Zafin, the leader in Product and Pricing Lifecycle Management for the financial services industry, has launched a new cloud-based analytics solution with an initial focus on optimizing the effectiveness of card loyalty programs.
Powered by miInsights™, part of Zafin's miRevenue™ software suite, the loyalty analytics solution harnesses the power of the bank's data to optimize each stage of the card loyalty lifecycle, including acquisition, increasing card usage, retention and sustained engagement, and shifting customer behaviour.
"If your bank or credit union is executing a loyalty program without detailed analytics to support it, it's next to impossible to determine if the program is performing in-line with your strategic objectives," said Suman Singh, Chief Analytics Officer at Zafin.
Quantifying the value of customer engagement is a key component of enhancing loyalty effectiveness. Zafin has developed the patent-pending Customer Engagement Score (CES), a scientific measurement of the engagement level of bank customers. Unique to each customer, this score is calculated based on a range of inputs, including transaction activities, product usage, depth of relationship with the bank, and redemption activities.
"The Customer Engagement Score is like a credit score for customer relationships," noted Suman. "The score unlocks a new way of segmenting your customer base by the degree and type of engagement with the bank, which has powerful implications on value-added marketing initiatives."
"Zafin's loyalty analytics solution offers a powerful segmentation method based on customers' spend and usage behaviour, shopping habits, payment preferences, and reward utilization. This analysis reveals specific patterns to help predict customers' next best shift behaviour," said Aditya Khandekar, Managing Director of Analytics at Zafin.
"With Zafin's loyalty analytics solution, banks can proactively respond to changes in customer engagement levels with input from CRM and transaction systems, optimizing rewards to help retain their customers," noted Khandekar.
"When banks harness the power of data analytics to gain a deep understanding of the drivers of customer loyalty, they can generate actionable insights and tactical recommendations to proactively frame and reward desired behaviour, improve cross-sell/upsell, and enhance the customer experience," said Mike Sgroe, President of Zafin. "When banks get loyalty right, there is a tremendous opportunity to capitalize on this new revenue stream and set themselves apart from the competition."
Zafin's loyalty analytics solution is the first phase of Zafin's analytics roadmap. Further functionality covering engagement across a customer's overall deposit and credit profile, as well as the areas of pricing analytics, wealth performance analytics, and customer analytics, is planned for future releases.