Case Studies > Tourism > The Ritz-Carlton
How RMG Upped Engagement for The Ritz-Carlton’s Top 3 Revenue-Driving Segments
RMG’s insights revolutionized customer engagement at The Ritz-Carlton, pinpointing segments driving 72% of revenue and boosting engagement by 10%.
Highlights
10% ↑ Engagement
Improved segment strategy upped engagement by 10%
72% OF REVENUE
Identified 3 top segments driving 72% of revenue
3.3 Million
Analyzed 3.3MM guest reservations across a 5-year dataset
9 segments
Identified 9 total segments driving bookings, and developed personalized marketing strategies for each
Summary
Region
- North America
industry
- Tourism
Company size
- Large/Extra-Large
rmg solutions
- Modeling & Analysis
- Digital Marketing
- Marketing Strategy
about
The Ritz-Carlton, a luxury hotel chain operating multinationally, first engaged with RMG through their Marketing and CRM teams in 2017 to enrich their existing relationships, cultivate new connections, and to solidfy The Ritz Carlton as the premier luxury brand.
Challenge
RMG’s mission was to assist the internal CRM team to identify segments across The Ritz Carlton hotels to deliver exceptional experiences for guests and make their 91 properties the brand of choice.
“RMG brought fantastic insights and a new depth to our customer understanding, leading us to improve our customer engagement metrics.”
strategy
Targeted, personalized, messaging and treatments – developed through segmentation – were key to accomplishing this mission. Consequently, this segmentation initiative was conducted to identify the most valuable customers, enabling targeted and personalized CRM efforts. The RMG team partnered with internal IT and third-party segment developer to collect and analyze key data including internal DB, Global Survey to past guests and luxury travelers.
solution
Working closely with client internal teams, we identified segments with the highest value to The Ritz-Carlton, organized data and created algorithms to define segments. We also appended survey data to understand attitudes/preferences on a segment-by-segment basis.
The final result was the creation of data-driven profiles, personas and journey maps for each of the 3 priority segments, which allowed us to implement and measure tests while integrating into overall marketing activation and brand planning that was coordinated with other property efforts.
results
Through each of the 3 priority segments, RMG was able to identify differences in booking behaviors and windows. These results gathered insights into to how and when to target each segment. Custom landing pages were formulated for each segment that drove a successful campaign that was expanded to St. Regis hotels.
- Segment Identification: RMG identified nine revenue-generating segments, with the top three accounting for 72% of revenue (Frequent Business Travelers, Weekend Celebrators, Week-Long Vacationers)
- Behavioral Insights: Detailed understanding of booking behavior and ideal communications windows for each segment, informing marketing and customer journey cadences.
- Personalized Engagement: Creation of custom landing pages tailored to each segment, significantly boosting engagement.
- Scalable Success: The campaign was tremendously successful, seeing 10% increases in engagement, and The Ritz-Carlton replicated it across their St. Regis hotels.
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