Soaring Loyalty: Boosting Membership for Northern Lights Air

Project Description: Analysing Loyalty Program Impact for Northern Lights Air

Goals: The primary goal of this project was to analyse the effectiveness of Northern Lights Air’s (NLA) promotional campaign aimed at increasing loyalty program enrolments. The promotion, which ran from February 1st to April 30th, 2018, offered 1.5x loyalty points to new members for flights booked through the remainder of the year. By examining enrolment, cancellation rates, and booking data, the aim was to provide actionable insights to the NLA leadership team for future marketing strategies.

Business Needs: Northern Lights Air needed a comprehensive analysis to understand the impact of their loyalty program promotion. Key areas of focus included:

• Assessing the success of the promotion.
• Identifying patterns or trends in cancellations to mitigate future risks.
• Evaluating flight booking behaviour to possibly optimise future promotions and loyalty rewards.

Approach:

1. Data Collection & Preparation:

   • Gathered data on loyalty program enrolments, cancellations, and flight bookings from February 1st to December 31st, 2018.
   • Performed a quality analysis of the data to ensure accuracy and consistency, and correcting data types where necessary.

2. Exploratory Data Analysis (EDA):

   • Conducted EDA to understand the data distribution and initial trends.
   • Used statistical methods to identify key metrics such as total enrolment, total cancellation , and flights booked over the time period and in the previous time period.

3. Analytical Techniques:

   • Analysed enrolment data to determine the growth during and after the promotion period.
   • Examined cancellation trends to identify any significant factors contributing to member attrition.
   • Evaluated flight booking patterns to understand the impact of the 1.5x points promotion on customer behaviour.

4. Dashboard Development:

   • Created an interactive dashboard using Power BI to visualise key metrics and trends.
   • Included visualisations such as bar charts and line graphs, to represent enrolment and cancellation trends, and booking behaviours.
   • Implemented filters and drill-down capabilities for detailed analysis by the leadership team.

5. Insights & Recommendations:

   • Identified a significant increase in flight bookings during the promotion period.
   • Noted a slight rise in cancellations post-promotion, suggesting the need for ongoing engagement strategies.
   • Found that the 1.5x points promotion significantly boosted flight bookings among new members, indicating the effectiveness of such incentives.

Meaningful Insights:

• Enrolment Trends: The promotion led to a notable increase in new enrolments, with peak sign-ups occurring between February and April 2018.
• Cancellation Patterns: A post-promotion spike in cancellations highlighted the importance of sustained engagement beyond initial enrolment.
• Booking Behaviour: Enhanced loyalty points resulted in higher flight bookings, demonstrating the value of targeted rewards in driving customer activity.

Conclusion: The analysis provided Northern Lights Air with critical insights into the effectiveness of their loyalty program promotion. By leveraging these findings, NLA can refine their marketing strategies, improve customer retention, and optimise future promotions to ensure sustained growth and customer loyalty.

This project showcased my ability to transform data into actionable insights, supporting NLA’s strategic goals and demonstrating the impact of well-designed marketing initiatives.