Analytical Paths™
The key to all loyalty marketing and reward program initiatives is data. Many mid-size companies lack the time, resources and tools to properly segment their customer base along multiple dimensions of purchase behavior. Hence, they end up with one size fits all, undifferentiated programs that offer the same routine discount to all customers on file.
Reward Paths understands that all customers are not created equal. You must allocate your resources disproportionately towards those segments where you can make the greatest impact on behavioral change and increased profitability. The Design Paths approach to strategic issues requires a thorough analysis of the following factors:
- What is the most relevant method to determine customer value?
- What is the true value of each customer on file? How does the entire customer base profile on value?
- Do we have any account attrition? What would be the financial impact associated with any reduction in customer churn?
- What is the potential spending lift associated with current accounts?
- Are there firmographics (B2B) and demographic (Consumer) characteristics associated with accounts which help explain differences in value, attrition or potential?
- What segmentation schema makes the most sense for my rewards program and how will it likely produce financial benefits to my firm?
Reward Paths has developed a suite of analytical models and data-driven design tools to help you understand the nuances that exist in every customer base. We understand that if you cast the net too wide, you will likely produce a program that is not financially sustainable. If you cast the net too narrowly, then the positive results will be too insignificant for the enterprise to truly embrace.
We know that if your program fails to uncover the unique customer DNA that makes all exceptional reward programs deliver superior results, then all you've done is increased the cost of doing business!
Analytical Paths can be provided as a stand-alone analysis service or as a bundled element to an integrated rewards program plan and implementation. Analytical Paths™ services include the following:
- Customer Value Models – What is the true value associated with an individual customer on a transactional and/or profitability scale? Is this value best expressed on a temporal or lifetime value scale?
- Attrition Models – Which customers have the highest probability of becoming non-customers in the near term future?
- Potential Models – How much upsell or cross-sell opportunity exists within specific customers?
- Financial Models – What is the expected level of return in ROI or NPV metrics associated with any investment in my rewards or loyalty program?
- Market Research – What will customers say?
Analytical Paths services include specific deliverables for a fixed analytical services fee. We are capable of handling most customer file formats for both B2B and consumer databases and also apply these same principles to the analysis of employee, sales force or channel partner behaviors. We speak business not stat. We are faster and less expensive than most. We are expert at the analytics of loyalty and rewards marketing, not acquisition, risk, promotional response, customer service or the wide range of other data-driven disciplines seeking to influence your marketing measurement agendas. Contact us for more information about our Analytical Paths services. |
