Dissecting the economics of loyalty and structuring financial and corporate strategy that optimizes the ROI of Loyalty™ initiatives.
We specialize in optimizing the economic performance of loyalty initiatives, paving the road to fully functional loyalty economics for enterprises. Whether you are a sophisticated incumbent in travel, financial services and telecommunication, or a small-to- medium enterprise that has yet to benefit from an elevated playing field in Loyalty, AVI will work to bring the discipline of Loyalty - usually associated with Marketing - into the CFO and capital suppliers domain. Our key services include:
- Diagnostic analysis covering customer-facing, operational and partnership aspects of the program
- Financial modeling of current performance and precise simulation and forecasting of proposed changes
- Proprietary Big-Data-enhanced economic, market and behavioral analytics
- Formulation of redefined value proposition based on findings and goals
- Syndication with senior leadership and integration planning
Think you're too small for our advisory services?
Our Bytesize micro-consulting arm specializes in research & information or analytics assistance for your capacity-constrained loyalty initiatives, using flexible engagement models and cost-effective support when you need it.
Managing and reorganizing partner portfolios for loyalty programs.
An extended pool of partnerships enhances the attractiveness and effectiveness of your loyalty program. AVI will help you optimize your partner portfolio:
- We'll conduct a far-reaching review of accrual and redemption performance by partner group and individual partners.
- We'll help you optimize your existing partner operations, as well as extend your network to financial institutions, travel suppliers and other interested parties who buy points in bulk or provide redemption opportunities.
Partnership operations demand the right technology. We know the myriad of loyalty technology providers, and work only with those who have a proven track record of achievements and advancements in the field.
What could be an overwhelming task - selecting the right vendor - now becomes easy.
Establish strategy and infrastructure aligned with market mechanisms to drive new generation loyalty via proprietary design, analytic methods and applied economics.
We aim to push the frontier of Loyalty by applying our newest thinking - and that of our partners - to deliver enhanced performance.
For example: we are currently designing a proprietary customer-centric frequent flyer program experience, based on leveraging customer preferences, acquisition tracks and activity to generate signature program profiles that optimize the closest fit between benefits and individual customer preference. The prototype is currently in the process of being applied in several coalition program contexts.
Another area of development is Socially Enhanced Loyalty Design. It represents a technological solution that leverages social media platforms to reward customers for specific behaviors defined by the client and program partners, while obtaining unique customer data and insight, providing an amplified role to customer feedback in the program's stream of offers. This type of design approach is optimal in a coalition context.
Maximization of Loyalty program's value is usually achieved by carefully selecting the right organizational structure.
Frequent flyer program structure and ownership models have occupied management thinking for over two decades now. Over the past few years, AVI has seen increased interest in restructuring loyalty programs as separate reporting business units, both for enhanced accountability as well as acknowledgment of the value creation process. Some of these developments have led to spectacular forays that signified stock market acceptance of loyalty programs, while others have underscored the direct link between the program entity and the possible global ambitions of marquee players.
Jointly with our clients, we aim to go beyond the hype and develop a strategy poised for growth, leveraging existing assets and operational capital. We help our clients evaluate the factual pros and cons for a comprehensive set of structural and ownership scenarios that aim to maximize the economic value of their loyalty initiatives.