Cornerstone Customer Conference
Driving Savings Via a Scoring Methodology
OneScore 速 presented by:
Tom Ruesink President, Ruesink Consulting Group
Driving Savings via Booking Behavior “Improving traveler booking behavior companywide is an ongoing battle” •
The Culture – We live in a scoring culture. “Gamification” is real and only going to make its way even more into our everyday business lives.
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The Challenge – Providing real scoring, real savings, down to the traveler level.
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The Approach – Keep things straightforward, digestible, and highlight the positive along with the negative.
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The Results – A success story
The Culture: Points and Scores Are Part Of Our Every Day Lives
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FICA Scores: Drives our credit industry
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Weight Watchers: Boils complex food labels down to how many points you can eat in a day
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Fv > T: The amount of Facebook players signed up for the meaningless point game of Farmville is greater than all the Twitter subscribers.
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Fantasy Football: Not just watching football – playing a game within a game.
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Geocaching: A walk in a park becomes a quest to find a result
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Experts Exchange: Technical “geeks” compete for points to answer your computer support questions. They “level up”
The Culture: A fun glimpse into the future???
Gamification: Using game techniques to make activities more engaging and fun • Lots of work done by IBM, Sun, etc in the telephony, call center space around points, levels, virtual avatars for conference calls, etc. Link to Jesse Schell video: Start 3:51 and go through 6:49 http://www.youtube.com/watch? v=nka-_Mhp7f0&feature=related
The Challenge:
Driving Traveler Behavior Beyond Traditional Exception Reports
Exception Reports • Often too big to be useful ●
Affectionately called “doorstops”
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Managers don’t have time to pull electronic
• No context
• Frequent travelers may be “generally compliant” but because they travel so much they have the most missed savings or exception trips.
• Little weighting of behaviors
• Missing advance purchase fares has more cost affect than not booking preferred carriers, etc.
The Challenge:
Creating a “REAL” potential or missed savings number
Have you ever seen this in an account review or in the industry? Reports Showing You Can Save: • • • • • •
$200 from advance purchase $90 from self booking $150 by taking the lowest logical $120 by going to alternate airports $110 by taking connections $130 by using low cost carriers This approach leads to frustration as there is no way you can have a cost takeout of $800 per trip when an Avg Ticket Price may be $500
The Approach in Developing OneScore Move from exceptions to scorecards
• Wanted goals and quantifiable targets • Positive behaviors highlighted, not just negative
Weighted based on impact
• Creating a One Number Score (OneScore) that will weigh the savings impacts of the decisions the traveler makes.
Increase “consultative” role of team
• Gets company talking one common language of goals and initiatives • Ongoing monthly meetings • Opportunities presented & highlighted
The Approach: Decision Points of a Traveler
Traveler Decision Points (Used) WHEN (advance purchase)
- Affects choice of fares available
HOW (self booking)
- Difference in transaction fees - Visual guilt
WHAT (fare was chosen)
- Did they accept the fare that the company wanted them to take – lowest logical?
WHO, WHERE, and WHY are better candidates for ad-hocs than scorecards
Program Overlay Metrics (Not Used) Use of Connections
If connection fare is lowest logical…
Use of Preferred Carriers
- Want the traveler to be taking the lowest fare within a window - Different discussion if preferred isn’t showing up as lowest repeatedly
Low Cost Carriers/Alternate Airports - If it is in policy, should be lowest logical…
The Approach: Assigning a value to those 3 key decision points
Instead of looking at what you could save by each metric, looked at them in combination.
Average Gap $318.66 (example)
The Approach: Assigning a value to those 3 key decision points
Weighting the gap ($318.66) • What happens when I advance purchase but not the other two in the same market? • What happens when I accept lowest logical but not advance purchase? • Is it fair to have “all or nothing” for 14 day plus – should we give partial credit for 7 days?
End up with numbers to assign each transaction in the upcoming year (these are example numbers): 7 Day worth $165 14 Day worth $80 Self Book worth $30 Lowest Logical = $45
Adding 3 more decision point metrics Add-on metrics • Hotel Eligible: Was there a hotel stay by that traveler within the week of their non-same day trip? Assigned $XX per trip for increased negotiation leverage. • Use of Preferred Hotel: Assigned $XX per night for increased negotiation leverage. • International Advance Purchase: Becoming increasingly important – 21+ Days worth $XXX
OneScore®: How it works Existing Industry Problems: •
Exception reports were often too big to be useful.
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How well an employee travels has never been expressed like a FICA score or rolled into one number.
How OneScore Helps: •
Every traveler, department, division has an easy-to-digest one-number score
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Savings is tracked and behaviors are weighted. Easy to compare YOY savings.
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Allows companies to show positive behaviors and not just negative exceptions.
OneScore速: Overview
OneScore速: Overview
OneScore速: Overview