‘’Using external data mining businesses will increase long-term customer engagement for tour operators’’

Data processing is the heartbeat of your business. Therefore it is necessary to handle your data with care, nowadays many tour operators use data mining techniques. Data mining is the use of inductive methods to assist a business in finding useful relationships between (selected) data. Narrowly defined, data mining is discovering interesting, non-obvious patterns hidden in a database. Data mining is necessary to promote innovation and increase efficiency of operations for tour operators. Discovering such patterns in your customer database have a high potential to contribute to future business growth. (Peelen, E., & Beltman, R.)

Yet, processing these massive amounts of data can be quite a challenge for tour operators nowadays. Especially for the tour operating businesses whom receive data in many forms, shapes and on different levels. Using an external business to process data will create many advantages for tour operating businesses. It is time saving and provides an easier understanding of your customer behaviour. This leads to precisely knowing where you can reach your customers and will increase long-term customer engagement.

Time saving

The increase in quantity of data and the decrease in the available analysis time have led to a growing need for efficient data processing. The use of an external business is incredibly time saving. Using an external business to process customer data will contribute to saving on labour time and labour related costs. Since your own employees will not need to spend any more time on researching, scanning and processing data. These cost savings may even weigh up to the costs that are made hiring an external data mining business.

Understanding of customer behaviour

Using external data mining businesses will provide your tour operator with a clearer overview of your consumers’ behavior. For example TUI Travel is pulling multiple data sources into its big data universe to better understand behavior and performance. “TUI views data as the heartbeat of digital operations”. To do this it has implemented two tools: Hadoop and Platfora. Platfora is a big data analytics software company, used as a tool to visualise and distribute the data. Platfora functions on top of Hadoop; that can scale exponentially and handle all forms of big data: customer interaction, transaction and machine data. (EyeforTravel, 2014) Thereby TUI Travel is able to track their customer data and have a clear insight in their consumers’ behavior. When they would do all this data mining themselves it would be unclear and not as easy to perfectly understand their customers. By monitoring each touch point with your customer via an external business, it enables tour operators to do more precise positioning. The process of using the right data and apply it via the right channel is made much more efficient via an external data mining business.

Long term customer engagement

Major life events such as marriage, a new house or job are occasions that can trigger interest in high-value products (such as a honeymoon). If a tour operator can identify these critical moments, it can better match customers with the most appropriate promotions—and, even more significant, establish long-term relationships (Brook, J. & Souza, R. 2013). The use of external businesses can provide a clearer insight in appropriate promotions to your customers at the right moment in time. The use of external businesses makes it easier to enhance a long-term relationship with a high valued customer, because it will simply be easier to predict your customers’ next touch point.

The use of an external data mining business can substantially contribute to your businesses competitive advantage. Instead of spilling man hours, requiring substantially more hours to process the large amount of data, use an external business experienced in processing large amounts of data. This will save your company significant labor costs and will provide more detailed, up-to-date, usable data. It will enable a tour operators to monitor the touch points and on a long term enhance customer engagement, because you simply know where to find them, what their interests are and how to communicate with them.

Sources

(2012) Big data needn’t be a big headache. How to tackle mind-blowing amounts of information, Strategic Direction, Vol. 28 Iss: 8, 22 – 24

Brook, J. & Souza, R. September 26, 2013. Big Data’s Five Routes to Value. Accessed on September 30, 2016, via: [ <https://www.bcgperspectives.com/content/articles/information_technology_strategy_digital_economy_opportunity_unlocked_big_data_five_routes_value/> ]

du Preez, D. (2012), “Big data: hands on or hands off?”, Computing, February 23, pp. 23‐4, ISSN: 0307‐8965

EyeforTravel, April 15, 2014. Data is heartbeat of digital operations, says Tui Travel. Accessed September 30, 2016, via: [ <http://www.eyefortravel.com/distribution-strategies/data-heartbeat-digital-operations-says-tui-travel> ]

Gunaseelan, S. Linkedin. May 5, 2014. Challenges of a tour operator. Accessed September 28, 2016, via: [ < https://www.linkedin.com/pulse/20140505172441-237608656-challenges-of-a-tour-operator> ]

Peelen, E., & Beltman, R. Part IV Marketing. In E. Peelen, & R. Beltman, Customer Relationship Management (Vol. 2, pp. 216-225). United Kingdom: Pearson Education Limited.

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britt178

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3 thoughts on “‘’Using external data mining businesses will increase long-term customer engagement for tour operators’’”

  1. This is a difficult subject, which you explain well. I am not completely sure though that someone who does not know that much on datamining completely understands what you can do with the results. Maybe you can shed some more light on that.

    There are two elements you might want to take another look at. Quite early in your blog you state”: “Using an external business to process data will definitely create a competitive advantage for larger tour operating businesses.”, after you told us that most large tour operators already do this. So where is the competitive advantage then? The second point is where you write: “They have seen huge time savings by using HubSpot’s Reporting & Analytics.” The source you base yourself on, seems a commercial source.

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    1. First of all, thank you for reading my blog and giving such specific feedback. I have updated it today and hope things became more clear regarding datamining.

      Furthermore I have also adjusted the focus of my blog from large scale tour operators to tour operators in general. Leaving out the example from HubSpot since they are more a in-house marketing related company than a real data mining business.

      Thank you for the critical view.

      Like

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