ARLINGTON, Va.--(BUSINESS WIRE)--Global professional services company Towers Watson (NASDAQ: TW) has expanded its Risk Consulting & Software loyalty rewards offering by introducing LoyaltyAdvisorTM, a service for companies that offer a loyalty currency, e.g., points or miles, to their customers. LoyaltyAdvisor provides a suite of services and solutions to help clients manage the financial risk of issuing a loyalty currency. It also delivers insights for loyalty program managers, empowering them to better predict the cost of future redemptions, identify the drivers of those costs, and optimize the financial performance of their programs.
The LoyaltyAdvisor solution utilizes a proprietary framework that enables financial executives to understand and validate the cost and timing of future redemptions and corresponding balance sheet liability. This framework leverages advanced predictive modeling techniques and sophisticated modeling software. The approach considers changes in forward-looking predictors such as point-earning behavior to project changes in future redemption behavior and develops cost estimates designed to respond rapidly to changes in member-specific characteristics.
“Many loyalty programs have liabilities or deferred revenue on the balance sheet in the hundreds of millions to billions of dollars. Given the magnitude of these costs and the rapidly changing loyalty environment, the market needs a new approach,” said Len Llaguno, senior consultant, Risk Consulting & Software Corporate practice, Towers Watson. “The techniques used by many to address these significant financial items can be dramatically improved using analytics. We’re confident LoyaltyAdvisor will satisfy this market gap by helping our clients control costs and better understand their programs over time.”
About Towers Watson
Towers Watson (NASDAQ: TW) is a leading global professional services company that helps organizations improve performance through effective people, risk and financial management. With 16,000 associates around the world, the company offers consulting, technology and solutions in the areas of benefits, talent management, rewards, and risk and capital management. Learn more at towerswatson.com.