MoEngage Case Studies Luxstay Boosts Engagement Rate by 60% Through Segmentation and Personalization
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Luxstay Boosts Engagement Rate by 60% Through Segmentation and Personalization

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Luxstay, an online short-term rental platform based in Vietnam, was facing challenges in its user engagement strategy. The home-sharing market in Vietnam is highly competitive, requiring Luxstay to provide personalized and consistent communication across all channels. However, their existing marketing automation platform had limitations, including a lack of user behavior analysis, connectivity gaps in channels, and no proper continuity in user engagement. These issues were negatively impacting the brand's active usage and conversions. The COVID-19 pandemic further complicated matters, as Luxstay needed to maintain consistent communication with users throughout the ongoing uncertainty. The team wanted to understand user behavior, segment users based on various attributes, and unite all engagement channels. However, their current solution was not able to meet these needs, leading Luxstay to seek a platform that could offer a more unified engagement.
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Luxstay is an online short-term rental platform and hospitality service based in Ho Chi Minh City, Vietnam. Established in 2016, Luxstay aims to bridge the gap between homeowners and travelers, making independent travel more accessible and helping homeowners generate more revenue from their properties. Luxstay provides a wide range of accommodation options like apartments, villas, studios, and houses across sought after Vietnamese holiday destinations. With over 15,000 listings, Luxstay records about 20,000 monthly bookings growing at a monthly rate of 20%.
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In response to the increasing gaps in engagement and the peak of the COVID-19 pandemic, Luxstay's marketing team decided to employ a different user engagement platform. After careful consideration and rigorous research, they chose MoEngage. This platform allowed Luxstay to automate engagement, segment users, and personalize communication. Luxstay's team first used MoEngage's Custom Segment to collate and analyze customer data, which helped them understand purchase behavior and user interaction with their app and website. This understanding allowed Luxstay to personalize the user experience by matching customer demand to available properties. Luxstay also used data from MoEngage to segment users into four categories: solo travelers, couples with no infants, couples with one or more children, and friends traveling together. These users were further segmented based on their behavior, such as the price range of accommodation, type of occupancy, and location. This segmentation allowed Luxstay to personalize their communication and improve conversions.
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The implementation of MoEngage's platform led to significant improvements in Luxstay's user engagement and conversion rates. By understanding and segmenting their users, Luxstay was able to personalize their communication and improve conversions. For instance, they found that their main customers were primarily couples who book homestays, a segment that remained largely unaffected even during COVID-19. Luxstay also utilized MoEngage's User Path Analysis to understand the steps taken by a user before making a purchase and the pattern of users who uninstall the app. They used MoEngage's channels such as push notification, email, and in-app push, to reach and engage users. During the COVID-19 pandemic, Luxstay paused all paid ad campaigns and focused on channels like email, in-app push, push notification, and on-site messaging to connect with users. Post the nationwide unlock in April end, Luxstay ran a promotion campaign to announce the reopening of booking for homestays. They also ran a targeted website campaign to showcase a curated collection of properties in safe locations available for booking.
5X Increase in Conversions
1.8X Growth in Monthly Active Users
60% Boost in Engagement Rate
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