What We Do
We provide actuarial consulting services to help companies to start, design, and manage their loyalty programs more effectively. As loyalty programs evolve, internal program changes and external macroeconomic events can impact member redemption patterns and accruals, necessitating proactive management of loyalty liability.
Our team uses actuarial models to predict future redemption costs, analyze customer behavior, and support the finance accounting, and marketing functions of loyalty programs. We help businesses estimate the financial liability associated with reward points, enabling leaders to understand the financial impact of program changes, and make informed decisions regarding loyalty program structure and pricing. Our actuarial services improve financial planning, optimize loyalty program design, enhance customer retention and, mitigate risk.
Our loyalty program services offer the following benefits:
- Proactively manage liability
- Sophisticated data and insights on member behaviors
- Tailored models to limit undue volatility of results
- Insights into key risks and levers to harness or mitigate those risks
- Accounting support, including actuarial model customization to meet financial reporting requirements
With experience spanning many industries, most notably airline, hospitality, retail, restaurant, gaming, and banking, we provide a holistic perspective of loyalty trends and a nuanced understanding across a broad range of industries. Globally, we have worked with leaders across five continents on loyalty programs.
