IAB HK Digital Awards 2024: Best Use of Data & Insights - BRONZE (Data-driven audience segmentation campaign for Cathay Shop)

Campaign: Data-driven audience segmentation campaign for Cathay Shop

Brand: Cathay

Agency: Digitas Hong Kong

Challenges & Objectives

Cathay Shop is perceived only as a miles redemption platform, holding just 3.5% market share in Hong Kong’s competitive e-commerce space. It aims to rebrand it as a premium lifestyle destination, targeting affluent travelers and lifestyle seekers, driving awareness beyond members to establish it as a curated shopping and experiences hub.

Insight and Strategy

• Rebrand Positioning
  • Shift from miles-focused to premium e-commerce/lifestyle platform (curated products + experiences).
  • Promote dual payment (miles + cash) to diversify revenue.
• Data-Driven Audience Segmentation
  • Use behavioral signals (purchase history, earn/burn patterns) to tailor messaging.
  • Dynamic Creative Optimization (DCO) to nudge miles users toward cash purchases.
  • Prioritize high-value segments (frequent cash buyers) for higher ROI.
• Convert & Grow Membership
  • Target non-members via lookalike modeling + exclusive incentives (first purchase with miles).
  • Leverage Cathay’s ecosystem (flights, partnerships) to expand reach.
• Optimize Media Spend
  • Allocate budget to high-intent users using attribution modeling.
  • Blend first-party + third-party data for precision targeting.

Execution

Customize end-to-end journeys for each audience segment to maximize engagement and lifetime value.

• New Joiners
  • Objective: Drive member registrations
  • Tactics:
    • Feature gift guides as incentives
    • Targeted ads (Google SEM, Display & Video 360)
• Cathay Members Purchase by miles
  • Objective: Capture Intention to first time purchase by miles
  • Tactics:
    • Display & Video 360
    • Jivox DCO
    • Demand Gen
• Cathay Members Purchase by Cash
  • Objective: Transform their purchase behavior from miles to cash
  • Tactics:
    • Google SEM 
    • Google Shopping Ads
    • Jivox DCO
• High-Value Users
  • Objective: Capture Maximum Profit Margin by Loyalty
  • Tactics:
    • Google SEM 
    • Google Shopping Ads

Innovation

1. Hyper-Personalized Targeting

• Integrated first-party data with Google Demand Gen + Google AI to:
  • Maximize ad exposure beyond shopping ads
  • Deliver personalized content (assets, Product Studio) based on customer preferences

2. AI-Driven Optimization

• Value-based bidding: Google AI/ML optimized bids for each purchase stage
• Accelerated customer journey transformation

3. Sustainable Innovation

• Leveraged customer insights to:
  • Refine A/B testing strategies
  • Drive long-term performance improvements

Results

• Acquisition ROI: +123.96%
• Total Cash Revenue: +122.86%
• Total Cash Ratio in all Transaction: +81.82%