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

Latest Videos

More Videos

I found decent information in your article. I am impressed with how nicely you described this subject, It is a gainful article for us. Th...

Daniel Hughes

What 1800 Flowers is doing to create a consistent customer communications experience

Read more

Extremely informative. One should definitely go through the blog in order to know different aspects of the Retail Business and retail Tec...

Sheetal Kamble

SAP retail chief: Why more retailers need to harness data differently

Read more

It's actually a nice and helpful piece of info. I am satisfied that you shared this helpful information with us. Please stay us informed ...

FIO Homes

How a brand facelift and content strategy turned real estate software, Rockend, around

Read more

I find this very strange. The Coles store i shop in still has Flouro lights? T though this would have been the 1st thing they would have ...

Brad

Coles launches new sustainability initiative

Read more

Well, the conversion can be increased by just using marketing, but in general if you are considering an example with Magento, then it is ...

Bob

How Remedy is using digital marketing and commerce to drive conversion

Read more

Blog Posts

Why conflict can be good for your brand

Conflict is essentially a clash. When between two people, it’s just about always a clash of views or opinions. And when it comes to this type of conflict, more than the misaligned views themselves, what we typically hate the most is our physiological response.

Kathy Benson

Chief client officer, Ipsos

Brand storytelling lessons from Singapore’s iconic Fullerton hotel

In early 2020, I had the pleasure of staying at the newly opened Fullerton Hotel in Sydney. It was on this trip I first became aware of the Fullerton’s commitment to brand storytelling.

Gabrielle Dolan

Business storytelling leader

You’re doing it wrong: Emotion doesn’t mean emotional

If you’ve been around advertising long enough, you’ve probably seen (or written) a slide which says: “They won’t remember what you say, they’ll remember how you made them feel.” But it’s wrong. Our understanding of how emotion is used in advertising has been ill informed and poorly applied.

Zac Martin

Senior planner, Ogilvy Melbourne

Sign in