DOWNLOAD THE FULL WHITE PAPER
VIEW WHITE PAPEREXAMPLE SIMULATION
The Loyalty Program ROI Simulator
By using customer simulation, Marketers can feel more confident about the business decisions that will drive the desired customer behavior and improve customer loyalty.
Compared to high-level calculations, simulations are a more accurate method for understanding a loyalty program’s ROI. Lenati’s Loyalty ROI Simulator, for example, simulates the effect of each part of a loyalty program on each individual customer’s behavior over a time horizon, and can mix and match loyalty drivers to assess different scenarios. The results can then be aggregated to view overall impact or dive deep into customer segments.
The methodology combines statistical methods from the field of data science with big data and cloud computing, and pulls in customer insights from primary research. In doing so, the simulation can report out the overall ROI of the program, where typical expenses are incurred, and how each customer contributes new revenue driven by the program, for example. By comparing multiple scenarios of loyalty programs, Marketers can feel confident that they are choosing the right features and loyalty drivers for the program.
The simulation is a powerful methodology for understanding the ROI of a loyalty program. Once the simulation is complete and the results are analyzed, program decisions can be made. If certain scenarios are not ROI positive, new scenarios can be quickly plugged back into the simulator. When the optimal ROI is met, the program can be launched with lower risk.
SHARE
