Northern Lights Air: Loyalty Program analysis
- bokakwu
- Aug 22, 2024
- 2 min read
This is an analysis of Northern Lights Air Loyalty Program (NLA), the data set was gotten from Maven Playground and the analysis was carried out using Power BI. The concept of the analysis is to review the promotion ran by NLA in order to improve program enrollment.
Data Overview:
The dataset consists of three tables. After loading and cleaning the data, I used some DAX commands to transform the date column and ensure that the date is uniform across all tables. I also used DAX was used to convert the month numbers into their corresponding month names for better readability.
Key Findings:
Customer Enrolment and Flight Activity:
NLA has a total of 16.7k customers subscribed to their loyalty program.
Of these, approximately 3,010 customers enrolled in the 2018 promotion, marking the highest yearly enrollment since 2012.
The airline has operated around 509k flights, covering approximately 763 million miles between 2017 and 2018.
The average Customer Lifetime Value (CLV) is CAD 8k.
Out of the 797 million points accumulated by customers, 12.3 million points have been redeemed, costing the airline CAD 2.2 million.
Loyalty Card Usage:
Customers with the Star Loyalty Card have taken the most flights, totaling about 231k flights from 2012 to 2018.
Ontario is the province with the highest number of flights taken, with approximately 164k flights.
Enrolment Trends:
The analysis of yearly enrolment shows that 2018 had the highest number of enrolments with about 3,010 enrolments.
There was a 28% increase in total yearly flights from 2017 to 2018.
Customer Demographics:
Educational background analysis reveals that customers with a Bachelor’s degree make up the majority of enrolments, representing about 62% of the total.
Customers with a Master’s degree are the least enrolled, accounting for only 3% of the total enrolment.
The Star Loyalty Card is the most popular among all education levels.
Further analysis indicates that married customers take the highest number of flights.
Flight Cancellations:
Ontario, while having the highest number of flights booked, also has the highest number of cancellations.
Between 2017 and 2018, about 1,844 flights were cancelled, representing roughly 0.4% of total flights during this period.
Flight cancellations have been declining since 2015, with a significant 130% decline observed in 2018.
Dashboard:
Program Analysis:
Customer Analysis:
Recommendations:
Leverage the success of the 2018 Promotion to boost enrollment across all customer demographics
With 62% of enrollment coming from customers with a Bachelor’s degree, focused marketing campaigns tailored to this demographic could further boost enrollment and engagement.
The Star Loyalty Card is the most popular among customers. Introducing additional benefits or exclusive offers for Star Loyalty members could increase loyalty and customer satisfaction.
Given Ontario's high rate of flight cancellations, it's crucial to investigate the causes and implement solutions to reduce cancellations. This could include operational improvements or customer communication strategies.
Since customers with a Master’s degree represent only 3% of enrollment, creating specialized offers or programs that appeal to this group could increase their enrollment.
Regularly analyze customer behavior to identify trends and areas for improvement. This can help in designing more personalized and effective loyalty programs
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