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!

Error: Please check your email address.
Show Comments

Blog Posts

When growth stalls: How to boost growth in large organisations

The push to start new businesses continues. In Q1 2017, the number of seed and angel deals increased by 1.4 per cent compared to Q1 2016.

Con Frantzeskos

CEO, Penso

Why we need diversity in marketing

​When we read articles about the need for increased diversity in marketing land, it is often through the lens of gender.

Jodie Sangster

CEO, ADMA

How to leverage the Internet of Things to understand consumer intent

'Intent' is the single largest performance marketing variable. It shapes our search queries, dictates our purchase paths and mediates meaningful interactions with brands regardless of channel, media or content type.

Oliver Smith

Business development, Performics Australia

Interesting insight, well explained and the examples are just apt.Thanks for sharing!

FreshMindIdeas

The politics of branding - Brand science - CMO Australia

Read more

When the world that we live in floods with gigabytes of content every day, we have to learn to be selective about it. Such educational we...

Paulina Cameron

ADMA launches education program to tackle viewability, ad fraud and brand safety

Read more

Hi, i am an Aistralian ALK patient, been on xalkori dec 13 to oct 15 and achieved remission of disease, since been on Ceritinib until no...

gary packer

Pfizer Australia adopts AI-powered digital analyst tool for sales and marketing decision making

Read more

Hi James, shouldn't marketers also be focusing on collecting and utilizing up to date first-party profiling data on customers so that mes...

Tom

3 ways customer data can increase online sales conversion

Read more

Wouldn't reconnecting with younger consumers be in direct contravention of the code on alcohol advertising?

Tim Palmer

Vodka Cruiser reconnects with younger consumers via category-first Facebook Live campaign

Read more

Latest Podcast

Getting Intimate with CX Ep 5: Tammy Marshall, founder, The B Hive

How much of customer experience is having the foresight to know what those individuals might like, versus asking them? In Episode 5 of this new podcast series, BrandHook MD, Pip Stocks, talks with Tammy Marshall about the importance of asking your customers questions, how consistency plays a role in engagement, but how the unexpected adds extra value.

More podcasts

Sign in