How a Gaming Giant increased retention through its loyalty program

The Problem

A major gaming and entertainment brand wanted to assess the impact of its perks program for members of its premium subscription service on helping reduce the numbers of subscribers who did not renew their subscriptions ( also known as subscription churn).

The LatentView Solution

Using clustering algorithms LatentView was able to identify different segments of subscribers based on their behaviors involving perks redemption and subscription renewal. Then a quasi-control framework was set up to measure the incrementality of the perks program.

The After State

The analysis uncovered those subscribers who redeemed the perks were churning 3 percent less compared to subscribers who did not redeem the perks-a statistically significant result.

More importantly, LatentView’s analysis showed that the perks impact on reducing non-renewal rates also worked with “light-engaged” subscribers who played less often.

Business Benefits

LatentView’s data-driven analysis provided the gaming company with confidence to continue and potentially expand its existing perks program to not only attract new subscribers but also retain existing ones. This insight had implications for long term P/L as it is much easier and cost effective to maintain and upsell/cross-sell existing customers than it is to replace customers that churn with new ones.