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serving more than
54 million members
On every road in North America, 54 million members count on AAA for automotive and travel services. To improve their ability to serve members, the association is using predictive analytics in SAP InfiniteInsight to help its 44 motor clubs in the United States and Canada create customized offers for products, services, and information.
American Automobile Association (AAA)
Orlando, Florida, USA
From providing roadside assistance to maps to trip planning and travel reservations, AAA has helped motorists and travelers for more than 100 years. AAA originally sought to improve the conditions of roads originally built for horse-and-buggy traffic. Today, AAA continues to send help when a member’s car breaks down. But it also provides financial services and driver education, is the world’s largest travel publisher, and provides members with a unique array of benefits, including discounted lodging, auto repair, and retail purchases.
The American Automobile Association (AAA) is a federation of affiliated automobile clubs. Each AAA club is an independent, not-for-profit organization, chartered and incorporated in its own state and controlled by its own Board of Directors. In order to be affiliated with AAA, each club agrees to provide certain standard services to their members, as well as members of other AAA clubs. The individual club owns the territory in which it resides, and membership is based on residence.
The AAA National Office, based in Orlando, Florida, manages a variety of strategic activities to support AAA motor clubs in their efforts to serve the automotive, travel, financial, and insurance needs of their members. It also manages the AAA brand, service quality, education, traffic safety, communications, and international affiliations of the association.
Since their founding, AAA has been an advocate for motorists and travelers, continually lobbying for driver and passenger rights, fair laws, and safer vehicles and roads. Through affiliations with motoring clubs around the world, AAA provides benefits to members traveling in 130 countries on six continents. Today, one out of every four U.S. households has a AAA membership. Key initiatives to enhance member services include strategic travel alliances with entertainment and rental car partners as well as major air, tour, and cruise companies, and research and development of in-vehicle assistance and navigation devices.
To drive member satisfaction and increase the use of their products and services, AAA wanted to create personalized offers for their 54 million members from an extensive portfolio of products and services. But to provide the level of customization desired, AAA needed a way to analyze the large volumes of data they receive via multiple channels – including AAA´s 44 motors clubs and other channels such as the internet.
AAA’s national headquarters wanted a cost-effective, user-friendly solution that leverages predictive analytics to provide collective insight to all of their members, but members typically interact with their motor clubs first. Project leaders were intrigued by the potential for SAP InfiniteInsight to help customers take advantage of the entire spectrum of AAA offerings.
Standard reporting features in SAP InfiniteInsight include modeling results, variable contributions, and gain charts. The solution enables AAA analysts to compile and present the results in ways that help marketing teams at the association’s 44 different clubs improve marketing campaign customization and audience targeting.
With the SAP InfiniteInsight solution, AAA supports their motor clubs with a powerful means of analyzing customer data. It only takes two business analysts to manage and scale predictive models for multiple motor clubs. Equipped with readily available customer insight, motor clubs can now provide customized offers that fit individual interests and needs of their members.
AAA's decision to leverage predictive models to improve customer insight and generate effective, targeted communications benefits employees and their members alike. When reaching out to AAA, members can be more confident that they will get offers that meet their individual preferences and needs. For instance, when planning a trip through multiple states or provinces, a AAA club can more easily help customers find the routes, accommodations, and activities that best suit their budgets and interests.
Improving customer experiences with personalized offers has helped reduce customer churn and increase the lifetime value of customers. Thanks to optimized marketing campaigns across channels, several of the motor clubs have also experienced increased response rates from members, resulting in new business opportunities.
- Daniel Mathieux, Member Insights and E-Business, American Automobile Association (AAA)
On their road ahead, the AAA National office aims to boost usage of their marketing services and predictive models to each AAA motor club in North America. To reach the masses of travelers that are communicating with AAA via social networks, the association plans to extend their campaign personalization to those channels too, in order to create a consistent experience for all members.