Case Study: Globus and Cosmos
“Cohorts has helped us get closer to our customers, providing us with the analytical insights that guide how we think about our business.”
- Steve Born, director of marketing, Globus and Cosmos
Even well-known brands like Globus and Cosmos felt the effects of a difficult hospitality climate after Sept. 11, 2001. Globus and Cosmos needed help retaining and improving market share. The two brands turned to Cohorts, and its household-based consumer segmentation tool, for assistance.
The Situation
The tourism industry hit hard times after the tragic events of Sept. 11, 2001. Even well-known brands like Globus and Cosmos felt the effects of this difficult hospitality climate.
Globus (whose target market is individuals seeking escorted group travel to domestic and foreign destinations) and Cosmos (which offers travelers a blend of escorted group travel and independent free time) needed help retaining existing customers and improving market share. The two brands turned to Cohorts, and its household-based consumer segmentation tool, for assistance.
The Objectives
- Better understand customers of existing product lines, as well as those who don’t readily buy
- Identify largest customer segments and those delivering the most value
- Gain deep enough understanding (media behaviors, advertising preferences, etc.) of key consumer groups to refine marketing efforts for maximum reach and appeal within targets
- Improve response rates to direct mail and direct-response advertising
- Improve market share and customer retention success
The Solution
Cohorts conducted extensive analyses of Globus’ and Cosmos’ customer and prospect databases. The analyses incorporated various components:
- Each brand’s internal segmentation scheme
- Past client itineraries
- Prospect name sources—from direct mail to print direct response
- Partner lists
- Loyalty program members
Cohorts provided a deep understanding of the most important customer segments—those that are the largest and those delivering the most value. Cohorts’ market research also reveals key insights about the consumer segments driving business, including behaviors such as foreign and domestic travel, online interactivity, magazine readership and retail shopping patterns. These insights, combined with the consumer database analyses, present a holistic view of the groups of customers most important to Globus and Cosmos.
The Results
Since the two companies began using Cohorts, Globus’ and Cosmos’ marketing campaigns have become more targeted—and more effective. The companies have tailored images and copy to appeal to key Cohorts segments in both their direct mail creative and magazine direct-response advertising. In fact, one recent Cohorts-encoded direct mail prospect list used to support a Globus direct mail campaign experienced a 165 percent performance lift.
Cohorts also helped Globus and Cosmos gain the information they needed to better understand customers of existing product lines, as well as those who don’t readily buy. As a result, the companies created a new tour brand called Monograms—offering a product more focused on independent travelers. As part of creating the new product, Cohorts helped Globus and Cosmos select destinations and optional activities that would resonate with independent travelers. Cohorts segmentation also helped promote Monograms to the best prospects.