Predictive Analytics Enables a Globally Leading Hotel Chain to Arrest Attrition of Timeshare Members

The Client

One of the global leaders in the vacation timeshare exchange industry.

Business Challenge

For hotels, member retention, especially retention of its timeshare members, is a key business imperative. Our client was experiencing a high rate of attrition among its timeshare members evidenced by either nonrenewal or cancellation of membership. The client was looking for ways to arrest the attrition of its timeshare members.

The WNS Solution

WNS recommended designing targeted marketing campaigns and promotional offers to increase member loyalty and retention.

For this, the client would need a better understanding of its member behavior. WNS enabled this with a predictive analytics-led approach, which comprised:

• Member profiling:
  Creating detailed member profiles based on demographics, duration of membership and transactional behavior

• Statistical analysis:
  Generating attrition probability scores for each member profile

• Customer Segmentation:
  Segmenting members into high, medium and low attrition groups based on the attrition probability scores

• Regression techniques:
  Identifying the drivers of attrition by deploying a logistic regression model

• Predicting member behavior:
  Leveraging these drivers of attrition to predict future member behavior

Insights Generated

WNS' analytics-led approach revealed that 70 percent of those attriting belonged to the top three deciles of the customer base.

This insight enabled the client to design better-targeted marketing campaigns and special promotional offers to arrest the attrition of these timeshare members.