The number of loyalty program memberships has increased, but active engagement has declined relative to total membership. As a result, loyalty programs are experiencing competition for customer wallet share.
To be successful, loyalty programs can use data from advanced modeling methods to identify value and predict the future behavior of their member base. This will enable program managers to maintain and potentially grow their market share.
Despite the ubiquity of loyalty programs, each program is unique. It is important to consider a program’s objectives in order to tailor key performance indicators and monitoring dashboards. Generally, a loyalty program’s objectives fall into one or more of the following categories:
Growth in membership for select industries
In addition to simply highlighting problem areas, successful analytic processes to identify the root causes of problems; a program manager then can determine potential actions that could improve outcomes. Examples of business processes that companies can examine and monitor include:
Actuarial Services Advanced Analytics Leader, PwC US
Actuarial Director, PwC US