Qantas details Red Planet customer targeting campaigns at investor day

Airline highlights work undertaken with Dymocks as well as Qantas Loyalty on more targeted digital marketing programs, and says it expects Red Planet to turn a profit this year

Qantas’ Red Planet customer and marketing analytics business is expected to turn a profit in its first year and has already helped Australian book retailer, Dymocks, improve its marketing campaign efforts, the airline has revealed.

Detailed during Qantas’ Investor Day in Sydney today, the airline said its Red Planet integrated media, analytics and research services offering was using proprietary data from the 27-year history of the Frequent Flyer Loyalty program to provide both Qantas and external customers with better targeting capabilities.

As an example of its effectiveness, the airline outlined recent work undertaken by Red Planet with Dymocks on a high-value, targeted digital marketing activity, which saw email open rates as high as 50 per cent on individual targeted campaign. This contributed to a 30 per cent lift in sales in one campaign result and overall year-on-year sales growth. The retailer also saw a 418 per cent improvement in clickthrough rates for individualised EDMs over non-targeted ones.

Work undertaken on a Qantas early bird marketing campaign to increase flight bookings using Red Planet’s customer targeting capabilities, meanwhile, saw a 28 per cent total baseline sales uplift, a 70 per cent increase in average spend per booking, generated per click, and a 51 per cent improvement on cost per acquisition per booking. The social media advertising that Red Planet deployed was also four times more effective than that of typically used social media targeting methods.

In all, individual campaign results showed 19.3 times the improvement in terms of ROI, Qantas stated.

Red Planet is a B2B marketing services business launched by Qantas last year off the back of its customer loyalty program. It is focused on three areas: Media planning, data and analytics, and research.

The company is marrying offline and online behavioural and consumer attributes data across media buying in a bid to better target advertising and marketing campaigns. During her investor day presentation, Qantas Loyalty CEO, Lesley Grant, said the business will also launch a new research panel next month featuring 100,000 members to support its customer insights efforts.

According to its half-year financial results to December 31, 2014, the Red Planet business had secured 15 bluechip clients during initial business development, across several different industries.

As an example to investors of how it is delivering more targeted advertising, Qantas pointed to two types of consumers. Consumer A was simply targeted based on upcoming travel in Australia, and served up a general hotel bookings ad for all locations. In contrast, Consumer B was recognised as being from the East Coast, and had either searched for flights to Western Australia, or was recognised in the top three deciles of the airline’s WA travel prediction model. In this instance, an ad about WA was served.

As a further boost to its data analytics expertise, Qantas acquired a 51 per cent controlling stake in analytics and actuarial consultancy, Taylor Fry, in February. At the time, Grant, said the acquisition was about growing its broader loyalty and marketing services offering through big data and data-driven customer insights capabilities. Taylor Fry will continue to run as a separate business and retain its name, branding and premises.

The Qantas Loyalty business report a 10 per cent increase in EBIT to $160 million the half-year to 31 December, 2014 as well as an increase of 400,000 members over the half, bringing its total member base to 10.5 million.

Read more: Qantas: External partnerships crucial to customer loyalty growth

New businesses, including Red Planet, Qantas Cash, Qantas Gold, Qantas epiQure and Accumulate, contributed 6 per cent of total revenue to the loyalty business and a gross profit of $17m over the same period.

Follow CMO on Twitter: @CMOAustralia, take part in the CMO Australia conversation on LinkedIn: CMO Australia, join us on Facebook: https://www.facebook.com/CMOAustralia, or check us out on Google+: google.com/+CmoAu

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Blog Posts

3 marketing mistakes to overcome when courting prospective customers

Marketing that urges respondents to ‘buy now’ is a little like asking someone to marry you on your first date. At any time, only 3 per cent of the market is looking for what you’re selling, so the chances of your date randomly being ‘The One’ is pretty slim.

Sabri Suby

Founder, King Kong

Why are we dubious about deep learning?

The prospect of deep learning gives those of us in the industry something to get really excited about, and something to be nervous about, at the same time.

Katja Forbes

Founder and chief, sfyte

Why you can’t afford to fail at CX in 2019

In 1976 Apple launched. The business would go on to change the game, setting the bar for customer experience (CX). Seamless customer experience and intuitive designs gave customers exactly what they wanted, making other service experiences pale in comparison.

Damian Kernahan

Founder and CEO, Proto Partners

Where does the claim that 2 million Australians have tested come from ? Anecdotal information suggests that this is way off the mark.

David Andersen

DNA-based marketing: The next big thing?

Read more

Thank you for the info , being part of a digital marketing agency in kerala , this proved handy and get to know with upcoming trends. htt...

Dotz Web Technologies

Predictions: 9 digital marketing trends for 2019

Read more

So who then is correct? The Research or The skilled Digital people.

Anene

Report reveals Australia faces digital skills shortage

Read more

The blogs are really appreciable and one can trust the knowledge and information provided in the writing.The article you do produce on a ...

Prince Arora

5 brand strategy lessons from Gelato Messina

Read more

Thanks for sharing! Meet the Softcrylic team at Adobe Summit 2019. This team works with a broad range of clients helping solve complex bu...

Anderw Hagel

What Richard Branson has to say about experience delivery, leadership and disruption

Read more

Latest Podcast

More podcasts

Sign in