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IQR Consulting Advises Credit Unions to Look at Airline Industry for Rewards Inspiration
(Santa Rosa, Calif. – November 13, 2012) – When it comes to rewards products, credit and debit card programs can be very similar to the frequent flyer programs offered by many of today’s airlines. According to Karan Bhalla, director for IQR Consulting – a data analysis firm serving credit unions and airlines –each type of program aims at one thing – building loyalty among members.
Both programs incent members to use products by rewarding them for doing so. Both offer members promotions and bonuses to keep the members active. And both face many of the same challenges, ranging from new member acquisitions all the way to attrition.
“All rewards programs – whether based on miles, points or some other perks – are most successful when they are customized, catering specifically to the unique needs of a particular membership,” said Bhalla. “What many of the airlines have learned is that this relevancy can only be achieved with a commitment to studying the program and by building statistical predictive models to uncover the secret recipe to achieving desired loyalty.”
IQR, which recently added US Airways to its list of loyalty program clients, uses existing customer information to help clients improve the performance of membership programs. Their work ranges from driving strategies to increasing member engagement to predictive modeling. The firm uses in-depth data analytics – a methodology relying on a combination of technology and human scrutiny of available data – to enhance the performance of many credit union programs, including but not limited to, card rewards.
For any rewards program to be successful, it has to be of real value to members, Bhalla added. “Unfortunately the perception of value isn’t always consistent across members; what appeals to one person doesn’t necessary appeal to another,” he said. “By applying data analytics, both rewards and mileage programs can bridge that gap, leading to a more satisfied member who values the program he or she is in because it meets a specific need.”
About IQR Consulting
IQR Consulting is a leader in portfolio and financial analytics, reporting, statistical modeling and campaign management. The analysts at IQR are experts in the use of segmentation as a means for highly targeted marketing. With accurate and actionable insights and analysis, IQR helps credit unions, banks and casinos leverage data assets to increase profitability and to better compete against larger institutions. For more information, visit www.iqrdataanalytics.com.