Why settle for just one loyalty program when two programs could offer double the impact?
Using custom-designed discrete choice and MaxDiff models, we determined the optimal offerings and targets for both the new free and older paid loyalty programs. The discrete choice model’s custom design determined not only the take rate at a particular price point, but also the share of sales that would go to the theater vs. key competitors based on the addition of the free program. The MaxDiff model also narrowed down a long list of potential features outside of the discrete choice model for a more focused product feature analysis.
Through our research, we determined which targets/sub-groups were most likely to subscribe to the free and optimized paid loyalty programs. We furnished a business decision tool (BDT) so the client could simulate various scenarios for executives, including among specific sub-groups. The client ultimately released a new free loyalty program and a revised paid program to great success.