Business challenge

BalticMiles needed exceed member expectations by creating an innovative campaign and increase BalticMiles card usage

Transformation

BalticMiles created a campaign that gives each program member a unique target of how many points he or she has to earn within a set time period, based on the member’s previous three-month performance.

Results

Up to 48%

open rate

Up to 22%

entry rate

5% most active users

multiplied their points 3.5 times

Business challenge story

The Challenge

BalticMiles loves to give its clients more than they expect. Its clients see that and are more than willing to return the favor. Because of this, BalticMiles realized that it was well-equipped to become the first travel loyalty program to use its clients to generate ideas and become key developers of promotional campaigns.

“It’s a great beginning for future BalticMiles crowdsourcing successes.”

—Janis Zeps, Digital Marketing Manager, BalticMiles

As a first step in creating this program, BalticMiles employed social media to gather clients’ viewpoints. The campaign, which was called BalticMiles Brainstorm, allowed BalticMiles clients to contribute their ideas via Facebook. Each idea was instantly shared with the world, with the best concepts having the greatest chance to become the next BalticMiles campaign—and win 100,000 points for its contributor.

The ideas were wonderful in their diversity, and while there were many that stood out, BalticMiles decided there was one submission that it had to bring to life—a mission for existing users, rich with game elements and integrated with social media. When fulfilled, the mission would reward the user and lead to further objectives. The campaign was appropriately named “We Love to Give You More.”

“In this campaign, BalticMiles out competed against not only the industry, but most importantly, ourselves, tallying impressive open and entry rates. Our results show open rates up to 48 percent and a 22 percent entry rate.”

—Janis Zeps, Digital Marketing Manager, BalticMiles

Transformation story

The Solution

A primary goal of the “We Love to Give You More” campaign was to modernize the traditional membership-tier-level systems used in frequent flyer programs—for example, you fly a certain amount of times each year, you reach a certain status, and next year you have to requalify. BalticMiles’ new campaign aimed to provide a more dynamic, faster way for members to earn acknowledgements. The rationale was that since every person is different, and each day consumers are demanding a more personal approach, loyalty programs should be customized for each individual.

With that in mind, BalticMiles created a campaign that gives each program member a unique target of how many points he or she has to earn within a set time period, with the target being set based on the member’s previous three-month performance. When the target is met, the member is rewarded a certain amount of bonus points that depend on each individual target. For example, if you earned 1,000 BalticMiles points from August to October, your target would be to earn 3,500 points during the new campaign. If you reached this threshold, BalticMiles would give you an additional 1,750 bonus points as a reward. Points could then be exchanged for a variety of rewards, from free flights to digital downloads.

To execute the campaign, BalticMiles connected IBM Marketing Cloud with a custom-built Web platform. Each program member who was subscribed to BalticMiles’ email communications received a newsletter with a unique target and reward. By clicking on the link in the newsletter, members are automatically logged into the custom-built platform on the website, which uses IBM Marketing Cloud functionality to customize the experience and instantly serve up a personalized video that plays in one of five supported languages. BalticMiles tracked eight behavioral touch points in the customer flow (opens newsletter, clicks link, watches video, makes a transaction with card, etc.) and sent out six subsequent follow-up newsletters over the campaign period.

To create a truly personalized and motivating mission for all BalticMiles users, it divided participants into segments that took each person’s activity and spending levels into account. It then designed individual tasks for each segment. Upon completion of a task, the results are synced with the database and participants are given an option to share on Facebook and attract new clients to join BalticMiles.

Since BalticMiles’ revenue comes from the points its members earn with BalticMiles, increasing members’ activities with the card was this campaign’s main objective.

Results story

The Results

At launch, the personalized campaign invitation video notched a record newsletter open rate, with more than 75,000 viewing the video—25 percent of all newsletter recipients. In addition, almost 25,000 users clicked in the email and visited the campaign website. “In this campaign, BalticMiles has competed against not only the industry, but most importantly, ourselves, tallying impressive open and entry rates,” says Jānis Zeps, Digital Marketing Manager, BalticMiles. Our results show open rates up to 48 percent and a 22 percent entry rate. It’s a great beginning for future BalticMiles crowdsourcing successes.

Three weeks after the initial mailing, BalticMiles segmented the users even further, sending a message with a different subject line and email body to those who didn’t open and click the previous email. That message tallied a 53 percent open rate and a 16 percent click rate (for a group of 36,000 people).

Five percent of the most active database segment multiplied their already high number of points earned (within the regular three-month period) by 3.5 times as a result of the campaign. Even one out of five VIP members actively engaged the campaign, an impressive feat given the high-level businesspeople and politicians that constitute much of this group.

IBM Marketing Cloud, part of the IBM Marketing Solutions portfolio, powers the delivery of exceptional experiences for customers across the buyer journey by leveraging customer data and behaviors, providing analytical insights and automating relevant cross-channel interactions. The cloud-based digital marketing platform provides email marketing, lead management and mobile engagement functionality to inform and drive personalized interactions in real time.

To find out more, please contact us at 1-866-745-8767 or +44 20 7202 5930 and visit ibmmarketingcloud.com/contact.

About BalticMiles

BalticMiles is a leading multipartner loyalty program operating in the Baltic States and also in markets of Finland and Russia. It’s well known in the loyalty industry for its ambitious spirit and has already received several global acknowledgements, including two 2012 Freddie awards, which are considered to be loyalty-industry Oscars.

BalticMiles members can collect points for flights, hotel accommodations, car rentals, restaurants, beauty and spa treatments, health care, telecommunications and financial services, as well as by shopping at more than 450 international online merchants through the online affiliate program. Points collected can be exchanged for flight tickets, leisure and adventure activities, music downloads, and products from the BalticMiles online shop.