HKJC's Loyalty Management - 9th Racing and Betting Forum

0 downloads 93 Views 2MB Size Report
Sep 30, 2016 - Go Racing Invitation. (for interest). • Regular race-goers. ~20% .... The point based loyalty system al
The 9th RBForum: - HKJC’s Loyalty Management

Joice Lam Executive Manager, Customer Management 30 Sept 2016

Customer and Marketing Division

Reward / Incentive

Target

Loyalty 4 million customers

Privileges / Service

Cost

2

Customer and Marketing Division

Principles for HKJC’s loyalty design and management 1. Use of customer data (big data modelling) • To better serve the customer needs Properly segment across tiers • To create a flexible structure so we can segment based on loyalty factors Cater to customers’ desire for choices • To create a gift redemption platform offering a broad set of rewards • Meanwhile, we know our customer more through their choices.

3

Customer and Marketing Division

Get insight from data variables and apply to CRM • 400 variables are collected from different sources

Betting History

Gift Reward Choice

Betting Pattern

Customer Survey

Personal Particular

Customer Preference

Personal Information

Customer Feedback

4

Customer and Marketing Division

…and identify program components which is effective CRM Program Objective

Selection metrics

Avg. Response Rate

Wake up



Customer who becomes inactive after the summer break

~30%

Reduce lapse / sustain active rate



Customer who participate less recently

~40%

Go Racing Invitation (for interest)



Regular race-goers

~20%

Go Racing (for retention)



Customer who consistently participate in racing with similar involvement

~20%

Go Racing (for reactivation)



Customer who has no racing participation over 1 season

~5%

Absenteeism



Customer with predictable absence in coming meetings

~5%

This is one of the drivers to sustain business growth since 2010/11 5

Customer and Marketing Division

Only big data modelling can handle trillion of data set

Customer Preference

Personal Information

Betting Pattern

1.6 trillion of data

6

Customer and Marketing Division

And to further maximize our capability in data analytics

… to proactive • Customer database From reactive… • • Customer database • Observed behavior (e.g., switching to competitors)

Predictive behavior (e.g., will switch) via mathematical models

• Pre-emptive CRM actions before churn

• CRM actions

7

Customer and Marketing Division

We automate the process of analytics with predictive ability via machine learning models 1 Build customer database

Database 2 million+ customers

2 Identify relevant variables

3 Develop predictive models on customers

400 data variables E.g.,  Wagering behavior  Personal information  Social activities  Race information  Weather information

8

Customer and Marketing Division

Not only improves accuracy in targeting but predict the incremental business offered by loyalty Models

Description

1.

Lapse (or Decline) Model

• Predict customers likelihood of dropping / stopping in next race meeting • Reduce lapse using pre-emptive campaigns

2.

New Customer Potential

• Predict if an individual new customer can convert into a regular customer

3.

Customer Trends

• Develop customers segmentation using unsupervised clustering • Plan customer programs by refined segmentation

4.

Bet-type Adoption

• Predict an individual customers’ bet-type active rate

9

Customer and Marketing Division

With big data models, targeting would be much easier with a few clicks on desktop PC

3

1

2

3

4

1

2

10

Customer and Marketing Division

With big data modeling, pre-emptive actions can be made before loyalty declines Decline model:

Growth model:

High chance to decline

High chance to grow 11

Customer and Marketing Division

Different validation results showed that our targeting accuracy has improved by 20-40% 90 Segment Conventional Method 80

+ 22%

+ 37%

+ 38%

70

Big Data Model

+ 17%

+ 20%

60 50 40 30 20 10 0

Chance to be Regular (New Customer Model)

Decline Results (Growth/Decline Model)

Growth Results (Growth/Decline Model)

Participation Potential (Bet Type Model)

Preference Potential (Bet Type Model) 12

Customer and Marketing Division

We will continue to invest in the big data domain to further improve CRM Textual mining Campaign effectiveness modeling Integration into CRM system



Integrate customer potential scores into CRM system to improve day-to-day experience



