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Product Management Strategy Question: Improving Agoda's loyalty program for increased customer retention and booking frequency
Image of author vinay

Vinay

Updated Dec 27, 2024

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Asked at Agoda

15 mins

What improvements could Agoda make to its loyalty program to increase customer retention and booking frequency?

Product Improvement Medium Member-only
User Segmentation Problem-Solving Strategic Thinking Travel Hospitality E-commerce
Product Strategy Customer Retention Travel Tech User Segmentation Loyalty Programs

Introduction

To improve Agoda's loyalty program for increased customer retention and booking frequency, we need to analyze the current program, identify pain points, and develop targeted solutions. I'll approach this by examining user segments, analyzing pain points, generating solutions, and proposing metrics for measurement.

Framework overview

I'll be using a structured approach to tackle this problem, focusing on user segmentation, pain point analysis, solution generation, and measurement. This will ensure we address the core issues and create impactful improvements.

Step 1

Clarifying Questions (5 mins)

  • Looking at Agoda's position in the travel industry, I'm thinking about the competitive landscape. Could you provide insights into how Agoda's loyalty program currently compares to major competitors like Booking.com or Expedia?

Why it matters: Helps identify unique selling points and areas for differentiation Expected answer: Agoda's program is competitive but lacks some features offered by larger competitors Impact on approach: Would focus on innovative features to leapfrog competition

  • Considering the global nature of travel, I'm curious about the geographical distribution of Agoda's user base. Can you share information on which regions or countries are key markets for Agoda, and how the loyalty program performance varies across these markets?

Why it matters: Allows for tailored solutions that address regional preferences and behaviors Expected answer: Strong presence in Asia-Pacific, growing in Europe and Americas Impact on approach: Would prioritize solutions that cater to diverse cultural expectations

  • Given the evolving travel landscape post-pandemic, I'm interested in understanding how user behavior has changed. Have you noticed any significant shifts in booking patterns or preferences among loyalty program members in the past 12-18 months?

Why it matters: Ensures solutions are aligned with current user needs and expectations Expected answer: Increased demand for flexibility, focus on domestic travel, and heightened interest in health and safety measures Impact on approach: Would incorporate flexibility and safety-related features into loyalty program improvements

  • Thinking about the technical infrastructure, I'm wondering about the integration capabilities of the current loyalty program. How easily can we implement changes or add new features to the existing system?

Why it matters: Determines the scope and feasibility of potential solutions Expected answer: Moderately flexible system with some limitations on rapid changes Impact on approach: Would balance quick wins with longer-term structural improvements

Tip

Before we dive into user segmentation, let's take a minute to organize our thoughts based on these insights.

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