It is quite evident that an increase in customer retention would directly contribute to increase in organization's profitability. In spite of this critical business impact, customer retention remains as one of the biggest challenges in many industries. In certain industries, Loyalty Programs are used to control the customer churn and increase customer retention. However, the key to a successful Loyalty Program lies in recognizing and the rewarding the “right” customers.

Loyalty Programs often do not bring in expected benefits because of underlying flaws in the program that go undetected. A Loyalty Program will soon lose its charm if the organization fails to do the following effectively:

• Customer classification based on the usage of the loyalty program
  
• Alerts to business in case of erosion in customer loyalty
  
• Trend analysis on customers' loyalty program usage
  
• Identification of the appropriate target audience for a focused and effective marketing campaigns

We believe that the above challenges can be solved through structured analysis of Loyalty data. Loyalty Analytics solution has emerged from ITC Infotech's rich domain knowledge across multiple industry verticals and its deep understanding of Business Intelligence products.

ITC Infotech’s Loyalty Analytics Solution has the capability of providing customer-centric reports that act as a decision support system. Analysing past data and extracting inferences, it helps the decision maker in understanding the trend of sales, impact of promotions, usage pattern of loyalty programs, profitability, etc. The reports are based on the following metrics from the loyalty system:

• Customer Metrics (Member)
  
• Transaction Metrics
  
• Communication Metrics (Member Activity)
  
• Service Request Metrics
  
• Tier Metrics