What We Do
Today’s loyalty rewards programs need to be dynamic and adapt to the ever-changing consumer landscape. Oliver Wyman’s modernized approach toward managing loyalty reward liabilities is designed to bring accuracy and stability so that management can act quickly and confidently Oliver Wyman Actuaries have extensive experience in the loyalty program industry and understand the key drivers of member behavior. We have the best loyalty modeling available – modeling that goes beyond simply accounting or financial requirements, and is catered specifically to the needs of your loyalty program. Additionally, we have expertise with every type of loyalty program across a variety of different countries.
What Differentiates Our Approach?
Member behavior is at the heart of what drives accrual and redemption activity in a program. We take a member-centric approach to loyalty program modeling. Our models are grounded in analysis based on member-specific behavior to project forward each member’s experience into the future. Projections are dynamic and responsive to changes in program rules, new campaigns, external factors and strategic objectives.
Our model also is:
Sample insights exhibit: Probability of accrual by point balance and time since last accrual
What Are The Benefits Of Having A Top Tier Loyalty Model?
- Allows you to anticipate the impacts of program changes and campaigns
- Visualization and quantification of trends by member cohort (hoarder, earner and burner, new joiner, tenured member, etc.)
- The model can be made into an online tool/application that your organization can have at their fingertips
- Our long-term projections account for not only breakage trends within each cohort but also the change in the distribution of members among the cohorts
- Helps you understand the key drivers of variability in redemption rates and how this may impact your financials and associated risks
- We can calculate breakage by product line to help you assess profitability
- More accurate projections to help ensure financial prosperity and stability
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Who We Are
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Jack Reardon Senior Consultant