This blog is the second in a series of three blogs where we look at how leading digital companies leverage analytics. The first installment can be found here.
During our first installment of Deciphering the Analytics Hype, we explored the importance of the business context in which changes occur as well as the criticality of understanding the business model, the operational impacts of change and how to assess them.
Today, we will dive a bit deeper into an example of a change our team encountered and how we engaged with our customers to select and deploy analytical approaches.
Deployment of a Loyalty Program
A Fortune 500 company was looking to test a loyalty program with the following goals in mind:
- Deliver enhanced experiences to customers
- Develop a better understanding of purchase behaviors across online and offline channels
- Reduce use of couponing and margin erosion
- Increase trips in store and online
With these objectives in mind, the company set out to test and effect change in the way it interacted with customers. As previously discussed, these changes could potentially have a far-reaching impact on the current business model. Our team considered the following in defining the analysis required to assess the testing and eventual launch of the program:
The Analytics Approach
The team’s approach is grounded in the application of analytical methods to gain insight into business model changes and optimize operations to achieve business outcomes. In this example, each of the goals were achieved and the business value created exceeded the estimated return on investment. Interested in hearing how we can help your organization drive business value when analytics are thoughtfully applied? Contact us today to discuss the changes you are facing and the analytics approach that would provide you the best opportunity to serve your customers.