This project analyzes customer loyalty, flight activities, and campaign effectiveness for an airline to derive insights, optimize loyalty programs, and improve campaign strategies. The analysis leverages dashboards and key performance indicators (KPIs) to understand trends, challenges, and opportunities.
This analysis aims to explore:
- Customer flight patterns and seasonal trends.
- Effectiveness of loyalty programs in driving customer retention and lifetime value (CLV).
- Campaign performance in increasing flight bookings and loyalty engagement.
Key findings and recommendations help improve operational efficiency and optimize marketing strategies.
- Total Flights: 509K
- Total Distance Traveled: 763M
- Total Points Accumulated: 797M
- Total Points Redeemed: 12M (only 1.5% utilization).
- Average CLV: $7.99K
- Summer shows the highest flight volume (177K flights).
- Cancellations remain consistent across seasons (~2K per season).
- Peak months: July 2018 (38K flights).
- Lowest activity: January 2018 (13K flights).
-
Campaigns yielded limited impact on flight activity:
- Pre-Campaign Flights: 237K
- Campaign Flights: 49K
- Post-Campaign Flights: 223K
-
Net Membership Growth: 830 new members during the campaign period.
-
Point Redemption: 12M points redeemed during campaigns, indicating potential underutilization of loyalty rewards.
-
Loyalty Cards:
- The Star card outperformed others, contributing $30M to CLV.
- Aurora and Nova cards require improvement in engagement.
-
Customer Segmentation by Education:
- Bachelor’s degree holders contribute the highest CLV ($30M).
- High school or below: Minimal contribution ($1M).
-
Enhance Campaign Effectiveness:
- Align campaigns with high-demand seasons like summer.
- Introduce exclusive, time-sensitive promotions to boost in-campaign bookings.
-
Improve Loyalty Program Engagement:
- Incentivize loyalty point redemptions through better rewards and promotions.
- Educate customers about the benefits of redeeming points.
-
Reduce Cancellations:
- Address operational inefficiencies to minimize disruptions.
- Implement proactive communication strategies for passengers during delays.
-
Maximize Customer Lifetime Value (CLV):
- Focus on high-value segments (e.g., Bachelor’s degree holders, Star loyalty card users).
- Upsell premium services like lounge access and priority boarding.
- Summer is the most profitable season for flight activity, and campaigns during this time could yield the highest returns.
- A low redemption rate of points (1.5%) signals underutilization of loyalty rewards.
- Campaign impact is weak, indicating the need for better execution and targeting.
