Divide and conquer: a strategy for a student travel organization

The Situation
  • The key objectives in the client’s mind was to develop a customer segmentation that allows:

    – The Company to do a better job of creating territories for its sales representatives.

    – Sales representatives to prioritize their calling efforts against the highest potential schools.

    – The Company to determine if it has holes in its program offering based on the locations and preferences of its key customers.

The Assignment
  • To build a robust segmentation scheme by leveraging client’s extensive database and supplementing it with external data, Stax:

    – Confirm project objectives with management team.

    – Perform audit of current data at client’s side.

    – Conduct interviews with sales team.

    – Compile and overlay available external data and internal data that has not yet been incorporated.

    – Analyze data and develop segmentation model; segment and prioritize the database.

  • Detailed data and description on the tours organized in the last 5 years.

  • A database on the schools in U.S.

  • Demographic data, including the distances to each destination and other basic economic variables.

The Benefits
  • Found significant opportunities to increase the marketing focus on more profitable schools with a more focused marketing approach.

The Finding
  • Stax identified several ways to increase the efficacy of the client’s marketing by giving them a database of the schools they should target, enabling them to build on a focused marketing strategy, for example:

    – Giving the client a school database of 18.6K schools, which they should focus on.

    – Where the marketing should upgrade their efforts and where they should downgrade.

    – Changes needed to the sales force structure to best equip the client to target schools.