A national lottery organization initiated work to understand how to restructure and develop a longstanding loyalty program. The objectives were to streamline the program offering, maximize members’ interest and usage, and attract new members.
Members and non-members of the loyalty program exhibited very different behavior and an integral gaming segment analysis teased out the low stakes versus high yield individuals. The resulting filtered simulator maximized efforts against the various groups in a win-win way for the firm and for the players. The 3-tier modeling created an aspirational element to encourage moving up.
Focus groups generated ideas for increased loyalty. Discrete choice modelling established the most efficient and appealing elements to go into the program. An interactive simulator measures consumer response to varying combinations of program characteristics for ongoing use.
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