While your loyalty program can drive increased customer retention and engagement, it can also pose significant liability risks from unredeemed rewards. Protect and strengthen your organization. You can make your loyalty data work smarter and drive better return on investment (ROI) with our LoyaltyAdvisor service.
LoyaltyAdvisor combines global loyalty program data science expertise with actuarial science and predictive analytics, so you can:
- Evaluate the financial value and liability at member-level accurately
- Manage your loyalty program effectively using predictive analytics
- Optimize your loyalty program design to improve financial results.
We help accounting, finance and marketing departments make more informed decisions that drive better loyalty program ROI while satisfying auditor expectations.
Assess the financial value of individual loyalty program members on both sides of the balance sheet more easily and accurately and start benefiting from stronger customer satisfaction and ROI from your loyalty program with LoyaltyAdvisor.
How can you evaluate your loyalty program more accurately?
Your customers earn points today but may not use them for months or even years.
Our bespoke models accurately estimate future member redemption behavior by analyzing frequency of activity, volume of earning and redemption payments, outstanding points balance and tenure, among other characteristics.
We help you accurately predict changes in future member redemptions by monitoring recent changes in member engagement trends. We can also reduce the volatility in your loyalty program liabilities that could impact your organization’s financial health with richer, more reliable and timely loyalty data insight.
You can increase the accuracy of liability estimations, give stakeholders more transparency over your loyalty program liabilities on the balance sheet and better identify the drivers of cost with LoyaltyAdvisor.
How can you manage the costs of your loyalty program more effectively?
LoyaltyAdvisor explores what-if scenarios and their associated impact on cost, helping your business manage the financial impact of customer rewards more effectively.
Assess the financial impact of potential program changes, guiding business leaders to make decisions consistent with financial strategies.
We make it easier to test new strategies on tiering and targeting members with the most economic value potential and manage liability risk from unredeemed points.
Analyze how structural program changes like modifications in expiration rules, accrual rates or redemption awards would affect each member’s redemption behavior and the balance sheet in total.
How can you optimize your loyalty program?
LoyaltyAdvisor makes it easier to generate stronger ROI from your loyalty reward program.
By applying actuarial science to customer behavior data, your bespoke LoyaltyAdvisor model provides insights to help you maximize customer lifetime value and drive revenue.
When your customers can earn points today that they may not use for years, our bespoke models accurately estimate future member behavior using forward-looking predictors, so you can better predict future earning and redemption member behavior before these activities actually happen.
You can also uncover more opportunities and target the right customers with the most potential with focused marketing campaigns.
And because LoyaltyAdvisor makes it easier to make efficient, value-generating decisions, your loyalty program talent can focus on innovation and driving even more value.
What questions can LoyaltyAdvisor answer for auditors, finance and marketing?
- What’s an accurate liability estimation and profit and loss forecast for your loyalty rewards program?
- What are the drivers of changes in the cost of your loyalty program?
- What impact will changes in member behavior have on the economic value of your loyalty program?
- How can structural changes in your program enhance the long-term sustainability of your loyalty initiatives?
- What’s the impact of modifying member benefits, expiration rules or minimum redemption thresholds on your balance sheet?
- Who are your program’s ‘power users’ and how can you maximize their value?
- Which members should you target with bonus campaigns to boost wider engagement and overall program value?
- What strategies can you implement to manage the costs associated with your loyalty programs more effectively?
