Segmentation of the target audience for a travel agency

Analytical report on the solution of the problem

The problem

Purpose: to personalize the offers of tours in accordance with the preferences of customers. Increase ad clicks on open emails

Task:

  1. Segment your target audience
  2. Identify preferences of different segments
  3. To formulate recommendations on the distribution of tour offers corresponding to segment preferences ..

Assessment of the quality of the solution to the problem

An increase in the ratio of the number of scanned letters to the number of all sent tour offers acts as a measure of the quality of solving the problem

The solution

To highlight the segments of CA based on statistical data on customer activity when viewing the site, cluster data analysis algorithms were applied.

To identify segment preferences, clusters were compared with tags for the proposed tours, using text mining ( text mining ) methods .

Manually, none of the tasks could be adequately handled due to the volume of statistics and the number of related parameters. The analysis used data from more than 80,000 clients, for each of which there were more than 500 features and more than a hundred different offers of tours. 

All the email list subscribers emails were clustered based on their behavior and given their personal offers

Results
1. Target segment and their preferences

According to customer behavior data on the site (page views), the clustering algorithms allocated 5 clusters:

  1. Cluster 1 is the main one, it includes clients with the most typical behavior: they are very interested in beach vacations and summer vacations, they are interested in memorable excursions no less than summer vacations in general, the idea of ​​relaxing with children is not too attractive to them, although they often relax with them than the two of you. Special offers are not interested.
  2. Cluster 2 as a whole is interested in travel (except special it dry redlozheny ) more than anyone, but mainly rest (unlike the cluster 4). Briefly – this is a more active version of cluster 1 with the only differences that excursions catch it much less in comparison with the theme of beach holidays than cluster 1.
  3. Cluster 3 is generally very little interested in traveling, but, unlike cluster 5, it is still realistic to attract offers of beach vacations in the summer, but special. suggestions are useless. It seems that this cluster includes people who are deeply immersed in work, who rarely travel and sometimes remember about vacation, because “everyone goes to the sea in the summer.” In other seasons, vacation to cluster 3 is not interesting.
  4. Cluster 4 demonstrates typical behavior, as does cluster 1 (with the same level of general interest in tours) with one feature: interest in special offers is extremely pronounced. This topic “catches” customers from cluster 4 as much as the theme of summer holidays in general.
  5. Cluster 5 is only interested in special offers.
Diagram 1. Ratio of clusters by the number of clients.
Diagram 2. Distribution of preferences within target audience segments.

2. General comments on target audience segmentation      

Based on the information provided, both common patterns of behavior for all clients and specific for each of the identified clusters were identified. The presence of general patterns explains the selection of one main segment and several smaller segments.

You can either focus on the main segment of Central Asia, or personalize proposals for segments.

3. General observations

  • Beach holidays in summer are of most interest to 96% of visitors to the site
  • Only 12% of visitors are interested in special offers.
  • Most of all site visitors are interested in summer vacations, 1.6 times less often in winter, 2 times less often in spring and very rarely in autumn.

4.   Recommendations for selected segments

A short list of the main recommendations from the table above:

  1. Show Cluster 5 only special offers
  2. Clusters 1-3 never show special offers
  3. Clusters 1-4 show tours about beach vacations
  4. Excursions show only to cluster 1 and 4, sometimes 2
  5. In general, cluster 2 is more interested in vacation, this cluster should often offer something

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