WTW - Loyalty Advisor

WTW has significant expertise and experience in the Loyalty space. We are providing consulting support to Loyally clients for 25+ years in industries including Retail and Gift Cards, Hospitality, Frequent Flyer programs, Financial Institutions/Credit Cards, Transportation, Cruise lines, Sports Associations, Online Travel Agencies, and mobile phones loyalty rewards programs. We work with some of the largest international Loyalty programs in three continents.

The typical services WTW provides to our clients include:

• Liability valuation: WTW employs a proprietary predictive modeling framework to estimate the breakage and liability for every individual member of a Loyalty program. It can easily be aggregated into various marketing/geodemographic segmentations and in Total. The modeling granularity improves accuracy and helps identify the drivers of members’ redemption behavior.
• Liability management: Measuring the redemption behavior at the member level allows us to analyze what-if scenarios and their associated impact on cost. That guides management decisions when they contemplate structural changes in their programs, including new/revised expiration rules, changes in the accrual rates/award charts etc. and ensures that the changes selected are consistent with the company’s financial strategy.

• Program Optimization: Understanding the cost/benefit trade-offs of your program helps identify member targeting strategies and optimize the program’s financial value. Introduction of campaigns, like bonus points, results in an increase of marginal revenue and marginal cost at the member level. The WTW analytics identify the members that would maximize their economic value contribution as a response to bonus campaigns.