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What to expect from Zafin’s loyalty program assessment

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In developing our loyalty analytics solution, we set ourselves the task of helping our clients shed light on the dark corners of their existing credit card loyalty program. Namely, we wanted to help them answer these nagging questions: • How engaged are the users of my card loyalty program? • What is the behavioural, reward and psychographic profile of those users? • Is the reward we're offering effective across customer segments, products, and merchants – and do we understand the "gaps" where the program is ineffective? Read on to see how it works, and what a deployment could look like for your bank, which can provide you with specific recommendations to improve spend/utilization metrics and improve overall customer loyalty and customer experience. How it works: Zafin's loyalty analytics Loyalty programs are primarily designed to improve customers' engagement with the bank. But how successful are these programs, really? Zafin can help you make a rapid assessment of each customer's loyalty engagement with our proprietary Customer Engagement Score (CES). The CES is like a credit score, but for customer relationships. Based on five inputs (see Figure 1), we apply sophisticated multivariate statistical techniques to derive a score for each customer between 0 and 1,000. The more a client engages with the bank across these five metrics, the higher the score. Figure 1: Five Customer Engagement Score (CES) inputs and corresponding values IS THE CUSTOMER USING THE BANK'S PRODUCTS FOR DAILY USE? ARE THEY TOP-OF-WALLET? EMOTIONAL ENGAGEMENT RELATIONSHIP ENGAGEMENT ACTIVE ENGAGEMENT REWARD ENGAGEMENT DOES THE CUSTOMER ACTIVELY UTILIZE REWARD POINTS WITH REDEMPTION ON VARIOUS OPTIONS? DOES THE CUSTOMER HAVE A STABLE AND SUSTAINED USE OF THE PRODUCTS? HOW STABLE IS THE PAYMENT BEHAVIOUR? WHAT IS THE UTILIZATION OF THE BANK'S PRODUCTS OVERALL? DOES THE CUSTOMER ENGAGE ACTIVELY IN THE REWARD PROGRAM? HOW DIVERSIFIED IS THE CUSTOMER RELATIONSHIP? HOW TENURED IS THE CUSTOMER? RATIONAL ENGAGEMENT CUSTOMER ENGAGEMENT SCORE <150 150-450 450-750 750-950 950+ DISENGAGED/ATTRITION RISK LOW ENGAGEMENT AVERAGE ENGAGEMENT HIGHLY ENGAGED BEST IN CLASS SCORE DESCRIPTION What to expect from Zafin's loyalty program assessment What's in it for you? Zafin's loyalty analytics solution offers your bank insights that are meaningful, targeted and instantly actionable. As a starting point, we analyze six months of your card transaction and loyalty data to deliver: • A detailed assessment of your loyalty program – what's working and what's not? • Proprietary customer-level scoring and behaviour- based segmentation • Visibility into the performance of your merchants • A glimpse into upside revenue potential from re- engaging customers and targeting promotions

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