A new segmentation framework to inform product development, and brand communication.
Segmentation that delivers real results.
The challenge
TUI Group is the world’s number one tourism business, and UK’s leading travel brand. Their main operational segmentation was not as effective as they would have liked, with a weak link to the customer database and lack of product differentiation across segments. The STRAT7 Bonamy Finch team were brought in to develop a more actionable segmentation which would serve as the platform for brand growth.
The solution
We developed a matrix framework which reflected both consumers’ ongoing relationship with the travel category, and their needs that change from one holiday to the next.
This model enabled TUI to understand both travellers and trips, and isolate lucrative intersections between the two (in terms of value and volume). This proved an invaluable source of reference for proposition development.
The result
Our analysis produced a compelling range of traveller segments and several trip themes (built up from granular trip types). Workshops were used to understand both dimensions in depth and pinpoint priority areas for development. Algorithms were developed to attribute TUI database customers to segments. TUI is now considering extending the new segmentation framework to the Nordic countries.
The feedback from very senior stakeholders has been overwhelmingly positive and there is generally a level of excitement around the potential of segmentation in the business.
Kate Sargent
GM Customer Insight & Analytics
