- Head of Marketing
- Head of CRM
- Head of Strategy
- Product Managers
- Loyalty team
- Lifecycle manager
- Retention manager
To whom do we recommend?
- Telecommunication companies
- Credit card companies in need of profitable loyalty programs
Reward programs tend to be little bit ad-hoc in the beginning, but careful reporting systems and self learning algorithms will enable to fine tune offers progressively. Proposals for specific offers and their price usually come from product managers. As a rule of thumb, products and services to be building blocks are selected by product managers based on existing need based scores and past LTV/retention impact of certain offers. Similarly to LTV, things get more complex when reward program is applicable across brands.
Customer Lifetime Value of offers were usually a bigger driver than churn, at most reward programs, the primary reason being that it hurts less when less profitable leave the operator. Once the business objectives were defined, the last and in many cases most complicated question remained: Can the operator find a good public rule that is in line with CLV based reward mechanism?
The algorithm shall be defined so that the appropriate CLV cluster mostly matches the appropriate reward segment. A reward program needs to be closely monitored along with the effectiveness of other retention and campaign initiatives, to ultimately define the most effective budget.
Aim of the project
1. Align Retention toolkit to CLV to keep most profitable customers
2. Reduce churn
3. Incentivize prepaid to post paid to cable to broadband conversion while keeping individual brand usage incentives
4. Use reward program to introduce high value clients to VAS usage, but not discounting perception of VAS value
5. Advertising touch points on direct mails
6. Customer service always needs an authentic reason to call the client
In our experience, the following steps would be done in such a LTV based Reward project:
1. Business stakeholders define most important goals and budget of program.
2. Theoretical concepts to be defined. For example if customer gets tariff discount, does it qualify as an up-sell, or loss of revenue?
3. Building blocks of program and redemption mechanisms are compared against each other, e.g.:
4. Every 6 months, snapshot on overall LTV impact on segments are made. It is not a good sign if publicly communicated high LTV segment membership qualification criteria let in too many worse performing LTV segment members.
Example factors to consider at LTV segments
DOs and DON’Ts
Why are we different?