 

[medhead]

Appearing in random places across the world or the country and taking a flight to somewhere else and then mysteriously being able to return to your residential address to take another flight are pretty good clues, like Medhead's example a few months ago of flying multiple times from SYD-ADL but not the reverse every week.

I had another interesting phone conversation with a qantas person the other night. Booked online SIN to Oz. Had to call because I made a mistake with one of the flights. The CSA had a big chat to me about the direct flight going away from ADL-SIN. I took that as some sort of recognition that I was somehow getting to SIN not with Qantas. But they also did ask where is was based. In the end I just said that MH still has a direct flight from ADL, luckily.

 

[OzEire]

Appearing in random places across the world or the country and taking a flight to somewhere else and then mysteriously being able to return to your residential address to take another flight are pretty good clues, like Medhead's example a few months ago of flying multiple times from SYD-ADL but not the reverse every week.

My hint to QF was the appearance of VA flights on my QF PNR (booked by a TA), interspersed with lots of one way travel that didn't connect and finally no QF travel at all for months after being a 2-3 times a week flyer.

Not even the slightest bit of interest from QF (as far as I could see). No offers, no contact, zilch.

 

[amaroo]

Excellent post!