Steve Burnstone, Eighty20 CEO, presented The Science of Loyalty at the Actuarial Society 2015 Convention held on 17 – 18 November 2015 in Johannesburg.
In this presentation Steve explores the scientific methods that are used to set-up and manage loyalty programmes. Steve makes the point that most loyalty programmes appear to lose steam after the programme is set-up. Especially when it comes to tracking and measuring programme performance and targeting members with personalised rewards.
The financial success of a loyalty programme relies on the incremental profit due to change in customer behaviour. Quantifying this behaviour change using different statistical techniques allows programme managers to understand which aspects of the programme are effective and allows them to intervene when it isn’t running optimally.
Personalised communications informed by data have become more important, especially when targeting millenials. Sending relevant communications and making personalised offers has the potential to improve many loyalty programmes. Data driven methods have been shown to be the most effective way to improve success rates when communicating with customers.
Steve’s full presentation can be viewed below.