Database Enhancement and Analysis:
Testing Proves Household-Based Segmentation Delivers ROI
DENVER (June 21, 2004) — Choice Hotels International®, Inc. (NYSE: CHH) and Cohorts® have signed a three-year agreement to use Cohorts consumer segmentation to better target promotions to guests of Choice Hotels’ Comfort Inn®, Comfort Suites®, Quality®, Sleep Inn®, Clarion®, MainStay Suites®, Econo Lodge® and Rodeway Inn® hotel brands.
The agreement follows a proof of concept test of Cohorts segmentation that involved both e-mail and direct-mail marketing efforts. Members of Choice Privileges®, Choice Hotels’ guest rewards program, and other guests at Choice Hotels brands were targeted with promotional offers that differed based on the Cohort segment to which each guest was assigned.
When applied to the Choice Privileges group, Cohorts segmentation resulted in an overall response rate boost of over 40 percent compared to the control group, which was not selected by Cohort. Among guests who were not Choice Privileges members, the overall response rate more than doubled in the Cohorts treated group compared to the control group.
Based on these results, Choice Hotels will expand the use of Cohorts to target both its Choice Privileges members and past guests who have not yet joined the rewards program.
"We plan to synchronize our database marketing strategies and tactics with our seasonal national promotions using Cohorts," said Bill Carlson, vice president of consumer marketing for Choice Hotels. "This ongoing effort will ultimately result in Choice Hotels’ ability to retain and grow the lifetime value of our customers through more effective communications and promotions."
"Cohorts’ proven ability to help drive campaign performance and ROI fits well with Choice Hotels’ need for a marketing database segmentation solution," said Mike Fitzpatrick, vice president of account services for Cohorts. "This expanded relationship between Cohorts and Choice Hotels represents an exceptional boost in Cohorts’ hospitality practice, and provides Choice Hotels with database intelligence that is immediately actionable and meaningful."
Originating at the household level, Cohorts segmentation enables Choice Hotels to enhance name and address customer databases with unique Cohort designations. By appending segment codes to its customer database, the company gains a better understanding of the differences – some subtle, some profound – between Cohort segments, such as Burt & Marilyn (Mature Couples) and Jeffrey & Ellen (Affluent Couples with Kids). Armed with this knowledge, Choice Hotels can create customized, relevant offers that resonate with each distinct audience.
About Choice Hotels International, Inc.
Choice Hotels International (NYSE: CHH) franchises more than 5,000 hotels, inns, all-suite hotels and resorts open and under development in 44 countries under the Comfort Inn, Comfort Suites, Quality, Sleep Inn, Clarion, MainStay Suites, Econo Lodge and Rodeway Inn brands.
Choice Hotels, Choice Privileges, Choice Hotels International, Comfort Inn, Comfort Suites, Quality, Sleep Inn, Clarion, MainStay Suites, Econo Lodge and Rodeway Inn are the proprietary trademarks and service marks of Choice Hotels International, Inc.
Cohorts helps marketers get the right message to the right household, significantly improving the effectiveness and ROI of data-based marketing initiatives and strategies. This integrated household-based segmentation and marketing tool enables marketers to understand the distinct types of customers they serve, precisely identify multi-channel marketing opportunities, create customized communications and marketing programs, and craft actionable market research. Cohorts analyzes and describes consumers in terms of their demographics, lifestyles, attitudes and behaviors, as well as their interactions with marketers – such as what consumers buy, how much they spend and their preferred channels of purchase.
About the Company
Experienced in database marketing applications, market research and database development, the Cohorts staff works with leading customer-focused companies like Cablevision, Cendant, Choice Hotels International, Current, Harrah’s Entertainment, InterContinental Hotels Group, La Quinta Corporation, Madison Square Garden, Proflowers.com, The Venetian Resort-Hotel-Casino and Value Link. The company specializes in a variety of industries, including financial services, hospitality, insurance, retail and telecommunications, and works with key strategic partners, including Equifax, Experian, MRI, Scarborough Research and Simmons Market Research Bureau. Cohorts is a registered trademark of Looking Glass, Inc.
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