Airline Promo Analysis - Power BI

ABOUT THE DATA:

I analyzed 24 months of booking data, crossreferencing it with customer information collected by the airline (demographic info and customer location). The analysis is set in Jan 2019.

FINDINGS:

Generally speaking, more enrollments were processed during the promo period (Feb – Apr 2018) than at any other period in the sample (971 newbies). So that goal of the promotion was certainly achieved.

But I did not find evidence that the promo appealed particularly to the targeted markets (Ontario, Quebec, British Columbia) or to any particular demographic groups. The customer base adopted this campaign in very nearly the same proportions as they have taken standard memberships.

This isn’t especially surprising because the promo was rather general with no special conditions related to particular customer segments. The marketing team could craft ideal customer personas in order to generate ideas for more targeted pitches.

Yet I did see healthy year-over-year growth in flights booked and point redemptions (both up 15%), so the customer base is engaging with NLA to a greater extent than ever before.

Still customers who joined during the promo seem less loyal to the airline than its standard members. The program maintains an overall customer churn rate of about 12%. The cancellation rate for promo members is already near 12% even though only 8 months have passed since the promo ended.

CONCLUSION:

In conclusion, the promo achieved its goals of driving more revenue and bookings but did not meet its specific goals of penetrating particular markets or attracting especially desirable customers. In fact, customer quality of promo members seems weaker than for the existing customer base.