Predict how to optimize response rate of a campaign



Utilize campaign resources and automate some marketing decisions potentially



Mine customer voices from various touch points (e.g., Retail, CS hotline, social media etc.) via sentimental analysis modeling



Append insights data to existing customer profile or customer intelligence (e.g., preference for gifts, other hobbies/ lifestyles)

13

Customer and Marketing Division

Principles for HKJC’s loyalty design and management 1. Use of customer data (big data modelling) • To better serve the customer needs 2. Properly segment across tiers • To create a flexible structure so we can segment based on loyalty factors Cater to customers’ desire for choices • To create a gift redemption platform offering a broad set of rewards • Meanwhile, we know our customer more through their choices.

14

Customer and Marketing Division

We created a 4-tier flexible structure to segment based on customers’ spending and interest • Similar to all existing loyalty programs, easy to understand

Betting = spending

Racing = interest



Frequency of using wagering account



Frequency of visit to racecourse



Sum of betting using wagering account



Frequency of purchase at gift shop



The length of time as a betting account customer

(Upcoming factors to be rewarded) •

Participation of Marketing game



Shared or Liked a Facebook post

15

Customer and Marketing Division

The point based loyalty system also assist customers to set out upgrade goal For leisure: - Racing familiarization program For racing fans: - Racecourse invitation For lifestyle customer: - Happy Wednesday event

For HKJC Priority customer: - Priority access to betting channel - Exclusive content - Exclusive event - Reward

Black

(For future) New tier

Gold Silver 120,000 points

Red Mass customer

30,000 points 10,000 points 6,000 points

16

Customer and Marketing Division

Principles for HKJC’s loyalty design and management 1. Use of customer data (big data modelling) • To better serve the customer needs 2. Properly segment across tiers • To create a flexible structure so we can segment based on loyalty factors 3. Cater to customers’ desire for choices • To create a gift redemption platform offering a broad set of rewards • To know our customers further from their choice of rewards.

17

Customer and Marketing Division

We provide flexibility in customers’ choices of reward

6

12

22

42

PRIORITY Counter Priority Counter at OCBBs & Racecourse

PRIORITY Access Telebet Operator Services Priority Customer Care

PRIORITY Racecourse Privileges Priority Venues Booking Access to Priority Card VIP Venues

PRIORITY Offers Priority Birthday Treats Priority Festival Gifts

Priority Reservation Services for Overseas Races 18

Customer and Marketing Division

Tailored racing experience is made for racing fans, while exclusive betting services for betting customers. Racing Fans prefer: • Racing event with Jockey / Trainer • Oversea tour to witness International races • Racecourse invitation • Gift with racing elements

Betting Customers prefer: • Priority betting services • Exclusive racing content • Free racing newspaper • Gift with high value

Annual Champion Awards

19

Customer and Marketing Division

The cardholder base is now 2.4 times the size in 2011

No. of P-card customers

S1112

S1213

S1314

S1415

S1516

The customer base is grown by 2.4 times from 2011 to 2016.

S1617

S1718 est

20

Customer and Marketing Division

There has been a continual growth in terms of Racing turnover (even under the current economy downturn) Total racing turnover (in HK$ billion) 120

100

105

107

2013/14

2014/15

2015/16

94

80 64 60

104

67

68

2007/08

2008/09

82

84

2010/11

2011/12

72

59

40

20

0 2005/06

2006/07

2009/10

2012/13

Economy recession 21

Customer and Marketing Division

The future development of HKJC’s Loyalty program Mobility!

22

Customer and Marketing Division

The world is going mobile, loyalty has to go mobile • We believe the loyalty card is on phone, customers will engage deeper. • Customers expect rewards to be delivered more real time so that they can use it more frequently. • We can maintain a closer connection with customers (eg. survey, voting for best Jockeys/Horses). • Mobile also enables us to open up the platform for future expansion, (e.g expose to social media)

23

Customer and Marketing Division

HKJC’s loyalty management process is continual and aiming at creating long term relationship

Use of customer data

Customer Relationship Cater to customer’s desire for choices

Segment across tiers

24

Customer and Marketing Division

Thank you

25