A New Methodology for Predicting the ROI of a Loyalty Program
Introducing the Lenati Loyalty ROI Simulator
The Loyalty ROI Simulator
The Loyalty ROI Simulator
Lenati’s Loyalty ROI Simulator is a powerful tool for understanding the potential ROI of a loyalty program. See more with our interactive version here.
Benefits of Simulation
Benefits of Simulation
Simulation is more reliable than back-of-the-envelope calculations that make high-level assumptions or guesstimates.
Integral to Loyalty Strategy
Integral to Loyalty Strategy
Understanding ROI is only one important component of loyalty program design. A typical design of a loyalty program has four major phases.
Baseline Customer
Behavior Profiles
The simulator uses historic or recent customer data to create a profile for how each customer is likely to behave without a new program.
Simulate Future
Behavior
Using the customer profiles from step 1, the simulation predicts what the future orders will be for each customer during the selected time horizon.
Define
Scenarios
A selection of possible loyalty programs are chosen, and each has its own set of drivers.
Re-run the Base
Simulation
The baseline in step 2 is adjusted for each loyalty program scenario based on the loyalty drivers in step 3.
Compare
Estimated ROI
Once the simulations are complete, all the results can be compared side by side.
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