Understanding the Situation
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Data Collection
Actuarial Modelling
Fine Tuning
Written Report
New Developments
Breakage Analysis Process
We then obtain relevant member-level data, clean and manipulate it, and analyze it to understand the patterns of member behavior. This helps us form assumptions to apply for the modelling
We start by gaining full understanding of the current loyalty program and terms, as well as how accounting for the program is currently allowed for
Working with you, we continue to observe and assess developments in the program and its environment, and prepare for the implications on the breakage analysis
Results, significant findings and key insights are summarized in a written report
Discuss planned changes and enhancements to the program
Illustrative charts and graphs help you visualize results and make connections
Repeat steps 2–3 until assumptions sufficiently describe the future landscape of the program
Critical analysis then takes place in which we forecast accruals, redemptions and expiries, as well as balances and other metrics. We assess the model against past experience and understand the results of the forward projections with consideration of future planning
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