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In order to determine the true value and revenue growth potential of each of their customers, this major hotel chain had been using predictive analytics based on historical customer data. The model they had built depended on data being collected internally and was a projection of anticipated customer value based on past transactions.
The hotel’s team determined that they could dramatically improve their model for predicting customer value by adding new sources of data that provided them with a broader, more detailed and more complete view of their customers’ travel and expenditure habits.
The analytics team sat down and mapped out a plan for an initial test; the goal would be to use external data, matched to loyalty member profiles, to increase the information they had available about when their loyalty members were staying with the competition.
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